Leadership

In the Flat Panel Display Corporation, both functional and dysfunctional aspects exist in the organization’s culture and reward systems. As for the culture, firstly, it is good to see a high degree of company loyalty prevailed among employees. The well-known paternalistic culture along with the open-door policy for all of the employees does have a functional aspect, which has made the company warm and harmonious, just as a big family, and is favored by most of the people. Besides, employees tend to be very proud to work for the firm, and a spirit of camaraderie at the team level also spreads widely in FPNA, which all show a great culture based on trust.

On the other hand, the organizational culture is also dysfunctional to some extent. Under the paternalistic atmosphere, the president Park with big ideas enjoyed reverence throughout the company, possibly leading to a too centralized management, which can be showed by the arbitrary decision of personnel cuts he has made. Also, the paternalistic culture may possibly make the employees feel too comfortable and complacent to be cognizant of the changing environment and striving to be the best.

As for the reward systems, it is on the functional side that most employees are positive towards the overall reward of the company compared with external employees in other similar firms. However, the reward system for the internal equitable distribution is actually dysfunctional. Since employees hold to the belief that impressing one’s superiors can help to get a quick advance. It is obvious that the reward system violates the expectancy theory, which states that the compensation should be contingent upon performance and rewards should justify the effort, for the reward system highly depends on the managers’ personal impressions. Although there are Performance Assessment and EES to track the employees’ development, the data in systems are also highly affected by managers’ personal thoughts, not to mention the inconsistent...