Table of Contents:-
- Meaning of Mission
- Definition of Mission
- Characteristics of Mission Statement
- Formulation of Mission
- Guidelines for Effective Mission Statement
Meaning of Mission
A mission statement is a strong and exciting statement that tells everyone what an organization is all about and what it wants to achieve. It should sound professional but also interesting and clear. The goal is to tell people what the organization wants to do and inspire them, leaving a good impression.
The mission is what an organisation is and why it exists. Organisations relate their existence to satisfying the particular needs of society. It is often called the company purpose, corporate mission, or corporate purpose. They achieve this in line with their mission. It is “a statement which defines the role that an organisation plays in a society”.
The idea of a mission centres on the purpose for which an individual enters the world. In a narrow sense as is used in political science, mission relates to sending out a person or group of persons on a political or diplomatic errand. It states the business reason for the organisation’s existence. The mission does not state an outcome. It contains no time limit or measurement. Aim provides the basis for decisions on resource allocation and appropriate objectives. It defines current and future business in terms of product, score, customer, reason, and marked price. The idea of a task relates to the purpose for which an individual has been, or seems to have been, sent into the world.
In political science, “mission” specifically signifies the act of dispatching individuals on political or diplomatic assignments.
Definition of Mission
The definition of mission has evolved to include a concept that represents the fundamental purpose behind an organization’s existence.
According to Thompson, “Mission is the essential purpose of the organisation, concerning particularly why is in existence, the nature of the business (es) it is in, and the customers it seeks to serve and satisfy”.
As per F. Harvey, “A mission provides the basis of awareness of a sense of purpose, the competitive environment, the degree to which the firm’s mission fits its capabilities and the opportunities which the government offers”.
According to Drucker, “Mission focuses the organisation on action. It defines the specific strategies needed to attain the goal. It creates a disciplined organisation. The business purpose and business mission are so rarely given adequate thought, is perhaps the most important single cause of business failure and business frustration”
According to Hunger and Wheelen, “Mission is the purpose or reason for the organisation’s existence”.
Organizations perform various functions that society values to ensure their long-term survival. Mission statements usually give internal direction for the future of the organisation. Ambition and visionary zeal are the main constituents of the task. Organisational values hold the mission intact. The mission specifies what qualities the organisation will uphold and impart to the society and community. The mission statement incorporates the organization’s beliefs. A mission is like a map that shows a company where it wants to go with clear, achievable goals. A vision motivates everyone in the company to work toward goals, even if they can’t touch or see them. When a company combines both the task and the vision, it can overcome challenges and keep growing for a long time.
Characteristics of Mission Statement
For a mission statement to be truly effective, it must have specific characteristics, as outlined below:
- Reflection of Major Strategy
- Facilitating Objective Achievement
1) Motivating: A mission statement should be motivating for members of the organisation and of society, and they should feel it worthwhile working for such an organisation or being its customers.
2) Clear: A mission statement should be clear, short and practical, without using fancy or empty words just to grab attention. A task needs to be clear and purposeful, leading people to take meaningful action.
3) Feasible: A task should always aim for greatness, but it must stay within the realm of possibility. It should be based on reality and achievable so that its followers find it believable.
4) Reflection of Major Strategy: In the mission statement and organizational purpose, it’s important to specify the significant elements of the strategy.
5) Precise: A mission statement should not be so narrow as to restrict the organisation’s activities nor should it be too broad to make itself meaningless.
6) Facilitating Objective Achievement: Apart from detailing the overall strategies, a mission statement should provide insights into the methods for achieving the objectives.
7) Distinctive: If a mission statement is incomplete and doesn’t clearly state its purpose, it won’t make much of a difference or have a big effect. If all scooter manufacturers similarly defined their assignment, there would not be much of a difference among them.
Formulation of Mission
The organisational purpose encompasses the broad aims of the organisation; it defines what for the organisation strives. Understanding the process of defining an organization’s mission is easiest when considering it from the beginning. Truly speaking, an organisation’s mission lies in the basic philosophy of those who create and manage the organisation as shown in the image.
The long-term perspective of the organization’s vision is based on its core philosophy. The vision represents an inspiring picture of what the organization and its members can aim to achieve in the future. Therefore, the organisation should create projections about where it should go and what major changes lie ahead. Once the vision is defined, it’s important to consistently and enthusiastically communicate it throughout the organization so that different parts of the company fully commit to it.
2) Key decision-makers Policy-Philosophy
Philosophy, in the context of the management of an organisation, consists of an integrated set of assumptions and beliefs about the way things are, the purpose of the activities, and the way they should be. These assumptions and beliefs of those who create an organisation (owners) and those who manage it (managers, especially the decision-makers) become base for defining the vision of the organisation. These assumptions and beliefs, whether revealed or concealed, are within the minds of decision-makers. The two fundamental elements, fact premises, and value premises, are responsible for molding a person’s philosophy. Research findings and personal experiences shape our understanding of how the world works, informing fact premises. Value premises, on the other hand, represent our convictions about what goals and activities hold value and are desirable.
3) Organisation’s Mission
Key decision makers’ philosophy and visionary long-term concept of the organisation taken together define the organisation’s goal in the form of desires, beliefs and assumptions in the following form:
i) The product and service offered by the organisation can provide benefits at least equal to its price.
ii) The product or service can satisfy the needs of the customers not adequately served by others presently.
iii) The technology employed in product or service production ensures cost and quality competitiveness.
iv) The organisation can grow and be more profitable than just survive in the long run with the support of the various constituents.
v) The organisation will create a favourable public image which will result in contributions to the environment.
vii) The organization can satisfy the entrepreneur’s needs and aspirations as requested through its operations.
At the initial stage, the components go into goal formulation. The organization may need to redefine its aim as it grows or faces pressure from competitive forces to change its product, market, and technology. However, the revised task will reflect the same set of elements as the original-like type of product to be offered, type of technology to be employed, type of customer to be served, growth of the organisation’s favourable public image, self-concept of entrepreneur, and needs and aspirations of entrepreneur, though in modified form.
- nature of marketing
- difference between questionnaire and schedule
- features of marginal costing
- placement in hrm
- limitations of marginal costing
- nature of leadership
- difference between advertising and personal selling
Guidelines for Effective Mission Statement
Creating a mission statement is an important aspect of collaborative strategic planning. It functions as a compass, guiding the organization towards its desired future. When stakeholders are engaged in the process and a clear, concise statement is formed, it becomes a powerful tool for achieving success and strategic goals. A well-formulated mission statement can provide the focus and motivation one needs to take business to the next level. These are the values that drive business personality, customer service, and marketing messages. The mission is the soul of a brand.
The following guidelines are suggested for effective mission formulation:
1) Carefully select the elements of the Mission Statement
The mission statement needs to include four elements: value, inspiration, plausibility and specificity. The statement should be written clearly and concisely with reasonable ideas that show the value of the company. While doing this, it should also inspire employees to do their best and push to be the best company. It should make people want to be a part of the brand.
2) Regularly update the Mission Statement
The mission statement should be updated every six months to ensure it meets the current situation of the company. It should be adjusted when there is a change of goals or expectations from the company. Owners and decision-makers should rewrite parts of the entire statement if it no longer applies.
3) Involve employees in the decision-making process
Owners and decision-makers should work with employees to determine what the company stands for. They should brainstorm words or thoughts that relate to the brand they an building. They should use specific words that clarify ideas related to the company. Management should include the employees in a variety of words and what the company means to everyone who is a part of it.
4) The length of the Mission Statement should be Proper
A mission statement should be short and straightforward. It’s essential to keep a professional tone while making the writing interesting and easy to understand. A well-written mission statement is short enough that it could be used as a motto for the company (though a motto is a separate piece). There is a need for a statement that addresses either the short-term or long-term goals of the company as well. If it includes both, it will be too long, wordy and confusing.
Advantages of Mission
The following are the benefits of the mission:
1) Guiding Corporate Decision-Making
An organisation’s mission statement acts as a beacon for decision-makers. The actions and direction of the organisation must align with the values set out in the assignment statement. Where a proposed course of action conflicts with the ethos of the mission statement, it sends a strong signal that the proposed direction does not fit with the goals of the company. By adhering to the core purpose set out in the mission statement, a company can be sure that it is retaining its focus and not diluting its efforts.
2) Inspiring Employees
Well-written mission statements inspire employees. Mission statements contain information about the purpose of the company beyond the desire to make a profit. They create a set of common values and behaviours that employees can use to guide their day-to-day work activities. Many companies involve employees in the development of the goal statement to encourage a sense of ownership and engagement in achieving the business’s goals. By including the mission statement in the company’s recruitment pack, the organisation will attract new employees who share its values and ideals.
3) Improving Performance
Mission statements can improve an organisation’s financial performance Mission statements have a positive effect on organisational performance. However, this positive link was only evident where the content of the mission statement was realistic and aligned with organisational values. The key factor that affected performance improvement was the extent to which the goal statement influenced employee behaviour.
4) Business Plans
A mission statement is commonly included as a part of the executive summary of a business plan and maybe the very first thing that appears in a business plan. The executive summary offers a quick look at the entire plan. It’s the most important section of a business plan as it’s the first part potential investors, lenders, and strategic partners will read. A compelling goal statement can establish the tone for the executive summary and potentially attract investment, funding, or business partners.
A carefully crafted mission statement has the potential to greatly benefit a business as a powerful marketing tool. By integrating the objective statement into an advertisement, an entrepreneur can effectively attract environmentally conscious individuals and businesses to their venture.
6) Define the Basic Goal
A mission statement is the foundation of any business or organization. It summarizes the core goals, values, and philosophy, offering a clear and concise representation of what the entity believes in. Creating an impactful mission statement needs thoughtful reflection and a professional tone, making sure it connects with stakeholders, motivates employees, and leaves a lasting impression on all who come across it.
7) Promoting the Company
External stakeholders also have an interest in a company’s task statement. A well-written mission statement is a useful marketing tool. It communicates the values and aspirations of the company, attracting like-minded customers. Nike has a straightforward yet impactful mission statement: “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.” It uses this to great effect in its marketing campaigns.
8) Company Direction
Another advantage of formulating a mission statement is that it defines a business’s fundamental purpose beyond just making a profit. This purpose can steer the types of products and services the company provides, as well as its policies. For example, an environmentally-conscious entrepreneur could incorporate in their assignment statement a commitment to avoiding environmentally harmful production methods.