Mazda to Implement Merit Promotion System

09/30/96

Nikkei English News reported that Mazda Motor Corporation announced last Thursday that it plans to replace its seniority-based promotion system with one based on merit and ability. The company said the new system will be fully implemented by 1998, and that promotions will be made based on testing and evaluations by superiors. The shift is part of Mazda's restructuring under Ford Motor Company's guidance; Henry Wallace has pursued reform of Mazda's personnel system, since he became Mazda's president in late June.

Currently, promotion to higher job categories takes about three years, and the system has nine different ranks. The company says promotion under the new system will be possible within one to two years. The new system will allow a university graduate to climb to rank seven or eight by the age of 31, most employees reach that level around the age of 37, currently.

Paul Dever -- The Auto Channel