Every organisation has a vision and mission. Both of these have different purposes for an organisation but are often confused with each other. mission statement describes what a organisation wants to do now, a vision statement outlines what a organisation wants to be in the future.
But who decides vision and what it wants to be? the customers, the employees, and the society or in other words those who have an interest in the business because they get some benefit out of it. They are called ‘stakeholders’ like owner or promoter or shareholder, employees, supplier, distributors, banks who may have given loan (the financiers), and the people who bought the product (the
customers) are all stakeholders. So the vision cannot be made by the owner alone. He has to fulfill the wishes of the stakeholders. An owner who puts in money has to ask other people before deciding his/her vision. Yes, strange but true.
Vision is the state that one wants to be in and mission is the way of doing it. You can, of course, say that your vision is to be the No. 1 in India, and you will do it by providing high quality product, by maintaining integrity, etc. 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.
Structure follows strategy. In the case of Raju, we found that Shyam and his team takes care of the table line of production, Sanju and his team the chair line, and Pankaj, the administrative activities. These being small worked directly under Raju. However, if this was a large operation (let us assume that Raju will grow real big one day), he probably would need HR people to recruit, select, plan compensation, manage pay rolls and legal issues, finance people to manage the financial aspects, etc. Thus the production, HR, finance and some people to do marketing, etc. becomes the pillars of his business.
You would have seen these basic pillars in most modern businesses. Each of these will have a head, some people, a rule for communication, i.e., whether you have to say things only to your immediate boss or you can (and should) do that to several people involved in the action at the same time, etc. These basic pillars on which the business is built are called the structure.
The different types of structures are:
1) simple (just like the present case of Raju),
2) hierarchical (when the rule says that you can only communicate to your immediate boss or subordinate as in the case of a government department
3) Flat (when you can communicate to your boss and laterally to others on a need basis),
4) adhocracy (the opposite of bureaucracy). It is considered an organisation structure of the future where information flow takes place in all directions thus enabling an organisation to take advantage of opportunities as never before),
5) Matrix (when you belong to a basic pillar, for example, finance and report to project manager for the project finance component of it and global product manager as part of product development team, and
6) Team (Which is a unique and strongly bonded entity that comes together for a function such as product development team.