Komatsu : Developing People (215 KB)

Resolution of ESG Issues

Developing People

Founder MeitaroTakeuchi established Komatsu Ltd. in Komatsu City, Ishikawa Prefecture roughly a century ago. Having witnessed Europe's cutting-edge technologies at that time,Takeuchi put forth the four management principles of global expansion, quality first, technological innovation, and human resource develop- ment.The commitment to the development of human resources, an invaluable asset to Komatsu, lives on in the Company today.

Komatsu's Business Model		Komatsu's Growth Strategies		Resolution of ESG Issues		Corporate Profile
		through Growth Strategies

The KOMATSU Way

The KOMATSU Way is the very DNA of Komatsu, an expression of the strengths of Komatsu, the beliefs supporting these strengths, the basic attitudes, and patterns of behaviors established based on the experiences of our predecessors as they proceeded to tackle the challenges facing them.

Komatsu seeks to develop its operations on a global scale and to become a stronger company and grow. To

Employees Supporting

Komatsu as a Global

Company

Japan Overseas

32% 68%

Komatsu Technical Institute lesson

Japan Overseas

6% (13) 94% (206)

accomplish these objectives, it will be crucial for us to transmit the KOMATSU Way to employees with different cultures and customs around the world and to implement these principles in a manner that aligns employees along the same vector. To spread understanding of the KOMATSU Way among all employees worldwide, we published the third edition of the K-Way booklet in 2019. This booklet is being utilized in human resource development through training programs, improvement activities, and daily communication.

Komatsu develops its operations around the world, and approximately 70% of its employees are not Japanese. Accordingly, developing human resources that are rooted in the communities they serve while promoting mutual acceptance of the values and cultures of various countries and regions is becoming increasingly important. Operations around the world must be instilled with Komatsu's manufacturing competitive- ness, which includes the values that support Komatsu and the workplace improvement, driven by employees.

Number of

Employees

62,823

(consolidated)

(as of March 31, 2020)

Number of

Consolidated

Subsidiaries

219

(as of March 31, 2020)

1 Leadership/ Top Management

Leaders must be directly involved in the workplaces and manage businesses with an emphasis on contributing to the entire Group, including distributors and suppliers. We have also defined guidelines for leaders related to actively engaging in regular board meetings, communicating with stakeholders, complying with rules of the business community, managing risks, and grooming successors for management positions.

2 "Monozukuri" for All Employees

Komatsu aims to pass on the manufacturing competitiveness, perspectives, and values that, based on total quality management, have continued to drive Komatsu's competitiveness and support its growth. We look to transmit these principles through a joint effort encompassing all internal divisions as well as our suppliers, distributors, and other partners and to continue promoting involvement by all of these parties.

3 Brand Management

(Customer Value Creation Activities)

Komatsu defines "Brand Management" as all the activities that "make Komatsu indispensable to our customers." This objective is accomplished by visiting customer workplaces to understand the ideal state of these customers and to build relationships that enable us to work together with them to help achieve their goals through concerted efforts by the Group and its distributors.

VOICE Message from the General Manager of the Human Resources Department

	The ongoing growth of a company is driven by its people, or its employees,	Group, including at overseas
	and these people are thus its most important resource.	Group companies.
	A basic policy of human resource development at Komatsu is that	The global COVID-19 pan-
	senior managers and other leaders are expected to foster their successors	demic is spreading uncertainty of
	and other human resources capable of competing on the global stage	an unprecedented degree. We are
	through their own actions.	therefore pressed to make deci-
	At the same time, we are constantly working to improve group-wide	sions and act swiftly and flexibly in
	GEMBA capability (employee-driven, continuous improvement capability)	response to an ever-changing
	and support the career development efforts of individual employees. These	environment.
	efforts are carried out through a diverse range of human resource develop-	Currently, a large number of
	ment and personnel rotation programs advanced on a global scale.	our employees are being forced to
	Koichi Honda
	In recent years, employees of non-Japanese nationality have come to	telecommute. Regardless, we are
		Senior Executive Officer
	represent around 70% of our total employee base. In reflection of this fact,	maintaining close coordination		General Manager of the Human
	creating an environment where globally diversified employees can work	with our colleagues around the		Resources Department
		Supervising Education
	together as one solid team and make contributions to business growth has	world to remain up-to-date on the
	been positioned as a central tenet of our human resource strategies under	latest information. The health and safety of all of our employees and their
	the current mid-term management plan, and various initiatives are being	families remains our top priority throughout this process.
	implemented accordingly.	Meanwhile, on the front lines of business, our strength in enacting poli-
	Specifically, we are focused on the following four areas:	cies is being utilized to its fullest as middle managers play a central role in
	1. Enhancing global measures for recruiting and cultivating talented person-	amassing the capabilities of the relative divisions to resolve the issues and
	nel and managing staff (visualization of human resources)	problems faced at customer workplaces.
	2. Increasing diversity and empowering female employees (increasing ratio	Over the roughly one century since its founding, Komatsu has contin-
	of female employees and ratio of female managers)	ued to surmount countless trials, growing rapidly in the process. The global
	3. Improving employee health, engagement, and productivity through work-	COVID-19 pandemic presents a need for constant vigilance going forward.
	style reforms	Still, I am confident that, with the	KOMATSU Way sculpted by our forebear-
	4. Addressing birthrate decline and population aging in Japan	ers and the principles of SLQDC (Safety, Law, Quality, Delivery, and Cost)
40	In these areas, we are looking to heighten our capabilities across the	as our guide, we can come together to overcome this challenge as well.

Diversity & Inclusion Development Seminar for Cultivating Female Leaders on a Global Basis

In March 2019, a Diversity & Inclusion Development Seminar was held for female managers at Komatsu and at local overseas subsidiaries, and 15 individuals from 12 countries took part. Through this seminar, we hope that participants will deepen their understanding of the history of Komatsu, the KOMATSU Way, and management strategies, and become leaders promoting diversity initiatives at their companies.

Komatsu Technical Institute for Fostering Production Engineers

The Komatsu Technical Institute is an internal boarding school system that offers a program for fostering the distinctive production engineers that underpin our manufacturing competitiveness. At the Komatsu Technical Institute, junior engineers selected from the production sites of Group companies and affiliates take part in a structured, two-year education program while stimulating mutual growth through communal living. A new training facility was completed in February 2020, and it was also at this time that we began accepting employees from overseas subsidiaries into this program. As a result, the Komatsu Technical Institute now offers an even more diverse environment for cultivating future global production leaders.

AI Education for Developing Key Personnel for AI Field Coordination

Looking ahead, it can be anticipated that there will be growth in opportunities for business coordination with external partners in the field of artificial intelligence (AI). Based on this recognition, Komatsu launched dedicated programs for cultivating key personnel in the AI field in 2019.

Through the basic and advance programs, we are working to heighten the AI technological capabilities of our staff, foster key personnel in the field, identify pertinent themes from customer -oriented and business perspectives, and develop human resources capable of playing a central leadership role in internal and external coordination.

Discussion between participants and senior management

New Komatsu Technical Institute training facility at the Awazu Plant

Requirements of Key AI

Coordination Personnel

Technical Skill	Communication
Skills

Customer- Business

Oriented Perspective

Perspective

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