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Personnel policy and performance appraisal system

Personnel Policy and Performance Appraisal System

Personnel policy and performance appraisal system

Here at Komatsu, we consider many aspects of our business to be valuable assets. Goods, money, information, and time are all irreplaceable facets of our day-to-day operations. However, the one resource that stands above all others in terms of value would be our employees. We are proud to maintain a culture that places our people at the forefront of our priorities, recognizing the importance of their roles in maintaining the quality of our products and the reputation of our company. Komatsu is thus dedicated to the development of our workforce, striving to foster an engaging work environment that provides opportunities for creativity and challenges to stimulate growth, all the while building on a relationship of mutual trust with our employees.

 

Global personnel policy

Komatsu is acutely aware of the differences pertaining to history and culture for each of the regions within which it operates. We are thus engaged in the creation of a personnel management system that tailors to the unique needs and circumstances of each region, whilst maintaining compliance with a set of basic policies as outlined below:

  1. We shall respect each employee’s human rights, personality, individuality and legally-protected privacy;
  2. We shall respect diversity and treat and appraise each and every employee in a fair and impartial manner. We shall not discriminate against any employee on the basis of race, ethnicity, color, sex, sexual orientation, gender identity, age, religion, national ancestry, disability, marital status or other legally protected status. We shall vigorously promote equal opportunities for employment*;
  3. We shall give due consideration to work-life balance and physical/mental health, and endeavor to provide the employees with workplaces where they can effectively accomplish their tasks with satisfaction and pride;
  4. We will not tolerate inappropriate behavior and speech which prevents employees from working effectively and comfortably. In particular, all Komatsu employees must not do any type of harassment including harassment of subordinate personnel, sexual harassment, or harassment related to pregnancy, childbirth, parenting, or nursing care, in and outside of workplace;
  5. In designing and implementing Komatsu policies on employment conditions (such as wages, fringe benefits, performance appraisal, promotions), we shall assure that such policies are, and are understood to be, fairly and clearly implemented. Such policies shall be accurately communicated to employees and, to the extent practicable, made open and accessible;
  6. We shall comply with all applicable laws and regulations governing employees’ rights and faithfully accommodate, whenever applicable, conversations or discussions with employees or their representatives;
  7. We shall not tolerate child labor or forced labor; and
  8. We shall offer terms and conditions of employment that are sufficiently competitive in their respective regions.
  • "Any action violating human rights (harassment of subordinate personnel, sexual harassment or other harassment related to pregnancy, childbirth, parenting or nursing care)" is specified as grounds for disciplinary action.
 

Personnel system that accurately recognizes employee abilities and achievements

Komatsu recognizes the importance of providing an engaging workplace environment that recognizes and accurately rewards the achievements of its employees. This allows our people to take pride in the work that they do, motivating them to strive for greater heights within and without the workplace. To that end, we have incorporated an advanced system of evaluation that disregards age, gender, or nationality while assessing individual performance and abilities in order to provide a framework for fair recompense.

 

Fair and appropriate evaluation

The most important aspect in the creation of a workplace that promotes wellbeing and effective working is the fair treatment of employees. As mentioned above, Komatsu's personnel management system accurately evaluates our employees, granting recompense based solely on merit. This system of assessment is enforced through multiple channels, such as evaluation training for both management and lower-level employees. An evaluation committee has also been established that works closely with labor unions in order to confirm that evaluations are fair and appropriately conducted. Finally, Komatsu provides individual feedback on evaluations to employees at both management and non-management positions, and has set up a consultation office through which employees can express complaints and concerns.

 

Condition of labor unions

Having signed the United Nations Global Compact, Komatsu recognizes that freedom of association and the right to collective bargaining are intrinsic human rights that must be respected. Our engagements with labor unions thus reflect this commitment, showcasing our dedication to ensuring the best for our people. We have a labor contract with the Komatsu Labor Union, which is organized by approximately 11,000 of our employees across 8 of our Japanese branches. The Union employs a union-shop system, and the percentage of employees who are union members (number of unionized employees / total number of employees including management and other non-unionized employees) is 77.6%.
The Komatsu Labor Union is a member of its superior body, the All Komatsu Workers Union and a superior industry labor union, the Japanese Association of Metal, Machinery, and Manufacturing Workers. 12 of our consolidated subsidiaries and affiliates in Japan have labor contracts with a labor union that has joined the "All Komatsu Workers Union", making up a total of approximately 6,800 employees.
In addition to this, Komatsu continues to comply with legislation related to labor rights, while responding in an honest and transparent manner to all dialogues and discussions with individual employees and their representatives.

 

Harassment prevention initiative

Komatsu Group is committed to eliminating and preventing every type of harassment. Each of our offices has a consultation desk to handle harassment-related issues and we are developing our readiness to promptly react to problems whenever they occur. Regularly providing harassment prevention training to all employees deepens each employee’s understanding of harassment and helps to build workplaces that enable employees to work safely and healthily and to stay considerate of each other’s perspectives.

Facts about the initiative in FY 2021

Number of harassment-related reports received (in Japan) 36
Harassment prevention training (in Japan)
  (e-learning and group learning)
  • Basic education
  • Stratified training
  • Managerial-level refresher training
  • New managerial-level employee training
  • Assistant manager training
  • Third- and seventh-year employee training
  • New employee training
 

Creating a vibrant workplace with rewarding jobs

Improving employee engagement is essential for the company's sustainable growth. In 2021, we conducted a global engagement survey of domestic and overseas group companies. We analyzed the results by region and organization and identified the strengths of and challenges faced by each organization. These are reflected in various personnel policies and measures. We will continue to conduct the survey regularly to understand and analyze employee engagement and respond to ever-changing challenges. In this way, we aim to create an environment in which each and every one of our diverse employees can work with more vitality and enthusiasm.

Overview of global engagement survey in FY 2021

Number of respondent 72% of the Employees (about 63,000 employees) of Komatsu and its Group companies in Japan and other countries responded
Objectives To regularly identify and analyze employee engagement, clarify our strengths and challenges at that time and take them into consideration when discussing and deciding plans for the future
Survey overview Sixty questions about employee engagement and subjects that may influence it, such as vision, strategic and competitive advantages, leadership and corporate climate and work environment
Methodology Anonymous online survey
Results Engagement Score Overseas: 79, Japan: 69 (Score is the percentage of positive responses)
 

DATA

  • Above data are on the non-consolidated basis except  item (2).
    Numbers of employees and all other numbers shown are as of the end of each fiscal year, except as otherwise noted.
 
 
 
 
 
  • Minimum wages set by age
 
 
 
 
 
 
komatsu csr, 人事部