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Organization
and Operational Structure
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pursue streamlining and rationalization of management, the Group Administration
Office, functioning as a professional staff and service unit, was set up. In addition
to pursuing implementation and improvement of management, the Group Administration
Office also is also in charge of group-wide activities such as setting up computerized
management systems, enforcing internal audits and follow-ups, material procurement,
financing, engineering construction, legal affairs and public relations. |
Each company maintains a President's Office, each
division a General Manager's Office, and each plant a Plant Manager's Office,
constituting a complete vertical line of staff organization. In addition, each
company has its own accounting, administration, warehousing and shipping, technical
and labor safety and health departments. To improve efficiency, the following
concepts have been implemented:
1. Division System: To prevent the growth
of the Companies from hampering the efficiency of operations, each company is
divided into divisions by product or service. The purpose is for each division
to be able to arrange its own sales and production operations and set its own
targets according to the needs of its organization, manufacturing processes, and
product lines. In addition, the profit center concept is implemented throughout.
Each center is grouped by plant or by product, with independent profit and loss
statements. Through comparative analysis of financial reports, costs and revenues,
the areas for improvement can be easily identified for further rationalization
of operations.
2. Management by Objective: To ascertain the effectiveness
of each department, we place great importance on the management of costs and performance.
By analyzing the difference between the objective and actual performance, we can
identify areas for improvement. Through this process, we can keep costs under
control. The key lies in analyzing each element for product cost and establishing
objective costs. Improvement is achieved by finding solutions to the difference
between actual costs and objective costs. Once an improvement is implemented,
a new objective cost is set, leading to the most rational cost structure through
a con tin u al improvement process.
3. Individual Performance Reward
System: To rationalize rewards for employees' efforts and to make them feel that
they are integral to the Company's success, we carry out an Individual Performance
Reward System for all levels of employees. Bonuses are given as a reward to an
employee in proportion to his performance. At the same time, performance is also
used as a factor in each employee's annual evaluation. This system is designed
to promote employees' work quality and production efficiency.
Seeking continual
development and growth, the Formosa Plastics Group has diversified into many businesses.
In addition to efforts in research and development for providing products at reasonable
prices, all facets of management activities such
as procurement, production,
sales, engineering, personnel, finance, performance evaluation, and hospital management
have been computerized. We realize that only a sound management system can provide
a company with a firm foundation for
growth despite external forces.
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Formosa
Plastics Group
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