In practice, we often encounter the terms vision, mission, values, and strategy of companies. However, few people fully understand what these terms mean on a practical level and how to apply them in everyday business, particularly within the HR function. A well-established HR system can effectively utilize these concepts, thereby substantiating and strengthening its strategic role. To begin, let’s conceptually understand all the processes ideally managed by the HR function in companies.
Basic HR processes are:
- Scouting
- Recruitment
- On-boarding
- Training and Development
- Compensation, Benefits, Remuneration and Budgeting
- Succession & Talent Management
- Alumni
- Off-boarding
Core Components
At the heart of a company are its vision, mission, values, and the legal framework governing labor. This legal framework varies by country and is often subject to change, which will be discussed further in the chapter on labor law. However, labor-legal documentation forms the basis of a company’s legal operations and is essential for any HR process. Neglecting this area can result in significant financial, time, and resource losses. In the worst cases, companies might even lose their licenses to operate.
Vision
In a broad corporate context, a company’s vision answers the question of its “raison d’être,” providing a rational and emotional explanation of the ultimate goal the company aims to achieve. It outlines where the company wants to be in the future. Examples of visions include:
Apple: “To make the best products on earth, and to leave the world better than we found it.”
MK Group: “We create value through the development of people, business, and society as a whole.”
Delta Holding: “To be a strong global company recognizable by its values in the eyes of clients, partners, and employees.”
Mission
The mission addresses what the company is doing now to achieve its long-term goals. It answers key questions such as:
- Why do we exist?
- Who are our clients?
- What products or services do we provide?
- What market are we in?
- Is our company financially stable and reliable?
- Where is our market advantage?
- Do we use modern technologies?
- What are the main advantages of our company?
- What is the company’s reputation and social responsibility?
Are employees our greatest asset?
Examples of missions include:
Apple: “To create technology that empowers people and enriches their lives.”
MK Group: “We grow by creating an environment in which personal and team potential is realized, with optimal management and responsible behavior.”
Delta Holding: “With passion, we create companies that improve the society in which we live and work.”
While the mission explains what the company is doing now, the vision outlines what it wants to achieve in the future, highlighting the contrast between the present state and future aspirations.
Values
Company values are principles and moral guidelines that steer decision-making and overall business conduct. When clearly defined and adhered to, these values help distinguish right from wrong and serve as a moral compass. Examples of values include teamwork, innovation, trust, and transparency. Values are typically defined after establishing the company’s mission and vision and can be adjusted in line with long-term plans. Examples of values include:
Amazon: Ownership, bias for action, earn trust, have backbone.
Delta Holding: “Excellence makes us the best; Innovation changes the world. Integrity is deeply embedded in everything we do; We always strive for the greatest achievements; Caring for people is the foundation of our success.”
The connection between values and company culture will be explored further in the chapters on organizational culture and HR research.
Integrating Vision, Mission, and Values into HR
Once the vision, mission, values, and legal framework are defined, HR professionals can position the company as an “employer of choice” and establish the desired managerial and leadership styles. These elements MUST then be integrated into the business processes managed by the HR function by defining behavioral competencies which will be heavily embedded within the processes. By doing things this way – HR can rest assured that complements business in successful way.
