Case Study of Mars Inc Essay

1810 Words May 20th, 2012 8 Pages
1.0 Introduction
Organisation structure is extremely important to a company. Without proper structure the company cannot run effectively. The authors will critically analyse the goals and objectives and the current operating structure within Mars and give recommendations.
The authors will design an appropriate operating structure for Mars. The chosen operating structure is based on a product structure.
Organisations are not a new concept; despite this there is varying opinions in the business world on what defines an organisation.
Hodge, Anthony, and Gales, (2003; p10) defines an organisation as “as two or more people working together cooperatively within identifiable boundaries to accomplish a common goal or objective.”
A further
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This practice is evident in Mars as the Company’s policy has caused sales to exceed production capacity.

4.1 Authority:

Authority is the right to give orders and expect them to be obeyed. There are three types of authority including Line, Staff and Functional Authority.

Line Authority: reflects the relationship between superior and sub-ordinate. In Mars the Confectionary Director has the line authority over all sub-ordinates working within that production line. He has full accountability and responsibility and he in turn must report upward to the CEO’s.

Staff Authority: is an element to assist line managers through a support role. For example in Mars staff authority lies with human resources in supporting the product lines in relation to recruitment, disciplinary and grievance procedures as well as performance appraisals.

Functional Authority: in Mars is as follows: Directors of Finance/Human Resources, Sales & Marketing, Operations and Production. There are three Product Directors responsible for Confectionary, Pet Food and Food Vending. The Directors of each respective department have full accountability and have the right to give orders to meet the responsibilities in their area.

The hierarchy of authority describes who reports to whom and the span of control of each manager. The hierarchy of Mars Co. is depicted by the vertical lines on

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