6.Mission, Goals, Objectives & Culture

7/29/2019 6.Mission, Goals, Objectives & Culture

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Business ManagementPrepared by: JamalChapter 8

MISSION, GOALS, OBJECTIVES & CULTURE

Vision: To foresee you in the future. It gives a general sense of direction. It has threeaspects.

• What the business is now?

• What it could be in a ideal world?• What the ideal world would be like?Vision

But mission ignores real, practical problems and it can degenerate into wishful things.

Strategic Intent: Same to vision but it have some emotional core also.

• It implies stretch beyond current competence.

• It gives a sense of direction and discovery.

• It gives coherent to plans

• Aim to enthuse employees with the business strategy.

Mission: It describes an organization’s basic function in society, in terms of product &service it produces’ for its clients

Elements of mission are, purpose, strategy, strategic scope, policies, organization cultureetc.

Importance of Mission:

• To influence customer’s buying decision through values and feelings

• Sense of mission & values can help to motivate employees

• Mission help in developing strategies

• It acts as a yardstick to judge the plan and also effects implementation of

planned strategy.

Mission Statement is a formal statement of an organization’s mission. That possessescertain characteristics. Like brevity (easy to understand & remember), flexibility &distinctiveness.

Problems with mission:

• Ignored in actual practice

• Only for public attraction

• Post hoc: Mission does not drive the org but what the org actually does isassumed to be a mission.

•

Full of generalization not specific e.g. “to be the best”, “quality product” justlike a wish list.

Goals & Objectives:Goals: “The intention behind decisions or actions, the states of mind that drive individualor org to do what they do.”Org goal can be expressed as objective if they are quantitative and SMART, or aim cannotquantified.Specific, Measurable, Attainable, Result oriented, Time bounded Goal congruence: The goal set for different parts of the org should be consistent witheach other, they should be in best interest of the org as well as employees to avoid

conflicts of interest.Types of Goals:




• Ideological Goal: Focuses on org mission, shared set of belief and values.

• Formal Goal: Imposed by dominant stakeholder, attainment of which routeto org’ personal goals.

• Shared Personal Goals: Consensus on goal

• System Goal: Existence of organization, reason for being there, why exists?

Objectives: They are quantified statement of what the org actually intends to achieve overa period of time. They orientate the activity of the org towards the fulfillment of mission. Itcan be used as standard for measuring the performance of the org and separate depts.

Corporate Objectives

Unit Objectives: Specific to individual unit of the organization.

• Commercial: Like increase sale to x %, increase profit by x%, reduce cost,increase production

• Public sector

• General.Trade off b/w Objectives: Some objectives can only be achieved at the expense of othere.g. achievingGood profit and growth might have adverse effect on cash flow and product quality. So the

org can deals with conflicts in following manners:• Rational evaluation according to financial criteria

• Bargaining

• Satisfying i.e. rather achieving excellence in one field at the cost of otherfield, keep minimum satisfying level for each field.

• Sequential attention

• Priority setting

Stakeholder: Group or individual whose interest are directly affected by the activities of the organization.

• Internal (employees & management)

•

Connected (shareholder, supplier, lender, customers),• External (government & public)

Stakeholder’s Objectives:Employees & Managers:

• Job security

• good working condition

• job satisfaction

• career development and trainingSociety as a whole:

• Control on pollution

• Financial assistance, charity

• Co-operation for preventing health hazard

Customers & Suppliers:

• Quality product & reasonable price

• Reliable and regular order for supplier

• Customer service centre

• Product of long lasting periodShareholders:

• Dividend and long term wealthStockholders:

•Reliable payment of interest due

• Profitability

• Market share

• Growth

• Cash flow

• ROCE

• Risk

• Customer satisfaction

• Quality of product and services

• Industrial relationship

• Added value

• EPS

• Environmental fitness




ORGANIZATIONAL CULTURE:It consists of beliefs, attitude, practices, norms, ritual, values, custom and artifacts to whichpeople are exposed during their interaction with the organization.

Three levels of culture in the organization:Basic: Guide the behavior of individual or group like customer orientation, belief in qualityetcOvert beliefs: expressed by the org & its member emerged from logo, slogan & mottoesVisible artifacts: The style of office or other premises, dress rules, displays trophies etc

Ms Kinsey Seven S Model:He divided org culture into soft and hard elements which are interlinked with each other.

Hard Elements Soft Elements

• Strategy

• Structure

• System

• Shared values

• Skills

• Staff

• Style

The Organization Iceberg (French & Bell)In the organizational iceberg, formal aspects are overt, while informal aspects are covert.

Formal Aspects (similar to hard elements)Informal Aspects (similar to soft elements)

• Goal

• Terminology

• Structure

•

Policies & procedure• Product

• Financial resources

• Beliefs & assumptions

• Values

• Group norms

•

Perception• Attitude

• Informal interaction

Culture and Structure:

• Power Culture: Someone holds centralized powers

• Role Culture: Bureaucracy, emphasis on rules and procedure

• Task Culture: Focus on delivering the current goal

• The Existential Culture: Supports individual independence and aspiration

Culture & Strategy (Miles & Snow)

Model of culture focuses on firm strategy, three strategic and one non strategic culture:• Defender: Low risk, focuses on niche market, tried & trusted solution,formalized decision making.

• Prospectors: Dominated beliefs are more to do with results, seek toexpand & increase market presence and move into new areas

• Analyzers: Balance risk & profit, follow change but not initiate it.

• Reactors: No viable strategies, ad hoc decision making

Denison Model of Culture:

• Consistency Culture: Exist in stable environment, well integrated

structure, formal ways of behavior.




• Mission Culture: Environment is relatively stable, oriented towards itscustomers, member’s activities given values and meaning.

• Involvement Culture: Satisfaction and participation of employees, humanrelation approach to management.

• Adaptability Culture: Focus on external environment, ideas come from

variety of sources, customer needs are fickle and change rapidly.

Excellence, Culture & Motivation: (Peter & Waterman)

They believes that motivation culture is necessary to get excellence service fromemployees

• Give employees great sense, inherently worth wile task

• Treated employees like winners

• Applying control but also allowing max individual autonomy

Cultural Characteristics of a Dynamic Company (Pumpin)

Four main aspects of business Weakness in other areas

• Expansion

• Speed

• Productivity

• Risk taking

• Customer Service

• Innovation

• Technology

• Attitude to work force

• Company spirit

Strategic Excellence Position (SEP)

SEP fall into three categories;

• Product related: Technological superiority• Market related: Excellent image

• Functional: Cost cuttingPumpin argue that it is not possible to excellent in everything and that company mustdecide where they aim to excel.

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6.Mission, Goals, Objectives & Culture