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P-O-L-C Framework

Edgar Hernandez

South Texas College

ORGL-4352-V04-Capstone 1

Dr. Sandra Trevino

November 13, 2020

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P-O-L-C Framework

P-O-L-C Framework is known as strategic management which is why it has an immense

impact on the success or failure of large corporations. Asociación Chilena de Seguridad (ACHS)

is a great example of a large corporation that was in dire need of the incorporation of P-O-L-C

Framework. P-O-L-C stands for Planning, Organizing, Leading and Controlling. There is not one

important aspect of P-O-L-C Framework because they all correlate with each other. It is very

important to incorporate the P-O-L-C Framework competency into a big corporation like ACHS

because if it is not incorporated then their corporation could fail. ACHS needs a lot of

improvement when speaking in terms of internal relationships.

Asociación Chilena de Seguridad is a workers’ insurance non-profit corporation. What

the company does exactly is provide “member companies with risk prevention services and their

workers with free, high-quality healthcare and, when needed, salary compensation for work-

related accidents and illnesses” (Hafrey, J., and Reavis, C., pg. 1, 2016). In the article

“Asociación Chilena de Seguridad (ACHS) (A): Honoring a Legacy, Embracing Change” the

authors Leigh Hafrey and Cate Reavis talk about the multiple reasons that the company would

fail after the announcement that the CEO of the company was going to change. The changing of

the company was very sudden for all of the employees which caused chaos to set into the work

environment. When all of these changes took place there were various aspects of the

organization that needed to be worked on and P-O-L-C Framework provides great support for

each issue.

Planning is the first area of work that the organization needs to work on. Planning,

specifically in reference to P-O-L-C Framework, “is the function of management that involves

setting objectives and determining a course of action for achieving those objectives” (n.a.,
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Lumen Learning). It is important to understand this aspect of the P-O-L-C Framework because it

is what is going to make or break the outcome of any organization. According to the

LumenLearning article;

“Planning is a process consisting of several steps. The process begins with environmental

scanning which simply means that planners must be aware of the critical contingencies

facing their organization in terms of economic conditions, their competitors, and their

customers. Planners must then attempt to forecast future conditions. These forecasts form

the basis for planning” (n.a., Lumen Learning).

The goal for Asociación Chilena de Seguridad (ACHS) would be to make sure that they have a

set plan for how employee and partner relations are going to be run from the time preceding the

departure of the old CEO. The article states that before the change was set in motion the

SOFOFA’s Executive Committee already had a plan as to what to look for in a new CEO and

how they were going to look for it. The SOFOFA Executive Committee stated that the new CEO,

“requires a better understanding of how ACHS operated and a leader who could reverse the

organization’s decline in performance while maintaining its historical commitment to the safety

and health of the Chilean worker” (Hafrey, J., and Reavis, C., pg. 1, 2016). This is definitely a

good plan because change is good but for a large corporation as big as Asociación Chilena de

Seguridad it can easily do more harm than good. Order and Discipline, two of Henri Fayol’s 14

Principles of Management, would go directly into this corporation and the planning aspect of the

corporation because not only does the executive team have to maintain order and discipline they

have to make sure that order and discipline are enforced within the employees’ daily work

environment. This is something that has become very important especially for this organization

because the troubles that are going to follow the organization if something like this is not done
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are going to be unrewarding and most likely going to cause more issues for the company than

there should have been in the first place.

This is one of the issues that the Executive Committee ran into because the employees

began to worry about the benefits they received as employees for the organization and the fact

that they would not be able to have the same advantages like their off days etc. The employees

that were part of this organization took advantage of the healthcare and compensation for

accidents that happened on the job which raised accident rates to 35% and more. It had become

redundant to hear that employees got hurt on the job at that point but nothing was ever done

about it. This lowered the amount of workers that showed up to work which meant that the

supply rates were going down. This became a real issue for Asociación Chilena de Seguridad

(ACHS). This leads to the organization aspect of P-O-L-C Framework.

Organizing in reference to P-O-L-C Framework, “is the function of management that

involves developing an organizational structure and allocating human resources to ensure the

accomplishment of objectives” (n.a., Lumen Learning). This directly correlates with the issues

that the organization was having at the time of the change. There was a severe lack of

organization within the company which is what eventually led to the low supply rates. It is okay

to give employees breaks, sick days, personal days and any days off so long as the organization

is not suffering because of their absence.

“Heiremans’s influence extended well beyond the boardroom. He kept an office at

ACHS, which he visited every day. It was well known that he made almost all the

business decisions at ACHS, a leadership model that made sense to many of the

company’s executives” (Hafrey, J., and Reavis, C., pg. 1, 2016).

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The organizational structure that Heiremans built for his organization was functioning and well

put together, the pride and joy that he got from running the organization was clear and his

thankfulness was reciprocated into the benefits the employees received. The issue here is that the

employees took advantage of this pride that Heriemas had in his organization and this is where

his organizational structure backfired.

Leading is the next and for this specific organization the most important, since the

organization is switching leaders, CEOs. Leading is in reference to leadership, decision making,

communications, groups/teams and motivation (n.a., LumenLearning: Figure 5.7). It is very

important to show leadership when there is a new CEO coming into an old company that already

has its usual leadership styles. It is important to let the employees know to expect something

different. This will usually make the employees quit but it will show the leader what employees

are willing to become better workers instead of walking out. Organizing, Leading and

Controlling is the strategy implementation of P-O-L-C Framework which means that this is

where the organization is going to see the most change.

“ACHS’s stakeholders were arguably more concerned with its apparent struggle, along

with the entire mutual system, to lower the nation’s accident rate (Exhibit 7). 40 As one

manager explained it, ACHS could no longer lower its rate by its previous means—

implementing rules and regulations, providing procedures, and hoping that employees

complied. Member companies voiced their dissatisfaction with ACHS’s risk prevention

efforts, and many of the larger ones handled risk prevention and safety in-house”

(Hafrey, J., and Reavis, C., pg. 1, 2016).

This meant that the stakeholders were noticing the decline of the profits that the organization was

bringing which meant in loss of stakeholders for the organization. It has become evident that the
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organization had some type of leadership issues way before the CEO stepped down in place of a

new one. This is where the Executive Committee should have noticed their leadership problem.

In this section what would be great to implement is a temporary leader. A person that has the

equivalent knowledge of both the company and what it takes to have the company grow. This is

how the organization is going to gain control

Control is the final aspect of P-O-L-C Framework and it is the most crucial to follow and

implement because it tie the entire framework together;

“Controlling involves ensuring that performance does not deviate from standards.

Controlling consists of three steps, which include (1) establishing performance standards,

(2) comparing actual performance against standards, and (3) taking corrective action

when necessary. Performance standards are often stated in monetary terms such as

revenue, costs, or profits but may also be stated in other terms, such as units produced,

number of defective products, or levels of quality or customer service” (Hafrey, J., and

Reavis, C., pg. 1, 2016).

There are many ways to measure the performance of the organization and this all depends on the

performance standards of the company. This is where the Executive Committee will finally make

the choice on what CEO to bring into the company and let the employees know of the CEO that

is being brought in; his previous experience, his expectations for the organization and the

employees, etc. “ This function of management concerns the manager’s role in taking necessary

actions to ensure that the work-related activities of subordinates are consistent with and

contributing toward the accomplishment of organizational and departmental objectives” (Hafrey,

J., and Reavis, C., pg. 1, 2016).

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Figure 1. Annual Decline. The graph shows the decline in stakeholder and consumer satisfaction
rates because of the leniety of Hireman.

Figure 2. Annual Growth. The graph demonstrates the organization’s growth in stakeholders and
consumers satisfaction rates since the change in leadership.

I have always enjoyed being a leader and having the opportunity to explain what I would

do to make an entire organization better. I can also see great potential in the ideas that I provided

for this organization. After reading the article on this organization I truly understood how all of

the issues they had affected the outcome of their organization. I would really enjoy to sit and talk

to those who directly dealt with the issues that were being had during this time because if the

organization is still strong and standing I would love to know why so that if this were to ever

happen to me or someone I knew I would know how to help them.

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References

Hafrey, L., and Reavis, C., “Asociación Chilena de Seguridad (ACHS) (A): Honoring a Legacy,

Embracing Change”, MIT Management Sloan School, 8 April 2016,

https://mitsloan.mit.edu/LearningEdge/CaseDocs/15-

162.ACHS(A).Hafrey.FINAL.EDITED.pdf

n.a., “Strategic Management in the P-O-L-C Framework”, Principles of Management,

https://courses.lumenlearning.com/principlesmanagement/chapter/5-2-strategic-

management-in-the-p-o-l-c-framework/

n.a., “Planning, Organizing, Leading and Controlling”, Principles of Management,

https://courses.lumenlearning.com/principlesmanagement/chapter/1-4-planning-

organizing-leading-and-controlling/

n.a., “Ancient History: Management Through the 1990’s”, Principles of Management,

https://courses.lumenlearning.com/principlesmanagement/chapter/3-2-ancient-history-

management-through-the-1990s/