Organization and Operational Structure

 To 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.
 

Local Companies:
 
Overseas Companies:
 
Education &
Medical Care:
   




 
Formosa Plastics Group