I want to use smartPLS for analysis and i am a bit confused about the five factor model, should i take it as a reflective or formative?please see the attach file.
The picture you uploaded is correct (apart from the 'observed' and 'latent' FFM - what are those? The Five factors do not form a second level factor - they are separate latent variables)
So i think you have to remove the FFM factor with correlations between neuro, consic, agree, extro and open.
However, this is the classical model, alternative which assume something like a overaching general personality factor exist. Therefore, you should clarify which model you exactly want to test.
Check the Paper of Linden et al. (2010):
The General Factor of Personality: A meta-analysis of Big Five intercorrelations and a criterion-related validity study
The paper below illustrates the Big Five as a formative construct as well:
Matzler, Kurt, et al. "Personality traits, affective commitment, documentation of knowledge, and knowledge sharing." The International Journal of Human Resource Management 22.02 (2011): 296-310.