Abstract
PurposeThis study highlights the instrumental role of the mission statement as a tool used by managers to shape value congruence to achieve enhanced employee performance levels.Design/methodology/approachA variance-based structural equation modelling was used to analyse the data obtained from a sample of 123 managers working in private organisations in Malaysia.FindingsThe management sensemaking approach is useful in mission statement research. Managers' involvement in clarifying the mission statement to various firm stakeholders, especially employees, is the strongest predictor of value congruency between employees and the firm, leading to improved levels of employee behavioural performance. Managers can influence value congruency through two processes: (1) guiding and shaping employees' values and (2) adapting the mission statement's contents.Research limitations/implicationsFuture studies can consider the impact of managerial role modelling on employees' value alignment with the firm in longitudinal studies. Other aspects of alignment offer further research opportunities, for example, HR policy alignment and alignment of marketing and operation strategies with the mission statement.Practical implicationsManagers should move beyond treating the mission statement as a management tool. Instead, it is a firm philosophy that reflects managers' words and deeds and exemplifies their philosophical ideals.Originality/valueDespite three decades of research into the relationship between the mission statement and performance, the results have been mixed. Therefore, this study adopts a sensemaking approach to research the mission-performance relationship underpinned by the resource-based view (RBV) theory.
Highlights
The literature on the strategic management of human resources is varied and extensive in empirical studies, attempts to measure the strategic contribution of managers “characteristically” concerning the organisation’s human capital appear sparse
The results of our study demonstrate the instrumental role of the mission statement as a tool used by managers in shaping value congruence to achieve enhanced employee performance levels
Alegre et al (2018) stress the need for micro-level research into the mission statement focussing on how it affects employee beliefs and behaviours. Both the model predictive accuracy and variable predictive relevance show that the management sensemaking approach is an essential endeavour in mission statement research for the firm level
Summary
The literature on the strategic management of human resources is varied and extensive in empirical studies, attempts to measure the strategic contribution of managers “characteristically” concerning the organisation’s human capital appear sparse. It is widely held that the mission statement is the “critical starting point for almost every major strategic initiative” (Bartkus and Glassman, 2008) It provides a strategic framework for allocating organisational resources (Bartkus et al, 2000), a sense of purpose, direction (Collins and Porras, 1996) and a sense of mission (Campbell and Yeung, 1991). It further serves as an essential communication tool for internal and external stakeholders (Bartkus et al, 2000). The mission statement’s correct use is more viable through the sensemaking approach, through which managers’ roles in the strategic alignment and role modelling can bridge the mission-performance research gap
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