Group 5 Presentation

History/ Background of IN-N-OUT In 1948, the first In-N-Out Burger was founded by Harry and Esther Snyder in Baldwin Park. The Snyder's business philosophy: "Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment."

History/Background continued By the time of Harry Snyder's death in 1976, there were only 18 drive-thru locations. While Rich was President, In-N-Out grew from those 18 locations in 1976 to 93 locations at the time of his death in 1993. The atmosphere of enthusiasm for serving customers the freshest quality hamburgers and French fries can be seen all the way from the many store locations to the office Associates.

History/Background continued Aside from building improvements, though, In-N-Out has retained the basic traditions that have made it a favorite for 60 years. Many Associates have been with In-N-Out for over 20 years, some even worked with Harry and Esther in the early years.

Motivation Motivation: Level, Direction, and Persistence of effort expended at work. Motivation Theories that apply: Expectancy Theory of Motivation Frederick Herzberg’s job-design approach of job enrichment To begin with, motivation refers to the forces within an individual that account for the level, direction, and persistence of effort expended at work. In the expectancy theory, a person is motivated to the degree that he or she believes that (1) effort will yield acceptable performance (expectancy), (2) performance will be rewarded (instrumentality), and (3) the value of the rewards is highly positive (valence). Job enrichment: increases job content by giving workers more responsibility for planning and evaluating duties. This is a practice that builds motivating factors such as responsibility, achievement, recognition, and personal growth. Associate $10 (21k) > Associate Level #’s (24k) > Cook (24k) > Assistant Manager (48k) > Manager (60k) *types of pay vary due to company location, industry, experience, and benefits.

Motivation Cont’d. A theory that does not apply: Equity Theory of Motivation: -Felt Negative Inequity Individual Outcomes Other’s Outcomes ________________ ≤ _______________ Individual Efforts Other’s Efforts Written by J. Stacy Adams, equity theory argues that any perceived inequity becomes a motivating state of mind; in other words, people are motivated to behave in ways that restore or maintain equity in situations. Specifically, felt negative inequity exists when an individual feels that he or she has received relatively less than others have in proportion to work inputs. I don’t think this theory relates to In-N-Out because as we will see in the next slides, every entry associate starts at the same wage, position, and must work their way up. Moreover, I don’t think In-N-Out associates should incorporate the equity theory because of it’s basic foundation of social comparison. If a felt negative inequity arises, individuals would engage in behaviors such as: change in work inputs, change in outcomes received, and essentially leaving the situation (quitting).

Rewards Intrinsic Rewards: feeling of achievement, recognition, and personal growth. Extrinsic Rewards: Benefits and Pay Part Time: “You are important to us!” Full Time: Additional benefits package We start all our new Associates at a minimum of $10.00 an hour for one simple reason...you are important to us! And our commitment to a higher starting wage is just one of the ways in which we show it. Another way is through offering excellent benefits like flexible schedules to accommodate school and other activities, paid vacations, free meals, comprehensive training, and a 401k plan. For our full time Associates, we provide a benefits package that also includes medical, dental, vision, life and travel insurance coverage. Other benefits include Free meal on work days A 15% discount at our company store Company sponsored events (picnic, Christmas party, team sporting events, etc.) Holiday Schedule Our stores are closed the following 3 holidays: Easter Thanksgiving Christmas

Performance Management Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

Continued… At In N Out workers are called associates rather than employees to create a sense of belonging and to feel apart of the company. They feel appreciated Coworkers are given opportunities to advance

Performance Management at In N Out consists of Planning, Goals, and Strategies In N Out provides a team oriented atmosphere whereby goal setting and communication exist At In N Out planning is done by giving employees flexible plans so that they can be adjusted for changing program objectives and work requirements. Some of their priorities are concentrating on the customer experience which includes image, cleanliness, and courtesy.

Continued… They also provide excellent training and development for all of their associates including managers. Managers are put to a four year training course that teaches them how to deal with different cultures and how to treat people. This is training is used so that every single In N Out will be consistent in how the management and employees treat consumers.

Performance Management Cont’d In N Out follows a disciplined growth strategy. It uses fresh ingredients for its burgers and fries. They provide the freshest, highest quality foods and services for a profit and a spotless environment whereby the customer is the most important asset. They use a simple theory that goes “Satisfied employees make satisfied customers”.

Cont’d In N Out creates a work atmosphere of respect as well as building pride within the organization which not only helps increase customer service and productivity but can also attract a higher level of personnel.

Performance Appraisal

Evaluations… Store Managers are appraised based on store performance Manager & Assistant Manager Checklist Journal & Write-ups Immediate Feedback from “Manager on Staff” and Associates Store Managers are appraised based on store performance

Who Does the Performance Appraisal? 360 degree evaluation Self, Peer, Manager, Customer Mystery Shopper Every 4 Weeks Rating Scale Store Manager gets graded on how well its staff is trained and the store’s upkeep

Measurement Errors Halo, Leniency/Strictness, Central Tendency, Recency, Personal & Cultural Bias Errors Store Managers rely on accurate appraisals to ensure their store performs

Improving… IN-N-OUT has a great performance appraisal system that works for them and attributes to their continued success One suggestion that might improve their process is including a yearly sit-down and evaluation for all associates with their store manager

Questions or Comments?