Importance of mission statement

Why mission statement is important?

Ans: The importance of mission statements to effective strategic management is well documented in the literature. An organization mission is over all goal of the organization that provides a sense of direction and a guide to decision making for all level of management. Organizational mission should be define the organizations line or lines of business, Identify it's products and services and specify the markets it serves at present and within time frame of three five year.

Mission must be communicated internalized by managers and employees. When a mission is recognized and accepted by managers and employees, it becomes a common frame work for making decision and setting priorities. Mission statement criteria for strategic selection by the management of organization. A business can't be defined by its name, statues or articles of Association. It defined by business mission statement. Mission statement is very important of the organization for the following reasons,

1. Ensure unanimity of the purpose within the organization.
2. Provide basis for motivating the use of organization's resources.
3. Develop a basis or standard to allocate resources of the organization.
4. To establish a general tone or climate for the company.
5. Establish a guideline for the people of company.
6. Ensure responsibility of the stakeholders.
7. Provide a basis for evaluation and control.