Human Resources Management

The Company believes that “Human Resources” is the key to achieving sustainable growth and enhancing corporate value, especially amid a rapidly changing business environment.
Accordingly, we established the “MMC WAY” in FY2017 as a common action guideline that is shared among the organization and all employees who work here, and serves as a “Foundation” on which to proceed. In light of the significant changes in the Group’s operating environment, the Representative Executive Officer, President & CEO, and top management team engaged in discussions to determine the ideal path for the Group, taking employee feedback into account. As a result, we have updated the “MMC WAY” in FY2022. We have organized what is important for us as a company and as individuals in the new “MMC WAY,” and we are taking on challenges together as one toward the realization of our Vision and Mission.
The first two items in the new “MMC WAY” set forth the fundamental values that underpin the Company’s actions. They call on us to “think of our customers first” as the foundation for earning “society’s trust” and to “contribute to the advancement of society” through our corporate activities. These two items incorporate the Group’s message that every employee must remember our raison d’etre: satisfying customers and contributing to society through corporate activities. With the other three items, we have expressed important elements in the previous “MMC WAY” more specifically and clearly.
The “MMC WAY,” the behavioral guidelines that outline the principles that the Company values, is reflected in our personnel evaluation system. We have introduced a multi-faceted competency evaluation based on three pillars: the “MMC WAY,” “Human Resource Development and Organizational Management,” and “Expertise.” This aims to encourage proactive employee growth.

The company has established the Human Resources Development Council, consisting of the Executive Officer, President & CEO and other members of the management team to promote and implement human resources strategies that are linked to management strategies. Once a month, the council systematically discusses and examines issues and policies related to securing and developing human resources, which are directly related to corporate competitiveness.
We are formulating an optimal personnel plan that incorporates strengthening the expertise of each function that supports our business to develop powertrain control systems for electric vehicles, expanding the scope of various elemental technologies, promoting carbon neutrality, driving digitalization, and exploring new business areas. We thoroughly analyze the internal and external environment and market trends surrounding our company, while considering such matters as creating a rewarding workplace where employees can work with peace of mind and showcase their abilities, expanding development opportunities, including education and training to encourage employee challenges and growth, and creating an attractive company that can attract talented people from both inside and outside the Company. Through open discussions at human resources development meetings, we review and evaluate existing measures, as well as consider and deliberate new initiatives.

In our evaluation and compensation system, we have adopted a multifaceted competency (behavioral) evaluation that incorporates not only performance achievement evaluations based on a target management system but also the three pillars of the behavioral guideline “MMC WAY,” “Human Resource Development and Organizational Management,” and “Expertise, thereby building a framework that captures individual performance and growth from multiple perspectives.
For managerial personnel, we assign them the role of promoting organizational revitalization through management and practice of human resource management that contributes to strengthening our management foundation by: (1) Sharing organizational goals and fostering a sense of responsibility for achieving these objectives, (2) Enhancing incentives for achieving objectives, (3) Enforcing expected mindsets and behaviors, and (4) Making appointments and promotions according to merit.
For non-management personnel, we have established a framework to foster both organizational unity and individual growth by: (1) Sharing organizational goals and cultivating awareness toward their achievement; (2) Enhancing transparency and a sense of fairness in evaluation and treatment; and (3) Promoting the penetration of the Company’s corporate philosophy and code of conduct.
Furthermore, we are working to create an environment that supports career development and further enhances employee motivation by designing a remuneration system that accurately evaluates the level of responsibility associated with each position and the degree of individual contribution to the Company, and appropriately reflects these factors in compensation. Particularly for management-level employees, we strive to instill a sense of participation in management and strong ownership. To ensure transparency and fairness, we incorporate a company performance-linked component into bonuses.
In terms of wage levels, in addition to complying with applicable laws and regulations, we ensure appropriate compensation based on job responsibilities while fully considering industry standards. In addition, we are committed to eliminating unjustified wage disparities based on race, nationality, gender, and other factors and to maintaining fair and trustworthy operation of our compensation system.

In addition, to improve the ease of working for our employees and maintain and enhance their motivation, we have introduced the following welfare and benefits programs:

To realize sustainable growth, it is essential to create a workplace environment where all employees can work in good physical and mental health, feel their work is rewarding, and fully demonstrate their capabilities. In addition, amid unprecedented changes in the operating environment, we recognize that strengthening education and reskilling to accelerate digital transformation (DX) and create new businesses, as well as securing and utilizing human resources with diverse values and backgrounds, are critical elements that will determine our competitiveness as a company.
Based on this recognition, the Company has positioned the following three pillars at the core of its human resource strategy: “Build better work environment,” “Enhance companywide learning opportunities and reskilling programs,” and “Strategically secure and diverse workforce,” and is focusing on formulating and implementing concrete measures.