Outback Steakhouse

ABSTRACT

For the purposes of this assignment we were to read the case found in Chapter Six of our textbook entitled Outback Steakhouse and prepare a three to four (3-4) page response to the following questions:

1. Discuss how the employee selection methods at Outback Steakhouse help the organization achieve a competitive advantage.

2. Discuss the importance of fit to Outback Steakhouse.

3. Evaluate Outback's selection process including the order of selection methods such that applicants first complete an application, then complete tests, and then participate in interviews.

4. Evaluate whether or not these selection methods are valid.

As background for this assignment, we are to consider the case (on pages 233-234) in our textbook which is presented below in its entirety:

Outback Steakhouse, Inc., now a $3.25 billion company with 65,000 employees and 1,100 restaurants worldwide, began modestly in the spring of 1988. A key to making Outback a great place to work is hiring the right people. One of the things we recognized early on is that you cannot send turkeys to eagle school: Smart leaders do not hire marginal employees and expect them to be able to keep the commitments of the company to customers or to remain very long with the company. If you start with the right people and provide a positive employee experience, turnover stays low. Thus, a rigorous employee selection process was developed in the early years of the company that is rooted in the Principles and Beliefs.

Outback's selection process for hourly and management Outbackers is proprietary; however, we can share some of the details here about the steps involved in the hiring process: All applicants are given a realistic job preview that shares both the benefits and the responsibilities of working for Outback. We explain to applicants that being an Outbacker means taking care of others, and we tell them how they will be held accountable for that.

We share a document, called a Dimension of Performance, which provides detailed examples of the kinds of behavior expected of Outbackers and how those behaviors are tied to the vision of Outback. This is a candidate's first exposure to our vision. (At this point, some candidates have withdrawn from the process because these dimensions set a very high standard.)

When candidates agree to move forward in the process, they are asked to complete an application. The information they provide is reviewed with an eye toward determining if the candidate can perform the job, fit into the Outback culture, and stay with the company.

Successful applicants are assessed for their cognitive ability, personality, and judgment through a series of tests that have been validated against existing Outbackers who have been successful in the company. Applicants who pass these tests are interviewed using questions that probe not only their experience but also their orientation toward aspects of the Outback culture, including service mindedness, hospitality, teamwork, and ability to think on their feet.

Assignment Three

1. Discuss how the employee selection methods at Outback Steakhouse help the organization achieve a competitive advantage.

The Outback Steakhouse hiring process starts by recognizing you cannot make a silk purse

out of a pig's ear. Having a long term committed, fully engaged workforce begins with selecting

the correct employee from the very beginning of the hiring process. Outback's proprietary hiring

process has been carefully designed to ensure that the right people are hired initially and that

turnover is minimized from the outset. Selecting the right employees can improve the

effectiveness of other human resource practices and prevent numerous problems. (Stewart,

2010). Competitive advantage begins with discriminating hiring practices. This immediately

gives them some measure of competitive advantage over other restaurant chains which are

notorious for heavy turnover. Their rigorous employee selection process was developed in the

early years of the company and is deeply rooted in their Principles and Beliefs. Creating an

organization so deeply rooted in its core philosophy creates a company culture and commitment

that is pervasive and unmistakable by any one of its stakeholders from the suppliers to the

customers. Using effective staffing practices gives rise to higher annual profits and faster

company growth. Such benefits help explain why organizations that use effective staffing

practices have higher annual profit and faster growth of profit.1

2. Discuss the importance of fit to Outback Steakhouse.

Obviously a potential employee's "fit" is more than just a tagline to Outback. It can be

assumed further than an individual's fit is far more complex and multi-dimensional than whether

they will simply stick around past the training phase. Becoming an Outbacker involves

numerous steps where either they will exclude themselves or be excluded from the intensive

team building and corporate indoctrination process. The company's "Dimension of

Performance" is a potential employee's first look at the seriousness to which the

company expects them to conform to its corporate vision. The high standards and

expectation of excellence that this document/process communicates is said to be

enough to repel any casual applicants.

The fitness