It shifts bits, not bytes. << moves the bits left and >> moves the bits right.

2<<4  #2 is 00000010 in binary, the <<4 moves the bits left 4,00100000
+ which is 32
32>>3 #32 is 00100000 in binary, the >>3 moves the bits right 3, 00000
+100 which is 4
[download]

I hope this clears things up.