Selected Organization Is Komatsu Group Commerce Essay

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Construction and Mining Equipments: Major products in this category include Compact Excavators or Mini Excavators which are usually used for digging in congested places. Backhoe Loaders is another product which is for loading and excavation. Skid Steer Loaders is another premier product from Komatsu Group which is primarily used for cargo, snow removal. It is also used in farming.

Major customers of Komatsu Group includes Construction companies, Mining and Excavation companies, Petro Chemical Companies, Material Handling Companies, Airlines, Automobile manufacturers, Small Medium manufacturers and others. Since Komatsu Group has diverse range of products, almost all sectors of industries finds Komatsu products applicable for their sector.

Komatsu Group vision is to become indispensable to their customers and become world - class manufacturer of blades and buckets. They want to achieve their vision by being driven through their customer's success. However, the mission of the Komatsu group is as follows:

To get deep understanding of customer's need and provide them with the value- added products.

To broaden and expand the product range and distribution network in order to reach more customers [2] .

The Komatsu groups state that their corporate value is the total sum of the trust of societies and stake holders and the company value is to sustain the trust. They value to the customers and believe the fact that only customers are authorized for the creation and assessment for their corporate value (KOMATSU'S WORLD WIDE OF BUSINESS CONDUCT) [3] .

Like any other organization, Komatsu Group is also influence by various Internal as well as external factors. These factors include environmental, competitors, vendors, employees, partners, investors and others. Some external factors influence on Komatsu Group can be explained as follows

Environment: Komatsu group is quite influenced by this factor. Since the company's products are heavily focused for construction and mining sectors, it is directly influenced by any regulations concerning the environment. Both construction and mining has adverse impact on the surroundings and these sectors are determined by environment regulations. Any such regulation which bans or undermines construction and mining activity negatively impacts the revenue stream of Komatsu Group.

Political: Komatsu Group has presence in various countries. Trade restrictions, tariffs, trade unions, local laws and various other aspects are part of Political factors which affect Komatsu Groups business objectives. For example, Government of Japan and Government of India has friendly relations which indirectly materializes in business opportunity for Komatsu Group.

Economic Factors: Economic factors are also external factors which have direct impact on the company. Since Komatsu Group is spread across different geographies, any movement in country's economy has direct influence on the company. It is influenced by factors like national debt, inflation, economic growth and others. Fast growing economies present opportunities for the company to sell it's product and services while indebted nations closes all windows of growth.

Technologies Influences: Technology plays an important role in today's life. If the technology is changing very rapidly, it always put the company under stress since organization has to rapidly evolve their products and services. It can also be possible that the company's flagship products can be thrown out of the market in a matter of time if the company does not focus on Research and Development for improvement in technology. [4] 

Komatsu Group has a hierarchical structure. It has a board headed by the Chairman. There are Executive Officers to support the Company. Each division is headed by an Executive Officer. Some of the divisions are Business Planning and Strategy Division, Research Division, Production Division, Aftermarket Business Division, Development Division, Construction Equipment Marketing Division and others. Each division has its own hierarchical structure headed by Executive Officer. There are Executive Officers who are representatives of Region. Four major functions of the organization are Business Development, Research, Finance and Production.

Diagram of Organizational Chart


Figure: Organizational Chart of Komatsu Group [5] 

These four functions work in tandem to ensure that the organization's objectives are achieved. Business Development team ensures that the market requirements are captured well. These requirements are passed to the Research and Development team which works to bring out a product for meeting the market requirements. Once the research team has come up with the product, finance team plays the role to ensure that the product is within customer's budget. Based on approval from Research and Finance division, the production team comes into picture for final mass production of the product. All these four functions of the organization ensures that the company's long term strategic objectives are regularly achieved.

Komatsu Group's organization culture comprises of sustaining quality and reliability and based on the Rules of the Business Community. The company corporate value is the trust of the society and their stakeholders and in order to enhance this trust, the company has continuously focusing on improving business results and maintaining transparency and soundness of management. The Komatsu group is found to be very strict for adhering the compliance and rules and regulation. The following are the principle of the compliances associated with the company:

All employees are supposed to follow rules strictly and not permitted to break regardless to any situation and circumstances.111

There should be clear understanding of KOMATSU'S WORLD WIDE CODE OF BUSUINESS CONDUCT and ignorance of any type would not be tolerated.

All area of the company should be mistake free or failure to follow the policies and rules.

All employees ask for ensuring to take preventive and corrective actions to avoid failure of rules.

There is a culture of whistleblower and the company is committed that no unfavorable action will be taken against the employee informing against the defaulter.

With the strict adherence to the principle of the compliances the company focused on the principle of developing professional culture:

Emphasizes on quality and reliability

Emphasis on Corporate governance

Manufacturing Competitiveness

Stake holder relations

Corporate Social Responsibility

This appreciative culture influences the organization's operations. Firstly, it keeps the employees motivated and ensures that they give their best output. Secondly, it reduces friction inside the organization which in turn is reflected in enhanced productivity [6] 

Activity B

After the deep analyzing and research it has found that the "Komatsu Group" explores the better details of HR departments, culture as well as organizational policies and strategies. It is worldwide organization employed more than three thousand employee and successfully managing it with appropriate organizational strategies. The deep and detailed analyzed organizational strategies of the Komatsu group would enhance the understanding of different departments, strategies, culture and policies at global level. Therefore, Komatsu Group is selected for the project of assessment.

HR (L & D) is one of the most important departments in an organization. People make the organization and if human resource is not satisfied, no matter what the product or service is; there will be failure. Komatso Group's strategy is to be number one manufacturer of construction, mining , military and industrial equipments. It is number two in the world. Company's strategy is to ensure that it not only maintains its present position but also strive to each the number one status. Company is present in almost all the geographies of the world. It has more than 35 thousand people working in different geographies. Human Resource is the most important resource for the organization since it is this resource which has enabled Komatso Group to manufacture one of the world's best machines. Komatso group has been expanding extensively in some of the world's fastest growing regions like India, Brazil, China and others. Though Komatso group is well established in the developed world, it has yet to establish its foothold in the developing regions. Future growth of the organization will be determined how best the company establishes itself in these regions. Company's organization strategy is quite clear.

Human Resource Management Division helps Komatso to achieve it's long term strategic goal. There are various activities done by the HR department which helps the company to achieve it's strategic objectives. The most important of all the activities is Recruitment and Selection of right candidates. HR is responsible for identifying the right candidate for a Job. One single wrong candidate can impact the organization's culture. [7] It can also bring the whole project down. Hence, HR has a very critical role to ensure that the right candidates are selected for a role. Second most important activity of HR is to ensure that performance management policies of the organization are well maintained. Proper performance management is necessary to keep employees motivated. HR plays a critical role in framing the right policies to ensure that individual's performance is rightly measured by the organization and he/she is appropriately rewarded. A sound functioning HR department can actually ensure motivated and productive employees. Third most important activity of HR is Training and Development. HR ensures that all the employees whether new or old are provided right kind of Training. Since company has a strong manpower, it is important that all the employees are provided right kind of training for increasing their productivity. It is the core function of HR to identify the training gaps of an individual and devising the right training program for the people. HR department is very crucial if Komatso Group intend to maintain it's position as the world's leading manufacturer for industrial, construction and mining equipments.

HR Managers are responsible for supporting Line Managers. Line Managers identify their manpower requirements to the HR. HR managers identify the appropriate resources either internally or through external recruitment. HR managers work in close coordination with Line Managers in finding the suitable resources meeting the requirements. Hence, all resources requirements related to project identified by Line Managers are fulfilled by HR managers who work closely with the Line Managers. Second most important area where HR managers work closely with Line Managers is Training and Development. Line Managers identify the training requirements of the team members working in their respective projects. It is the duty of HR manager to identify the skills gap and plan the appropriate training program for the resources. HR manager works in close coordination with Line Managers in devising these training programs and ensuring that the resources skills are up to date and in line with organization's long term strategy.

HR has a very critical role in ensuring that overall success of the business is achieved. Human Resource is the most important resource in the organization and it is HR which ensures that this most important resource is well groomed and maintained to meet the long term organization's strategy. Right from identify and selecting the individual till his last date, HR works closely with each and every member of the organization. Well oiled HR department is a must for ensuring organization's success in this competitive world.