DETERMINING ORGANIZATION DIRECTION:
Through an interpretation of information gathered during environmental analysis, managers can determine the direction in which an organization should move.
2 important ingredients of organizational direction are Organizational Mission and Organizational Objectives.
DETERMINING ORGANIZATIONAL MISSION:
The most common initial act in establishing organizational direction is determining an organizational mission.
ORGANIZATIONAL MISSION is the purpose for which the Organization exists.
The firms organizational mission reflects such information as what types of products or services it produces, who its customers tend to be, and what important values it holds.
Organizational Mission is a very broad statement of organizational direction and is based on a thorough analysis of information generated through environmental analysis.
DEVELOPING A MISSION STATEMENT:
A MISSION STATEMENT is a written document developed by management, normally based on input by managers as well as non managers, that describes and explains what the mission of an organization actually is.
The mission is expressed in writing to ensure that all organization members will have easy access to it and thoroughly understand exactly what the organization is trying to accomplish.
IMPORTANCE OF ORGANIZATIONAL MISSION:
An organization mission is very important to an organization because it helps management increase the probability that the organization will be successful.
There are several reasons why it does this.
First, the existence of an organizational mission helps management focus human effort in a common direction.
The mission makes explicit the major targets the organization is trying to reach and helps managers keep these targets in mind as they make decisions.
Second, an organizational mission serves as a sound rationale for allocating resources.
A properly developed mission statement gives managers useful guidelines about how resources should be used to best accomplish organizational purpose.
Third, a mission statement helps management define broad but important job areas within an organization and therefore critical jobs that must be accomplished.
RELATION BETWEEN MISSION & OBJECTIVES:
Sound organizational objectives reflect and flow naturally from the purpose of the organization.
The organization’s purpose is expressed in its mission statement.
Thus organizational objectives must reflect and flow naturally from an organizational mission that, in turn, was designed to reflect and flow naturally from the results of an environmental analysis.