DENSO to Establish Global Common Personnel Management System to Spur Development and Diversity of Leaders Worldwide

Dec. 25, 2015 Sustainability News Releases


KARIYA (Japan) ― In an effort to accelerate its leadership development worldwide and diversify leadership at its global headquarters, 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 headquarters. The system will launch January 2016, and will impact about 2,300 senior officer management personnel at its global headquarters and 188 group companies across the globe.

“Due to the increasing globalization of its business, and in order to survive 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 regions,” 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 headquarters. We are looking to change this moving forward.”

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 Individual Grade” that is focused on the competences of individual senior officers. By using a common grading tool to assess the performance of its senior staff using the same criteria, DENSO aims to evaluate personnel fairly and encourage them to be more proactive.

Since 2005, to effectively utilize its diverse employees, DENSO has been implementing a global common competency criteria program, encouraging its employees to share the DENSO Spirit as a common value, and training senior officers of group companies worldwide in preparation for the facilitation of a newly developed global common personnel management system.

DENSO will continue to improve the work environment for diverse personnel to be more proactive. Moreover, through collaboration across the entire group, DENSO group companies will continue to work as one to lead the creation of an automotive society where vehicles are more environmentally friendly and fun to drive.