Fluent Essays

INSTRUCTIONS:Select ONE CHAPTER of your choice. （chapter 4）Write a THREE PAGE REVIEW of the chapter. CITE CHAPTER & PAGEInclude the following:Key Points of the Chapter - List each Key Point in paragraph format. Provide details of the Key Points including examples, in-depth explanations, terminology and application in the workplace.Discuss what you learned that will benefit your role as Manager. Substantiate your comments using chapter information.Why would this benefit you in your job?the instruction is under the file name 2. the pdf file is the content of the chapter principles_of_management_v._3.0___talya_bauer_2.pdf .docx Unformatted Attachment Preview CHAP TER 4 Developing Mission, Vision, and Values FIGURE 4.1 Mattel Inc.’s vision of “creating the future of play” is evidenced in the constantly evolving designs found in their popular Hot Wheels cars. Source: jointstar / shutterstock.com 389197510 C H A P T E R L E A R N I N G O B J E C T I V E S Reading this chapter will help you accomplish the following: 1. Understand the roles of mission, vision, and values in the planning process. 2. Understand how mission and vision fit into the planning-organizingleading-controlling (P-O-L-C) framework. 3. See how creativity and passion are related to vision. 4. Incorporate stakeholder interests into mission and vision. 5. Develop statements that articulate organizational mission and vision. 6. Apply mission, vision, and values to your personal goals and professional career. At the organizational level, a key part of planning (the first element of the P-O-L-C framework) is captured in verbal and written statements of an organization’s mission and vision. With a mission and vision, firms craft a strategy for achieving their general purpose and afterward establish benchmarks for judging progress and success through clear goals and objectives. Mission and vision communicate the organization’s values and purpose, and the best 92 PRINCIPLES OF MANAGEMENT VERSION 3.0 mission and vision statements have an emotional component that serves to incite employees and delight customers. FIGURE 4.2 Mission and Vision as P-O-L-C Components 1. THE ROLES OF MISSION, VISION, AND VALUES L E A R N I N G O B J E C T I V E S 1. Define mission and vision. 2. Appreciate how values are important for mission and vision. 3. Understand the roles of vision, mission, and values in the P-O-L-C framework. Music Rap-Up: My Company Twinprov perform a rap on mission, vision, and values. Youtube View the video online at: http://www.youtube.com/embed/f5kkWclU8_4?rel=0 1.1 Mission, Vision, and Values values statement A written statement that reaffirms or states outright the organization’s values that might not be evident in the mission or vision statements. A casual tour of business or organization websites will expose you to the range of forms that mission and vision statements can take. Mission statements answer the questions of “Who are we?” and “What does our organization value?” Vision statements typically take the form of relatively brief, future-oriented statements—vision statements answer the question “Where is this organization going?” Increasingly, organizations also add a values statement that either reaffirms or states outright the organization’s values that might not be evident in the mission or vision statements. Mission and vision both relate to an organization’s purpose and are typically communicated in some written form. Mission statements answer questions about who the firm is and what they are doing. Oftentimes mission statements incorporate the firm’s values as well. An example is found in the CHAPTER 4 DEVELOPING MISSION, VISION, AND VALUES outdoor clothing company Patagonia, whose mission states, “To build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”[1] A 2011 study by the consulting firm Bain and Company reports that 63\% of the more than 1,000 firms surveyed globally reported using mission and values statements as a management tool.[2] Moreover, firms with a clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those without them, with the caveat that they related to effectiveness only when strategy, goals, and objectives were aligned with vision and mission.[3] A mission statement communicates the organization’s reason for being, and how it aims to serve its key stakeholders. Customers, employees, and investors are the stakeholders most often emphasized, but other stakeholders like government or communities (i.e., in the form of social or environmental impact) may also be discussed. Mission statements sometimes include a summation of the firm’s values. Values are the beliefs of an individual or group, and in the case of organizational values, the values of the organization where members are emotionally invested. A vision statement, in contrast to a mission statement, is a future-oriented declaration of the organization’s purpose and aspirations. In some ways, the mission statement outlines the organization’s current “purpose for being,” and the vision statement outlines, “based on that purpose, this is what we may one day become.” A firm’s strategy should flow directly from their vision, since the strategy is intended to achieve the vision and satisfy the organization’s mission. Typically, vision statements are relatively brief, as in the case of Starbucks vision statement, which reads: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”[4] Similarly, Walmart’s tag-line version of its vision statement is “Save money. Live better.”[5] A more lengthy visionary statement is found in Amazon.com, which states, “Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”[6] 93 mission statement A statement of purpose, describing who the company is and what it does. Values Shared principles, standards, and goals. vision statement A future-oriented declaration of the organization’s purpose and aspirations. 94 PRINCIPLES OF MANAGEMENT VERSION 3.0 FIGURE 4.3 Source: http://www.flickr.com/photos/cherrysweetdeal/4322582205; Data retrieved from http://www.starbucks.com/aboutus. CHAPTER 4 DEVELOPING MISSION, VISION, AND VALUES FIGURE 4.4 Missions Source: Images courtesy of Ketchen, D., & Short, J. (2011). Mastering strategic management. Irvington, NY: Flat World Knowledge; Evb-wiki, http://en.wikipedia.org/wiki/File:Evb-my_hog.jpg (first); Internal Revenue Service, http://en.wikipedia.org/wiki/File:IRS.svg (second); Jeff Wilcox, http://www.flickr.com/photos/jeffwilcox/1882938710/ (third); Dwight Burdette, http://en.wikipedia.org/wiki/ File:Victoria\%27s_Secret_at_Briarwood_Mall.JPG (fifth); other images © Thinkstock. 95 96 PRINCIPLES OF MANAGEMENT VERSION 3.0 FIGURE 4.5 Source: Images courtesy of Ketchen, D., & Short, J. (2011). Mastering strategic management. Irvington, NY: Flat World Knowledge; David Herrera, http://www.flickr.com/photos/dph1110/2672793430/ (third from the top); bfishadow, http://www.flickr.com/photos/bfishadow/3458254707/ (fourth from the top); Thinkstock and Like_the_Grand_Canyon, http://www.flickr.com/photos/like_the_grand_canyon/2406679678/, http://www.flickr.com/ photos/like_the_grand_canyon/4945749010/ (fifth from the top); Scott Ehardt, http://en.wikipedia.org/wiki/File:Crest_toothpaste.jpg (bottom); other images © Thinkstock. 1.2 The Role of Mission and Vision Mission and vision statements play three critical roles: (1) communicate the purpose of the organization to stakeholders, (2) inform strategy development, and (3) develop the measurable goals and objectives by which to gauge the success of the organization’s strategy. CHAPTER 4 DEVELOPING MISSION, VISION, AND VALUES First, mission and vision provide a vehicle for communicating an organization’s purpose and values to all key stakeholders. Stakeholders are those key parties who have some influence over the organization or stake in its future. Some key stakeholders are employees, customers, investors, suppliers, and institutions such as governments. Typically, mission and vision statements are widely circulated and discussed often so that their meaning is widely understood, shared, and internalized. The better employees understand an organization’s purpose, through its mission and vision, the better able they will be to understand the strategy and its implementation. Second, mission and vision create a target for strategy development. That is, one criterion of a good strategy is how well it helps the firm achieve its mission and vision. The best vision statements create a tension and restlessness with regard to the status quo—that is, they should foster a spirit of continuous innovation and improvement. London Business School professors Gary Hamel and C. K. Prahalad describe this tense relationship between vision and strategy as stretch and ambition. Indeed, a study of such able competitors as CNN, British Airways, and Sony found that these firms displaced competitors with stronger reputations and deeper pockets through their ambition to stretch their organizations in more innovative ways.[7] Third, mission and vision provide a high-level guide, and the strategy provides a specific guide, to the goals and objectives showing success or failure of the strategy and satisfaction of the larger set of objectives stated in the mission. Such objectives include profitability goals, metrics on customer and employee satisfaction, and social and environmental responsibility measures. 97 FIGURE 4.6 Founded by Anita Roddick, the mission of The Body Shop explicitly includes a broad understanding of stakeholders by providing a commitment “to the well-being of our fellow humans and the preservation of the planet.” Source: http://www.flickr.com/photos/homard/417370634/ FIGURE 4.7 Virgin Galactic provides an example of a company that embraces the ambitious vision of providing suborbital space flights to eager tourists. Source: http://en.wikipedia.org/wiki/File:Spaceship_One_in_flight_1.jpg K E Y T A K E A W A Y Mission and vision relate to an organization’s purpose and aspirations, and are typically communicated in brief written statements. A mission statement communicates the organization’s reason for being and how it serves its key stakeholders. The vision statement is a narrower, future-oriented declaration of the organization’s purpose and aspirations. Together, mission and vision guide strategy development, help communicate the organization’s purpose to stakeholders, and inform the goals and objectives set to determine whether the strategy is on track. 98 PRINCIPLES OF MANAGEMENT VERSION 3.0 D I S C U S S I O N Q U E S T I O N S 1. 2. 3. 4. Do you feel it is important for organizations to have mission statements? Why or why not? Is a vision statement as important as or less important than a mission statement? Explain your answer. How are values important to the content of mission and vision statements? What happens if an organization’s mission and vision statements do not seem sincere? How might this affect an organization? 5. How do mission and vision relate to a firm’s strategy? 6. In what ways are mission and vision important for organizational goals and objectives? 2. MISSION AND VISION IN THE P-O-L-C FRAMEWORK L E A R N I N G O B J E C T I V E S 1. Understand the role of mission and vision in organizing. 2. Understand the role of mission and vision in leading. 3. Understand the role of mission and vision in controlling. Mission and vision play a prominent role in the planning dimension of the P-O-L-C framework. Mission and vision are also related to the organizing, leading, and controlling aspects as well. In this section, we describe each of these relationships. 2.1 Mission, Vision, and Organizing organizational culture A system of shared assumptions, values, and beliefs showing people what is appropriate and inappropriate behavior. Organizing The function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. organizational design A formal, guided process for integrating the people, information, and technology of an organization. Organizational culture is the workplace environment formulated from the interaction of the employees in the workplace. Organizational culture is defined by the collective life experiences, strengths, weaknesses, education, upbringing, and other attributes of the employees. While executive leaders play a large role in defining organizational culture by their actions and leadership, all employees contribute to the organizational culture. Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The organizing facet of the P-O-L-C framework typically includes subjects such as organization design, staffing, and organizational culture. The alignment between the mission and vision has implications for various organizing activities. For instance, organizational design is a formal, guided process for integrating the people, information, and technology of an organization. It is used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful. To organize, managers must connect people with each other as well as with information and technology in meaningful and purposeful ways to allow the success of such key human resources. Organization structure defines the formal relationships among people and specifies both their roles and their responsibilities. Administrative systems govern the organization through guidelines, procedures, and policies. Each part of the organization should support (or at the least, not conflict with) each of the others, and together they must support the organization’s purpose, as reflected in its mission and vision. CHAPTER 4 DEVELOPING MISSION, VISION, AND VALUES 99 For example, in 2006, Disney acquired Pixar, a firm renowned for its creative prowess in animated entertainment. Disney summarizes the Pixar strategy like this: FIGURE 4.8 “Pixar’s [strategy] is to combine proprietary technology and world-class creative talent Pixar’s creative prowess is reinforced by to develop computer-animated feature films with memorable characters and heart- Disney’s organizational design choices leading [8] warming stories that appeal to audiences of all ages.” Disney has helped Pixar to successful offerings, such as the Academy achieve this strategy through an important combination of structural design choices. Award–winning film Up. First, Pixar is an independent division of Disney and is empowered to make independent choices in all aspects of idea development. Second, Pixar gives its “creatives”—its artists, writers, and designers—great leeway over decision making. Third, Pixar protects its creatives’ ability to share work in progress, up and down the hierarchy, with the aim of making it even better. As a result, innovations gained through new projects can be shared with later projects, while sharing knowledge about potential pitfalls at the same time. [9] Such acquisitions can pose challenges when different companies have their own unique cultures, but evidence seems to suggest that Disney has a strength in navigating this difficult process. For example, more recently, Disney acquired Lucasfilm; this acquisition will allow for the integration of the Star Wars empire into the Disney family with new movies directed by J.J. Abrams as well as cartoons such as Star Wars: Rebels shown on the Disney network geared at a younger audience. [10] Further integration Source: http://en.wikipedia.org/wiki/File:John_Lasseterby Disney will appear in its parks as well as Star Wars theme parks to further leverage Up-66th_Mostra.jpg the added value of the acquisition. [11] Organizational culture is the workplace environment formulated from the inOrganizational culture teraction of the employees in the workplace. Organizational culture is defined by all the life experiA system of shared ences, strengths, weaknesses, education, upbringing, and other attributes of the employees. While execassumptions, values, and utive leaders play a large role in defining organizational culture by their actions and leadership, all embeliefs showing people what ployees contribute to the organizational culture. is appropriate and Achieving alignment between mission and vision and organizational culture can be very beneficial inappropriate behavior. to firms, but one potential downside is that organizational culture is also difficult to change. Consequently, a firm’s ability to change the organization’s culture to support those new directions may be difficult, or, at least, slow to achieve. For instance, in 2000, Procter & Gamble (P&G) sought to change a fundamental part of its vision in a way that asked the organization to source more of its innovations from external partners. Historically, P&G had invested heavily in research and development and internal sources of innovation—so much so that “not invented here” (known informally as NIH) was the dominant cultural mind-set.[12] NIH describes a culture that avoids using products, research, or know-how that originated anywhere other than inside the organization. It is normally used in a negative sense. As a sociological phenomenon, the “not invented here” syndrome is manifested as an unwillingness to adopt an idea or product because it originates from another culture. P&G has been able to combat this NIH bias by adopting a fiveyear stretch goal that at least 50\% of their initiatives will include an external collaboration and moving to a hybrid research and development (R&D) structure that balances local focus and headquarters oversight.[13] P&G was gradually able to change its culture toward one that is more open to external contributions, and therefore in much better alignment with its current mission and vision. 2.2 Mission, Vision, and Leading Leading involves influencing others toward the attainment of organizational objectives. Leading and leadership are nearly synonymous with the notions of mission and vision. A very purposeful person is often described as being “on a mission.” And the success of many top leaders and entrepreneurs flows from their personal mission. Oprah Winfrey, for example, holds a personal mission, “To be a teacher. And to be known for inspiring my students to be more than they thought they could be.[14] Such a belief has led to successes in journalism, acting, television, network, and magazine development. Similarly, individuals are often viewed as leaders because they are visionary in their actions. For instance, when Walt Disney suggested building a theme park in a Florida swamp back in the early 1960s, few other people saw the development as a world-changing opportunity. Leading Involves influencing others toward the attainment of organizational objectives. 100 FIGURE 4.9 Got Silk? Steve Demos’s company Silk is a realization of his mission to replace cow’s milk with a soy alternative. PRINCIPLES OF MANAGEMENT VERSION 3.0 Any task—whether launching the Oprah Winfrey Network or advancing the Disney empire—is much more difficult if attempted alone. Therefore, the more that a mission or vision challenges the status quo—and recognizing that good vision statements always need to create some dissonance with the status quo—the greater will be the organization’s need of “change leaders”—individuals who will help diffuse the revolutionary philosophy even while the leader (i.e., the founder or CEO) is not present. Without real change leaders, a revolutionary vision would remain a mere idea of the visionary CEO—they are the ones who make the implementation of the transformation real. In many cases, we can associate revolutionary companies with the organization’s visionary leaders—for instance, Apple and Steve Jobs, Dell and Michael Dell, or Google and the team of Ser ... Purchase answer to see full attachment