Personnel Policies and HR System (Kubota)

Amid worldwide calls to ensure that each individual’s values and ideas are respected in the workplace, Kubota is engaged in a global initiative to create a workplace environment that benefits from diversity and offers a sense of security. In its deployment of human resources, Kubota will continue to take due account of workplace safety and contributing to employee health so as to create safe and vibrant environments, which will in turn help to build a sustainable society.

Policy background

In order for the Company to realize GMB2030, it is essential to expand existing businesses. In parallel, we need to provide solutions to social issues through collaboration among the three fields of food, water, and the environment.
Since its establishment, the Company has been seeking human resources who can take on challenges for the development of society, and has been operating its business based on the important values of “On-Site Needs First Policy” and “On Your Side Spirit.” In order to expand existing businesses and develop new solution businesses, the Company continues to respect these values while focusing on the following three concepts that are necessary to embed in the Company as basic policies: 1. Diversity, Equity, and Inclusion (DEI); 2. Purpose; 3.Promotion of Health Management.

Basic Policy

DEI (Strengthening the organization): New value is created by bringing together and connecting diverse human resources, which in turn becomes a source of innovation and sustainability. The Company believes that building a corporate culture that emphasizes “dialogue” and drawing out individual abilities is the key to achieving DEI. The realization thereof will lead to the materiality, “Business operations based on diverse values.”
Purpose (Strengthening the individual): Each individual must take on the challenge of resolving issues in uncharted areas, and to do so, each individual must have a strong “Purpose” and demonstrate his or her individual strengths. This leads to the materiality, “Improvement of employee growth and job satisfaction.”
Promotion of Health Management: In order for the Company to continue to create solutions needed by society, the physical and mental health of employees, who are the driving force of the Company’s operations, is essential. By creating workplaces in which each individual can achieve a real sense of job satisfaction and fulfillment founded on mental and physical health, we aim to maximize the performance of our organization and thereby underpin the Kubota human capital strategy.

Value Creation Process for Human Capital

The driving force to solve environmental and social issues through expansion of existing businesses and new solutions in the future will be a “strong and flexible organization” and “diverse and autonomous human resources,” and reinforcing them is crucial.
Moving forward with personnel measures grounded in our basic approach to human capital will feed into the resolution of our areas of materiality, and accelerate our expansion of existing businesses and efforts to develop new solutions.

For further information on Human Capital Strategy, please refer to the Kubota Group Integrated Report

Kubota Group Integrated Report

HR System

Foster a corporate culture full of vigor with emphasis on taking on challenges and creativity.
Find the right person for the right job based on their abilities and ambitions.

Basic idea of personnel system operations

Equal opportunity Each employee can strive to attain any role or position.
Right person for the right job Aim to place the right person in the right job based on their abilities and ambitions

Overview of Personnel Training, Performance-based Promotion and Compensation

There are three career paths comprising expert positions, staff positions and technical positions for different roles and responsibilities. The personnel system offers personnel training, and performance-based promotion and compensation for each of these career paths.
Employees can change career paths based on their abilities and ambitions.

Career	Expert positions (management class)	Staff positions (administrative and general class)	Technical positions (technical class)
Definition of personnel(main roles)	People who drive the business, solve problems that arise in operations, and exhibit a high level of performance based on their willingness to take on challenges, advanced expertise, abundant knowledge and extensive experience and know-how	People who contribute to the business, take on challenges for their own growth, and take on broad responsibilities, especially work that requires expertise, creativity and experience, while aiming to establish a field of expertise	People who are in charge of work responsibilities, supervise and nurture subordinates, and achieve work objectives People who improve work processes based on advanced skills, knowledge and experience, and can perform complicated work
Training and education	Specialized training for specific objectives: around 160 courses of varying difficulty and subject matter that employees can choose from according to their own goals Correspondence courses On-demand training
	Induction training for mid-career recruits Career development training by age group		Training to upgrade technical skills Training for newly appointed foremen Training for newly appointed supervisors Training for newly appointed group leaders Training for technical positions (Advanced, intermediate, semiintermediate, and elementary training) Education for new employees (High school, technical college, and vocational school graduates)
	Training for newly appointed department managers Training to identify next-generation executive/senior management candidates Training for serving section managers Training for newly appointed section managers Optional seminars for expert positions Training for employees promoted to expert positions 360º feedback (for executives)	Training to identify next-generation leadership candidates Business skills training Compulsory training courses in second to fourth years of employment Refresher training in second year of employment Education for new employees (university and graduate school graduates)
Evaluations	Employees set targets with their bosses at the start of the year. Meetings are held during the year to evaluate progress towards these targets, followed by a self-evaluation and a review meeting on the achievement status at the end of the year. Bosses evaluate their subordinates, including their performance of processes and work behavior.		Executives set targets with their bosses at the start of the year. Meetings are held during the year to evaluate progress towards these targets, followed by a selfevaluation and a review meeting on the achievement status at the end of the year. Non-executives endeavor to achieve the targets set with their bosses. Both executives and non-executives are evaluated comprehensively based not only on their achievements and results, but also on their attitudes, behavior and roles.
Rotation	The work responsibilities of each employee are reviewed periodically, taking into consideration workplace needs and the employee’s preferences, to avoid having employees perform the same work for long periods.		－
Ranking(Basis upon which compensation is determined)	Six rankings (In addition to the above, advanced specialist grades are set on a fiveranking double track) Moves up in the rankings based on contribution to performance	Seven rankings Moves up in the rankings based on contribution to performance (Some require testing)	11 rankings Moves up in the rankings based on contribution to performance (Some require testing and technical qualifications)
Salaries	Monthly salaries are set based on ranking and evaluation.
Bonuses	Bonuses are designed to reflect consolidated performance and individual performance.	Bonuses are designed to reflect individual performance and bonus amounts set as standards in annual labor-management negotiations.
Retirement benefits	Retirement benefits are based on a point system that reflects rank, years of service, and evaluation.