Ethic
Mission statements are nowadays popularly used by businesses to illustrate the directions and goals of the companies. The use of mission statement is often an effective way for a company to convey the overall objectives and values of the business to employees who are often only responsible for a small part of the company. Mission statements can be used to unite employees from various departments across the company to the extent that employees can therefore together understand and share the common goals and purposes of the company, thereby enhancing work efficiency and productivity. The concept of mission statement has also become increasingly important in the study of corporate strategy as some researchers have suggested good mission statement could provide worthwhile alternative to the whole task of corporate planning. Mission statement can also be an important tool for strategic management and planning. In this paper, we shall discuss the function of mission statement as well as how it can be used for effective strategic management. We argue that mission statement is essential for business to build up corporate image and set common goals and values which are able to promote firm wide effectiveness and productivity.
Purpose of Mission Statement
We have seen effective mission statement such as ‘Put a man on the moon’ announced by former US President Kennedy, but why does mission statement exist and what does it do? Mission statement is usually a brief sentence that explains the goal and purpose of an organization. What it does is it gives members of the organization a clear idea about the organization’s direction so that ultimately the members will follow the same direction. Peter Drucker, the management guru, once illustrated the importance of a sense of mission with his story of three people working on a building site. All three were doing the same job, but when asked what their job was, they gave very different answers. Peter...
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