Management and Organizational Studies 4410A/B Study Guide - Vision Statement, Organisation Climate

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: L.Graham Smith

Document Summary

Both profit and vision are needed to motivate a workforce effectively. Developing a mission statement should create an emotional bond and sense of mission between the organization and its employees. It has been found that firms with a formalized mission statement have twice the average return on shareholder"s equity. Firms using mission statements have a 30 percent higher return on certain financial measures then those without such statements. The extent of manager and employee involvement in developing statements can make a difference in business success. Often strategists develop statements when the organization is in trouble: can have spectacular outcomes but waiting until an organization is in trouble is always a gamble. A mission statement is a declaration of attitude and outlook. Should not be too lengthy less than 250 words. Should arouse positive feelings and emotions about the organization, should be inspiring. Reveal the firm is socially and economically responsible. Describes an organization purpose, customers or products.