JAPANESE

Employee Training

Global Human Resource Developmen

Global human resource development for Komatsu business leaders is divided into : Training (1) - Developing top management and executive roles of overseas subsidiaries, and Training (2) - Developing human resources in Japan for group employees that will play an important role globally. Komatsu's business policy is to promote the localization of management at overseas subsidiaries and Training (1) aims to foster regionally hired career employees to become business leaders that can be a part of top management at regional subsidiaries. Already, major subsidiaries are managed by regionally hired top executives, with a Japanese resident officer supporting them as the second-in-command at the company. For subsidiaries managed by top management officers who are Japanese, Komatsu is working to train regional executives and hand over the top positions to them. The main roles of Japanese resident officers are to transfer The Komatsu Way management style, technology, and skills to overseas employees, and are expected to become bridge human resources that connect Komatsu (Japan) to regional subsidiaries.

Training (1) : This program is intended for regionally hired executives in subsidiaries, and mainly consists of explaining and debating topics, such as Komatsu management policies, The Komatsu Way, and business strategies. The actual implementation of the project began in 2006. In 2006, training for regionally hired top executives of subsidiaries was held at the Komatsu Head Office (Tokyo), and training for top management candidates for local subsidiaries have been held at the Head Office (six times up to FY2008). The "KOMATSU Way Leadership Development Program (KLDP)", intended for regionally hired executives of subsidiaries in strategic markets, has been held in overseas locations since 2009. Beginning in China, and later other overseas locations, the KLDP has been held nine times up to the end of March 2012. In the future, Komatsu will hold more training programs such as these and work on the development of regionally hired executives of subsidiaries who have an understanding of Komatsu business policies and The KOMATSU Way.

Training (2) : This program is intended for Komatsu Group employees (within Japan) and places an emphasis on developing professionals for various occupational functions. The program includes selected leader candidate training, training by hierarchical level, and training customized to different occupational skills. For selected leader candidate training, Komatsu implemented the institution of training selected business leaders in 1996, to develop top management candidates that can be active globally. Selected candidates are separated into two training courses, A training: division manager class, and B training: section manager and supervisor class. In the division manager class, around 10 individuals are sent to short-term national and overseas business schools. The section manager and supervisor class selects around 25 individuals to participate in in-house business school for 10 months.


Efforts to Strengthen Manufacturing (Monozukuri), and Workplace (Genba) Capabilities

Globalization of Komatsu's production organization is progressing, and the manufacturing workplace is requiring a high level of technical capability. We designated the third Saturday of every October as "Technical Capability Day" and hold all-Komatsu technical competitions on this day. Participants include employees from overseas subsidiaries and business associates; whose aim is to maintain and improve Komatsu Group's technical capabilities by mutually dedicating themselves to their studies. In FY2011, 45 participants from 9 countries overseas attended.

Komatsu established the Meister system for passing down technical capabilities from the production site in FY2006. Techniques and skills that merit handing down are divided into 9 fields of 15 capabilities, and a First Meister is certified for each capability. Certified Meisters (there are 39 as of April 2012, and are authorized by each factory), who are certified for their high-level of proficiency for a particular technical capability, dedicate all of their time to guiding and nurturing young employees.