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News Release

Introducing the Professionals System, a New Technical Personnel System, and Revising the FM-BOSS System for Management by Objectives
~ Nurturing Strong Human Resources to Win Global Competition, and Building a Collaborative Environment ~

September 20, 2011

Furukawa Electric Co., Ltd. has restructured its conventional technical personnel system, which constituted part of the personnel system for managers, to introduce the Professionals System, and has drastically changed its system for management by objectives, called FM-BOSS (Note 1).

One of the pillars of our medium-term management plan New Frontier 2012 is to be innovative in shaping our organizational climate. These two initiatives are aimed at developing strong human resources for winning global competition and at pushing ahead with the construction of a collaborative environment in a bid to successfully innovate our organizational climate.

Introduction of the Professionals System

Given that the strength lined with advanced professionalism is requisite to the development of human resources that will play an active role in the global arena, we have changed the conventional system introduced in 1998 and adopted the Professionals System as a mechanism that motivates employees to build up their technical capabilities. Depending on their performance, those appointed under this system may enjoy more favorable treatment than general managers and section managers beyond the organizational hierarchy. In addition, those making an outstanding contribution to the global recognition of our Group and to improvement in its position in industrial circles may be treated equivalently to executives as senior fellows.

Those appointed under this system are given the opportunity to make their presentations on the results of their activities to the managerial executives. For the initial fiscal year of the system, a total of 18 employees have been appointed, including those transferred from the preceding system.

Revision of FM-BOSS

In addition, our system for management by objectives, FM-BOSS, has been revised for the first time in thirteen years for the purpose of transforming our organizational climate into one that encourages ambitious attempts, and for building awareness of collaboration with an emphasis on organizational achievements. Under the new system, innovative action objectives will be determined to encourage employees to work towards more challenging goals. The achievements and also the process of addressing the objectives are both recognized as merits. Non-organized actions that are not defined as objectives, such as guidance and fostering of junior employees and providing assistance to other members in performing their duties, will also be added to the positive factors for the year-end appraisal.

Apart from the changes outlined above, we have introduced an OJT Leader Program, which encourages the cross-sectional sharing of the problems and challenges involved in the methods of providing guidance to newcomers to make efforts in human resource development throughout the year within every workplace. Moreover, we are investigating the companywide implementation of the internal internship program (Note 2) with the aim of broadening the internal human network as well as the outlook of our personnel through short-term work experience in other workplaces.

(Note 1) FM-BOSS stands for Furukawa Management By Objectives and Self-control System.

(Note 2) The program is currently implemented solely in the Yokohama R&D Laboratories.

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