Organizational Mission, Structure, and Leadership Contingency

Organizational Mission: Purpose and Benefits

The mission of an organization is its guiding purpose — its reason for existing beyond the superficial aims of profiting shareholders, owners, and staff members. At the very least, the organizational mission is linked to its core goals and objectives, which include the target population or market it serves, as well as why, and most importantly, how it will achieve those goals (Ahmed, 2019). The organization can also choose to break down its mission into more specific parts, explaining factors such as its operating goals, overall performance objectives, use or allocation of resources, position in the marketplace, and more (Daft, 2013). Its mission statement will typically reveal the organization's role relative to society at large, the target market or customer base, and its employees.

All organizations serve some sort of need, typically via the provision of a product or service. The mission of the organization is directly linked to the way the organization conceptualizes that need, the niche in the market, and the function of the organization in fulfilling its central purpose. While the mission may remain flexible for fine-tuning, it should be general enough to capture the essence of the company's vision to account for expansions into new markets or business sectors and to accommodate change and organizational growth. The mission of the organization also sets the tone for its value statement and the organizational culture. Through its mission statement, the organization can provide employees with the fundamental reasons underlying their roles, as well as the purpose of organizational rules, standards, protocols, regulations, and hierarchies. Through its mission, employees can also find the source of intrinsic motivation and engagement (Daft, 2013). Indeed, the mission of the organization has a strong bearing on other organizational concepts, such as organizational structure.

Organizational Structure: Supporting the Mission

The structure of the organization is not arbitrary; rather, it reflects its mission and vision. Daft (2013) points out how a clearly defined mission statement acts as a "guideline for employee behavior and decision making" (p. 59). The protocols for inter-departmental and intra-departmental communication, for leadership, and for all types of strategic planning impact the structure of the organization. By the same token, the structure of the organization will have a strong and immediate bearing on its performance. Organizational structure is most easily defined as its hierarchy or "patterns of authority," although there is much more to structure than simple chain-of-command concerns (Morgan, 2006, p. 21). Structure also refers to the subdivisions within the organization — such as departments, teams, and workgroups — and how those units either work together or independently to achieve organizational goals.

Classical organizational structures are hierarchical or bureaucratic, with top-down authority and role differentiation. More contemporary models of organizational structure have a flatter appearance, with power distributed more widely among personnel. There is no single correct type of organizational structure, but the structure should correspond with the mission, vision, and values to maximize efficiency, productivity, and goal orientation. Similarly, there are pros and cons to each type of organizational structure. Rigid hierarchies may be less capable of smoothly handling change compared with looser structures in which employees share responsibility and roles (Morgan, 2006). The degree of differentiation, the nature of the industry, and even cultural variables may all constrain and influence the type of structure an organization develops.

Organizational Contingency: Environmental and Internal Factors

An organization never exists in isolation; all organizations are impacted by environmental factors. Those environmental variables may determine operational strategies, organizational design, and strategic planning within the organization. Contingency factors also include strategy, size, life cycle, technology, environment, and culture (Daft, 2013). Other contingencies include economic policy, global trade policies, labor policy, and shifts in social norms. Consumer behavior and consumer trends constitute yet another contingency variable impacting the organization. The behavior or performance of competitors or supply chain partners might also have a strong bearing on the organization.

Organizational contingencies are defined as any "factors that moderate the effect of organizational characteristics on organizational performance" (Suhomlinova & Currie, 2016, p. 1). Contingencies show the organization's leaders where it might need to remain flexible and prepared for crises and change due to internal or external threats. The organization's success — its ability to fulfill its mission — is contingent on several factors, many of which may be beyond the immediate control of the organization itself. For example, the political climate, technological innovations, or shifts in demographics throughout a geographic region might all impact the ability of the organization to perform or meet its productivity goals. The organization needs to continually update its strategies and even its goals as it analyzes contingencies and works around them. An organization that is designed specifically to "fit the contingency factors of strategy, environment, size and life cycle, technology, and culture" will become an effective organization (Daft, 2013, p. 67).