Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: Brittanyd9008 on Jul 1, 2018
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Promoting from Within Like most fast food restaurants, Chipotle has a high rate of employee turnover. However, for Chipotle, this occurred not only at the entry-level, server jobs, but also at the shift supervisor, store manager, and area manager levels. Why did their enactment of a policy of exclusively promoting from within the organization reduce their turnover problem in these supervisory roles?
Question 2
When a firm is experiencing decreasing marginal costs, it implies
a. There are diminishing marginal productivity
b. There are increasing average costs
c. There are constant marginal productivity
d. There are increasing marginal productivity
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Answer to Question 1
Especially for lower level supervisory jobs, employees did not consider that the pay was worth the work. Under the promote-from-within policy, the probability that any supervisor would be promoted to the next level up is significantly higher. This means that they have an incentive not only to do their job competently but to make themselves noticed for promotion to the next better job. They are working as much for the pay in their next job as they are for the pay in their current job.
Answer to Question 2
d
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Thank you
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No problemo