Narrative 10-1
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,the company can't consistently produce a quality product. Making and delivering one million pizzas each night,as Domino's does,is not easy,especially if it is always working with inexperienced workers. 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. 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 Domino's again. According to a leading consumer satisfaction index,Domino's ranks in the bottom half of fast-food companies. Second,to right those wrongs,Domino's often says the pizza is free,and that hurts profits.
Turnover is costly in other ways. 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. New workers take time and money to train-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. Turnover costs Domino's several hundred million dollars a year,or 15 to 20 percent of revenues! The question,of course,is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring people who want to do good work. 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 others,and those people will,in turn,want to work for him. He also pays employees $25 for each person they recommend who gets hired and then stays for at least 90 days.
Domino's has improved the screening and selecting of 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.
-Refer to Narrative 10-1. What does Robert Chabot use when he relies on employee referrals to first identify good job applicants?

Question

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The Answer of Narrative 10-1
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,the company can't consistently produce a quality product. Making and delivering one million pizzas each night,as Domino's does,is not easy,especially if it is always working with inexperienced workers. 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. 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 Domino's again. According to a leading consumer satisfaction index,Domino's ranks in the bottom half of fast-food companies. Second,to right those wrongs,Domino's often says the pizza is free,and that hurts profits.
Turnover is costly in other ways. 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. New workers take time and money to train-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. Turnover costs Domino's several hundred million dollars a year,or 15 to 20 percent of revenues! The question,of course,is what to do about it.
Robert Chabot owns a series of Domino's franchise stores. He says it's all about hiring people who want to do good work. 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 others,and those people will,in turn,want to work for him. He also pays employees $25 for each person they recommend who gets hired and then stays for at least 90 days.
Domino's has improved the screening and selecting of 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.
-Refer to Narrative 10-1. What does Robert Chabot use when he relies on employee referrals to first identify good job applicants?

Narrative 10-1 At Domino's Pizza,company-Wide Turnover Is 158 Percent. That Means Domino's