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Developing People

Personnel Policy and Performance Appraisal System

For a business, it is said that people, goods, money, information and time are valuable assets and resources. Even if the other elements remain constant, if people change, the results will be different. Thus, people—the employees of Komatsu Group companies—are an irreplaceable asset for the Group. Komatsu recognizes the role of the personnel system in enhancing the quality and reliability of the company's human resources. It therefore endeavors to foster a work environment with opportunities for challenges and creativity. The company works to maximize the sum of trust given to it by its employees.

Global Personnel Policy

Personnel systems reflect the history and culture of each particular region. It is therefore important to recognize and understand those differences.
In accordance with the basic policy outlined below, the members of the Komatsu Group are creating a personnel system tailored to the needs and reflecting the circumstances of each particular region.

  • (1) We shall respect each employee's fundamental human rights, inherent personality, individuality, and legally protected privacy.
  • (2) We shall treat and appraise each individual employee in a fair and impartial manner. We shall not discriminate against any employee on the basis of nationality, race, religion, age, gender, physical or mental disability or other legally protected attributes that are irrelevant to his or her performance. We shall vigorously endeavor to promote equal opportunities for employment and eliminate harassment in the workplace.
  • (3) We shall endeavor to provide employees with workplaces where they can seek a good balance between their private and professional lives, while effectively accomplishing their respective tasks with satisfaction and pride.
  • (4) We shall endeavor to design and administer the system of human resource management in a manner that is most reasonable and persuasive to the employees. We shall make such systems open and clearly explain them to the employees to the maximum extent practicable.
  • (5) Komatsu Group companies shall comply with all applicable laws and regulations governing employee rights in the jurisdictions in which they operate, and faithfully accommodate, wherever applicable, conversations or discussions with employees or their representatives.
  • (6) We shall not tolerate child labor or forced labor.
  • (7) Komatsu Group companies shall endeavor to offer to their respective employees those terms and conditions for employment that are sufficiently competitive in their respective regions.

Personnel System that Accurately Reflects Employee Abilities and Achievements

Personnel systems in Japan are typically based on the assumption that employees will work for a single company for many years. Therefore, when designing a system, a company must keep in mind the degree to which continuous employment should be considered. Komatsu believes that personnel systems emphasizing length of service do not necessarily reflect employees' abilities and achievements fairly. Instead, Komatsu has always strived to accurately evaluate the performance of employees as individuals, incorporating employees' achievements and abilities into its personnel system as the basis for fair evaluations.

Fair and Appropriate Evaluation

For a company to create a workplace environment where employees can work without undue worries, it must treat employees fairly. As described above, Komatsu's personnel system now takes into account employee abilities and achievement. Therefore, our challenge is to ensure that employee evaluations are fair and appropriate for each employee. For this purpose, in April 2004 the company organized refresher training for all managers on how to conduct evaluations. Since then, evaluation training has been given to newly appointed managers, backed by e-Learning based follow-up education. An evaluation committee has been established jointly with the labor union at each business unit to confirm that evaluations are conducted properly. Komatsu has provided individual feedback on evaluations to managers since 1998 and to non-managerial employees since 2001. The company has also set up a consultation office through which employees can express complaints and concerns.

Condition of the Labor Union

Komatsu has a labor contract with the Komatsu Labor Union, which is organized by approximately 9,500 employees and 7 branches in Japan. The Komatsu Labor Union is a member of “All Komatsu Workers Union” and “Japanese Association of Metal, Machinery and Manufacturing Workers.” Each of 18 consolidated subsidiaries and affiliated companies in Japan has a labor contract with its each labor union joining “All Komatsu Workers Union.” They are organized by approximately 7,300 employees of subsidiaries and affiliated companies. The relationships between Komatsu Ltd., subsidiaries, affiliated companies and these labor unions are stable.

Also, in each country, Komatsu complies with laws related to the rights of laborers and responds with integrity to dialogue and discussions with individual employees and their representatives.

DATA

All data except for (5) Number of employees (Komatsu Group) is data for Komatsu Ltd.
Numbers of employees for (11) are as of April 1 and all other numbers shown are as of the end of the year, except as otherwise noted.

(1) Number of employees

FY2013 FY2014 FY2015
Total 10,217 10,416 10,449
Male 9,167 9,325 9,295
Female 1,050 1,091 1,154

(2) Average age

FY2013 FY2014 FY2015
Total 38.0 38.3 38.5
Male 38.1 38.4 38.5
Female 37.4 38.0 38.5

(3) Years of continuous employment

FY2013 FY2014 FY2015
Total 13.8 14.1 14.3
Male 14.2 14.4 14.6
Female 11.0 11.4 12.0

(4) Annual total remuneration (average)

(JPY)
FY2013 FY2014 FY2015
Total 6,963,233 7,191,383 7,111,071

(5) Number of employees (Komatsu Group)

FY2013 FY2014 FY2015
Consolidated 47,208 47,417 47,017
Temporary 1,264 1,175 1,057
Non-Japanese
(non-consolidated)
56 59 72
Non-Japanese
(consolidated)
29,162 28,945 28,561

(6) Number of employees by age

Total Male Female
Under 30 2,547 2,235 312
30–39 3,226 2,972 254
40–49 2,646 2,271 375
50–59 2,030 1,817 213
Total 10,449 9,295 1,154

(7) New graduates employment

College graduate Junior college graduate High-school graduate
Year (April) Total Male Female Total Total
2014 213 181 32 24 97
2015 183 163 20 42 71
2016 158 129 29 26 52

(8) Mid-career employment

Total College
male
College
female
Other
male
Other
female
April 2013–March 2014 143 54 11 55 23
April 2014–March 2015 125 58 12 37 18
April 2015-March 2016 25 10 4 6 5

(9) Employee turnover (April 2015–March 2016)

Total Male Female
Number of employee turnover 77 58 19

Number of employees who received monetary assistance for job change (50 years or older in non-managerial positions and 45 years or older for managers): 17

(10) Retention of new employees

Male Female
New employees (April 2013) 356 60
Enrollment (April 2015) 347 58

Turnover rate: 2.6%; 9 males, 2 females

(11) Diversity of management

Female Male % of females Non-Japanese
Management position 78 1,595 4.6% 8
General managers 6 344 1.7% 0
Directors and officers 2 55 3.6% 5
Executive officers 2 46 4.2% 5
Managers, directors and officers 80 1,650 4.6% 13