Answer to Question #263842 in Management for Mareeye

Question

Firm’s mission statement can improve and hurt the performance of a firm. Explain the reasons for such argument.

Answer 1

A mission statement forms an integral part of an organization and determines its purpose; a good missions statement is conceivable by the employees and other stakeholders. It can motivate and inspire employees to deliver the best and improve performance because they feel part of the organization and support the mission. Having an unreasonable or unrealistic mission statement is disadvantageous ad affects an organization’s performance; it negatively affects employees and other stakeholders from contributing to its progress. It can distract employees from focusing on the goals set for individual employees or departments. It may cause division in the organization and resistance to change