025 gloria blue nega

Theme 2 : Developing People

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. We will not tolerate any kind of harassment, including sexual harassment, violence or other abusive conduct, in or outside the workplace;
  4. 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;
  5. 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;
  6. We shall not tolerate child labor or forced labor; and
  7. We shall offer terms and conditions of employment that are sufficiently competitive in their respective regions.
 "Any action violating human rights (power harassment, 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 10,900 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 79.9%.
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. 13 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 6,600 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.

Creating a vibrant workplace with rewarding jobs

The Komatsu Group regularly conducts an employee awareness survey, seeking to understand how its employees feel about and what they expect for their jobs, workplaces and company management in order to create vitalized workplaces. The Group aims to offer workplaces that enable its employees to work more actively by identifying advantages and challenges surrounding Komatsu, which will be considered when implementing human resource initiatives and employee training programs.

Overview of employee awareness survey in FY2019

Number of respondents Employees of Komatsu and its Group companies in Japan, 97.1% responded
Objectives To understand how the Komatsu Group employees feel about their jobs, workplaces, and supervisors; analyzing current issues in order to consider measures to implement in the future
Survey overview 94 questions on items including the degree of employee satisfaction with job, office environment and personnel management system, along with employee awareness of the KOMATSU Way
Methodology As a general rule, anonymous web survey used (paper-based survey for field workers)

DATA

  • Above data are on the non-consolidated basis except  item (2).
    Numbers of employees for item (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 (Non-consolidated basis)

 
  FY2017 FY2018 FY2019
Total

10,465

11,537

11,692

Male

9,264

10,175

10,305

Female

1,201

1,362

1,387

(2)Number of employees (Consolidated basis)

  FY2017 FY2018 FY2019
Consolidated

59,632

61,908

62,823

Non-Japanese
(consolidated)

40,397

42,349

42,948

(3)Average age

  FY2017 FY2018 FY2019
Total

39.3

39.6

39.5

Male

39.3

39.7

39.6

Female

38.9

39.3

39.3

(4)Years of continuous employment

  FY2017 FY2018 FY2019
Total

14.1

14.3

15.1

Male

14.4

14.7

15.4

Female

11.8

11.9

12.8

(5)Annual total remuneration (average)

  FY2017 FY2018 FY2019
Total

7,387,475

7,608,424

7,467,775

*Minimum wages set by age

(6)Number of employees by age

  Total Male Female
Under 30

2,319

1,929

390

30-39

3,750

3,482

268

40-49

3,113

2,724

389

50-59

2,510

2,170

340

Total

11,692

10,305

1,387

(7)New graduates employment

  College graduate Junior college graduate High-school graduate
Year
(April)
Total Male Female Total Male Female Total Male Female
2018

187

163

24

26

17

9

96

68

28

2019

195

169

26

25

22

3

132

99

33

2020

226

199

27

27

18

9

114

86

28

(8)Mid-career employment

  Total College
male
College
female
Other
male
Other
female
April 2017-March 2018

44

25

12

4

3

April 2018-March 2019

140

55

15

59

11

April 2019-March 2020 200 74 16 97 13

(9)Employee turnover (April 2019-March 2020)

  Total Male Female
Number of employee turnover

129

104

25

(10)Retention of new employees

  Male Female
New employees (April 2017)

194

62

Enrollment (April 2020)

184

58

Turnover rate: 5.5%; 10 males, 4 females

(11)Diversity of management

  Male Female Female Parcentage Foreign employees
Management position

1,600

135

7.8%

14

General managers

366

10

2.7%

0

Directors and officers

47

3

6.0%

6

Executive officers

43

2

4.4%

6

Managers, directors and officers

1,647

138

7.7%

20

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