Q1. Describe the concept of vision and mission in an organisation.
It defines and describes the future situation that a company wishes to have, the intention of the vision is to guide, to control and to encourage the organization as a whole to reach the desirable state of the organization.
The vision cannot be made by the owner alone. He has to fulfil the wishes of the stakeholders.
There are various views regarding how we make a vision. But Collins and Porras in their noted article ‘Organisational Vision and Visionary Organisation’ spelt out that a vision statement has to have four parts namely:
1> Core values
2> Core purposes
3> the Big Hairy Audacious Goal or BHAG
and 4> the vivid description.
1> Core values: The core values are those things very close to our heart that we will never give up at any cost. It can be integrity or quality etc. Usually we should have only 4 to 6 core values. If we have too many of them, they fail to remain ‘core’ and loses their impact. Core values are important because when we have a decision dilemma, they come up like a lighthouse to navigate us.
2> Core purposes: It is the purpose of the organisation. This is something that we want to achieve within the framework of our core values. It gives the achievement orientation to the business and therefore focus. When we get an opportunity to expand or sell off and if we are in decision dilemma, this acts as another light house.
3>BHAG: The BHAG is about having a goal which qualifies the purpose. We say that BHAG should be big, yet specific and that our chance of attaining it is only 70%. If the probability of attaining it is more than 70%, perhaps our BHAG is not big enough and not audacious enough and we have set our goals too low.
4> vivid description: The vivid description should make the entire vision statement very inspiring to all stakeholders. It should be simple and easily understandable.
It defines the business, the needs of covering their products and services, the market in which it is developed and the public image of the company.
In the Collins and Porras format, the vision and mission are fairly well integrated. Vision is the state that one wants to be in and mission is the way of doing it. The mission statement can be a separate one or it can be rolled into one but Collins and Porras model has been gaining popularity of late because it encapsulates the vision and mission into one and anchors the value.
Q2. (a) Define Planning.
(b) Explain the importance of planning.
A.(a) Planning can be defined as a basic management function which enables one to select the purpose of the business, and how the resources should be mustered to achieve the purpose to include using the available resources optimally to do that. Planning implies goal setting for the organisation keeping in mind the constraints, opportunities, and threats as much as what the person or business which is planning wants to do. Thus a plan is a blueprint for goal achievement, a blue print that specifies the necessary resource allocations, schedules, tasks, and other actions to achieve the purpose.
A goal is a desired future state that the organisation attempts to reach. Goals are important because an organisation exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify the means to do that. Therefore, we can say that planning is the method to achieve the vision and execute the mission.
(b) Planning is important for the following reasons:
1> It helps the management to clarify, focus, and research their business or project’s development and prospects.
2> It provides a considered and logical framework within which a business can develop and pursue business.
3> It offers a benchmark against which the actual...