Martin Marietta Corp. announced a management reorganization last week that the Bethesda-based aerospace company said would allow it to operate more efficiently and accommodate its shift to a greater emphasis on electronics and systems work.
The company said the new arrangement eliminates a level of management, giving Marietta more flexibility and responsiveness to market conditions. However, company officials said, the reorganization is not expected to result in a loss of jobs.
"We've grown enough that our individual operating elements were getting to be rather large," Martin Marietta President Norman R. Augustine said. "We felt that by dividing them up into smaller elements that could deal more directly with the customer, we could do better for the customer.
"The biggest thrust behind this is to make us more efficient and more competitive," he said.
Martin Marietta, which had 1986 sales of $4.75 billion and profits of $202.3 million, is the Washington area's second-largest public corporation.
The restructuring breaks the company into four divisions, each with a handful of operating units with an average of about $500 million in annual revenue and 4,000 employes, according to Augustine. In Marietta's previous arrangement, the operating divisions were about four times that large.
Augustine said the smaller divisions -- which will have their own presidents, factories, quality-control operations and profit-and-loss responsibilities -- would be more autonomous and better able to respond to changes in the marketplace. "I don't want to represent that this represents a huge cost savings," he said, "but it is important in terms of efficiency."
The reorganization has been on the drawing board since the beginning of the year, Augustine said, and is effective immediately.
The reorganization -- Martin Marietta's first major management restructuring in more than a decade -- reflects the huge changes that have swept the company since it escaped a bruising takeover attempt by Bendix Corp. five years ago.
At that time, Marietta was a diversified conglomerate with interests in aerospace, aluminum, cement and construction materials. Over the past five years, the company has sold off most of its nonaerospace interests, while building significant new businesses in electronics and systems management. Augustine said the restructuring will make Marietta's management system "more reflective of what we do."
The new Martin Marietta organization chart puts four major divisions under the company's top executives, including Augustine and Chairman Thomas Pownall. The astronautics group -- which will be based in Denver, long the home of the company's rocket business -- will include Marietta's space launch and operations businesses, its program to sell commercial versions of the Titan rocket, and related operations. That division will be headed by Peter B. Teets, who is being promoted to senior vice president from vice president of the company.
The company's electronics and missiles group, based in Orlando, Fla., will encompass Marietta's defense electronic, missile, aero and naval systems and ordnance operations, the latter based in Baltimore. The electronics and missiles group will be headed by A. Thomas Young, who also is being promoted to senior vice president from vice president.
The company's burgeoning data and management systems operations will be centralized in the Bethesda-based information systems group, which will be headed by Dan A. Peterson, who already is a senior vice president of the company. Marietta's few remaining construction materials operations will be consolidated as the materials group, based in Bethesda and headed by David C. Dressler, a senior vice president.
In addition to the four main operating groups, Marietta said it would consolidate its spacecraft-building operations in New Orleans under Vice President Richard M. Davis. The manned space systems division will include the construction of the space shuttle's external fuel tank and the development of designs for NASA's space station program.