Mars Incorporated: HR Practices Help Create Sweet Success

Summary

Mars is a privately-owned, global fast-moving consumer goods organization specializing in confectionery, drinks and pet care. HRM Information on Mars was largely obtained from in an interview conducted with a line manager in HRM at Mars. The Mars’ HRM department has the main activity of staffing which is conducted on a daily basis. Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness. Next HRM activity of performance management. Performance management can be understood as the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities Also, change management is one of the main HRM activities conducted at Mars. Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state (Noe, Hollenbeck, Gerhart, & Wright, 2017). 

1. What HR practices do you believe are critical for Mars Incorporated to maintain the culture and product quality and growth it’s known for? 

Mars is one of the largest private firms in the United States with 72,000 employees located in the United States and 72 other countries around the world. Mars focuses on the five principles of quality, responsibility, freedom, efficiency, and reciprocity, which are the foundation of corporate culture and business approach. Mars believes that quality work is the first ingredient in quality brands and a source of company reputation for its high standards of work ethics.

Efficiency is the biggest strength of the company. This allows the company to organize physical, financial and human assets for maximum productivity. It also contributes to the delivery of products and services with the best quality, with the lowest possible cost and the lowest resource consumption.

Personnel practices that we believe are critical for Mars Incorporated to maintain the culture, product quality, and growth. Most employees have to “drive-in” their jobs every day, even the president of the company must work on time and on time. Employees who are late for work receive 10% of their salary, even if this rule does not change for the president. In addition, the principle of responsibility means that employees, not just managers, have a “voice” and must take the position of the consumer. They are encouraged to speak out rather than provide a bad product or service (Kaplan, 2013).

The reason for the low turnover and high incomes is that workers have many opportunities for career growth and development in their field of activity. All new employees attend the Mars curriculum, which introduces five principles. Mars also has a corporate university that offers online and classroom courses on functional topics as well as leadership skills. About 40% of employees participated in the program proposed by the University of Mars.

From 10 to 20% of their salary is given depending on their effectiveness. A flat-screen displays current financial indicators, including sales, revenues, cash flows and production efficiency. Mars also encourages public participation, giving employees the opportunity to gain new insights and make significant contributions. Everything on Mars is made transparent so that the employee can participate in any process where, in his opinion, he can use his skills.

 2. Could Mars’ be successful without its current HR practices? Explain

Mars could maintain its spot in the market without a professional and well-experienced HR department, which leads and support all departments in the company and managers too. Mars’ HR does significant jog which as a significant impact on the company. Personnel practices play a key role in the formation of any organization. Proper management and evaluation of human resources are very important for the future growth and success of the organization. As a human resource is a very valuable asset for a company, its development and growth should be a priority for the organization in order to gain a competitive advantage and satisfy customers.

HR practices of Mars include 5 principles: efficiency, reciprocity, freedom, quality, and responsibility. Mars’ employees follow these principles, despite their various business segments, as these principles are the basis for building a company culture. Mars’ the personnel management practice necessary for Mars to maintain a culture and product quality includes five principles, which are listed below:

Efficiency: Efficiency is necessary for organizing all functional areas of a business in the most efficient way.

Reciprocity: Reciprocity means that business relationships must be measured by the degree to which mutual benefits are formed.

Freedom: Since Mars is a private company, it is not financially liable to anyone or any party and can make decisions for a long period of time.

Quality: Mars considers quality management one of the most important principles for maintaining its high reputation among quality brands.

Responsibility: each employee and manager at Mars is responsible for the results and can make important decisions as necessary.

The above five principles are the main foundation of Mars culture, and each employee must apply these principles to maintain their culture and maintain product quality for mutual benefit.

3. Do you think that Mars’ culture and HR practices can also help the bottom line at companies in other industries such as health care, manufacturing, or research and development? Explain why or why not.

HR practices of Mars include 5 principles: efficiency, reciprocity, freedom, quality, and responsibility. Mars employees follow these principles, despite their various business segments, as these principles are the basis for building a company culture. Whether it is a healthcare organization, a manufacturing organization or any other organization, personnel management and development are very important. For the growth of any company, it is very important to focus on human resources or employees and take care of their needs (Middlemiss, 2015).

If employees are poorly managed, it is not possible to manage other operations of the organization at all. To achieve profitable results, the values ​​and practices of each organization should be more related to its human capital. Mars’ culture and HR practices can also help companies in other industries, such as healthcare, manufacturing, research, and development, achieve the same success and growth. Since each industry that cares about its employees has a large employee satisfaction index, which ultimately ensures that employees are completely satisfied with the growth and policy of the company, and they can 100% focus on results and customer service.

As a result of all this, customers also enjoy receiving excellent services. This can be true for any industry, be it healthcare, manufacturing, or research-oriented companies. Considering that human resources are the most important asset in any industry, be it manufacturing or healthcare, the main task is to provide appropriate training and opportunities for the growth of a valuable human resource.

Since if the company has the ability to retain and satisfy its employees, it will undoubtedly satisfy the expected needs of its potential customers, thereby increasing the company's profit. Consequently, the culture and methods of working with staff on Mars can be adopted in other sectors, such as manufacturing and healthcare, and will be very useful for them to achieve similar growth and successful outcomes.

4. Mars is a privately held company and a family-owned business. What advantages (or disadvantages) can this provide for developing effective HR practices compared to a public company “owned” by its shareholders?   

HR practice at Mars plays a key role in building any organization. Proper management and evaluation of human resources are very important for the future growth and success of the organization. As a human resource is a very valuable asset for the company, its development and growth should be a priority for the organization in order to gain a competitive advantage and satisfy customers (Ulrich, Younger, Brockbank, & Ulrich, 2012). Placing the right people at the right job, motivating talented employees and providing them with attractive benefits will not only involve them in their tasks but also create a good reputation for the company. This will make employees feel more familiar and connected with the company.

Since Mars is a private company and a family business, it has many advantages over the state-owned company in developing effective personnel management methods. Some of the benefits are described:

1. As a private company, Mars managers have every right to make decisions on the implementation of effective personnel management methods.
2. Mars' family-friendly business environment helps establish a cordial and cordial relationship between managers and employees compared to a public company.
3. In a public company owned by shareholders, there are several professional obligations that must be fulfilled, while in a private company such as Mars, there are not many obligations.
4. Employees feel more connected and familiar with the Mars business culture and therefore maintain a standard quality of work, while in a state-owned company, the goal is only to maximize the profit they care less about maintaining quality and customer.
5. Also in the company, Employees have the right to express their opinion on several topics and issues, while in a public company only owners have the right and freedom to make decisions.
6. There is an equal distribution of profits and rewards, while in a public company, owners receive most of the profits from the business.

These benefits are useful for developing an HR practice that has proper performance compared to a public company.

Conclusion

Mars should do everything possible to find high-level employees. HRM plays a vital role in performance management, hiring and change management strategies. In the example of Mars HRM, conditions are constantly being created for advanced training and advanced training. Although Mars is well-developed in its human resources management policies, it must continue to invest time and resources in HRM in order to continue to get the right people at the right time.

References

• Kaplan, D.A. (2013). Mars Incorporated: A pretty sweet place to work. Fortune. Retrieved from: https://fortune.com/2013/01/17/mars-incorporated-a-pretty-sweet-place-to-work/
• Middlemiss, N. (2015). Mars shares a secret ingredient for HR success. Human Recourses Director. Retrieved from: https://www.hcamag.com/nz/news/general/mars-shares-secret-ingredient-for-hr-success/144343
• Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2017). Human resource management: gaining a competitive advantage. New York: McGraw-Hill Education.
• Ulrich, D., Younger, D., Brockbank, W, & Ulrich, M. (2012). HR from the Outside In Six Competencies for the Future of Human Resources. New York: McGraw-Hill Education.