Mission Statements

Strategic worry in a Global Context (SOP09101) MODULE LEADER get away Grace Sharkey ASSESSMENT A Mission accounts may play an master(prenominal)(prenominal) position in the strategicalal management exercise just the entry of a whiz of armorial bearing is even more full to faces Submitted by Lukas Radzevicius 20th October 2010 2201words This essay is to debate the c each into question whether the role of a foreign committeeary station dictation is as important and beneficial as genius of flush and if they rear march as ii separate functions in the strategic management process for organisations.Clear definition of bang narrative and sense of committal essential be understood to begin the research. Afterwards to analyse benefits and problems associated with charge parameter is innate to implement this understanding into the strategic management model. So that we could finish with conclusion which bequeath estimate importance of mission asseveration in organisation and its necessary connection with alone levels of the play along c completelyed sense of mission. Mission avowal in some companies has a Brobdingnagian learn in each management levels of the slopped, but in former(a)s it is salvage just addition on the wall and usually whats forgotten.However the sire of this paper is to image out if sense of mission is more beneficial for organisations than mission statement, not to give a vivid view of all come-at-able slipway of mission statement realization. So when managers atomic number 18 asked what is the beguile of mission statement in their fellowship, cant answer this unanalyzable question, whats really sluttish, those mission statements atomic number 18 still relatively pretermit and dont find their way to every friendships management. Here the main problem emerges is the mission statement needed at all, if the play along can survive without it?Before answering this it is essential to clear understand , what is meant by the mission statement. First of all it is charge saying that there atomic number 18 different schools of thought, one is suck upd in term of channel schema and the other as philosophy and ethics, A. Campbell (1992). If you look closer they are deeply connected. The school of strategy presents mission as a strategic pricking in its initial process of the strategy creation, it states what is the business they are in, and where is it going to be? For example well known caller-up Google Inc. nswers this question to organize the worlds information and make it universally ready to hand(predicate) and useful. It is visible that their mission statement is their excogitation connected with strategic objectives and well implemented as it is number one search neb in World Wide Web. Another school of thought which glues the company and creates a common language for a sense of collective unanimity is called philosophical school of thought. Shared determine and sta ndards of behavior are bear on to generate co-operation among employees (A.Campbell 1991). A earnest example for this is IBM as the foundation of its somatic philosophy is based on quest for superiority in all things, dedication to service and respect for the individual. These three concepts are deeply prodigious in every employee in IBM which is world(prenominal) company and has different population connected for one common mission At IBM, we strive to hold in in the invention, development and manufacture of the industrys most advanced information technologies. Is it possible to connect these schools?Definitely yes, as the organization is a living and self-propelling organism so every part of it is. The school of strategy is its lintel and leads toward the oddments, the school of philosophy is its heart which connects all the body throughout blood stream and actually makes it happen. To connect two schools of thought, analysis of four-spot eyes of mission statement is significantly important to see how this organism actually fly the coops. As A. Campbell and S. Yeung express that a powerful mission statement exists only when four lements work in harmony reinforcing and supplementing each other. Purpose, Values, Strategy and Behavior Standards are those essential parts. To state a good mission statement it is a must to create a good mathematical function which hires at a higher(prenominal) estimatel, Starbucks environmental mission statement determines their internal obligations, and their influence on the supply chain is so significant that it places emphasis on their role in influencing their partners. Purpose is the answer to the question, why this company exists?It is noticeable that in this example the adjudicate which doesnt aim to stakeholders self-loving interests tends to compel organization unitedly and leads it to its higher aimed goal. To lead a good purpose it is necessary to provide commercial logic which will cover the em ulous position and distinctive competences of the firm, A. Campbell (1992) such as Ryanair which does not announce their mission statement, but as Jack Welchs once said, Strategy, then, is simply determination the coarse aha and setting a broad direction for Ryanair, is simply to continue creation the largest Cheap Flights leader in European market.Exercising this leadership is a marrow squash of great individual tactics, including attitude to low cost priority in every part of process, standardization of services and products, including other tactics which creates Ryanair a high competitive rival. This strategy defines the segment of the sector in which company exists and states the way it is going to be superior. Both purpose and strategy are only thoughts and logical conclusions of some abstract idea of the company, to bind them together behavior standards which convert that thought into action and lets the employees to feel what they should do in day to day basis.As Hilton H otels group states We will be the preeminent global hospitality company the first choice of guests, team members and owners alike it is understandably visible as it is worlds leading luxurious hotels fetching in account quality, scope of services, care of their employees and worldwide spread. In al-Quran Emotional Intelligence By Daniel Goleman, it is clearly stated that humans are mostly driven by their delirious right superstar logic, than rational-left brain logic.This is important to understand as we all are living beings and to find the satisfaction in job we are doing we must feel it with our worked up side of the brain and connect it with rationality to find an ultimate goal we are looking for same values of ours, synchronized with companys. As A. Campbell (1991) once said that companys culture is the moral principles and religion in values. Values are sense for behavior standards and norms for the firm, they connect company as right brain they create connection betwe en purpose, strategy and behavior standards.A good mission statement will always begin those connections strongly linked together. As Virgin Atlantic mission statement To grow a paid airline Where hatful love to disappear And where people love to work. Every part of four elements is clearly visible. Strategy- usefulnessable airline, behavior standards- people love to work and purpose- people love to fly. To substance up and state that a powerful mission applies only when four elements are linked together, how the body cant survive without a heart or brains, so the mission must have a strong logical background and deep connection within its aflame base.Easiest way to see it is to look at the links of value formation and strategy and if that link can be acted through behavior standards to aim the purpose, the strong mission statement is created and efficiently implemented. However mission can be discussed without emotions and thats what is usually done when the creation of mission is held in top levels of company which are usually aimed to profit, expansion, coverage or other selfish aims.Strategy is the guideline for this commercial behavior, however strategy is narrower concept than mission which has values and purpose aimed towards good purpose. Strong mission statement is than its horny base is supported with rationality, and then there are gaps, mission statement is inefficient. Now than we understand what is a mission statement and what are the core elements, it is worth considering what is a relation between practice and theory, strategy and philosophy, tool and a manager.Mission statement is still something to discover and to understand, but if you speak approximately sense of mission its something that everybody feels, but can hardly describe it in words. Campbell and Yeung (1991) discovered that peoples emotional devotion to their firm was strongest when employees values and the companys values are woful the same way. To describe this in intellectual way is very catchy because sense of mission is not a technology or an addition it is just an idea, deep and emotional individual feeling.Person with a sense of a mission has committedness and emotional attachment, which we found makes a greater influence then rationality to the companys performance if it stands for the same values and tries to do its best reaching the purpose. It is worth considering the role of sense of mission which can be described throughout benefits of mission statements. To reach organizational victory mission statement connected with employees via sense of mission benefits the company in many ways.First of all, as a rational tool, starting blame for many organizational strategies, mission statements were apply for many companies. Bart (cc1), Campbell (1997) had an idea that to bring a common view and discuss differences between ripened managers mission statements were used as medium. As well as emotional connector, German and Cooper (1990) shared view and explained that it can synchronize all management levels including employees, Klemm (1991) perceived mission as communication tool for a company, covering internal and external fields (employees and investors etc. . Bartkus (2000) came up with the finding that the mission statement which is worth consideration as a good one will definitely describe what is the business of the company and will show the direction of where it is heading. If we perceive mission statement as a tool it is always a chance that it can be used incorrectly or even foolish. But then the right people use the right tools to reach their objectives the tool benefits in its best form.It is worth considering if the tool is the really one that we need, if we need it all, Tahir Sufi and Howard Lyons questions this in their hold Mission Statements Exposed. The main objective was to find if the mission statement has a connection with a firms fiscal performance and after researching 200 biggest brands in hospitality sector the results showed that significant correlation between the mission statements and the annual turnover, there was no significant correlation with the net profit margin or the return on equity (T.Sufi and H. Lyons, 2003). Now it is clear that mission statement benefits organization in leading it towards main goals, but we can insight and some problems in this, there are no tangible ways to describe the exploits of mission statement and mission statements can be used in many different ways so it doesnt have the right way of doing it correctly, as the organisation is a dynamic so mission statement must pack to every changing situation.To foresight how it works in a company it is best to look through strategic management model. In strategic management model mission statement is the tool which helps to create a concept of the company as a pen and a selective service paper for an architect. It influences all management levels, beginning with employees whereas positi vely affected employee behaviour influenced by commitment and established internal policies has an impact on financial account, Bart et al. (2001).And other functional areas which lead organization towards competitive success thought commitment. It is clear that mission statement which has a clear purpose and direction will positively influence firm performance. Rigby (1994) reported that in US, mission statements is considered as the tool used the most out of 25 available options, this research was done in 500 companies. So as mentioned before if this tool is used by someone who is a master copy can make a significant impact for the performance of the company.To decide and to answer the question whether the role of a mission statement is as important and beneficial as sense of mission and if they can work as two separate functions in the strategic management process for organisations it is worth saying that after research what is clearly visible that sense of mission cant survive without strong mission statement and they cant work towards organizational success as two separate functions. Basically, mission statement is created to capture and convey the main purpose of the firm to answer the question, why this organisation exists?In strategic management model it is pivotal point for a start and afterwards to effect connection of every management level and to influence commitment towards the main goal. This connection can be called sense of mission the level of commitment towards the main goal. Research shows that the main objective shouldnt be selfish and created for the top level of the company as it is implemented through all stages of the firm. It is ironic than corporation focuses on its shareholders, it is those same stockholders who really lose in the end.