Report

Developing Human Resources

Basic Thoughts on Personnel
The Kawasaki Group is active worldwide through a global workforce of
about 35,000 people. To achieve higher sustainable corporate value
through the implementation of our mission statement, it is very
important that each and every employee, regardless of nationality,
gender or age, religion, or any disabilities, understand and communicate
the underlying ideals of our Group Mission and Kawasaki Value and be
diligent and industrious in daily tasks, based on the Group Code of
Conduct. Of note, for us to reach new heights in technology, which is a
component of Kawasaki Value, it is absolutely essential from a long-term
perspective to ensure that human resources receive the right training.
Toward this end, we have established a workplace environment in which
employees pursue their duties with a positive outlook in safe and secure
surroundings, and we direct concerted energy into training that fuels
realization of business strategies while contributing to the future of the
planet. The foundation for this approach is Group Management Principle
No. 3, which reads “The Kawasaki Group’s corporate culture is built on
integrity, vitality, organizational strength, and mutual respect for people
throughout the entire Group.”
Composition of Workforce (As of March 31, 2017)
Total Men Women

Non-consolidated 16,162 15,159 1,003

(Managerial staff) 3,386 3,362 24

(General Employees) 12,776 11,797 979

Domestic group 26,348 ― ―

Overseas group 8,779 ― ―

Group-wide 35,127 ― ―
Note: The number of employees includes temporary employees (non-consolidated).

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Personnel Data (as of March 31, 2017) (non-consolidated)

Average Average years of Average annual salary
age service (yen)

Non- Men 38.0 13.3 7,524,675

consolidated
Women 39.9 13.5 5,414,432

Total 38.1 13.3 7,397,935

Number of People Resigning and Turnover Rate in FY2017

(age as of April 1, 2016) (non-consolidated )
29 and 30–39 40–49 50 and Total
younger older

Number of people resigning Men 58 35 14 7 114

Women 5 3 3 2 13

Total 63 38 17 9 127

Turnover rate Men 1.4% 0.8% 0.4% 0.3% 0.8%

Women 2.3% 1.2% 0.9% 1.3% 1.4%

Total 1.5% 0.8% 0.4% 0.3% 0.8%

Note: Excludes people who reached mandatory retirement age and those promoted to
executive positions

Education and Training

Kawasaki ideal human resources fall into six categories, based on the
Company’s mission statement. The categories are (1) actively involved
around the world; (2) solving issues for customers and the community;
(3) leading reforms and innovation; (4) taking technology to new
heights; (5) demonstrating comprehensive capabilities; and (6) always

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maintaining a profitability perspective. Aiming to cultivate human

resources with these qualities, we promote comprehensive training and
skill development for all employees regardless of rank.

Reinforce the management and business execution capabilities of

employees (administrative and technical training)
During their first three years of employment, employees in administrative
and technical positions receive a combination of structured on-the-job
training, facilitated by a mentoring system, and a range of training
content to help young professionals shoulder new responsibilities as
quickly as possible.
At the same time, we conduct the succession planning such as Kawasaki
management seminars and Kawasaki executive coaching programs, also
training for managers, including section managers, general managers and
board members. In addition, we regularly conduct multifaceted
observation surveys that provide feedback (opinions and evaluations)
from supervisors, subordinates and colleagues to managers on their
strong points and areas in need of improvement. Such initiatives serve to
strengthen middle management and develop the skills of candidates for
management positions.
In the execution of routine duties, we utilize communication
opportunities, especially the operational goal sharing program GMK—
which takes its name from the Japanese gyomu mokuhyo
kyoyuka (sharing business targets)—and semiannual one-on-one
meetings between supervisors and subordinates, to foster skill
development through the achievement of operating goals.
Record of Main Grade-Specific Training Organized by the Head
Office (Fiscal 2017) (non-consolidated)
New Training for Training for Kawasaki Kawasaki
employee section division executive management
training managers managers coaching program seminars

Number of
332 95 40 9 34
participants

Total number of
41 6,222.5 2,200 1,201.5 102
man-hours

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Strengthening of on-site capabilities (Training for production

specialists)
Kawasaki's production specialists are working on transferring and
improving skills required at the production sites under the Skills and
Qualification Early Acquisition Incentive Program for younger employees
and the Grand Master System in which skillful production specialists with
a high level of special expertise are recognized as Grand Master
systematically hand down their skills to the younger generation. In fiscal
2018, a total of 25 Grand Masters, including eight newly recognized, are
actively working.
In addition, we also participate actively in outside skill competitions such
as the Technical Skill Grand Prix. In the Technical Skill Grand Prix in
February 2017, two of our employees won the Fighting Spirit Prize in the
lathe job, and in the younger workers category of the Hyogo Monozukuri
(production) Skill Competition in November 2016 one won the
championship and another the third place in the lathe job, and yet
another employee won the Fighting Spirit Prize in the welding job.
For supervisors at the production sites, office chief training and team
leader training are provided to reinforce leadership, and for young
employees KPS basic training is implemented to learn our production
system.

Technical Skill Grand Prix

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Securing Human Resources

When recruiting human resources, rather than simply filling posts of
retiree, we seek to recruit human resources with the necessary skills in
the required numbers based on a medium- to long-term view. Recently,
business expansion has heightened the need for more employees, and we
actively recruit new graduates as well as individuals who have already
acquired career experience.
Additionally, in the course of our attempt to employ new overseas college
graduates and foreign national students starting in fiscal 2013 with a
view to overseas business extension and respect for diversity, two foreign
national students and one overseas college graduate joined us in fiscal
2018.
New Graduate Recruitment (non-consolidated)
FY2014 FY2015 FY2016 FY2017 FY2018
Men Women Men Women Men Women Men Women Men Women

Administrative
and technical 256 23 272 29 279 20 305 28 287 38
positions

Production
183 3 194 5 221 6 241 3 208 5
positions

Total 439 26 466 34 500 26 546 31 495 43

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Developing Global Human Resources

Since 2008, we have been implementing measures for global human
resource development, with the aim of furthering the development of
human resources in support of global business expansion. Specifically, we
provide overseas business manager seminars (at both beginner and
intermediate levels) designed to promote a readiness to deal with
business from a global perspective and teach useful skills for overseas
business; enhanced cross-cultural responsiveness training, which instills
a practical and systematic understanding of differences in ever-
diversifying value perceptions; and global business mentality training for
decision making, in which employees systematically study the
requirements for global human resources through a reflection of their
own overseas experiences. Furthermore, we will work to enhance
measures toward global human resource development through such
means as introducing an overseas internship system aimed at globalizing
domestic human resources and considering an educational program for
local skilled employees at overseas sites.

Record of Main Training Related to Global Human Resource

Development Organized by the Head Office (Fiscal 2017)
Overseas Response English skill English writing
business capabilities series* series*
training of different
cultures
training

Number of
39 90 40 36
participants

Total number of man-

5,920 2,880 2,544 2,176
hours
* English skill series: meeting training (reading aloud and practice), presentation training,
negotiation training
* English writing series: technical writing course, business writing training
Note: Language training is also carried out at other operating sites.

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Focus
Technical Skill Contest

Lathe turning skill contest

A pressing issue that has emerged in recent years at production facilities
is the looming, full-scale retirement of baby boomers and the need to
ensure that the knowledge and skills of veteran engineers are passed
down to the next generation before they leave the factory floor. In
response, we have been directing concerted efforts into training and skill
improvement to cultivate young human resources in technical fields.
Every year, we hold a technical skill contest at the Akashi Works, kicking
off what has become an annual event where young engineers from
production sites at home and abroad compete with skills mastered on the
job. In fiscal 2017, participants from Japan and four other countries give
their all, demonstrating accomplished skills in a fierce competition. It is a
great learning experience for everyone.
Going forward, we will utilize this approach to maintain and further
improve the skills of employees in production positions at companies
throughout the Group.

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Focus
Toward Enhanced Monozukuri Capabilities

The Skills Academy Training Center

A severe shortage in experienced workers is looming. To address such
challenges, we must aggressively promote the transfer of technical skills
to enhance monozukuriproduction capabilities, which form the bedrock of
our business activities.
Toward this end, we opened Takumi Juku, a professional trade skills
academy training center at the Harima Works, in 2012, and Manabiya, a
manufacturing skills creation center at the Akashi Works, in 2014.
Through synergies with the existing skills academy-type training system
applied to date as well as the creation of opportunities where these skills
can be passed on to the next generation, these centers are delivering
results as points for transferring skills, acquiring new skills, refining
existing skills, and developing a pool of experienced instructors in a short
period of time, which raises the level of expertise all around.

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Matching the Right Person to the Right Job

Personnel positioning is planned based on the "right person to the right
job" policy, in consideration of aptitude, skills, personnel allocation, and
successor issues, etc.
To realize this "right person to the right job" positioning, we have
established various system in which employees' wishes are respected to
motivate and activate them. The Self-Report System is among them, in
which system employees report their characteristics, strengths, current
job aptitude, and transfer requests once a year. In addition, we have the
Rotation System for developing specialists with broad knowledge and
experience and the Company Open Application System (= Job Challenge
System) for responding to the needs for special human resources in
place, too.
To supplement these, the FA System* and the Inter-Company Human
Resource Exchange System (Internal Exchange Study System) were
newly established in 2012, aiming to further promote appropriate
personnel positioning and development of human resources.
Moreover, the Human Resource Information Management System to
support these systems were also newly established, which has been
operated in full scale since fiscal 2014. This is a system to visualize and
keep track of the job experience and other relevant information, in
addition to existing basic personnel information. This system has been
helping us with the more advanced use of personnel information and the
development and positioning of human resources.
* The FA System is a system supplementing the Self-Report System, in
which employees declare to the entire company their wishes to transfer
to other business segments or specific divisions, and the Company may
match them with such business segments or divisions.

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