Catalytic Solutions Inc ( Csi ) Specialises - 749 Words

Catalytic Solutions Inc (CSI) specialises in producing catalytic converters with better performances and at lower prices, owing to a new coating formulation and proprietary manfucturing processes. In 2002, 125 employees at CSI were separated into three operating divisions. The distribution was 50% in Manufacturing and Quality control, 33% in Research Development (RD) and 17% in Sales Administration. Its measurement system focused on 3 areas: receipt of new OE commitments, execution of existing business and building of infrastructure. On the other hand, compensation system consisted of 3 components: base salaries, stock options and the annual bonus plan. Fast forward ten years as CSI matures in scale of operation and complexity, the organisation would require a more comprehensive performance management system as its objectives will vastly differ from that of 2002. As the firm adopts a less aggressive stance on growth, financial measures will gain increasing importance. Additionally, compensation packages will be less firmwide-centric, with greater focus given to shareholders. In 2002, CSI embarked on an expansive strategy since it is relatively new to the industry. As mentioned by Michael Redard, the President of Finance, CSI was one or two years away from being profitable, and thus the performance measures emphasised were most nonfinancial. However as CSI expands, financial performance measures will play a more pertinent role. CSI has set out plans to be listed