Mission and Vision

Mission Statement

A Mission statement is important for an organization because it defines the business,

products or services, and customers, thereby defining the primary objective. It
provides detailed information about what the organization does, how it does, and
who it does it for. Unlike the vision statement, it is short-term in nature.

Vision Statement
Vision statement focuses on its goals and aspirations, which describes how the
future will look if the organization achieves its mission. They are also timeless, even
if the business changes its strategy, the vision will often stay the same. A realistic,
credible, and attractive vision statement attracts commitment and energizes its
people.

Importance of Vision and Mission Statement in an organization

Both the mission and vision statement play an important role in the organization:

 The vision and mission statements define the purpose of the organization
and instill a sense of belonging and identity to the employees. This motivates
them to work harder in order to achieve success. It gives the right mindset to
grow business.
 The mission statement provides the direction that is to be followed by the
organization while the vision statement provides the goal (or the destination)
to be reached by following the direction.
 It helps to properly align the resources of an organization towards achieving a
successful future.
 The mission statement provides the organization with a clear and effective
guide for making decisions, while the vision statement ensures that all the
decisions made are properly aligned with what the organization hopes to
achieve
  The vision and mission statements provide a focal point that helps to align
everyone with the organization, thus ensuring that everyone is working
towards a single purpose. This helps to increase efficiency and productivity in
the organization.

How to create an organizational mission

Although a mission should be unique to the organization that creates it, there
are certain components that a successful organizational mission should include, such
as the organization's purpose, values and goals. You can follow these steps to write
an organizational mission of your own:

1. Determine your purpose

Purpose is the reason that an organization exists. Many businesses serve similar
general purposes, so it's important to be as specific as possible when declaring your
organization's purpose. For example, a coffee company's general purpose would be
to sell coffee, but its specific purpose as it relates to its mission should distinguish it
from competitors, such as fostering an appreciation for coffee and the people who
grow them.

2. Understand your purpose

Knowing the reasoning behind your purpose can help you write a clear, succinct
mission, and including the reasoning in the emission can persuade stakeholders to
support your cause and your business. In the above example of the coffee company,
the founders might wish to highlight the hard work that goes into making coffee and
to contribute to the everyday happiness of members of the community.

3. Determine your plan

Your plan refers to how you aim to fulfill your purpose and the long-term goals that
align with it. This can be a general statement of what the organization does in
relation to its values. The coffee company might state that it hopes to accomplish its
goals by selling high-quality fair-trade coffee at reasonable prices to its customers.

The plan of selling "high-quality fair-trade coffee at reasonable prices to its

customers" defines the company's objectives, which informs its daily operations and
can function as an outline for future business developments.

4. Condense your mission

Organizational missions are typically only a few sentences, and some are only a
phrase, so a lot of information must fit in a small package. Try writing out a longer
version of your mission that incorporates your purpose, reasoning and plan. Then
see where you can cut down on words and combine sentences to produce the most
concise statement you can achieve.

Example of mission statement

Our Mission As members of the Divine Word College of Laoag (DWCL) community,
we commit ourselves to practice justice, peace, truth and love in: developing
intellectual expertise for God and country nurturing a scholarly attitude towards
research; and instilling the spirit of meaningful community involvement with
preferential option for the poor in order to improve the quality of life and realize the
full potential of every member.

How to Write a Vision Statement

Every company has a unique vision statement, but the process is similar for most of
them. Here are some steps to help you write your own.

1. What Are the Core Values of Your Company?

The core values of your company define its identity and how it interacts with the
communities and the environment. It’s important to understand them to define your
company vision.

2. What’s Your Company Mission?

Understanding what your company does and how it operates it’s essential to
planning for the future.

3. Understand Your Company Culture

A strong company culture it’s a very important part of the success of any business.
That’s why your vision must be aligned with it, or otherwise, your strategic planning
couldn’t work.

4. Identify Current Strategic Goals

Before you think about future goals, you must understand where your organization
currently stands. Your vision might be a long-term plan that sets goals for the next 5
to 10 years, but those goals need to be realistic.

5. Define Future Goals

Think about what you’d like your company to achieve in the next 5 or 10 years based
on the current status of your business and create a strategic plan to achieve your
goals.

6. Write Your Vision Statement

Now that you have an idea of the main elements that are involved in the process of
writing your vision statement, you can create one that fits your organization.

Example of vision statement

Our Vision We, members of the Divine Word College of Laoag, a Catholic institution,
envision ourselves to be a truly educative and evangelizing community able to face
life’s challenges with dignity and actively participating in the upliftment of life.
Organization Environment
Organizational environments are composed of forces or institutions surrounding an
organization that affect performance, operations, and resources. It includes all of the
elements that exist outside of the organization's boundaries and have the potential
to affect a portion or all of the organization. The organization needs to properly
understand the environment for effective management

Why is organizational environment important?

An organization's environment is a major consideration in strategic assessment. The
environment is the source of resources that the organization needs. It provides
opportunities and threats, and it influences the various strategic decisions that
executives must make.

Factors Controlling Organizational Environment

Factors that control an organizational environment are classified into internal and
external factos.

External Factors

1. General Environment
 Political / Legal
 Economic
 Socio- cultural
 Technological

2. Task Environment
 Customers
 Labor
 Competition
 Suppliers
Internal Factors
1. Employees
2. Management
3. Culture

INTERNAL ENVIRONMENT
The internal environment is composed of the elements within the
organization, including current employees, management and especially corporate
culture which defines employee behavior. A manager's philosophical or leadership
style directly impacts employees. Internal Environment is composed of various
elements present inside the organization, that can affect or can be affected with, the
choices, activities and decisions of the organization.

*Corporate Culture- also known as company culture, refers to a set of beliefs and
behaviors that guide how a company’s management and employees interact and
handle external business transactions.

-Who control the Internal Environment?

 Management
 Current Employees
 Shareholders, etc.
 Board of Directors

EXTERNAL ENVIRONMENT
- the external environment of an organization refers to the forces and institutions
outside the organization that potentially affect its performance.

External environment has two layers:

1. General environment
- the general environment refers to the non-specific elements of an
organization’s surroundings that might affect the organization indirectly.

These external forces are:

 Political Environment- The political or legal environment refers to the

government laws, regulations, policies and activities which are designed to
influence organizations indirectly and set boundaries on what they can or cannot
do.

Governments have an interest in economic activity. They launch regulations

and policies to achieve goals such as; Strong economic growth ,Low and stable
inflation and Full employment.

To achieve these goals, the government enforces and creates a framework in

which business can be done. They provide infrastructure, both physical and non-
physical such as transportation and public facilities, educational facilities, welfare
programs, and law enforcement. They also take some policies and regulations that
govern business.

Example:
Data protection laws governing the management of personal information.

Environmental law covers legal aspects concerning how businesses should operate
environmentally friendly.

Changes in the political climate can carry significant risks. They can jeopardize the
company’s strategy. War, political turmoil, and corruption are examples.

A culture of corruption in a country stifles business by creating an uneven playing

field where corrupt individuals are better able to achieve their business goals than
those who are not corrupt. A highly unstable government cannot provide
entrepreneurs with the security they need to transact peacefully, resulting in a
volatile business environment.

 Economic Environment- The economic environment of the business is one of

the external factors that can influence strategy and decision-making in the
business context. Economic factors are important because they are directly
related to goods, services, and consumers

It includes the impact of economic factors like consumer spending, inflation and
consumer behavior all interact to form an economical sytem.

The economic environment consists of microeconomic and macroeconomic factors.

Microeconomic factors
The microeconomic environment refers to things that happen at the
individual company or consumer level.

Microeconomic factors do not affect the whole economy. Below are some
microeconomic factors that may influence a business:

Competitors.
Demand.
Market size.
Suppliers.
Supply.

Macroeconomic factors
 The macroeconomic environment, on the other hand, refers to things that
affect the entire economy.
Macroeconomics is concerned with general or large-scale economic factors,
such as:
Unemployment
Inflation
Interest rates
GDP
Consumer confidence

Business people cannot control their economic environment. However, they can
evaluate conditions in the marketplace before deciding whether to proceed with a
plan or project.

 Technological Environment - The technological environment is part of the

company’s external environment related to developments and changes in
technology. Further, the word ‘technology’ is usually associated with technique
and equipment.

Technological change generally refers to the advancements in the production

and manufacturing process of different goods and services. So it is when we improve
the way products are made or services are delivered.
In these times there is always a new invention or better technology around
the corner. Such new products enter the market every year. And to capture this
market a firm has to be aware of its technological environment.

Example:

Product sales technique. For example, more retailers are turning online than physical
stores. These changes certainly have a significant impact on their business strategy.

Management and operation of the company. Now, employees do not have to attend
the office to work. Instead, they can do work at home, as long as they are connected
to the internet.

Ways of making products. For example, is process automation

Socio-cultural Environment- These factors play an important role because they

determine the kind of goods, services and standards that society values.

The demographics and values considered are: age, population density, education
levels, geographical distribution, culture and lifestyle.

2. TASK ENVIRONMENT
-The task environment is inclusive of those outside sectors that have a direct working
relationship with an organization. The task environment is the apart of the external
environment. The task environment are things that are close to the organization and
effect it the most.

The main variables in the task environment are:

 Customers
 Suppliers
 Labor
 Competition
 Pressure Groups

A.Customers
Customers are the final purchasers of a good or service or absorbs the
organizational output. Customers are the life force of any company. The main
objective of starting a company is to generate profit. This profit is generated from
product and service sales to the customers.
As such, customers are the primary source of revenue. It explains why
organizations consider their customers as the most critical factor when deciding on
the type of products to sell, location, and marketing strategies to adopt. Thus,
customers are important because they influence a company’s ability to achieve its
revenue targets.

B.Suppliers
Suppliers are the people or organizations who provide the raw material that a
particular organization use to produce their output. A supplier’s pricing strategy
affects the revenue the organization earns. Suppliers affect a company because they
are the source of raw materials. As such, companies rely on other businesses that
produce the inputs they need to create their final goods and services. Without
suppliers, the business will not procure essential raw materials, which means
necessary inputs will be unavailable for the business to create its products.

- For example, car manufacturers need material supplies in the form of tires,
electronics, and leather interiors to complete their vehicle designs. Behind every
brand, there are suppliers who provide the necessary raw materials (inputs).

C. Labor
Labor market includes the people available for hire. Qualities, skills and
knowledge possessed by the employees affect the performance of an organization to
a great extent. Every company needs highly skilled employees to ensure top-quality
products.

-Employees with excellent customer relations will enhance the company's public
image. Highly motivated employees guarantee more productivity. Cumulatively, high
productivity, quality products/services, and a good public image will translate to
more sales and generate more revenue. In the absence of these attributes, a
company may suffer reduced market share, low sales volume, and decreased
profitability.

D. Competition
Competitors present challenges as they compete for customers in a
marketplace with similar products or services. The management of an organization
should be prepared to respond to the competitor policies.

-Markets are characterized by competition between businesses that offer identical or

substitute products and services. This competition affects business outcomes. For
example, Coca-Cola's main competition is Pepsi, a key player in the beverage
industry offering a substitute product. If Pepsi offers a better product, customers will
prefer their drink, which will reduce Coca-Cola's market share.Ultimately,
competitors affect a company by reducing access to resources, customers, suppliers,
and market share. Competitors also decrease market prices. This is why companies
engage in extensive marketing strategies to maintain a competitive advantage.

E. Pressure Groups
It is also necessary for organization to identify special interest groups that
attempt to influence it.

-Pressure groups are groups without political power, but which aim to influence the
political, or decision-making, process. They have specific interests and attempt to
influence businesses, people and government to help achieve their objectives.
ORGANIZATINAL BEHAVIOR MODELS

There are five (5) models of organizational behavior:

1. Autocracy
2. Custodial
3. Supportive
4. Collegial
5. System models

Every model has three impact elements, based on management orientation,

employee side with three sub-elements, and performance results.

 The first model is AUTOCRATIC MODEL – the basis of this model is power
with managerial orientation on authority. E.g., the employees are oriented
towards government obedience and dependence on their boss.
AUTOCRATIC leaders do not involve other suggestions or advice.

 The second model is CUSTODIAN MODEL – the basis of this model is

economic resources with orientation on money the employees needs for
security is met. The custodial leaders offers them facilities and benefits.
  The third model is SUPPORTIVE MODEL – the leadership is focused on
employees support. The employee in turn oriented towards the job. The
supportive leaders support employees by encouraging them.

 The fourth model is COLLEGIAL MODEL – persons with a common purpose.

The basic foundation of this model lies on building a feeling of partnership
with the employees. The collegial leaders as partners.

 The last model is the SYSTEM MODEL – value and meaning. This model
reflects the underlying positive organizational behavior where managers
focus their attention on helping employees evelop their feelings. System
leaders are caring and sensitive in employees needs.

PROS AND CONS

- Of each model of organizational behavior
PROS CONS

 The process of autocratic model is  The cons in autocratic model is

effective when the action is that it is stressful on followers .
needed during an emergency

 The process of custodial model is  The cons of custodial model is that

you can have a lot of benefits or employee will depend on his self
may benefits. to get more benefits than others.

 The pros of supportive model is that  The cons of suppotive model is the
the employee feel valued. the employee have a low self-
confidence.
 The pros of collegial model is that  The collegial model cons is that
the freedom of decison-making. difficulty in decision-making.

 The pross of system model is that  The cons of system model is that it
the leader have consideration may lead to delays in decision
towards the employee. making.