A Comparative Study of Multinational Companies’ Mission Statements Implementation in HR Policies

A Comparative Study of Multinational Companies’ Mission Statements Implementation in HR PoliciesPetar Petrov, PHD studentUniversity of Economics – Varna, Bulgaria

2 Presentation Overview

Introduction

Purpose of the Paper

Defining Organization’s Mission

Methodology

Example

Findings

Conclusion

Future Research Suggestions

Q&A

A Comparative Study of Multinational Companies’ Mission Statements Implementation in HR Policies

3 Introduction

The mission statement is part of the strategic planning in the organization and it sets the long-term goals of the company business.

No matter how excellent the strategy is, the company cannot excel, unless the whole personnel adopts all necessary implementation actions.

Executives and employees should follow both short-term and long-term objectives.

Nevertheless, the problem that employees are mostly short-term oriented still arises in many organizations.

Petar Petrov

Why is this topic so important?Primarily, because the focus of the mission statement is long-term.Also a successful strategy is executed by the personnel at all company levels.

4 Purpose of the Paper

The purpose of this paper is to identify how large multinational corporations implement the affirmations of their mission statements in their human resource practices.

5 Defining Organization’s Mission

According to Rue and Byars mission defines the basic purpose or purposes of the organization.

Lloyd Byers later divides the organization’s mission into two parts: philosophy and purpose.

A company’s organizational philosophy establishes its values, beliefs, and guidelines, which channel its business conduct.

Its organizational purpose defines the activities it intends to perform and the kind of organization it tends to be.

Rarick & Vitton point out nine components of the mission statement: customers; products or services; location; technology; concern for survival; philosophy; self-concept; concern for public image; concern for employees.

Petar Petrov

Firstly, we need a useful definition of what is an organization mission.Rue and Byars – there can be more than one basic purpose. This is important for our survey.Rarick & Vitton – due to the great practical application we will use these nine components in evaluating the mission statements of the sample companies in our survey.

6 Methodology

The sample contains 25 multinational corporations selected from 25 World's Best Multinational Workplaces from 2011.

Descriptive approach and content analysis have been applied in this research.

The mission statements have been decomposed to simple goals for the organization.

The next stage of the study includes a thorough investigation of all declared human resource policies of the sample companies.

Afterwards we compare the level, scope and areas of mission statements’ implementation in the HR policies of the sample companies.

Petar Petrov

These 25 companies are rated by Forbes.We have used information published in the corporate websites, company brochures, CSR/Sustainability reports, press releases, etc.

7 Example• Talent Management• Technical TrainingInnovation

• Talent Management• Organizational DevelopmentImprove performance

• Communications programs• Sales Training

Giving people THE POWER TO KNOW®

• Employee EngagementApproachable

• Employee Engagement• Sales TrainingCustomer-Driven

• Communications programsSwift and Agile

• Employee Engagement• Interpersonal DevelopmentTrustworthy

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Petar Petrov

I will present you an example for decomposition of the company mission statement and the corresponding HR policies.The company is SAS. It is an American company offering business analytics software.In 2011 it was on the second place among the World’s Best Multinational Workplaces.Last week was announced that SAS is number one for 2012.You can see that there 7 seven components of the SAS mission statement. Each component is implemented in one or two HR policies. Some policies target more than one component of the mission statement.The figure show that the mission statement is fully covered by the declared HR policies.

8 Findings

Approximately 91% of MNCs’ mission statement’s affirmations are implemented into their human resource policies.

We observe a greater number of HR policies deriving from that part of the mission statements which target the employees of the organization.

Rather few HR activities are declared to develop customer orientation of the personnel.

A new approach to implement a large number of mission statement’s affirmations is developing a corporate university as a powerful tool in the utilization of the corporate culture.

9 Conclusion

Multinational corporations with successful workplace culture do implement a lot (if not all) of their mission statement’s affirmations into their human resource policies.

We have identified certain gaps in customer and investor orientation which should be addressed with proper HR activities.

Some parts of the mission statements are rather implicit than explicit. They are conveyed by the elements of the corporate culture of the organization, therefore specific HR policies for teaching of corporate culture would be necessary.

Petar Petrov

One way for teaching of corporate culture is using the before mentioned corporate universities.

10 Future Research Suggestions

Examining the link between the level of mission statement’s implementation in the HR policies and the company performance.

Could we use this level as a key performance indicator?

Influence of mission statement’s implementation in the HR policies on motivation, etc.

Studying the inside company’s approaches for mission statement’s implementation.

11 THANK YOUFOR YOUR ATTENTION!

November the 23rd, 2012 Petar Petrov, PHD studentE-mail: [email protected]

Petar Petrov

Any questions, remarks or suggestions will be appreciated.

A Comparative Study of Multinational Companies’ Mission Statements Implementation in HR Policies

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