Exam 10: Section 1: Managing Teams

Domino’s Pizza At Domino’s Pizza, company­wide 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 employees. For instance, even a simple job like taking orders 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. Until they learn their jobs, new workers make lots of mistakes such as getting orders wrong, giving out the wrong change, and showing up at customers’ homes with the wrong pizza. Those mistakes are costly in two ways. First, if the order is wrong, late, or missing, customers get angry and may not do business with you again. Indeed, according to the University of Michigan’s American consumer satisfaction index, Domino’s ranks in the bottom half of fast­food 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 money. At Domino’s, each new worker spends the first 30 days in training, learning to 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. 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 30­minute online test of their financial and management skills. If you’re not familiar with financial concepts such as “break­even” 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. -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?

According to the text, if an employer were to use only one type of selection test________, would be the one to use.

An ESOP is an ________ .

A study in the construction industry found that when equipment is stolen from building sites, workers are the culprits 82 percent of the time. Which type of selection information would employers in the construction industry receive the greatest benefit from if their goal is to stop employee theft?

________is the form of sexual harassment in which employment outcomes such as hiring, promotion, or simply keeping one's job depend on whether an individual submits to sexual harassment.

Piecework, sales commission, profit sharing, employee stock ownership plans, and stock options are common pay- variability options.

Explain the nature and intent of federal employment law. Identify the circumstances under which protected characteristics such as gender, age, or religion can be used as the basis for employment decisions as well as the circumstances under which a company may be found guilty of illegal discrimination.

Disparate treatment and adverse impacts are defined in labor laws issued by the National Labor Relations Board.

Domino’s Pizza At Domino’s Pizza, company­wide 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 employees. For instance, even a simple job like taking orders 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. Until they learn their jobs, new workers make lots of mistakes such as getting orders wrong, giving out the wrong change, and showing up at customers’ homes with the wrong pizza. Those mistakes are costly in two ways. First, if the order is wrong, late, or missing, customers get angry and may not do business with you again. Indeed, according to the University of Michigan’s American consumer satisfaction index, Domino’s ranks in the bottom half of fast­food 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 money. At Domino’s, each new worker spends the first 30 days in training, learning to 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. 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 30­minute online test of their financial and management skills. If you’re not familiar with financial concepts such as “break­even” 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. -Refer to Domino's. One new pay method Domino's implemented to combat its problems is a store­profitability bonus. On average, the store-profitability bonuses add 30 percent, or about $10,000, to the $32,000 base pay for the managers of Domino's stores that perform well. These bonuses are a form of ________.

Which of the following training methods is most appropriate when the objective of training is practicing, learning, or changing behaviors?

Trends in Hiring Practices Zachary Schneider saw a sign in the window of an Amy’s Ice Creams franchise operation. The sign said the company was looking for new employees. When he went in to ask for a job application, he was given a paper bag and told to do “something creative with it.” The test was to see whether the job applicant was suited to carrying out the chain’s mission: “To make people’s day.” This type of pre­employment assessment is not unusual. Gourmet grocery chain Central Market uses a four­page application form which includes essay questions such as “Tell us about your favorite food experience.” If it seems an applicant is a good match for the company, he or she is asked to make a statement about himself or herself using items found in the grocery store and to participate with other applicants in a roundtable discussion. -Refer to Trends in Hiring Practices. Which recruiting technique did Amy's use?

Background checks can be used to verify the truthfulness and accuracy of information that applicants provide about themselves.

The first selection device most job applicants encounter when they seek a job are________ .

Which of the following statements about Internet recruiting is true?

Which of the following is an external recruiting method?

Which of the following provides employment counseling services for employees faced with downsizing?

________is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion, or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs.

________is the loss of high-performing employees who voluntarily choose to leave a company.

To choose the best training method, a company should consider such factors as the number of people to be trained, the cost of training, and the objectives of the training.

The hostile work environment form of sexual harassment occurs when employment outcomes such as hiring, promotion, or simply keeping one's job depend on whether an individual submits to being sexually harassed.