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people systems. The CEO in these panies is the Chief Personnel Officer. The CEO interacts regularly with the entire leadership group, understands the individual development needs and goals, and leads staffing reviews. ? ATTRIBUTES OF AN HPO (CONTINUED) Aligned by simple structures and core processes ?Straightforward alignment of authority, accountability, and performance challenges ?Unplicated lines of munication and approval – line to line ?Similar internal structural units and key management processes across the pany ?Minimal critical staff reviews ?Regular calendar of key management processes and munication Based on worldclass pany skills ?Do many things well, but at least 1 functional skill at worldclass petence level underpins strategy ?Also focus on building corporate skill in the way they run the place ?Company key management processes viewed as real petitive advantage Rejuvenated by welldeveloped people systems ?CEO is Chief Personnel Officer ?Clear focus on performance and motivation – successful longterm wealthbuilding programs seem key ?Management processes ensure leaders have ―informed‖ view of key contributors 23 levels down ?CEO leads annual ―staffing review‖ – best people/teams in most critical/demanding jobs ?―Bench strength‖ is a top priority ? The HPO research found something else mon to the HPOs: all 10 were experimenting with selfgovernance. Selfgovernance in these HPOs means empowerment with accountability. The HPOs share the mon characteristic of involving ―a wide range of ―or ―broad crosssection of‖ employees in driving for improved performance. Their goal is to imbue every employee with an owner’s mindset. Self –governance in these HPOs is different from that practiced in other ―engaged and empowered‖ panies. In HPOs the singleminded objective of empowerment is performance. In the matrix below, the HPOs we studied were all in the top half of the matrix (high performance)。Staff. The people in the anization considered in terms of their capabilities, experience, and potential. 182。 Style. The way managers collectively behave with respect to use of time, attention, and symbolic actions. ? ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S Winning formula Pivotal jobs Design levers Organizational structure Management systems Leadership style Staff Strategy Skills Shared values VISION ?Centralized buying to control fat content ?Hamburger University degree required ?Promotion from within to build experience ?Regular inspections ?Franchise expansion based on high grades on prior inspections ?Many procedural mechanisms aimed at building employee enthusiasm and loyalty ?Hardnosed, rigid attitude on how to run the business ? The skills and shared values must be used to determine needed changes in anizational design. For example, McDonald’s specific skill of quality control drives many anizational design decisions. Structure buying provides more than economics of purchasing. It also helps ensure that fat content is between and percent and ensures that burgers are 100 percent beef. Staff –operators have more say on quality of operations than absentee investorowners. at Hamburger University ensures that managers really know how to make the food right. It is a $40 million facility, with 750student capacity per 2week session, and translation booths for foreign managers. It is the only school in the fastfood industry accredited by the American Council of Education. from within builds experience in meeting pany standards and reinforces shared values. Systems systems, including job descriptions and performance appraisals, ensure that quality of operations meets standards.. franchises are inspected on a regular basis, including grades( A through F) on QSC. other franchises that give rights to territories, McDonald’s franchises cannot expand unless they show a history of high quality in operations. ’s Personnel Action Manual provides mangers with a wide array of programs to keep crew members motivated and mitted. Style tolerance for variance from operations standards, except as wellthoughtout improvements. No shortcuts allowed. ’s inspections. Before entering a franchisee’s office, Kroc would often pick up all the trash within a twoblock radius of a McDonald’s restaurant and then dump it on the franchisee’s desk to show a need for greater cleanliness in McDonald’s vicinity. ? ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S Winning formula Pivotal jobs Design levers Organizational structure Management systems Leadership style Staff Strategy Skills Shared values VISION ?Centralized buying to control fat content ?Hamburger University degree required ?Promotion from within to build experience ?Regular inspections ?Franchise expansion based on high grades on prior inspections ?Many procedural mechanisms aimed at building employee enthusiasm and loyalty ?Hardnosed, rigid attitude on how to run the business ? The design lever clients exercise the most is probably structure. Too often we hope that by tinkering with boxes in anizational charts, we can solve anizational problems. Struct。Leadership style. The way leaders focus their time and attention and the personal tone they set. ? ② 7S FRAMEWORK What change is needed? How should the client make change happen? Gaps in performance Organizational challenges initiatives Organizational challenges Energizing elements Winning formula Pivotal jobs Design levers Organizational structure Management systems Leadership style Staff Strategy Skills Shared values VISION ? At the heart of we mean by anizational performance is a ―winni