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Human Resource Management System to Support a Challenging Environment

Introduction

This company is a family business that has been in the hardware and software development and manufacturing business for more than 100 years. It operates in both Japan and the overseas markets, including the US and China.

Issue

  • The company lacked sufficient talented human resources to achieve its goal of becoming a global brand and increasing the value of its products.
  • The employees were accustomed to the traditional management system in which the president made all decisions. Despite the company’s transition to a more participatory system, employees remained indecisive, rendering meetings ineffective. Furthermore, the company lacked the recruitment power of listed companies, making it difficult to solve this problem by simply recruiting personnel from other companies. Finally, their in-house personnel management system did not adequately recognize and reward employees. The system did not support human development, and employees had little motivation to challenge themselves.

Result

Soon after LiB proposed the new personnel management system, more employees expressed a desire to take on challenges such as creating new projects and working abroad. Employees are more motivated because they know that the new system will recognize their performance and reward them appropriately.

Furthermore, the meeting and decision-making process have become more effective. Everyone now has a clear understanding of the goals, methods, and policies because they have created and acknowledged the 10-year business plan.

Implementation

The key to success is consistency among the four elements: environment, strategy, organization, and personnel. It was developed using three methods: top-down, bottom-up, and the evaluation of peripheral systems.

LiB used a top-down approach to help specify the company’s goals and desired image for the future. Then, LiB supported the development of a 10-year business plan that aligns with the goal. Furthermore, a bottom-up approach was used to identify current issues. We conducted surveys and interviews with employees, and as a neutral third party, we identified all existing gaps and objectively assessed the significance of each one. Combining these results, we proposed a new personnel management system.

Finally, we used the last approach to ensure that the new system was consistent with human resource management practices such as recruitment and employee development by analyzing data from each sector and interviewing employees to evaluate the results.