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attention to training/coaching, evaluating/experimenting with pricing, staffing, merchandising Job objective ? Ensure that dayto day store operations run smoothly ? Manage store profitability and implementation of new convenience strategy Critical skills ? Conscientious, responsible ? Basic math and writing skills ? Old skills, plus… –Good instincts about how to affect profits –Leadership qualities Criteria ? Task pletion ? Financial performance ? Old criteria plus added emphasis on… –Customer service –Inventory management –Store appearance The second analysis contrasted the percentage of time spent on critical tasks under current practices and envisioned in the future. CONTRAST ANALYSIS BY PERCENTAGE OF TIME SPENT Pivotal job: area operations manager 100% Current Proposed 3520402015301030?Tailor products, services, pricing, and promotion to segments ?Search for new business ?Evaluate business and customer service performance ?Expand oneonone time with SM and associates ? Train and motivate facetoface for customer service, inventory management… ?Encourage SM to innovate ?Clerical support should eliminate tasks ?Clerical support should eliminate tasks Short vendor contacts ? Recruiting SM and ? pharmacist Disciplining ? Balancing inventory ? Followup on telephone ? messages Inventories ? Paperwork ? Putting out fires ? Monitoring pliance ? –Policies –Planograms Answering surveys ? Filling out appraisals ? District reports ? Merchant/owner Coach Player Administraor The 3S winning formula sets the standards, goals, and mission of the organization. How do you get people (particularly pivotal jobholders) to actually follow those goals? While you can dictate what skills and shared values you want , the organization must provide guidance, motivation, and monitoring to see that the right decisions are made. This is provided through the other Ss – structure, systems, staff, and style. Collectively known as the ―design levers‖, each of these four should be set by considering the specific skills and shared values you want to instill in the organization’s people – and balancing them with other designs that might be suggested by other specific skills and shared values needed. 182。 Structure. Who reports to whom and how tasks are both divided up and integrated. 182。 Systems. The processes and procedures through which things get done from day to day, including hiring, pensation, performance evaluation, promotions policy, and training. 182。 Staff. The people in the organization 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 organizational design. For example, McDonald’s specific skill of quality control drives many organizational 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