A theory of vocational education and training (VET) somewhat different than that currently accepted is a set of beliefs about the purpose, practices, and principles associated with producing occupational competence. VET institutions need to be aware of and responsive to work force requirements. An analysis of information about current and future work force imbalances, along with these considerations---economic implications, public funding, and career planning--form the basis on which work force planners and policy makers can make decisions about VET courses/programs. Three alternative work force projection and forecasting approaches are labor force approach, econometric models, and input-output models. Planners also use the following labor market signaling approaches as appropriate: public employment services, job advertisements, key informant interviews, employer surveys, and follow-up studies. Fourteen cardinal practices imperative to relevant and effective VET are as follows: consolidating skilled occupations, deriving curriculum content from job analysis, performance-based training, task performance standards and criterion-referenced examinations, diversified funding sources, beneficiaries of training sharing its cost, and linking school with the workplace. Four principles help make learning and retention easier, faster, more effective, and more efficient: inform trainees of learning objectives, provide guidance and prompts, provide feedback, and provide active and purposeful practice. (A handout on funding options is appended.) (YLB)