It is essential for a manager to have a clear idea of what purpose the organization exists to achieve. It helps him to distinguish between dos and don’ts. It gives the organization some direction. We call it “the mission of the institution”. Many organizations have created mission statements to let themselves and others know this is their mission.
Undoubtedly, the investor who builds a company will get a return commensurate with that investment. But he must have a definite idea about the mission through which it will be obtained because it gives a definite aim. Mr. Soichiro Honda founded the Honda Automobile Factory to fulfill people’s transportation needs. Honda, therefore, did not start a newspaper or printing business. So Honda had a target. It made it easy for managers to decide what to do and what not to do.
People identify with the organization when they know what the mission of the organization is. Nokia’s mission is to sell communication equipment to the world. Therefore, people entering the Nokia showroom expect to buy a phone. No one is going to buy a puppy.
The manager’s responsibility is to create an environment where this mission can be accomplished with excellence. If we look at the objective of a Nokia company manager, it will include manufacturing mobile phones, distributing them, selling mobile phones, motivating mobile phone users, etc. All of that is in line with the mission of the communications industry.
If the Nokia company wants, it can also touch on other fields related to the mission of the communication sector in addition to telephones. Nokia tab production is a field that can be touched to expand its scope while keeping the mission the same. But if Nokia starts to sell puppies, there will be a conflict regarding the mission, and the identity with the specific mission of developing the communication field will no longer remain. It is difficult for people to even think about buying puppies from Nokia, and it may even lose the initial attraction of Nokia phones.
The answer to the question of why the institution exists is in the mission statement. That is why the company’s existence is considered important not only by the owners but also by all its stakeholders.
Therefore, it is the expectation of all stakeholders that an organization stays within its mission. That is why the organization’s managers are bound to know the mission and set their priorities accordingly.