Formosa Plastics Groups

Case 25-3 Formosa Plastics Group For many years, managers at Formosa Plastics Group (FPG) used a management control system with an element that was roughlywhat anomalous for a large corporation all employees were evaluated subjectively. In do their judgments, evaluators looked at objective performance measures but subjectively do many adjustments for factors they deemed to be beyond the employees control. One strength of this system was that bottom-line profit was not even considered in the evaluations of some profit center managers: These managers were evaluated only in terms of the manageable factors driving profit, such as meeting production schedules, efficiency, represent control, and quality. The FPG system seemed to work; the company had grown and thrived over the years. A sample of FPG mangers who were interviewed in November 1991 were virtually unanimous in their appraise of the companys control system. For example, Mr. C. T. Lee (senior vice president and general manager of the Plastics Division) said, We are as close to complete today as we can be. If we have good ideas, we follow out them. We are continually refining our system. Company History, Organization and Strategy FPG was a diversified chemical company headquartered in Taipei, Taiwan (R.O.C.).

It produced and interchange a broad range of products, including high density polythene (HDPE), chlorofluorocarbons, finished plastic products (e.g., shopping bags, garbage bags), intermediate young materials for plastics production (e.g., polyvinyl chloride, caustic soda), carbon fiber, acrylic acids and esters, processed polyvinyl chloride products (e.g., flexible and rigid film, pipes, window frames), processed polyester products (e.g., polyester staple fiber, polyester chips, polyester preoriented yarn), electronic products (e.g., copper-clad laminate, printed circuit boards), plasticizer, and textile products (e.g., rayon staple fiber, rayon and blended yarn and cloth, nylon eject cord yarn). It also ran a 6,000-bed... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .