Emerelec

Emerson Electric

It is clear that Emerson Electric has a very elaborate and extensive planning process. The amount of time put into planning and reviewing those plans is astounding. But, apparently it is working for this company because it has seen continuous increases in its Income. Emerson Electric stresses to its employees how important their input is to the success of the organization. This encouragement of free communication to management from front-line workers allows management to quickly solve problems and potentially predict future issues. This can be essential to the planning process. If management can predict future issues they can plan for them so as to minimize the damage. This free-flowing communication can also empower employees and increase company loyalty. This is seen in their level of defective units. Only 1 in 10,000 units, this number is exceptional, especially for a company who is striving to achieve cost cutting strategies not highest quality.

Knight focuses on ensuring effective communication between top management and top management of the eight different business segments. Communication with management of each segment is vital to the planning process for it allows them to convey what their expectations for the upcoming months are to Knight. Without this Knight would be enforcing what he expected them to be achieving without knowing any details of the individual segments, which would never work effectively.

Knight’s compensation plan leaves something to be desired. It is based around hitting targeted division performance. It is quite elaborate as to the different areas of measurement added together to reach a final number, They look at things such as accounts receivable, new product introductions, sales, and so on. This might work extremely well we are not given all the details. However, it is clear that a lot of time goes into processing this data to reach an “extra salary multiplier”. They could be analysing this...