Caterpillar Management Structure Essay Example
Caterpillar Management Structure
Caterpillar is a corporate governance structure where the Chairman of the board acts as the CEO. The Board of Directors is a group of independent non-employee directors that are chosen from outside of the company. Many of the group presidents report to the CEO, which makes the vice-presidents report to each group president. The Board consists of 14 directors and is divided into three classes for the benefit of election. The Board has four committees which are Audit, Compensation, Governance, and Public Policy. The Board adopted Guidelines on Corporate Governance Issues and that reflect the Board’s commitment to oversee the policy functioning as well as all decision-making. These guidelines are for both the board and management level, with a view to enhancing stockholder value for the long term benefit. The average age of the Board of Directors is currently sixty three.
Caterpillar uses change management and 6 Sigma which is used to both prioritize and guide the improvement of health and safety performance. Caterpillar established procedures to encourage facilities to improve employee safety by utilizing the Vision Zero program. Each facility conducts annual reviews of its safety programs and reports these results to the facility manager. Facility management is responsible for the establishment of objectives, goals, metrics, and targets for the facility’s safety process and providing resources and authority to facility staff. Managers and employees are to use the SMART goals that are identified, tracked, and rewarded at each facility. All front-line leaders discuss safety with employees on a daily basis and all supervisors hold formal weekly safety meetings.
The behavior of all employees is governed by a Code of Worldwide Business Conduct whereas management employees are retested on this code annually. Caterpillar’s code of ethics is called Our Values in Action. Integrity, Excellence,
Caterpillar is a corporate governance structure where the Chairman of the board acts as the CEO. The Board of Directors is a group of independent non-employee directors that are chosen from outside of the company. Many of the group presidents report to the CEO, which makes the vice-presidents report to each group president. The Board consists of 14 directors and is divided into three classes for the benefit of election. The Board has four committees which are Audit, Compensation, Governance, and Public Policy. The Board adopted Guidelines on Corporate Governance Issues and that reflect the Board’s commitment to oversee the policy functioning as well as all decision-making. These guidelines are for both the board and management level, with a view to enhancing stockholder value for the long term benefit. The average age of the Board of Directors is currently sixty three.
Caterpillar uses change management and 6 Sigma which is used to both prioritize and guide the improvement of health and safety performance. Caterpillar established procedures to encourage facilities to improve employee safety by utilizing the Vision Zero program. Each facility conducts annual reviews of its safety programs and reports these results to the facility manager. Facility management is responsible for the establishment of objectives, goals, metrics, and targets for the facility’s safety process and providing resources and authority to facility staff. Managers and employees are to use the SMART goals that are identified, tracked, and rewarded at each facility. All front-line leaders discuss safety with employees on a daily basis and all supervisors hold formal weekly safety meetings.
The behavior of all employees is governed by a Code of Worldwide Business Conduct whereas management employees are retested on this code annually. Caterpillar’s code of ethics is called Our Values in Action. Integrity, Excellence,