The Importance of Mission Statement on Organizational Effectiveness

Abstract

The aim of the present research is to measure the ultimate effect of mission on the organization performance. The main purpose of the research is that what role mission statement plays in motivating employees and allocating resources and its ultimate effect on financial measures. There are few hypotheses to be studied in detail. One organization is from the automotive sector TESLA technologies (Pvt) Ltd and the other is S.A. Brothers (Pvt) Ltd. As this is case study approach the data is collected through interviews, personal observation and by viewing the documents provided by the organization. For data analysis, the mission statement of both organizations are studied in detail and than the impact of mission statement on organizational effectiveness is measured by analyzing the annual reports of both organizations and by calculating ratios. The data findings verified that mission statement refines or improve distinct direction. It gives method of operation, mission statement leads to higher return in certain financial measures and in the last formal mission statement has positive relationship to organizational effectiveness.