### Section 4. Issues in human resources management toward the improvement of business performance and the development of core human resources

The purpose of human resources management is to motivate employees to work and maximize their abilities through employment management such as personnel relocation and education and training, management of working conditions and wage management in order to maintain and strengthen competitiveness of the company in the long run. To realize this, it is important to develop a management system that uses the right person in the right place, accumulate human capital through education and training inside and outside the workplace, and motivate employees to work. Besides, companies are required to design strategic careers toward the development of core human resources as a key to business growth, which are able to understand the management strategy, create and carry out specific plans, pass down knowledge, experience and skills that they have acquired through their occupational career to the younger workforce.

The characteristic of companies whose employees have higher motivation to work are that they manage employment in a broad manner regardless of employment form and proactively work on human resources development. These companies tend to have higher stability of workforce and higher productivity and recurring profit margin. Moreover, focusing on managers as core human resources of the company, a process was found where experience through work improves abilities that are necessary for managers.

## (Companies whose employees have higher motivation to work tend to have higher stability of workforce and higher productivity and recurring profit margin)

Human resources management that motivates employees to work and maximizes their abilities has a great impact on maintaining and strengthening the company's competitiveness. First, it is considered that increased motivation of employees to work is directly linked to the stability of workforce. The stability of workforce means improvement in human capital with more experience through work. This is considered to have positive influence on the company's productivity and profitability.

As shown in Figure 45, stability of workforce is higher in companies that answered their "employees' motivation to work is high, or higher" than in those that answered their "employees' motivation to work is low, or lower." The same tendency can be found in labour productivity. In the same way, looking at the relationship with "recurring profit margin" (index of earning capacity in company as a whole, actual business activities combined with financial activities) as a financial index that shows business performance in a more objective way, the recurring profit margin is higher in companies whose employees' motivation to work is high.

## (Companies whose employees' motivation to work is high work on a broader range of employment management and the degree of effort is larger)

Companies are required to implement human resources management that increases satisfaction level of workers, motivates them to work and increase the company's competitiveness through these activities. What should companies do to motivate their employees to work? Using Figure 46, we will look at the difference of employment management in businesses of the same industry, comparing that between companies whose employee's motivation is high and those whose employees' motivation is low. Companies whose employees have higher motivation to work are proactively implementing employment management in a broad manner for both regular workers and non-regular workers. There are some differences in activities for regular employees, such as "business strategy information, sharing of objectives in departments and workplace, and promotion, "facilitating relationship and communication in the workplace," "selecting and promoting excellent personnel," "improvement in human resources development opportunities," and "evaluation of work progress and improvement in the satisfaction level to the evaluation." Activities with the most advanced employment management for non-regular workers include "facilitating relationship and communication in the workplace," "development of an employment environment where people can work in as long and stable a manner as possible." Activities with some difference include "measures for the long hours and mental health," "evaluation of work progress and improvement in the satisfaction level to the evaluation," and "realization of equal treatment."