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Hitachi to end Japan Centric HR management: “there is an urgent need for a new approach to human capital management based on a global perspective”

Tokyo – For people living in Japan it is clear that Japanese companies are now dramatically increasing their efforts to become more global. Human Resources departments have now clear objectives to deliver international team management to support this objective. To do so Japan-based companies are also internationalizing their HR teams. As an example Hitachi, Ltd. (NYSE:HIT / TSE:6501, “Hitachi”) announced the formulation of a “Global Human Capital Management Strategy” to support Hitachi Group’s global growth. This new strategy includes the creation of a Global Human Capital Database covering all Hitachi Group employees in Japan and overseas(a), and a Global Grading(a grading based on the global job evaluation method) System for all employees in Japan and overseas at Manager level and above.

The construction of this new structure, which will serve as a common global platform for human capital developing, recruiting, posting, promotions, and reward in the Hitachi Group worldwide, will be led mainly by a new Global Human Capital Division that is established on July 1, 2011. Furthermore, in cooperation with each Business Division, optimum human capital management schemes will be put in place in keeping with the unique characteristics of regions and businesses.

Hitachi will also accelerate global human capital management in Japan, for example by promoting the recruiting of personnel for global business, providing more young employees with overseas experiences, and revising the current management development program comprehensively, in order to facilitate human capital management, with a view towards the global growth of Hitachi’s business.

Hitachi is currently in the process of expanding a global business with a particular focus on the Social Innovation Business, which...