Strategic Human Resource Management – HRM 530
Question 1: Discuss how the employee selection methods at Outback Steakhouse help the organization achieve a competitive advantage.
The Selection process within most organizations is the foundation of competitive advantage through people. Upon reading this case, there is one particular aspect that stands out: the people are the main ingredients that make the company successful. Therefore, since the competitive advantage to an organization’s success is it choices of the people that the leaders in charge hired. In a job fit option, the leaders create the job specification that needs satisfying by the employees hired. It is very important to select the right contender for the job based on the needs of each individual business, which fall sole on the premise of employee selection. Outback Steakhouse has integrated a defined selection process for hourly and management workers that will help hire and retain people to successfully run their organization. This selection process helps the organization achieve a competitive advantage because it allows Outback to recruit the applicant, assess their qualifications rigorously, then select the most competent centered on its objective by choosing employees who are willing to adapt to the culture, vision, values and beliefs of Outback Steakhouse. And it does allow them to employ people that appreciate the value of teamwork, accountability, kindness, and individual responsibility. Outback Steakhouse leaders used several types of tests that help them to weed out the people they want on their teams. One of these tests is the validity which dictates how the potential new hires are test against the old setting of Outbackers who have been very successful in the company. This is a strategic technique to discover if a person is a good fit along with all the tests that are given to the new contenders help to keep Outback Steakhouse a step above the average restaurant when it comes to the superior process of hourly and management workers. By take advantage of the strength of their employees, Outback Steakhouse not only keeps their turnover low, they have gained a competitive advantage in the restaurant industry. In this case in point the organization-based fit is the norm for Outback Steakhouse selection process. To say the least, competitive advantage is achieved in the ability to make small adjustments in existing goods and services at a low price it characterized by known problems and known methods for solution. Question 2: Discuss the importance of both “job fit” and “organization fit” to Outback Steakhouse and explain how interview questions can help to assess whether or not a candidate “fit.”
Alavim and Leidner (2001) wrote that “knowledge is state of mind, knowledge is an object to be stored, knowledge is a process of applying expertise, knowledge is a condition of access to information and knowledge is the potential to influence action” (Alavim and Leidner, 2001). Furthermore, Sporleder and Moss (2002) defined Knowledge Management with more details as an integrated approach to identifying, creating, managing, sharing, and exploiting all information and knowledge assets of an organization. In addition, Soo and his colleagues viewed Knowledge Management in a simpler way; they think it is a process of knowledge creation and the organizational performance outcomes that result from that knowledge (Soo et al., 2002). Although there is not a clear definition of it, researchers believe that it is an important source to maintain organizations’ competitive advantage (Brannback & Wiklund, 2001; Hagen, 2002; Sporleder & Moss, 2002; Nonaka & Takeuchi, 1995). With that in mind, it is rather more optimal to understand why Outback Steakhouse advanced technique in choosing its candidate for its teams worked.
The ability to classify whether or not a candidate fall under the “job fit” or “organization fit” category...
OSI Restaurant Partners, LLC, headquartered in Tampa, Florida was founded in 1988 by those who believe in hospitality, sharing, quality, being courageous and having fun! OSI Restaurant Partners, LLC is a company of restaurants that owns and operates OutbackSteakhouse, Carrabba's Italian Grill, Roy's Restaurant, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Lee Roy Selmon's, Cheeseburger in Paradise and Blue Coral Seafood & Spirits(Outback, 2007). OutbackSteakhouse is a huge company who has many people who care about one another. Each manager is carefully selected and makes sure that they live by Outback's principles and beliefs. Two organizational resources that management in this organization uses are knowledge and human resources.
Human Resources at OutbackSteakhouse play a critical role in the company's value chain, as various cost drivers are associated with this link. Emphasis on human resources is a key component of the company's differentiation strategy, yet there are costs associated with upholding this differentiation (Hallinan, 2005). There are two aspects of restaurant labor operations that OutbackSteakhouse places significant energy and value on. Employment recruitment and training is one of them. Getting a job at...
...The two first OutbackSteakhouse stores were created by Chris Sullivan, Bob Basham and Tim Gannon in 1988 in Tampa. Within 7 years, the company became "the fastest growing US steakhouse chain with over 200 stores throughout the United States". In 1994, the company's stock increased from $22.63 to $32. Moreover, OutbackSteakhouse seen as an example of a great success story was awarded many times.
In the context of this successful evolution of the company, the question of its internalisation and the conquest of other markets became obvious to the company. In 1994, Hugh Connerty was appointed president of Outback International and was in charge to lead to company abroad knowing that it would be a critical change.
This case study states the problem of the global expansion of a company and the strategic and operational anticipated changes it must take into account to make this internationalisation a success. Can the reasons of Outback Steakhouse's success within the United States also be applied to other markets? If not, what are the inputs the company needs to take into account before being global?
The potential international expansion of OutbackSteakhouse can not be considered before explaining the reasons of the success of the company in United States through an environment and company analysis. Finally a few recommendations will be given to...
...Running Heading: Recruiting, Selection, and Retention: OutbackSteakhouse
Recruiting, Selection, and Retention: OutbackSteakhouse
Strategic Human Resource Management
May 12, 2011
Recruiting, Selection, and Retention: OutbackSteakhouse
Employee selection is a very important process in making an organization successful. Choosing the right employee can enhance other human resource functions within an organization. Because OutbackSteakhouse has been very successful in hiring the right people it is now a $3.25 billion company with 1,100 restaurants worldwide that employee over 65,000 employees. In this paper I will discuss how the employee selection methods at OutbackSteakhouse help the organization achieve a competitive advantage. I will also discuss the importance of fit to OutbackSteakhouse. Then, I will evaluate Outback’s selection process including the order of selection methods such that applicants first complete an application then complete test, and then participate in interviews. Last, I will evaluate whether or not these selection methods are valid (Stewart & Brown, 2010).
The employee selection process method at OutbackSteakhouse helps the organization to achieve a competitive advantage because the process sends a...
OutbackSteakhouse has enjoyed a dominant position in the casual dining market since inception. They have exponentially increased the number of locations each year; however their growth has apparently reached a plateau and they could potentially loose market share.
There is significant competitive pressure from rivals using marketing and advertising in attempts to lure away customers. Consumer loyalty is highly valuable and rivals will use whatever tactics necessary to gain that loyalty and establish a strong customer base. Competitive rivalry is relatively strong mainly due to the threat of new entrants and competitive pressure from rivals.
A restaurants success depends largely on a few key attributes including brand identity, location, price and quality of food and service. Strong supply chain management and motivated, friendly staff are also valuable competitive resources. Outback has managed to acquire all of these resources, particularly their superior quality of service and strong employee culture.
In order to maintain market leadership and grow, the following alternatives for implementation are considered:
1. Redesign the menu to include healthier alternatives
2. Open for lunch and develop a lunch menu
3. Launch an innovative new marketing campaign
Based my analysis, I recommend that Outback choose alternative 2 – to open for lunch and develop a lunch menu. Their primary...
Customer satisfaction survey: OutbackSteakhouse
Customer Satisfaction Survey
Customer satisfaction survey: OutbackSteakhouse
OutbackSteakhouse is a multinational restaurant chain operating throughout the United States and in 18 other countries including Australia, Malaysia, Singapore and many more countries worldwide, (OutbackSteakhouse, 2013). In most basic terms, OutbackSteakhouse could be described as an Australian themed steakhouse. The restaurant offers a casual dining experience with menu offering a wide variety of selections that will fit most guests’ preferences. As common with casual dining restaurants guests are seated and served by wait staff and pay for their meal after eating.
The casual dining restaurant industry is highly competitive business with many chain restaurants competing for the same customers. Research has shown that the “demand for casual dining is driven by personal income, consumer tastes, and demographics”, (Hoovers, 2013). It is important for all businesses in the casual dining industry to ensure they’re meeting and exceeding customer expectations and demands. In order to meet those demands the company must learn what their customers expect from their casual dining experience. One way of reaching out to...
...Tim Stanton, a former managing partner of an OutbackSteakhouse in Knoxville, TN, who recently assumed the new position of joint-venture partner, and who will now be overseeing 12 restaurants located between Huntington, WV, and Pittsburgh, is profiled as part of Nation's Restaurant News' NRN 50 General Managers Orchestrating Success feature. Throughout his years at the Knoxville property, Stanton increased sales by a whopping 133% to $4.3 million dollars. While Stanton rewards his employees financially, he also is keen on showering them with the respect they deserve. He notes that one of the most blissful aspects of his job is to watch his staff evolve, slowly working their way through the ranks of the restaurant world.
Joint-venture partner raises the stakes, ropes in customers, lassoes $4.3 million in sales
Since 1995 Tim Stanton has spent much of his time at the bustling OutbackSteakhouse in Knoxville, Tenn. He has watched sales grow, led a staff that is alert and happy and enjoyed the unwavering support of his family. Now things are about to get even better.
View Image - Stanton, who recently was made joint-venture partner, soon will oversee 12 restaurant locations as well as four more that still are under construction.
This month Stanton assumed the new position of joint-venture partner. Instead of overseeing one Outback in Tennessee, the 43-year-old now will watch over 12...
In 1995, OutbackSteakhouse was proclaimed as one of the most successful restaurant chains in the United States. The chain was started by Chris Sullivan, Bob Basham, and Tim Gannon during the 1980s. Prior to starting the OutbackSteakhouse chain, Sullivan and Basham were successful franchisees of the Chili's Restaurant chain. About the same time Gannon played a significant role in several New Orleans restaurant chains.OutbackSteakhouse, formerly known as Multi-Venture Partners, was founded in 1987 after Sullivan and Basham sold their Chili's franchise to fund their venture and they invited Gannon to join. In 1988 the trio opened their first two restaurants in Tampa, Florida.
Together, the founders managed to create an Australian themed eatery that served dinner only. The company was able to find a niche market, an untapped opportunity between high-priced and budget steakhouses to serve quality steaks at an affordable price. The owners of OB tried to diversify entering the Italian grill by purchasing half interest in the Carrabba's Grill, and two years later purchased sole rights to develop the Carrabba's concept. Carrabba's did not prove to be as successful as the Outback, which led to the closing of many of them.
With this niche market, Outback realized profits in first years of operations, which is very rare in the industry. The...
...Outback Goes International
Student: Phuong Linh Nguyen
Professor: David Hover
In 1988, the two Outback restaurants were opened in Tampa, by three founders—Chris Sullivan, Bob Basham, and Tim Gannon. In 1995,Outback had over two hundred stores in the United States. Within a few years, the company achieved significant success such as being the fastest growing and best steakhouse chain in the country. Outback is not only successful because it offers customers a great eating experience, but because it is a great example of successful entrepreneurship. Therefore, analyzing the company’s business model and strategies will give important lessons for managers.
Outback restaurant business model is based on high quality food at affordable price. The company achieves differentiation and low cost structure by attaining superior innovation, quality, and efficiency.
Firstly, being innovative is one of the best ways to maintain the competitive advantage because new products can better satisfy existing customers and attract new customers. As a matter of facts, Outback invests in research and development to recognize the hottest...