Outback Steakhouse, Inc., now a $3.25 billion company with 65,000 employees and 1,100 restaurants worldwide, began modestly

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Question:

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 pro- vides 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 (At this point, some candidates have withdrawn from the process because these dimensions set a very high standard.)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.

Requirements:

1. How does the employee-selection methods at Outback Steakhouse help achieve competitive advantage?

2. How important is organization fit for Outback Steakhouse?

3. Why does Outback Steakhouse order the selection methods such that applicants first complete an application, then complete tests, and then participate in an interview?

4. Why do you think these selection methods are valid?