Unformatted text preview: Before opening his new restaurant, Bob Borich spent two weeks training his per-
sonnel. While the money spent on employee salaries and other training costs
added substantially to the pre- opening costs, Bob justiﬁed the expense by noting
the large number of restaurants that failed in their first year because of inadequate
service. Bob believed that in the long run, his training costs would be Viewed as
money well spent. Six months after opening, Bob experienced a turnover of about 50 percent. As
a result, he found himself hiring new employees weekly. Because Bob was busy
with the operation of the restaurant—particularly since he had started cooking
three shifts a week to ensure food quality—he turned orientation over to a group of
employees who had been with him from the start. He reasoned that since these
employees had been through the full training program and had displayed their
loyalty, they would provide just the type of orientation that he would—if he had
the time. Unfortunately, although the new employees seemed perfectly suited for their
jobs, turnover increased dramatically. Within three months after starting the orien-
tation program, Bob was experiencing turnover in excess of 100 percent annually.
While still below the national average for his industry, Bob was dissatisﬁed with
the high rate of turnover. Sitting down with a cup of coffee, Bob thought over his
problem at the end of a particularly frustrating week. Discussion Questions
1. What advice would you give Bob Borich? 2. How unique do you believe Bob Borichfs current situation is?
3. What parts of orientation should be turned over to employees to conduct? ...
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- Spring '08