《Formosa Plastics Group》.docVIP

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 somewhat unique for a large corporation – all employees were evaluated subjectively. In making their judgments, evaluators looked at objective performance measures but subjectively made many adjustments for factors they deemed to be beyond the employee’s control. One effect 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 controll