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1) Did Taco Bell's success result from a top down or bottom-up approach to change? What situations drove this change, and what leadership approach did John Martin use? What was the old (previous) leadership style and what was its limitation?

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TACO BELL - CASE Study 1) Did Taco Bell's success result from a top down or bottom-up approach to change? What situations drove this change, and what leadership approach did John Martin use? What was the old (previous) leadership style and what was its limitation? � Taco Bell's success resulted from a top down approach to change. Along with the new organizational structure came the job position of Market Manager. Management added this new position to send a strong signal that they wanted different behavior. They wanted people to be broader managers, good at managing P & L, to be decisive and to take ownership. The Market Managers had a lot of responsibility because management had pushed down a large deal of decision making. � One of the situations that spurred this change is the notion of self sufficiency or the fact that a restaurant can operate by itself. John Martin knew this had to be done because there were 1500 Taco Bell restaurants and it is too much extra work to have to constantly monitor all of them. Management realized that they needed new production techniques to serve customers more efficiently. They also knew that they need new training and development methods to be more competitive and to have more uniformity in the products they were serving. Management also knew that they needed to install Operational Information Systems in all of the restaurants in order to keep up with their competitors. These are just a few of the many factors that drove the change of Taco Bell. ...read more.


They copied this strategy.The competitors could also "copy" the strategy of the information systems, and the change of the organizational structure. 6) Suggest 3 actions GEO John Martin should take to sustain sales volume increases in the future? � There are several possibilities that CEO John Martin could take to sustain sales volume increases for the future of Taco Bell. To motivate employees in today's diverse workforce, management needs to be flexible with how they are willing to motivate. Each and every employee has different personal needs and goals that they are hoping to satisfy through their job. By offering different types of rewards to meet the many diverse needs of employees can be highly motivating. � Studies have shown that many people, before they will do anything, look for the payoff or reward for them in a situation. Even though there are many different rewards offered by organizations, most people are concerned with earning the amount of money that will satisfy their needs and wants. Pay plays a huge role in motivating. � John Martin should implement some Pay-for-performance programs to help ensure sales volume increases, through motivated employees. Pay-for-performance is basically paying employees on the basis of some performance measure. Martin should institute such programs for Taco Bell as Piece-rate plans, gain sharing, wage-incentive plans, profit sharing, and lump-sum bonuses. This way Taco Bell could not only pay their employees for time on the job but also adjust his or her pay to reflect performance measures. By implementing such policies employees can perceive a strong relationship between their performance and the rewards they receive if motivation is to be maximized. ...read more.


All financial information could be stored there as well. � In the old way, the RGM had a very difficult time communicating with their superior management. Memo's and such were sent via mail and phone calls were often not realistic because the RGM was busy doing restaurant tasks. � The restaurant manager "has the tools to take care of problems without someone saying, "You've got a problem." � It reduced "in-restaurant RM paperwork approximately 10 to 16 hours per week and by providing support and communications functions uncommon in the fast-food industry." � RM had "reports on food cost, labor cost, inventory, perishable items and period to date costs, all with variances" due to the ATCO system. � "Pods were part of the company's strategy for reaching a 'point of distribution' to Market Manager span of 60 to 1. Executives believed that 30 to 1 (restaurants to MM) was within reach. If each restaurant added a pod, 60 to 1 would be achieved." 9/10) Visit a Taco Bell virtual and/or electronic-provide an up to date outlook based on Structure, Technology, and People as a framework for your response. � The structure of the store has changed since the "old-ways." It used to be the food-preparers had their backs to the customer. Now the food-preparation station is perpendicular to the customers � Customers can now see how the workers are making their items. � The cooking of the food is behind that preparation station. � The cash registers are now computers. They are touch-screen monitors for the employee to enter in the order. The order is then sent to the preparation station where it is placed in queue. The restaurant manager is visible. The RM is doing something, either making food or taking orders. ...read more.

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