DENSO to establish Global Common Personnel Management System

DENSO Corporation has established a global common personnel management system. Based on this new system, DENSO will promote employees with diverse values and also improve their motivation by enabling them to develop their careers worldwide within the DENSO Group, including at global headquar ters. The system will launch Januar y 2016, and will impact about 2,300 senior officer management personnel at its global headquar ters and 188 group companies across the globe. “Due to the increasing globalisation of its business, and in order to sur vive an increasingly fierce global competition, it is vital for DENSO to develop and promote more leaders who can be active beyond the borders of their re - gions,” said DENSO Corporation President and CEO Koji Arima, “Typically, leaders at DENSO who occupy important positions tend to be Japanese, so employees of overseas group companies find it difficult to build their professional careers in the DENSO Group, including at global headquar ters. We are look ing to change this moving for ward.”

Until now, the personnel management system for senior members of DENSO group companies outside Japan has been different than that of its global headquarters, as they have been assessed by a “Position Grading System” depending on the scope of their roles and responsibilities. Also, the criteria for promotion, evaluation, and remuneration had differed according to company and region. DENSO’s new system will unify personnel grading, promotion, evaluation, and remuneration systems, which are key to its personnel management system. The new system also will incorporate a “Global I ndividual Grade” that is focused on the competencies of individual senior officers. By using a common grading tool to assess the per formance of its senior staff using the same criteria, DENSO aims to evaluate personnel fairly and encourage them to be more proactive.