Special Feature 2023 - Integrated Report 2023
Human Resources Strategy
Toward enhancing human capital
A distinctive feature of Nidec’s business strategy is to actively engage in M&As. Because of this, we have conventionally respected the autonomy of each of the acquired companies and promoted the “federal-style” management system, in which companies mutually compete and grow within the Group. However, now that market boundaries have been removed due to globalization, we are advancing a shift to “group-wide unified management,” which connects technologies and human resources developed at different companies to address management issues for the entire Group. One NIDEC is a keyword in aiming to realize management based on total optimization, which is to create synergies within the Group, in other words, “group-wide unified management.”
However, in order to ensure that the foundation of the Nidec Group’s strengths will not be shaken due to the change in management style, it is also important to pass on Nagamori-ism, which is the values and behavioral patterns of our founder Shigenobu Nagamori, and the Nidec Way, which is the action guidelines and norms for employees, to the next generation. By inheriting the competitive advantage we have cultivated so far while also building a foundation on which all our Group employees can fight together across all boundaries, I believe that we will be able to become “a global company that grows sustainably for the next 100 years and beyond” and “the world’s leading solution-providing business group that solves numerous problems for the people of the world,” which are the Vision held in our Corporate Philosophy.
Furthermore, the NIDEC Global Personnel Policies are new important guidelines for realizing the Vision, compiling our basic approaches to company organization and human resources. The aim is to put into words the basic policies and principles for various personnel strategies and measures that we will deploy in the future and thereby ensure consistency in the awareness and intentions shared on a global scale. This includes policies related to systems that allow over 100,000 employees working in the Nidec Group to play active roles in a fair framework and freely move between businesses and companies, which are expected to eventually strengthen the governance of the entire group.
The Nidec Group’s approach to human capital management
Human capital management is a way of management that views human resources as capital and maximizes their value to improve corporate value over the medium to long term. At the Nidec Group, the founder’s spirit is placed at the core of its human capital management, from which the NIDEC Global Personnel Policies and other personnel guidelines and measures are developed. We believe these guidelines and measures will lead to contributing to the company’s business performance and other achievements from organizational or personnel aspects. To achieve consolidated net sales of 10 trillion yen in FY2030 and become a global company that continues to grow for the next 100 years and beyond, we will steadily advance the development and implementation of guidelines and measures based on the above approach to human capital management.
NIDEC Global Personnel Policies and major personnel measures
The most basic policy of the NIDEC Global Personnel Policies is “For Our Future, For Our Dream—Our organizations and human resources will continue to take on challenges for the future of people around the world and our dreams.” Under this are a policy related to organizational and human resources development and a policy related to personnel systems.
Organizational and human resources development policy
Encourage Uniqueness, Respect Team Spirit
This is a policy regarding the software area of personnel affairs (“people” = measures related to individuals and autonomous employee groups). Based on this policy, we promote organizational development measures to foster a culture that accepts diverse perspectives while sharing a vision, and human resources development measures to hone individual uniqueness.
Personnel system policy
Reward Based on Contribution without Bias
This is a policy regarding the hardware area of personnel affairs (“things” = measures related to systems and frameworks). Based on this policy, we develop the core systems (ranking, compensation, appraisal) necessary as the company’s personnel infrastructure and their associated systems and frameworks for organizational management, relocation rules, welfare benefits, etc. from a fair, transparent, and impartial perspective.
Details of our specific personnel-related activities are disclosed in the annual securities report for the fiscal year ended March 2023. Regarding measures for the Group’s unification and the establishment of human capital management, in particular, we will proactively disclose the specific details of activities and their progress.
In addition, how we create a framework to continuously produce management talents is explained in the following content. We have established systems and mechanisms to avoid concentration of the decision-making rights on specific individuals.
Please click the URL below to see our specific personnel-related activities.
https://www.nidec.com/-/media/www-nidec-com/ir/library/reports/FY22Q4_en.pdf
Developing next-generation leaders
Celebrating our 50th anniversary this year, we have formulated a new successor development plan with an eye toward the next 50 years. Under the new plan, a leader selected from within the Nidec Group will be in charge of management in a group management framework, which will ensure that sustainable management can be maintained no matter who becomes the leader. To implement this plan, it is necessary to continuously develop candidates for managers within the Group. We have also established a meeting body for matters related to succession planning while working to create systems to avoid concentration of decision-making rights on specific individuals.
① Management structure after April 2024 (scheduled)
Shigenobu Nagamori, now Representative Director, Chairman and CEO (Chief Executive Officer), is scheduled to leave the positions of Chairman and CEO and will take on the newly established “Group Representative of the Board of Directors,” without the right to represent the company. He will oversee the management operation from FY2024 onwards and occasionally take the lead in providing guidance for the smooth operation of the management structure, with the aim of helping to build a system that will not overlook the company’s performance worsening or slowdown in growth as the founder. Hiroshi Kobe, now Representative Director, President and COO (Chief Operating Officer), will assume the position of Representative Director and Chairman from April 2024 to March 2028, serving as CEO (Chief Executive Officer). In April 2024, one of the five persons who are currently Executive Vice Presidents will become President and serve as Representative Director, President and COO (Chief Operating Officer) until March 2028.
* The above information includes matters requiring resolution at the General Shareholders’ Meeting and therefore is stated as unconfirmed information.
② Succession planning
We have established a talent pooling system, in which, for example, Vice Presidents are pooled as candidates for CxOs (Chief x Officers) and Presidents of Group companies, CxOs and other officers and Presidents of Group companies are pooled as candidates for Executive Vice Presidents, and Executive Vice Presidents are pooled as candidates for President, so that candidate talents are always prepared for all ranks and those suitable for President are gradually promoted to higher pools. We set the necessary criteria for each pool and select only those who are capable of fulfilling the responsibilities and duties of the relevant role.
In shifting from the traditional top-down management system to a group management system, a possible risk is that the speed of decision making and other management actions may slow down. However, because only those who fully understand the NIDEC Way, which defines our corporate culture and the action guidelines and norms that should be shared by all our employees, and also understand the important matters for our business management are selected as candidates for President, it is unlikely that the speed of management, which is a part of our corporate culture, will be reduced. How can the abilities of candidates for President be ensured? Is there anyone who has the abilities equivalent to those of the founder? To address these risks, we will adopt a group management system in which multiple people with various abilities jointly manage the company. We believe this will lead to the maintenance and improvement of stable abilities of the company and the Group as a whole.
Based on the recognition that understanding of our corporate culture is the most important thing for the management of our company, we have adopted the method of selecting successors from within the Group.
Matters related to the selection of candidates and human resources development in each rank are discussed mainly at meetings of the committees below.
Nomination Committee
On November 5, 2022, the Nomination Committee was set up as an advisory body to the Board of Directors. It discusses mainly the selection and appointment of management (Directors, Executive Officers). The purpose is to ensure fairness, transparency, and objectivity in deciding the selection policy, selection criteria, prospective candidates, etc. for our Directors and Executive Officers by obtaining appropriate involvement and advice of independent Outside Directors, and to thereby further enhance our corporate governance structure.
Human Resources Development Committee
The Human Resources Development Committee has been in place since FY2020, consisting of the President, Vice Presidents, CxO or other officers, and the Human Resources Department as members. It discusses mainly succession plans for important positions and medium- to long-term training plans for management candidates. Important positions mentioned here refer to positions such as business unit heads and function leaders.
③ Policy and criteria to select President and Executive Vice President, etc.
The policy and criteria that the Nomination Committee deliberated to select the Members of the Board of Directors, Vice Presidents, etc. are as follows.
President
The candidate must have excellent leadership skills to be able to contribute to making comfortable societies globally via the Nidec Group’s products (solution businesses), and control and lead the entire Nidec Group.
Executive Vice President
Among Nidec’s executives and Nidec Group companies’ Presidents, the candidate must be able to demonstrate outstanding leadership skills for reform, and have made excellent contributions to the Nidec Group. The candidate must demonstrate potential to serve as President.
Executive, etc.
The candidate must be able to exercise Nidec Way, and lead the Nidec Group in a positive direction. The candidate must be able to maximize the Nidec Group’s corporate value, and possess firm record of achievements that are convincing to everyone. The candidate must have excellent knowledge and experience, and insight for global diversity to execute the Nidec Group’s businesses.
* Nidec Way: Code of conduct and management knowhow to serve as guidance for the entire Nidec Group globally.
