Buz-Z 302Exam # 1 Study Guide Lectures: 1 - 8Lecture 1 (January 14th)-People are a key to success in any organizationoBut that isn't the only part of a good businessoFinding, motivating, rewarding, and maintaining peopleoPeople performance is a function of:-Ability x motivation x opportunityoPeople skills are hard not sof-They are getting harder-50% of people give a 3-4 on their happiness or contentment with their boss or supervisorAka 50% of people are dissatisfied with their manageroEvidence beats intuition-Great people management is hardly just common senseLecture 2 (January 16th) -Steak n' ShakeoCEO wanted to just listen and learn for the first 4-6 monthsoCEO asked his top 12 people how many stores they had and no one knew-400 company owned franchises and 100 individually ownedoPeter Dunn didn’t see how the different stores differed; they all looked the same and sold the same things-Customer profile is similar-All the prices are the same-Product(menu) is the same across the country-Everything is standardized and done by the manual-Layout and design is the same -Pay scale and number of workers is the same -Suppliers and vendors are the same-Advertising is the sameLecture 3 (January 21st)-Steak n' ShakeoMaking the Business Case-The humanistic case or the legal caseBoth are important and compelling but in a business school, we need a business case-Is this the way to win and be effective?Aka what the business case isIs it effective business?oSteak n' Shake restaurants recently completed an in-depth study comparing their stores that rank in the top quartile in sales and profitability and those that rank in the bottom quartile-What factors were consistently NOT different across stores?Location: close to highways, near other fast food restaurants, may be all over the US but in very similar locations-Possible DifferencesCustomer satisfaction/loyaltyEmployee turnover-Turnover rate was 250% meaning that someone new was doing the job every four or so monthsReputation-Cleanliness, how fast they are getting food out, etc.-But getting faster through the line could cut down on qualityScheduling-What consistent predictors or indicators of high financial performance did they find?-There is a very big difference between profitability of the highest profit stores and the lowest profit storeLecture 4 (January 23rd)-What did differentiate Steak n' Shake?oHigh customer service-Measured by external ratersSecret shoppersoHigh employee engagement-Measured by low turnover and surveysoStore manager(drives the first two)-Where do I find the great leaders?-What are those great leaders doing?oFranchise ownership-You're more invested because YOU own it!Lecture 5 (January 28th)-SASoWhy should we not replicate SAS?-The cost is so highIf you spend all of that on your employees you would have to pass some onto consumers and possibly raise prices-It has to do with the industry that they are inThey are a sofware programming company so they have high profit margins-May create the wrong set of incentives or expectationsWhat happens if you have to take it away?-Entitlement may become present-If you're a publicly traded company you'll have a lot of people questioning you and your motives-What if Jim Goodnight leaves?New owner may want to put money someplace else-Their business won't be able to sustain according to historySomething will happen that will erode SAS's revenue stream-Best companies to work for perform more than 2x better than the general marketoGreat workplaces provide 3x the returnoWhy do they outperform the market?-What NOT to learn from SASoEvery company should do what SAS is doingoIf you do what SAS does, you will see instant positive resultsoPeople culture is the only thing that mattersoPositive cultures are just about being and giving people lots of really cool perks-What to learnoFocusing on people leads to:-Better selection pool-Lower turnover-Higher productivity-Higher quality/innovation-Better citizenshipoFocusing on people means different things in different contextsoCan't afford NOT to focus on people….maybeoYou win with peopleoBuilding culture takes timeoYou can do some form of this anywhere but has to fit your people and contextoThe bar for people-first cultures is actually very low- a fraction of SAS-like people focus would seem extraordinary in most firms-The Seven HR Management Practices that Matter MostoSelective hiring-You want to be choosing from a larger pool than what you have positions to offer-It all starts with creating this and making people want to come to you and stay with youoCommitment to talent development-You're getting better and learningoDecentralized decision-making-People choose to work hard in order to keep their jobs and not allow someone else to take their job that is in the huge pool of applicantsoRelatively high and performance-based pay -The marriot paying $12 to their housekeepers Increased the pay rate and decreased the labor rateStill spent the same amount of money but was able to up productivity and lower the loss of employeesoReduced status barriersoExtensive sharing of information-Line of sight-Its hard to have employees be productive if they don’t know how the company operates -Give employees a sense of ownershipoEmployment securityLecture 6 (January 30th)-You win with peopleoIf you are going to seek excellence, what could you do to select, engage, and retain the top people in your context?-Know yourself by taking action and getting feedback from othersoThe best managers(and individual contributors) do this consistently-How we really learn new skillsoAttentionoRetentionoReproductionoMotivation to PersistoUsing the model to ACCELERATE learning-Self-Management: The Basic ModeloSelf- ObservationoSelf-Set GoalsoManagement of CuesoPositive Self-Talk & RehearsaloSelf-RewardoProject Self-One page-Due on the last day of class-Making Goals WorkoThe SMART goal model-Specific-Measurable-Accepted-Relevant-Time-BoundLecture 7 (February 4th)-PrioritizationoSource mattersoUrgency-You have to be careful because it you need to cross urgency and importance-It is important but there are more important thingsoFocus on high importance and low urgency-Therefore it's done when it needs to beoImpact on businessoCUSTOMER service orientationLecture 8 (February 6th)-To make a team