Support Case Study: HR System Implementation Support - 2025, Manufacturing Industry
In 2025, I provided HR issue support for Company C (manufacturing industry). I will briefly introduce the details. While I have received permission from the client company to publish this information, please understand that I have limited it to the general outline.
Client Company and Implementation Overview
Industry, number of employees: Manufacturing, approximately 30 employees
Location: A regional company outside of Fukushima Prefecture (where I reside)
Implementation period: February to May 2025
Method: On-site visits + online
Main point of contact: President
Content: HR system implementation support (including guides for the president and evaluators)
Background and Details of HR Challenges Faced by Long-standing Company C
Company C is a company that has contributed significantly to the development of the local community based on the advanced technical capabilities and deep trust from customers it has cultivated over many years. However, they had a strong sense of urgency that reviewing their existing organizational structure and HR system was essential to respond to the rapid changes in social conditions, diversification of market needs, and the decline in the working-age population in recent years.
Company C had already formulated a new HR system and had finished disclosing it to all employees, but they were in a situation where it was difficult to transition to the concrete implementation phase of the system.
HR systems tend to attract attention during the formulation stage, but what is truly important is the implementation phase, which focuses on how to effectively operate the formulated system and connect it to organizational revitalization and employee growth.Company C was facing challenges precisely in this implementation phase.
Deep Dive into Challenges: Real Challenges and Specific Issues After System Formulation
At Company C, a new HR system was built with the support of an external consultant. When I actually looked at the content, the system was very well-structured, and there were no major problems with the system design itself.
However, when system formulation precedes the actual situation of the organization and employee understanding, the following problems can become apparent.
Ambiguity of Evaluation Criteria
Although a grading system existed, the specific requirements for each grade and the promotion criteria for how to move up in grades were not clearly defined. As a result, it was difficult for employees to envision their own career paths, which could lead to a decrease in motivation.Increased Burden on Evaluators
There was a possibility that the management layer would face an increased burden of evaluation tasks under the new HR system. Because sufficient explanatory meetings and training had not been conducted, it would become difficult to guarantee the fairness and objectivity of evaluations.Importance of Goal Setting and Its Challenges
In HR evaluation, goal setting is an important element that serves as the basis for evaluation, but at Company C, the implementation of goal setting was not sufficiently established. If goal setting is not performed appropriately, evaluations tend to become subjective, making it difficult to gain employee buy-in. Note that I lowered the priority of this point at this stage and set it as a challenge for the next time onwards.
Concrete Approach to Solving Challenges: System Institutionalization Through Practice
To address the above challenges, I decided to proceed with support based on the policy of "institutionalizing the system through practice, not armchair theory." Specifically, I implemented customized support tailored to Company C's situation, centered on the following three initiatives.
Practical Advice Through Visits
I actually visited Company C and sat in on the evaluation trials. I provided concrete advice on the spot regarding how to proceed with evaluations, specific interpretations of evaluation criteria, and how to fill out evaluation sheets. This allowed evaluators to immediately resolve questions and engage in evaluation tasks with confidence.Practice Through Evaluation Trials
First, I decided to have the managers and department heads, who are the evaluators, actually perform evaluations using the evaluation sheets. I stood by during actual evaluation sessions and provided specific advice, implementing customized support tailored to Company C's situation. At Company C, evaluations are conducted with a division of roles where department heads are secondary evaluators and managers are primary evaluators.Sharing the Importance of Daily Behavioral Observation
One of the most important things in evaluation is to "observe" subordinates' behavior on a daily basis. This is a very important element that serves as a prerequisite for evaluation. I shared the importance of observing subordinates' behavior not just during the evaluation period, but on a regular basis, and recording it based on concrete facts. This practice is not only extremely effective for improving the accuracy of evaluations but also for daily management, and it leads to improved communication with subordinates.
Guide for Management
Although it was after the evaluation practice, I once again provided comprehensive education (training) on how to be a manager (evaluator). The content is mainly as follows.
Reconfirmation of the Role of Management
What managers should take on is a wide range of roles that go beyond daily operational management. Specifically, this includes "achieving organizational goals" from a medium- to long-term perspective, not just short-term results; "strengthening organizational power" to draw out individual abilities and increase the productivity of the entire team; "human resource development" to support the growth of each subordinate according to their career aspirations; and "successor development" to contribute to the step-up of the entire organization by raising one's own successor.
Basic Thinking on HR Evaluation
Purpose of Evaluation
Personnel evaluation has two main purposes: determining the treatment of subordinates (the evaluatees) (such as compensation, promotions/advancements, and transfers/assignments) and fostering the growth of subordinates.Importance of the Trinity
For personnel performance reviews to be operated appropriately, it is essential for the company, supervisors (evaluators), and subordinates (evaluatees) to work together as a trinity. Each party is required to understand the system and possess the necessary knowledge, skills, and mindset.
Personnel Performance Review Process
Personnel performance reviews consist of four processes: starting with "goal setting" at the beginning of the period, followed by "mid-period guidance," "end-of-period evaluation," and "feedback."Thorough Mid-Period Guidance
Mid-period guidance aims to check the progress of set goals and to encourage subordinates so that they receive the necessary support and remain motivated for the remainder of the period. Specifically, it requires observing subordinates, engaging in sufficient communication, providing timely feedback, conducting mid-period interviews (at least once), and revising goals as necessary. Methods for gathering information include behavioral observation, interviews, reports (such as daily reports), and hearing from relevant parties.
Importance of "Behavioral Observation"
One of the most important tasks for a supervisor is to "observe" subordinates on a daily basis and record specific facts using tools such as a "behavioral observation sheet." This allows evaluations to be based on facts, distinguishes between work-related and non-work-related matters, and enables the confirmation of observation status for lower-level evaluators.Key Points for Feedback Interviews
The purpose is to explain the evaluation results in a way that is convincing, to look back on the efforts made during the current period, and to think together about what to focus on in the future. It is important not to talk one-sidedly but to listen sufficiently to the subordinate. Skills such as active listening (nodding, verbal cues, eye contact, and facial expressions), acceptance (repeating, paraphrasing/summarizing, and utilizing silence), and recognition (recognizing achievements, recognizing changes, and recognizing existence) are required.
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Sharing specific Q&A regarding evaluation operations
We shared the content of Q&A sessions held during evaluations to deepen understanding of how to address specific questions and challenges in evaluation operations. While this may seem like basic content, sharing such things among evaluators is extremely important.Evaluating veteran and high-performing employees
Instead of maintaining the status quo, we convey expectations for further growth and contribution, and provide feedback on 'what went well' and 'future challenges/expectations' based on specific behavioral facts.Ensuring fairness and objectivity in evaluations
Daily behavioral observation and recording are extremely important. We objectively record and accumulate specific behavioral facts such as 'when, who, what they did, and what the result was' to eliminate biases like the 'recency effect.'Handling private information (non-work-related information)
We clearly distinguish between 'work-related' information relevant to job performance and 'non-work-related' information concerning personal private matters. Non-work-related information is not directly subject to evaluation, and we avoid evaluations based on sympathy or extenuating circumstances.Discrepancies in evaluations between primary and secondary evaluators
The fact that differences in evaluation results or perceptions arise between evaluators is not a problem in itself; rather, it is a benefit of incorporating diverse perspectives. What is important is that when discrepancies occur, evaluators communicate with each other to share the thinking and perspectives behind their respective evaluations and align their perceptions.Discrepancies in the interpretation of evaluation criteria
If there are differences in interpretation among evaluators, it is important to communicate and align perceptions. Additionally, we consider this an important point for system improvement and will examine the clarification of the criteria.Workload of evaluation tasks
By continuing daily behavioral observation and recording, it is expected that the burden during the evaluation period at the end of the term will be reduced. We are always conscious of the balance between system operation and work load, and continue to make improvements.Focusing on and coaching subordinates' 'negative aspects'
It is the manager's role not only to recognize challenges but also to provide specific coaching for improvement, necessary support, and 'developmental involvement' that encourages the individual's own realization. Furthermore, specifically recognizing positive aspects such as good points, strengths, achievements, and the process of effort, and conveying them as recognition and praise, leads to improved motivation for subordinates.
Future Outlook: Aiming for continuous improvement and growth
Establishing an HR evaluation system cannot be achieved overnight. While carefully resolving the issues that have emerged through the trial of the evaluation one by one, it is necessary to brush up the system into one that is more in line with Company C's corporate culture and organizational reality.
Our continuous goal moving forward is to work together with Company C, repeating trial and error, to create an HR system where each employee can feel their growth and which leads to the revitalization of the entire organization.
Impressions after implementation: Lessons learned and future challenges
There are not a few companies that have the challenge of 'having created an HR system, but the operation is not going well.' There are also many companies where the system and reality are disconnected and have become mere formalities. Under such circumstances, Company C seriously worked on improving the operation of their HR system. It was a very valuable opportunity to be able to hear the thoughts of the president, department managers, and section managers from their respective positions. I would like to take this opportunity to express my gratitude to Company C.
I believe that issues related to HR and salary systems are common worries held by many companies. I believe that even just adding a little support from an external perspective, from the position of someone like myself who has extensive experience in system construction and operation, and is also 'currently' practicing construction and operation in-house can create a trigger to break through the status quo. I am also very grateful to have been able to incorporate new perspectives through my collaboration with Company C. Thank you very much.