Flat Panel Case Study

620 Words3 Pages
Functional and Dysfunctional Aspects of Flat Panel’s Culture and Reward System Flat Panel’s culture and rewards system exhibited a number of functional elements that led to a “high degree of company loyalty.” Employees prided themselves on the firm’s innovative reputation, impactful products, and spirit of comradery (fostered by the ‘Nerd Olympics’). Additionally, the paternalistic culture created a family feel, where employees were welcomed to approach leaders through an open door policy. Finally, the rewards system in place attempted to provide transparency to compensation decisions via the salary matrix. However, some of the elements that suggested a positive company culture were also highly flawed. The paternalism and the rigid hierarchy it caused led to extreme inefficiencies. For instance, Park required Taylor get his authorization to remove employees tenured over 20 years. The person best suited to make these decisions was Taylor because of his proximity to the group. He knew from daily experience who from his team could contribute most to future success. Micromanagement like this puts employees in a threatened state and unable to perform their best. Additionally, while the reward system may have appeared functional, it ultimately was very poorly designed. Employees felt incentivized to simply “impress” their superiors, which did not necessarily correlate with actual performance. Further, the assessment cloaked evaluations as a part of career development counseling, creating a conflict of interest for the auditor collecting performance information from the employees. Finally, the evaluation system failed to require managers to provide feedback to their reports, inhibiting an environment of learning or growth. Challenges Encountered and How the Company’s Culture Could Be Leveraged During this type of restructuring, where tough losses are incurred, any
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