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

Petar Petrov

Abstract


Introduction:

The mission statement is part of the strategic planning in the organization. It sets the long-term goals of the company business. Organizations achieve their goals through the work of their personnel. Executives and employees should follow both short-term and long-term objectives. This is of great importance especially for multinational companies. Nevertheless, the problem that employees are mostly short-term oriented still arises in many organizations.

Purpose:

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

Design/methodology/approach:

Descriptive approach and content analysis have been applied in this research. A comprehensive review of literature is presented with an aim to define the main terms used in this paper. We then describe a number of mission statements and decompose them to simple goals for the organization. The next stage of the study includes a thorough investigation of all declared human resources policies of the sample companies. We search for a link between all the goals set in the mission statement and the HR activities of the organization. Afterwards we compare the level, scope and areas of mission statements’ implementation in the HR policies of the sample companies. We use this comparison to identify the ways in which different organizations cope with the problem of inducing their personnel to follow the global company goals. Finally, we propose specific human resource activities to address the identified gaps in the mission statements’ implementation in the HR policies of the sample companies.

Research limitations:

The sample contains 25 large MNCs which have published their mission statements and HR polices. Therefore, only the declared policies concerning the organization’s human resource management have been taken into consideration.

Practical implications:

The findings could be a useful input for MNCs’ planning process, as well as an instrument for a better understanding of the personnel motivation towards achieving corporate goals.

Originality/value:

A rare comparative study of MNCs’ mission statements implementation in HR policies, suggesting fruitful directions for future research.

Future research:

Future research suggestions include examining the link between the level of the mission statement’s implementation in the HR policies and the company performance; could we use this as a key performance indicator; influence of mission statement’s implementation in the HR policies on motivation, etc.

Keywords

:
MNC, Mission Statement, HR Policies

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