Construction of a global human resources database for approximately 130 countries and regions worldwide
Mitsubishi Chemical Holdings has expanded their businesses as a group with the four companies of Mitsubishi Chemical, Mitsubishi Tanabe Pharma, Mitsubishi Plastics, and Mitsubishi Rayon at the core. One of the elements of the medium-term management plan "APTSIS 15" announced in 2011 is "Internationalization" (increasing performance in the global marketplace), and Mitsubishi Chemical Holdings is urgently working on the construction of a global human resources management system to become the foundation of corporate competitiveness in the accelerating global business environment.
Employees: Approximately 55,000 people
Headquarters: Chiyoda-ku, Tokyo
Speaker: Kazuyuki Futamata, Executive Officer and CEO Office Manager
Mitsubishi Chemical Holdings Corporation
Point of the Project
Background of introduction
Mitsubishi Chemical Holdings has overseas corporations and factories in approximately 130 countries and regions throughout the world, with overseas sales accounting for approximately 1/3 of their sales of approximately 3 trillion yen. They have around 12,000 overseas employees, but they did not have a good grasp of what kind of human resources they had in which country and region.
Purpose of study
To construct a global unified human resources database in order to grasp and appropriately allocate all human resources in Japan and overseas and to achieve the recruitment, discovery, and fostering of outstanding national staff overseas.
Decisive factor for adoption
COMPANY enables "automatic conversion" of the human resources data of each country and the synthesis of a global human resources database. This was expected to speed up system construction and minimize costs.
Effects after introduction
The system has evolved from a simple human resources database to a global talent management system, enabling understanding of their most important human resources and drawing out of each employee's full potential, with the aim of being a leading company worldwide.
Constructing a common global human resources database to unify the "evaluation/compensation system" and "employee grades" worldwide.
The overseas sales ratio of Mitsubishi Chemical Holdings in 2011 was 36.4%, and they had set a global target for 2015 of 45% or more. According to Kazuyuki Futamata, Executive Officer, "Human resources would be the key to becoming a true global enterprise. We therefore launched the development of global business leaders. However, at that time, what kinds of human resources were available in which country or region wasn't grasped at all by the regional executives or human resources managers, let alone the headquarters human resources department." In such a situation, it was impossible to share human resources information across countries, and they were worried that as a result, this could lead to the outflow of valuable human resources, so they urgently started working on understanding their human resources worldwide. A major barrier to the construction of a global common human resources database would be the unification of the various evaluation systems and employee grades being administered in each country. In addition, high compatibility with headquarters operations also needed to be taken into account. Furthermore, since it would become a project to construct a large-scale system to cover the entire world, there were also concerns that it would require enormous amounts of time and money.
A large-scale system would not be introduced.
COMPANY Global HR Series, which can automatically convert the human resources data of each country, was adopted.
It was clear that in order to become a true global enterprise, a global human resources database was a necessity. But how much time and cost would be involved in the construction of a system to unify the human resources information in the approximately 130 countries and regions in which they operated? They began their study of systems from the point of view of whether there was a method that could perform this complicated unification work rapidly. At Mitsubishi Chemical Holdings, the 4 major companies were using COMPANY, and so that is where their study began. If they used the "Global Link Function" of "COMPANY Global HR Series", it would be possible to take in the evaluation methods and grade information being employed individually in each country unchanged, automatically convert them to the management items used by the global human resources database, and accumulate information based on the same indicators. Currently, in working on a global human resources system construction project, the common way is to construct a global common human resources system, but since many Japanese corporations give a lot of freedom to local corporations and do not unify the structures or systems of each country, there are huge costs and it takes a lot of time. COMPANY Global HR Series has established symbiotic global human resources construction techniques that take into account the circumstances unique to Japan and enable the collection of human resources information from overseas bases without the need to forcibly unify their current systems and management structures. This enables the rapid construction of a global human resources system. Based on the above points, COMPANY Global HR Series was adopted taking into consideration the important factors of speed and cost. In this way, it became possible to construct a human resources system that allows Mitsubishi Chemical Holdings headquarters to accumulate information using identical indicators and perform evaluation using identical indicators to enable fairness and appropriate allocation of human resources.
Achieving talent management for rotation and appropriate allocation of management personnel globally
The flow of actual operation is that each company would extract basic data from COMPANY Global HR Series and ask each individual to input additional personal information themselves, and then human resources personnel could perform searches and management could view the information. By combining the global human resources database with various measures, they aim for the appointment of regional human resources officers (CHO) together with cooperation between local human resources departments and the Tokyo headquarters human resources department and bilateral communication between the parties involved. Mitsubishi Chemical Holdings wants the project to evolve from simply a database to become a global talent management system.
* This article was created based on a presentation at COMPANY Forum 2012.