Abstract
Skill standard system can play a role in raising incentives for skill improvement of employees and firms and reducing uncertainty of interaction cost, through presenting common standard of the necessary skills in the industry. As for Thai automotive industry, this kind of system is important, especially because local firms and their employees are not conscious well of the higher skill requirements from customers more than their expectations. Based on the above understandings, this study analyzed the present condition and limitations of the existing systems, and the contents of "Auto Industry Certification System" by Thailand Automotive Institute (TAI) which is in preparation for starting operation. The existing systems, both national and intra-house, are not sufficient to promoting the necessary skill improvement. On the contrary, the new system by TAI is regarded as better one to meet the industry's needs. In addition, we obtained the result that the operating subject need to actively deal with "skill improvement function" and "skill evaluation function", as well as "skill certification function", in order to attain the aim of skill improvement and reduction of interaction cost. Since the new system includes measures to implement these functions, we can evaluate its feasibility high in terms of the system design.