At Domino\'s Pizza, company-wide turnover is 158 percent. That means Domino\'s m

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At Domino's Pizza, company-wide turnover is 158 percent. That means Domino's must recruit, hire, and train 180.000 people a year just to fill its company's 114,000 jobs. And, with that much turnover, you can't consistently produce a quality product. Making and delivering pizza may seem simple, but up the ante to making and delivering one million pizzas each night, as Domino's does, and all of a sudden it's not quite so easy, especially if you're always working with inexperienced workers. For instance, even a simple job like order taking has a learning curve when you're taking 45 to 50 orders an hour. In fact, a new order taker usually requires 80 hours to become as reliable as an experienced one. orders mistakes are costly in two ways. Domino's Pizza Until they learn their jobs, new workers make lots of mistakes, such as getting rorncoewnghange, and showing up at customers' homes withthe ng pizza. And those First, if the order is wrong, or late, or missing, customers get angry and may not do business with you agairn. Indeed, according to the University of Michigan's American consumer satisfaction index, Domino's ranks in bottom half of fast-food companies. Second, to right those wrongs, Domino's often says the pizza is free "Our fault, no charge." and that hurts profits. So much turnover is costly in other ways as well. For one thing, it costs time and money to find and hire new workers. Domino's estimates that it costs $2,500 to replace each hourly worker who leaves and $20,000 to replace a store manager. Then, all those new workers must be trained, and that takes time and moncy. At Domino's, each new worker spends the first 30 days in training, learning take orders, handle the cash register, make pizza dough, and, ultimately, how to make a pizza in less than a minute. When everything is considered, turnover is costing the company several hundred million dollars a year, or an astonishing 15 percent to 20 percent of revenues. The question, of course, is what to do about it. the Robert Chabot, who owns RAM Pizza, a series of Domino's franchise stores, says, "This business is all about who you hire. It's about people: those who want to do it (good work) and those who don't." Consequently, Chabot relies heavily on employee referrals to first identify good job applicants. Chabot assumes that if current employees are satisfied with their jobs, they'll tell their family and friends about their positive work experiences, and those people will in turn want to work for him and RAM pizza (i.e., Domino's). He also pays employees $25 for each person they recommend who gets hired and then stays for 90 days. Domino's is also doing a much better job of screening and selecting potential managers. Anyone who wants to manage a Domino's store has to pass a 30-minute online test of their financial and management skills. If you're not familiar with financial concepts such as "break-even" and "cash flow," and you're not sure how to handle poorly performing employees (hint: yelling and screaming isn't the preferred answer), then you're unlikely to pass the test. 51. Refer to Domino's. Which of the following selection methods could Robert Chabot use to determine that prospective employees do not have a criminal record? a. assessment center b. cognitive ability tests c. structured interviews d. background checks e. personality tests

Explanation / Answer

51. d. Background Checks.

Background checks are used to identify the prospective employee’s criminal, commercial and financial records. This method is used in pre-employment screening to ensure the company is not putting itself and its customers at risk by hiring them.

52. d. to avoid negligent hiring lawsuits

The company Callidus Software is hiring in huge numbers and thorough background checks as a pre-employment screening will allow them to ensure they avoid any potential litigations resulting from negligent hiring practices.

53. e. is accurately described by all of these.

Diversity does exist in all organizations in some form. It is used to create affirmative action. Affirmative action is simply favoring the ones who tend to suffer from discrimination or have suffered in the past, thus diversity is a way to create affirmative action in the organization. Diversity and inclusion are federally mandated (Executive Order 11246). And diversity can exist both in a company’s employees and its customers.

54. b. turnover costs

Direct replacement costs are as high as 50 to 60% of employee’s annual salary and total turnover costs can reach up to 90 to 200 % of annual salary as per a SHRM report. Turnover costs include costs of hiring a new person (advertising, interviews, screening & hiring), on boarding a new person (training, management time), Lost productivity, lost engagement, loss of customer service, training cost of departing staff, and the cultural impact.

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