Basic Concept of Personnel System Reform Proposal
Toyo Gosei is currently moving forward with personnel system reform. We started studying this from February 2002 and are aiming to introduce reforms in April 2003. This month's topic is a summary explanation of the current state of the new personnel system.
- Aims of personnel system revision (For what purpose are we revising the system?)
- Basic concept of personnel system revision (What kind of personnel system?)
- Grade organization of double ladder grade system
- Operation of double ladder grade system
1. Aims of personnel system revision (For what purpose are we revising the system?)
The current corporate management environment is truly "the age of major competition" and "the age of ultra-speed" in a recession.
However, for a company keeping up with the changing environment, this is a "chance for growth" and for companies that cannot keep up with the environment, this is a "major pinch".
It is said that "the company is its people", but reform in the "personnel management system" for winning out in what is truly "the age of major competition" and "the age of ultra-speed" in a recession can be said to be a fundamental condition of a "winning corporation".
I would like to next discuss what type of personnel system our company should have.
1) The personnel system must be for developing management policies and management strategy.
"Management strategy means to change the makeup of the corporation in order to adjust to changes in the environment and to establish effective means ahead of other companies in order to win out in competition."
The way in which we tackle research and development themes, improvement and reform themes in the work site, and the way we tackle our response to the market and users is truly the way we execute management strategies. A personnel system is required that clearly incorporates this into the personnel management mechanisms.
2) The personnel system must aim for "high efficiency, high capacity, low cost, and high wages".
The corporation can not improve our employment and wages unless we increase profits. This is to say nothing of the fact that we can not be rescuing the weak.
In order for the corporation to fulfill its social responsibilities not only to employees, but also to our customers, who are our users, the corporation realizes the "high efficiency, high capacity, low cost, and high wages" for winning out in competition, in other words "high productivity". The worst is "lack of enthusiasm, low capacity, low efficiency, high costs, and low wages".
In order to realize a new personnel system, this system must be persuasive and seen as fair and must provide the conditions to motivate employees.
Therefore, of course the personnel system must as far as possible eliminate seniority and leaning over backwards to be impartial, and instead must be a system with appeal appropriate to the work and the results of work.
2. Basic concept of personnel system revision (What kind of personnel system?)
The question is "what is to be the basic axis of our company's new personnel system". At the current time, it can be said that a practical and optimum personnel system is a double ladder personnel system centered on the "role grade" for compensating according to the importance and size of the role in the utilization of employees and the "work ability grade" to develop personnel.
Here, "work ability" means the capacity of each employee to execute tasks and "role" means the "post (role) to which each employee is assigned within the organization" and "the position (role) to which each employee is assigned".
"Goal management", "personnel evaluation", "wage management", "employee management", etc. are carried out based on the "work ability grade" and "role grade", so it can be said that this personnel system makes the "work ability grade" and "role grade" the basis of personnel management.
The diagram below shows the overall organization of our company's new personnel system.
3. Grade organization of double ladder grade system
We mentioned earlier that our company's new personnel system has "work ability grades" and "role grades" as the central axis. The organization of these grades is shown in the following diagram. Each employee has two grades, the "work ability grade" and the "role grade".
4. Operation of double ladder grade system
1) Work ability grades and their operation
The "work ability grade" expresses the degree of the capacity of the employee to execute tasks as a grade.
Each employee is assigned to a "work ability grade" appropriate to the employee's capacity to execute tasks. When it is recognizes that an employee has extended his or her capacity to execute tasks through their effort develop their skills, they are examined and promoted.
The "skill development" and "work ability pay", "bonus basic portion", "skill contribution portion for pension" are determined according to this work ability grade.
2) Role grade
For the "role grade", typical "roles (posts, positions)" in the organization are classified into courses and the role grade is expressed as a grade according to the size and importance of the role.
For each employee, the "role grade" is determined according to the scope and importance and type of role (post) assigned or the role (position) that the employee is responsible for. When the role changes, the role grade also changes.
Even if it is recognized that the work execution capacity has been extended, the role grade is not raised for the same role.
The "goal setting" and "personnel evaluation standard", as well as the "role performance pay", "bonus incentive portion", and "role contribution portion for pension" are determined according to this role grade.
At the current stage, study of reform of the personnel system in this direction is moving forward.
