Mitsubishi Motors Extends Performance-Based Wage and Promotion System to Include Non-Management Positions <BR />
JapanCorp: <http://www.japancorp.net/?page_num=1> Mitsubishi Motors Extends Performance-Based Wage and Promotion System to Include Non-Management Positions Tokyo, Japan, Mar. 25, 2003 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced it will extend its performance-based wage system to include all salaried workers, effective April 1, 2003. The decision to extend the performance-based system, which was introduced for managerial posts already last April, makes MMC a pioneer in the Japanese auto industry in abolishing a seniority-based wage structure across-the-board. In addition to doing away with ranking employees by age, the new system calls for an evaluation of workers based on their performance during a set period. The new system introduces the "role" concept, whereby an individual employee's potential and the contribution he or she is expected to make to the company's business results is under constant assessment. Setting out clearly defined goals, this will heighten target-awareness on the part of individual employees. Wages will be structured according to salary bands commensurate with each post. Raises will be paid within each salary band depending on employee performance. Wages within single salary bands will differ up to 10% by evaluation on the new system. The new HR system also provides an evaluation of the employee's potential for future tasks. This means that not only wages but also promotion will become purely performance-based. Performance assessment will look at target achievement levels, at whether the right employee is in the right job. This assessment will also be used in the selection of education and training programs that will enable the employees to achieve their full potential and make a more productive and profitable contribution to the company. The new system provides the company with an efficient tool for fair performance evaluation including bigger rewards for high-performing employees. This is expected to greatly increase motivation and behavior and thus directly contribute to the company's performance. For employees, the new system means clearly defined target setting and a higher level of accountability. With the enhanced transparency that comes with a performance-based system, MMC will be able to place employees in the position best suited to their skills and the company's needs. About Mitsubishi Motors Corporation Mitsubishi Motors Corporation was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. Automobile operations accounted for 98% of fiscal 2000 revenues and financing business, 2%. The company has one hundred and eighty nine consolidated subsidiaries worldwide. Overseas sales accounted for 56.8% of fiscal 2000 revenues. Mitsubishi Heavy Industries, Ltd. is the major shareholder with 25.62% of issued stock.For further information, please visit the Mitsubishi Motors Corporation home page at: www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> Contact Mitsubishi Motors Corporation Fumio Nishizaki f-nishizaki@mitsubishi-motors.co.jp +81-3-5232-7342 _____ Mar. 25, 2003, 22:55 (JST) Source: Mitsubishi Motors Corporation Mitsubishi Motors Corporation www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> From the Japan Corporate News Network www.japancorp.net <http://www.japancorp.net> Topic: Company reorganization Sectors: Auto General © 2003 JCN Newswire. A division of Japan Corporate News Network KK. All rights reserved.