Exploring Organizational competitiveness through mission vision and values

Document Type:Coursework

Subject Area:Management

Document 1

It outlines what the organization is offering to its customers and society at large. According to Peter Drucker, “mission statements of firms answer the questions: What is our business? What should it be for the enterprise as a whole?” A good organizational mission describes an objective that makes an organization different from its competitors and identifies its operational scope regarding products it offers in the market. Research shows that it is viewed as a determinant of the long-term competitiveness of the organization because of its significance in the development of the strategic plan. According to Dermol, the statement helps stakeholders in understanding organizational identity, its differences from other firms and what it offers to the consumers and society. On the other hand, vision refers to what a particular organization plans to become. According to Berson, 2001, “strong visions have been described as inspiring, and greater levels of optimism, confidence and the importance of followers' contribution, and the intrinsic rewards associated with company achievement” (Berson, 2001). It represents aspirations and values of an organization that are aimed at capturing minds and hearts of all its stakeholders. The organizational mission is bound to adjust to changes in environmental conditions while its vision is always enduring. Corporate values are beliefs that are emotionally invested. The three organizational components work together in enhancing its competitiveness. A business can only become competitive in the market through innovation and creation of positive behavior among its employees. The organizational mission can be changed depending on the prevailing market trends, something that is achieved through innovation.

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Hamel describes innovative practice as “strategic innovation the capacity to reconceive the existing business model in ways that create new value for customers and stakeholders and advantage over the competition. ” Further, innovation can also be defined as anything that can create new and convincing remedy valued by organizational consumers as well as promoting its competitive advantage in the long run. Innovation results from a corporate mission which can change depending on market trends. If the business is facing a lot of competition, there is need to revise its mission and come up with new strategies that will improve its productivity through innovation. It helps in developing the present models of strategic planning as well as copying what other organizations are doing to stay competitive. Organizational mission is deemed significant because it helps in delivering inspiration and motivation among the workers.

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Some of the scholars have determined some of the independent outcomes associated with the two statements of an organization such as inspiration, satisfaction, conduct, personal commitment and even competitiveness of an organization. However, others have developed a set of dependent relations that automatically result in improved performance among employees. The present changing conditions in the global market requires solid strategic planning if an organization has to stay competitive. In such a case, the organizational mission and vision statements have become first steps considered in the strategic plan because they serve as essential tools for communication in any successful business. The two represent organizational strategies and determine consumers and societal attitude towards the organization, hence its competitiveness in the market. Culture: Influence of Organizational culture on its performance Research by Magee defines it as a set of beliefs subscribed by organizational members.

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Such assumptions are composed of values and beliefs. According to Hofstede’s view in 2007, the behavior of a person in the workplace is based on national and organizational beliefs. Every organization has its own unique cultures, but different from the society; a business firm is mostly defined by its objective which further influences its culture. Apart from enhancing commitment to employees, organizational culture provides a feeling of identity, helps in monitoring dynamics and reinforces daily operations based values. On the other hand, research by Casco defines organizational performance as “the degree of attainment of work mission as measured regarding work outcome, intangible assets, customer link, and quality services” (Casco, 2014). Further research by Kaplan describes the organizational performance as its ability to achieve its goals in an effective way utilizing available physical and human resources.

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The reason is that organizational culture involve sharing of opinions. On the other hand, production focuses on personal attributes that can be determined by different parameters. According to research, “Although the established guidelines about the key components of organizational performance are yet to find universal acceptance, the explanatory powers of the concept lie in its potential to conceptually link organizational culture to performance. ” Research by Middlemist and colleague seem to support multidimensional strategy because according to them, the six dimensions of culture in any given organization that influence its performance include leadership, trustworthy, level of professionalism, co-operation among key stakeholders as well as job challenge. Organizational culture and its performance in the market are inseparable and determine the success of any business. The external environment is defined as “the factors that cannot be controlled by an organization and determine its action and directional choice, its internal processes, and structure.

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Their research further categorizes it into three related segments such as “the remote environment consisting of the political, economic, social, technological, environmental and legal (PESTEL); the industry environment basically consisting of companies providing similar products and services; and the operating or task environment consists of factors in the immediate competitive situation that affects a firm’s success, e. g. customers, competitive position, creditors, ability to attract the best staff, supplier reputation, etc. ” Research by Capon defines it as a platform where threats and opportunities emerge to confront a firm. It is assumed physically challenged people to perform well in the workplace and can work on one organization for a long time. Political factors refer to regulatory and other legal matters observed by an organization to operate. Organizations face political barriers via minimum wage agreement, government taxation, unfair trade policies and poor pricing principles.

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Research by Saffold assumes that “governments can shape the operations of an organization through enacting laws, policies and its authority causing effects at the strategic development process” (Saffold, 2005). For example, it is the responsibility of a government to provide employee protection and enhance their welfare in the workplace. Despite having same parenting and environmental settings, the two siblings develop different progress and choose different ways of life. However, the older sibling will have some influence on the younger one. Considering this perspective, it is assumed that both performance measurement and organizational effectiveness models have different backgrounds but address same practical and theoretical forces. Organizational effectiveness is older and has a lot of impact on performance measurement in an organization. Generally, organizational effectiveness refers to outcomes of organizational operations. The most appropriate system for measurement of corporate performance is Balanced Scorecard which helps in analyzing organizational objectives from different perspectives.

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The outcome balance presented by the system motivates workers to work towards achieving organizational set goals. The BSC is composed of operational and financial measures that come from objectives of the organizational strategy. Thus, effective measurement is the most fundamental component that motivates improvement in critical areas within an organization (Kaplan & Norton, 1992). The “scorecard” is described as a manner in which organizational performance is recorded and communicated. The second measure of the Scorecard is customer perspective. Most of the organizations concentrate much on satisfied customers, but the scorecard system encourages leaders to identify some of the important parameters linked to the satisfaction of customers and different ways of evaluating or monitoring them regularly. A lot of focus fall into four categories, such as cost, quality, timeliness, and service. The most critical but overlooked factor under consumer perspective is a determination of consumer expectations instead of arbitrary objective setting.

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It is crucial to adopt external measures in establishing organizational strategy considering consumer perspective (Kaplan & Norton, 1992). The long-term success of any organization is attributed to its values, vision, and mission coupled with strategic management. An organization can only become competitive in the market by being innovative and creating positive behavior among its employees, something that is attributed to its three determinants of strategic management. For instance, research by Bart indicates that “mission statements could positively affect employee behavior which had a direct effect on firm financial performance and this could only happen when internal policies/programs are derived from the statement” (Bart et al. The mission statement is subject to change depending on the prevailing market situation, but organizational vision cannot be adjusted. Therefore, the issue of innovation in an organization plays a significant role under the umbrella of the mission statement in case business is faced with stiff competition.

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The success or failure of an organization is determined by its internal or external factors that affect its daily operations. External environment refers to all forces and parameters that define its competitive situation as well as its strategic options. They are external factors that cannot be controlled by the organization. Organizations operate in different settings that are governed by different factors such as government, peoples’ unions and other barriers that might complicate its operations and success in the long run. Analysis of external environment factors helps in the development and modification of strategy, provides early signals to the firm as well as realigning internal structures and adaptability of the organization. The most effective system for performance measurement is Balance scorecard which analyzes organizational objectives in different perspectives to ensure effective implementation of its strategy.

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BSC system involves operational and financial measures that come from objectives of the organizational strategy. The BSC system is composed of different perspectives such as “financial, internal business, customer and innovation” as described by Kaplan and Norton 1992. The economic outlook in BSC system shows levels of organizational profitability as well as its development while consumer perspective focuses on adopting external measures in establishing corporate strategy. Further, Consumer expectations, as well as corporate goals, are addressed by considering essential processes in an organization. Shamir, B. Avolio, B. J. and Popper, M. The Relationship Between Vision Strength, Leadership Style, and Context, The Leadership Quarterly, 12(1) 53-73. New York, Truman Talley Books / E. P. Dutton, p. Goodman, P. S. S. and D. P. Norton (1992). The balanced scorecard - Measures that drive performance. Kotter, J. P (2012).

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Corporate Culture and performance. New York: Free Press. Pearce, J. Nairobi: Evangel Publishing House. Schein, E. H. Organizational Culture and Leadership. San-Francisco: JosseyBass.

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