Managing in global environment

Outback Steakhouse With their years of experience in" rel="nofollow">in the restaurant busin" rel="nofollow">iness, Robert Basham, Timothy Gannon and Chris Sullivan, founders of Outback Steakhouse, were acutely aware of the hygiene factors in" rel="nofollow">in the food-service in" rel="nofollow">industry. Outback is an Australian-themed restaurant founded in" rel="nofollow">in the US that deliberately adopts an Australian theme, sells Australian menu items and is decorated with Australian artefacts. While the average restaurant is designed to maximise the number of customers at the expense of the food preparation area, Outback puts the emphasis on providin" rel="nofollow">ing the best possible spaces for servers and kitchen staff to do their jobs effectively, even at peak busin" rel="nofollow">iness times. Outback’s din" rel="nofollow">inner-only policy and maximum five-day workin" rel="nofollow">ing week give managers and staff time for a life outside the restaurant, which cuts down on employee turnover. Each server handles only three tables at a time, ensurin" rel="nofollow">ing first-class service to customers and higher tips for servers. To motivate managers, Outback provides ownership. After makin" rel="nofollow">ing a US$25000 in" rel="nofollow">investment and signin" rel="nofollow">ing a five year contract, Outback managers receive 10 per cent of the earnin" rel="nofollow">ings of their restaurants each month. In 2012 this provided the average manager with a total of about US$118600 per year, far above rest of the in" rel="nofollow">industry. In addition, managers receive about 4000 shares that vest at the end of five years. Regular staff also participate in" rel="nofollow">in a share ownership plan. Managers are further motivated by the level of responsibility Outback bestows on them. Restaurant managers have the authority to make their own decisions rather than merely implement decisions dictated by headquarters. Has Outback’s motivational approach worked? In December 1994, six years after its launch, there were 210 Outbacks, with revenues estimated at US$544 million. As Timothy Gannon put it, ‘We believe if you treat employees as if you were one of them and give them the right environment, they will blow you away with their performance.’ (Fin" rel="nofollow">inegan 1994). By 2004- 2005, Outback boasted 1105 restaurants and revenue of US$3.3 billion, with 82 875 employees! (Mauder, 2004). Outback’s co-founders, who are all significant shareholders in" rel="nofollow">in the parent company OSI, have in" rel="nofollow">innovated with kerbside takeaway, Internet bookin" rel="nofollow">ing and new brands, menu items and formulas combin" rel="nofollow">inin" rel="nofollow">ing to keep them at the leadin" rel="nofollow">ing edge. The founders clearly believe and live the idea that they succeed through their people, known as Outbackers’. By keepin" rel="nofollow">ing their employees motivated, and ‘havin" rel="nofollow">ing a good time’, Outback’s executives know that their customer service will be good. By 2012, Outback’s successful approach to motivatin" rel="nofollow">ing its staff has led to expansion to 21 countries with many hundreds of restaurants operatin" rel="nofollow">ing in" rel="nofollow">in numerous brand names, with such growth signifyin" rel="nofollow">ing a company and group of mangers who are clearly gettin" rel="nofollow">ing a lot of thin" rel="nofollow">ings, in" rel="nofollow">includin" rel="nofollow">ing staff motivation, right. Source: Samson, D., Daft, R.L. 2012. Fundamentals of Management, 4th Asia Pacific ed, Cengage Learnin" rel="nofollow">ing Australia, South Melbourne, Australia. HEP: 4375/CRICOS Provider Code 00246M MGT101A Ass 4 Case Study T3 2016.docx Page 3 of 7 Questions: 1. What theories of motivation underlie the way in" rel="nofollow">in which Outback’s leaders motivate their managers and staff? (Reflect on the theories studied in" rel="nofollow">in Week 9 and motivate your answer.) 2. Discuss how empowerment is employed in" rel="nofollow">in the Outback Steakhouses to meet higher motivational needs and suggest practical ways in" rel="nofollow">in which other staff could also be motivated through empowerment. 3. If you are given the task of communicatin" rel="nofollow">ing the recommendations made in" rel="nofollow">in question 2 to your employees, how would you go about it? (Go carefully through the content of Week 10 [Communication in" rel="nofollow">in organisations] and try to apply as much as possible of the theory to your answer.)