Life Is Sweeter on Mars
Whether it is the well-known candy they make (M&M’s, Snickers, Life Savers) or the cat and dog foods (Whiskas and Pedigree), life is indeed sweet for the employees of Mars. The Organizing Framework can help us explain and understand why the 75,000 employees feel they have it so good, and why the company again made the Fortune 100 Best Companies to Work For in 2015. Inputs The environment at Mars lacks the perks touted by many tech companies— no Foosball tables, no free gourmet lunches, and no premier health clubs. More than this, some work practices are downright old school. For instance, all employees, including the president, have to punch a time clock each day and are docked 10 percent of their pay for the day if late. But what Mars may seem to lack in style it makes up for with its culture. Former President Paul S. Michaels explains how the company aligns its values and practices by asking: “Does it add value for the consumer to pay for marble floors and Picassos?” If it doesn’t, then the company doesn’t provide it. Employees seem to love the place and have very positive relationships at work; many families have three generations working at Mars. The culture seems to be one big family interested in cats, dogs, and candy. At one facility more than 200 employees bring their dogs to work each day. (Leash rules apply.) This family-type environment flows from the founding Mars family, which still tightly controls the company according to the “Five Principles of Mars”: quality, responsibility, mutuality, efficiency, and freedom. Employees can recite these principles and live them. Processes While some practices seem frugal, the company reportedly awards bonuses of 10 to 100 percent of employees’ salaries. The company also invests heavily in the community via its Mars Volunteers and Mars Ambassadors programs. In 2014, about 21,500 employees volunteered over 85,000 hours at local organizations!60 Outcomes Mars posts a very low turnover rate (5 percent), a sign that employees are highly satisfied with their jobs. And the fact that the company has managed to grow consistently for decades and remain private is compelling evidence of its strong financial performance.61 For instance, it recently built its first new US chocolate factory in 35 years. It employs 200 people and produces 39 million M&Ms per day.62 YOUR THOUGHTS?
1. What positive outcomes does Mars produce at the individual level?
2. What positive outcomes does Mars produce at the organizational level?
3. What inputs and processes help produce each of these outcomes?