This monograph, one of a series on Comprehensive Employment and Training Act (CETA) program models, is designed to make available to prime sponsor staffs the lessons some of their colleagues feel they have learned from service in CETA and previous programs. The content is in seven sections. The first discusses the philosophy and purpose of on-the-job training (JT) and upgrade training as an OJT program. Section 2 reviews the historical development of OJT policies, including the Manpower Development and Training Act, the National Alliance of Businessmen's Job Opportunities in the Business Sector Program, and CETA. Section 3 discusses several considerations in developing and operating OJT programs, including objectives, OJT versus classroom training, economic conditions, realistic budgeting, operating or subcontracting the program, job descriptions of key positions, production and performance standards, linkages with other employment and training programs, selection of industries and jobs, and monitoring. The fourth section discusses marketing considerations and includes target population priorities and characteristics, legislatively mandated priorities, the job market, contact service representatives and employer contact procedures, and public relations tools. The OJT contract design, including essential features, a pre-CETA model, cost reimbursement versus fixed cost, and supportive services are covered in section 5. Section 6 describes several experimental OJT alternatives, such as, incentive payment to trainee and contract extension. The final section makes recommendations for OJT program improvements. (EM)