Free Essay on How Goals and Objectives at NUCOR Relate to the Planning Facet of the P-O-L-C Framework

Goals and objectives are essential metrics used for the foundation of measuring a company's performance. Goals define a set of things an organization aims at accomplishing and are rallying points for managers (Hussey, 2012). On the other hand, objectives are measurable actions that are time-based and precise aimed at supporting the achievement of goals (Hussey, 2012). Having set goals and objectives, the principle attribute of the management is classified into four functions of the P-O-L-C framework that stands for planning, organizing, leading, and controlling. Nucor, a steel manufacturing company uses the P-O-L-C framework in its daily activities. At the planning phase, an organization basically starts with the vision and mission statement, which then followed by the strategy of fulfilling the vision and mission. The management at Nucor has given the employees the authority to act as the company's owners to achieve the vision and mission of the organization. It is the responsibility of every employee to take care of the company's customers. Furthermore, the employees are empowered to fix things that would negatively affect the company's performance, especially in executive decision-making. Moreover, employees volunteer to work overtime when there is a system breakdown.

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According to strategic management studies, the way an organization is organized can interfere with the goals and objectives positively or negatively (Hussey, 2012). Nucor has a decentralized organizational structure that transfers responsibility and authority to the lower levels or the company's hierarchy. The top management listens to the policies, suggestions, and the opinions of the lower level employees with the purpose of involving every employee in the decision-making process. As a result, teamwork is highly valued in the organization promoting a positive outcome. Nucor has maintained profitability while more than forty steel companies have filed for bankruptcy.

Goals and objectives are control mechanisms that provide an opportunity to evaluate the performance of an organization. Furthermore, goals and objectives help the management to measure how well or poor they execute their strategies (Hussey, 2012). As such, goals and objectives are part and puzzle of the reward system. They align accountability and interests across the business units of an organization. Nucor has implemented a reward system that is distinct from other companies. Nucor utilizes the policy of profit sharing whereby the employees receive a $2000 bonus. In addition, performance is tied with the reward system. A large percentage of the profit sharing incentive is closely linked with job performance. As such, employees at the company have a chance to make a lot of money and the earnings are not limited. Therefore, the incentive works across all the levels of the company to ensure harmony in working towards good performance. The Chief Operating Officer's (CEO) salary at Nucor is tied to corporate performance. The profit sharing incentive promotes job performance, productivity, motivation, and satisfaction. However, the reward system penalizes low performers while compensating high performers. The only disadvantage with the reward system used at Nucor is that when the company is doing bad people receive low compensation.

In conclusion, the goals and objectives have promoted increased performance of Nucor because every employee has the power to make positive things happen. The company aligns the employees' with the vision and mission of the organization, an aspect that rewards best performers and even reduced staff turnover. By aligning the goals and objectives with the P-O-L-C framework, Nucor has built its name in the steel industry. The company's employees are some of the highest paid in the industry and the organization has remained profitable.

Reference

Hussey, D. (2012). Strategic Management. Hoboken: Taylor & Francis.