EXECUTIVE SUMMARY As we have prepared our report of KFC. It was a nice experience to spend there 6 weeks as an apprentice. Although 6 weeks period is not enough to learn all practices performed by company because there is a lot to learn but I got be familiar with about all practices with the help of whole staff. While studying their system we came to know their policies their history and their corporate profile. We came to know about the rules and regulations of the management that are being followed. It was a nice experience of doing 1
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EXECUTIVE SUMMARY
As we have prepared our report of KFC. It was a nice
experience to spend there 6 weeks as an apprentice.
Although 6 weeks period is not enough to learn all
practices performed by company because there is a lot to
learn but I got be familiar with about all practices with the
help of whole staff. While studying their system we came
to know their policies their history and their corporate
profile. We came to know about the rules and regulations
of the management that are being followed. It was a nice
experience of doing apprenticeship there due to their full
corporation.
1
Background of the Company
K.F.C is an American based company. It was established in mid fifty when
Herland Sanders conducted business in United States with a prospective
Franchises about his colonel Sanders recipe K.F.C. He has also succeeded in
establishing a number franchises in all over the world.
The minority of KFC’s restaurant in Mexico & Poverto Rico were company
owned. However, KFC had established 21 new Franchises in Mexico by the
end of 1993. Now it has nearly 13000 outlet all around the world. KFC is a
fast food industry. It is introduced in Pakistan round about 2 years ago.
Firstly, KFC opened in Karachi and then after in Lahore. KFC has two
branches in Lahore, one is Garden Town and other is Cavalry Road.
KFC Corporation based in Louisville, Kentucky is the world’s most popular
chicken restaurant chain, specializing in original recipe, extra crispy and
colonel’s crispy strips with home styles slides. Everyday 8 million customers
are served around the world KFC Menu Everywhere includes original recipe
chicken made with the same great taste Harland Created more than a half
century ago. KFC is part of Tricon Global restaurants, which is the world
largest restaurant system with nearly 30,000 KFC.
Harland started LFC back in 1952 at the ripe age of 62. His recipe for the
best chicken in the world was made with a special cooking process and a
secret blend of 11 herbs and special the same secret blend that is used today
in KFC original recipe chicken. Today KFC has more than 11,000 units in
over 79 countries. Every week nearly 69 million customers come through
KFC do for the chicken.
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OUR MISSION
To maintain and enhance our position as the leading WQSR (West quick
service restaurant) chain serving good value, innovative chicken based products
through consistently location. At all times, we must be dedicated to providing
excellent service and delighting customer.
MISSION STATEMENT
KFC is an internationally renowned fast food industry in the world. They have the
main ambition to increase & maintain the quality in fast food industry. There main is to
capture the fast food market. Basically they want to provide their products to anyone that
is why they expending there branches in all over the world. They want to increase their
profit through giving maximum satisfaction and other better facilities to people that they
want.
Objectives
One of the major objective of KFC that they run their campaign in such a
way that KFC creates and image in the minds of customers that customers wants to
go in KFC and will be the first choice for the customers. KFC wants to become the
first choice because its they become the first choice it is excellent for the health of
the KFC business because if business is expands then there is eliminate scope and
the opportunity to get the maximum profit and utility.
3
OUR VALUES
Dedicate our organization and our selves to excellent service and delighting
customer.
Focus resources to support restaurant operations because that is where we
service are customers.
Recognize and respect the contribution of each individual at KFC.
Expect each individual to achieve his or her fullest potential and provide
support to enable each person to meet the highest expectations of
performance.
Pledge to be open, honest and direct in our dealings with one another.
Adhere to the highest standards to personal professional of integrity at all
time.
Confront issues willingly but never attack personality.
Encourage new and innovate ideas because these gave keys to our
competitive growth.
View failed attempts as learning opportunity.
Reward result, not simple efforts.
Commit to deliver consistent growth and sales, profit and size of
organization.
Commit to teamwork as this surpasses individual effort.
Share information, ideas and credit broadly within the organization.
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ORGANIZATIONAL STRUCTURE
5
M. D.
G. M.
H. R. DEPARTMENT MARKETING MANAGER FINANCE MANAGER
RESTAURANT MANAGER
FIRST ASSISTANCE
SECOND ASSISTANCE
TRAINING MANAGER
FLOOR MANAGER
CREW LEADER
CREW
CUSTOMER CARE OFFICER
Human Rights
KFC fully supports the United Nations Global Compact’s two guiding principles
on human rights. KFC therefore:
Supports and respects the protection
of international human rights within its
sphere of influence
(Principle 1)
Ensures that its own companies
are not complicit in human rights’ abuses
(Principle 2)
KFC aims to provide an example of good human rights’ practices throughout its
business activities and has an interest in encouraging the improvement of social
conditions, which are an important factor for sustainable development. KFC also
recognizes that governments are ultimately responsible for the establishment of a
legal framework for protecting human rights within their markets. KFC expects
each market to respect and follow the local laws and regulations concerning human
rights’ practices.
Human Resources and the Workplace
KFC also respects the local laws and regulations applicable to human resources in
each of its markets. Human Resource Policy is also set by the local markets, which
must follow local legal requirements.
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Child Labor
KFC believes policy development must take into account the social and legal
situation of individual countries.
Therefore, KFC:
Is against all forms of exploitation of children. The Company does not
provide
employment to children before they have reached the age to have
completed
their compulsory education, as defined by the appropriate authorities, and
expects
its business partners and industry suppliers to apply the same standards;
Abides by national laws in all countries in which it has operations and
complies with the International Labor Organization (ILO) Convention 138
on the Minimum Age for Employment and the ILO Convention 182 on the
Worst Forms of Child Labor. The ILO recommendations are based on the
United Nations Convention of the Rights of the Child (Article 32);
Offers its co-operation with the relevant United Nations agencies,
governments and the business community in their efforts to deal with the
problem of child labor, which include the encouragement of universal
primary education and all aspects of economic development worldwide.
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Business Partners
KFC aims to deal only with reputable suppliers who are willing to apply KFC
quality standards. Supplier relationships are benchmarked and evaluated with the
objective of striving for continued improvement in the areas of quality, service,
etc. As a relationship between a supplier and KFC strengthens and progresses, it
may evolve into one of preferred supplier status.
Protection of the Environment
Since its early days KFC has been committed to environmentally sound business
practices throughout the world and continues to make substantial environmental
investments. In this way KFC contributes to sustainable development by meeting
the needs of the present without compromising the ability of future generations to
meet their own needs. The KFC Policy on the Environment underlines this
commitment. KFC also adheres to the International Chamber of Commerce (ICC)
Business Charter for
Sustainable Development.
KFC fully supports the United Nations Global Compact’s three guiding principles
on environment. KFC therefore:
Supports a precautionary approach to environmental challenges
(Principle 7)
Undertakes initiatives to promote greater environmental responsibility
(Principle 8)
Encourages the development and diffusion of environmentally friendly
technologies
8
•
HR Department
I worked with the Human Resource Department at the KFC. KFC being a human
company strongly supports the idea of giving their employees a comfortable
working enviorment.Its HR department is made to deal with its employees, who
are considered the most important asset of this organization.KFC consider Human
Resources as a Partner & Change Agent to enable Company Transformation.It was
this department that was assigned the task of driving the Transformational
Strategy:
This department keeps on updating their policies regarding the development of
their employees from time to time. They have translated their Business objectives
to be translated into Personal objectives .KFC considers their HR Department as
the driving force for bringing the evolutionary change within the organization.
They are responsible for the continuous checking and improvement of the
Developmental Centers as well as for the hiring , retaining and evaluation of the
employees, for conducing graduate programs, Developing Progress and
Developmental Guides.
The fact that KFC is more people and product than systems oriented is reflected in
the way HR is functioning and is organized. Processes and systems as well as
professional HR tools are there to support HR management but never to the
detriment of the human dimension. The human perspective should be present at all
times and under all circumstances. At KFC the HR function should report to the
manager responsible for a defined operation (Region, Market, Country, Factory)
with a functional relation to the market HR according to the size of that
operation.The HR manager should not only have the skills and competencies from
a purely professional standpoint but also have the charisma and the credibility to
be a trustworthy partner to her/his colleagues.
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Culture
Since it as founded, KFC has always shown a profound respect for the cultures and
traditions of all the countries where the company markets its products. It accepts
cultures and social diversity and rejects discrimination based on ethics, religion or
on any other grounds. Employees ho work at the KFCs headquarters’ come from
70 different nations. Culture within the organization is very professional and yet
flexible at the same time. Its policies, rules and regulations and inter departmental
culture is very open. Attitudes, behaviors and working environment are such that it
motivates and encourages other employees to feel comfortable and wanted in the
organization. Its a very friendly yet 30
professional organization. KFC people call themselves a family and thus keep their
working relations accordingly.
The broader the responsibility of a KFC Manager, the more the following specific
criteria should be considered, in addition to professional skills, practical
experience and result focus:
Personal commitment and courage. This includes the capacity and the
willingness to take initiatives and risks as well as to maintain composure
under pressure.
Ability to motivate and to develop people, addressing all those issues that
allow others to progress in their work and to develop their capabilities.
Curiosity and open-mindedness as well as a high level of interest in other
cultures and life-styles. This also includes a commitment to continuous
learning and improving, as well as to sharing knowledge and ideas freely
with others.
A taste for initiative together with the ability to create a climate of
innovation and to think outside the box. This implies the right to make a
mistake but also the readiness to correct it and to learn from it.
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Willingness to accept change and the ability to manage it.
Adaptability of thought and deed, taking into account the specificity and the
complexity of the environment.
Credibility as a result of coherent action, leadership and achievement.
International experience and understanding of other cultures.
In addition, broad interests, a good general education, responsible behavior as well
as fostering a balanced lifestyle is encouraged. Progressing in the organization,
regardless
of origin, nationality, religion, race, gender or age is practiced.
Review
At KFC HR managers and their staff are there to provide professional support in
handling people matters but should not substitute themselves to the responsible
manager. Their prime responsibility is to contribute actively to the quality of HR
management throughout the organization by proposing adequate policies, ensuring
their consistent application and coherent implementation with fairness. Acting as
business partners, the HR manager advises and offers solutions which results in
positive impact on the organization’s effectiveness.
While dealing with the employees the HR department employees keep in mind the
following things:
A prerequisite for dealing with people is respect and trust. There can be no
room for intolerance, harassment or discrimination of any kind as they are
the expression of an elementary lack of respect. This principle suffers no
exception and is to be applied at all levels and under all circumstances.
Transparency and honesty in dealing with people are a sine qua non for
efficient communication. Based on facts and on a sincere dialogue, such
transparency is the only solid basis for boosting continuous improvement.
This is to be complemented by open communication with the purpose of
sharing competencies and boosting creativity. It is particularly relevant in a
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flat organization to convey systematically all information to those who need
it to do their work properly. Otherwise no effective delegation or
knowledge improvements are possible.
To communicate is not only to inform. It is also to listen and to engage in
dialogue. Every employee has the right to an open conversation with
superiors or colleagues.
The willingness to cooperate and to help others is a required basis for
assessing potential candidates in view of a promotion.
In case of discord between an employee and her/his superior or another
employee, the possibility must be offered for a fair hearing. The HR staff
will provide assistance to ensure that the disharmony is dealt with
impartially and that each party has the opportunity to explain her/his
viewpoint regardless of hierarchical position.
Processes and systems as well as professional HR tools are there to support HR
management but never to the detriment of the human dimension. The human
perspective is present at all times and under all circumstances. The HR function
reports to the manager responsible for a defined operation (Region, Market,
Country, and Factory) with a functional relation to the market HR according to the
size of that operation.
The HR manager not only has the skills and competencies from a purely
professional standpoint but also have the charisma and the credibility to be a
trustworthy partner to her/his colleagues.
Whereas the HR function indeed provides flawless administrative support, its main
role is to add value to the business and to play a proactive role in every situation
where HR action is required. Specific HR KPI’s are useful in assessing the
performance of an HR unit. However, it should be kept in mind that the HR
contribution aims in the first place at optimizing the overall company performance
through improving people performance.
With the evidence that the human capital is of increasing importance, HR plays
indeed a pivotal role in the conception and implementation of the people strategies
12
that impact financial results and the organization’s overall reputation and
effectiveness.
The basic functions of HR at KFC Pakistan are
Job Analysis
The person in charge of the Department usually the manager decides what
qualification. Skills and abilities are required to perform that particular job
successfully. This is done by the line manager of the vacant position. They tell
their requirement to the Hr Department and based on those requirements ads are
published in the newspaper. Job specification and job description is given by the
line managers to the HR Managers.
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Human Resource Planning
HR Department of KFC is responsible for making on the all plans regarding
employees and the basic organizational structure. Their basic plans involve:
Inspiring Management
Flat & Flexible Structures
Long-Term Development
Dynamic Compensation
Life-long Learning
HR has planned a new approach for employee development. This new approach
includes
translating Business objectives into Personal objectives. It rather than only
focusing on the WHAT but also on the HOW to deal with different situation that
employee might face and how to train them properly. It Focus on development and
dialogue and it does not rate the employees but evaluating the "Nature of the
Contribution"Trails / Acquires / Masters / Steers / Transforms. It does not involve
any mechanic link with salary.
Leadership Framework has also been developed which mainly focuses on
Recruitment And Selection
The long-term success of the Company depends on its capacity to attract, retain
and develop employees able to ensure its growth on a continuing basis. This is a
primary responsibility for all managers. The KFC policy is to hire staff with
personal attitudes and professional skills enabling them to develop a long-term
relationship with the Company. Therefore the potential for professional
development is an essential standard for recruitment. Each new member joining
KFC becomes a participant in developing a sustainable quality culture which
14
implies a commitment to the organization, a sense for continuous improvement
and leaves no place for complacency. Therefore, and in view of the importance of
these KFC values, special attention is paid to the matching between a candidate’s
values and the Company culture.
Moreover, for managerial positions specific leadership qualities and business
acumen will be required. KFC wishes to maintain and develop its reputation as an
employer of high repute. Contacts with universities, attendance at recruitment
events and other contacts are to be undertaken so as to ensure good visibility of the
Company vis-à-vis relevant recruitment sources. Particular care is given to the
treatment of each candidacy regardless of the outcome of the selection process.
Even when promoting employees intensively from within the organization, it is the
role of management and HR to keep an eye on valuable candidates from outside
and to benchmark internal skills with external offers.
Whilst adequate recruitment tools may improve the hiring process, it is understood
that the decision to hire a candidate remains in the hands of the responsible
manager supported by the HR staff. Under no circumstances the decision to hire or
not to hire is left in the hands of an outside consultant or expert.
As mentioned in the KFC Management and Leadership Principles, only relevant
skills and experience and the adherence to the above principles will be considered
in employing a person. No consideration is given to a candidate’s origin,
nationality, religion, race, gender or age. It is as important to hire the right person
as it is to integrate newcomers in the organization so that their skills and behavior
can merge smoothly with the company culture. Whereas from new employees it is
expected to respect our company’s culture, it is accordingly required from all
employees to show an open mind towards new ideas and proposals coming from
outside.
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Orientation
Orientation takes place at KFC at two levels. One is for management staff hired to
work at the Head Office and the other is for the non management staff.
At the head office all the newly hired employees are given full orientation
Arranged by the HR department. Managers from different departments brief
the employees about their departments. Orientation can be for as long as 1
to 6 months. Employees are also sent at the factories for a month or so. This
helps them in understand the function in a far better way.
Non management staff is mostly hired in cities other than Lahore so they
are given orientation by the line managers. Their orientation is also done by
giving them the presentation of each department recorded on a CD
containing all the information about the company.
Training And Development
Learning is part of the Company culture. Each employee, at all levels, is conscious
of
the need to upgrade continuously her/his knowledge and skills. The willingness to
learn is therefore a non-negotiable condition to be employed by KFC. First and
foremost, training is done on-the-job. Guiding and coaching is part of the
responsibility of each manager and it is crucial to make each one progress in
her/his position. When formal training programs are organized they should be
purpose oriented and designed to improve relevant skills and competencies.
Therefore they are proposed in the framework of individual development
programs. As a consequence, attending a program is never be considered as a
reward. Adequate training programs are developed at the level of each
Operating company capitalizing on the availability of local, regional or global
resources of the Group.
16
It is the responsibility of HR staff to assist the management in the elaboration of
training programs. Great importance is attached to programs enhancing the
language skills of the employees.
Training programs organized at the International Training Centre Rive-Reine aim
at developing and sharing best practices of the various management disciplines
practiced in the Group. They also strive to strengthen corporate cohesion as well as
to promote networking throughout the Group. Training programs should, as much
as possible, be based on action learning and reduce ex-cathedra teaching to the
strict minimum.
It is necessary to make optimal use of re-learning programs as a complement to or
a substitute for formal training programs. According to needs they should be made
available at shop floor level and enlarge the access to training. It is the role of each
manager to assess progress achieved as a result of training programs. Assessing
and Developing. Each employee is in charge of her/his own professional
development. However, the Company endeavors to offer the opportunity to
progress for those having the determination and the potential to develop their
capabilities.
Regular counseling and guidance are the best tools for improving performance and
for helping people develop their skills. It also allows to correct errors swiftly and
to transform them into a positive learning experience. In an organization with flat
structures this supports better delegation. Direct personal contact should always
been given preference over written communication whenever possible. Each
manager has the duty to actas a mentor for his employees.
17
Appraising And Managing Employees
Promotions will exclusively be based on competence, insight, performance and
potential with the exclusion of any consideration for origin, race, nationality,
gender, religion or age.
Flexibility is a requirement for ensuring a positive professional evolution. Staff
may be requested to move to other positions. Managers, especially international
staff, may
be asked to move to other locations. International experience and participation in
group development initiatives such as GLOBE, SMPT and others is acquired in all
countries of the Group and are a requirement for holding high-level positions. The
development of expertise in specific areas of competence is determinant for the
Company’s success. Therefore job rotation should be practiced with caution.
Whilst job rotation might be useful under certain circumstances, it should not
result in weakening our expertise in key areas. Efficient performance management
emphasizing the achievement of agreed objectives is a prime responsibility for
each manager. The necessary time is dedicated to the monitoring and the follow-up
of the progressive achievement of objectives during the year.
This feedback is meant to stimulate performance and should take place through an
open dialogue based on mutual trust and willingness to progress. It is requested to
provide written evidence of such meetings. Focus should be essentially on
continuous improvement, appropriate training measures but also on shaping a
stimulating working environment. In case of serious underperformance, a
termination of employment should be envisaged. Such termination is handled with
due respect of the person and should include, where appropriate, separation terms
that take into account the employee’s personal situation. When assessing potential
it is kept in mind that the best indicator of talent is achievement. Therefore
responsibility is given as early as reasonable to allow people to prove themselves.
18
Compensation And Benefits
KFC favors competitive, stimulating and fair remuneration structures offering an
overall competitive and attractive compensation package. Remuneration includes
salary, any variable part of remuneration as well as social, pension and other
benefits. Each operating company will establish a compensation practice taking
into account relevant external compensation levels as well as the requirement of
internal fairness. It is recommended to undertake regular surveys so as to gather
relevant information on the remuneration levels practiced at a local or national
level.
KFC’s policy is to strive to position itself as an employer offering remuneration
levels above the average of the relevant benchmark. KFC reviews regularly its
competitive position with other companies so as to keep in line with the market
trends. However, the evolution of remuneration is in the first instance determined
by the capacity of the Company to improve its productivity. Wage and salary
structures should be kept simple and avoid unnecessary complexity so as to
provide effective compensation and reward.
Remuneration structures should specifically facilitate the implementation of flat
organizational structures and be flexible so as to be able to adapt to the evolution
of the market conditions. This means broad spans allowing sufficient flexibility to
effectively reward high professional insight and performances as well as individual
potential.
It is the responsibility of each manager to propose, within the framework of the
company policy, the remuneration of her/his employees, taking into account the
local market, individual performance, skills and potential for development. It is
also the responsibility of each manager, if needed with the support of HR
19
management, to communicate properly, clearly and with sufficient transparency,
the individual remuneration
of each staff member taking into account her/his professional performance and
her/his specific responsibilities.
The quality of communication in these matters is an essential part of the dialogue
that each manager will have with her/his employees on remuneration matters.
Specifically at management level, the variable part of the remuneration may be
substantial. This part is linked to a combination of group, business and individual
or team target achievements. The higher the remuneration level, the more
important will become the variable part. It is realised that, however important
remuneration is for each employee, it is not remuneration alone that will stimulate
the motivation of the staff. The HR management sees to it that the implementation
of the remuneration policy is fair throughout the organisation and that its spirit is
duly reflected.
The benefits offered to the staff at KFC are:
Management Staff
1. Provident Fund
2. Pension Fund on employee’s request
3. Gratuity
4. Leave Fair Assistance
5. Marriage gift scheme once in a service
6. Baby feeding scheme
7. Annual leaves for 15 working days in a year
8. Casual leave 10 working days in a year
9. Casual leave encashment
10. Medical leave 10 days in a year
11. Medical allowance
12. Hospitalization from panel hospitals
20
13. Meal subsidy for field staff upto group 1
14. Shift allowance
15. Family day gift once in a year
16. Eid gift on both Eids
17. Company maintained car to group 3.3 managers and above
18. Vehicle Maintenance allowance for Group 2 employees having non field
car loan on production of receipts
19. Relocation package: As per group entitlement
20. Life Insurance: Under group life insurance policy as per group entitlement
21. Hajj Balloting: After 5 years service through balloting
22. Pick and drop service: For factory staff where such facility is available
23. Car loan facility
24. Maternity leaves for female employees
25. 2 pair of shoes per year to only team leaders, engineers & quality assurance
team
26. 2 uniforms per year to only team leaders, engineers & quality assurance
team
27. Bonus as per company policy
28. Incentive to sales staff as per H & O Sales Policy
29. Scholarship Award Scheme
Non- Management Staff
1. Provident Fund
2. Gratuity
3. Leave Fair Assistance
4. Marriage gift scheme once in a service
5. Baby feeding scheme
6. Annual leaves for 14 calendar days in a year
7. Casual leave 10 days in a year
8. Casual leave encashment
9. Medical leave 8 days in a year
21
10. Meal subsidy for field staff
11. Shift allowance
12. Family day gift once in a year
13. Eid gift on both Eids
14. Relocation package: As per group entitlement
15. Life Insurance: Under group life insurance policy as per group entitlement
16. Hajj Balloting: After 5 years service through balloting
17. Pick and drop service: For factory staff where such facility is available
18. Fair price shop: If available at site
19. Subsidized meal facility for factories if already available
20. Motor cycle loan facility for non management
21. Maternity leaves for female employees
22. Hospitalization though insurance company
23. At least statutory 10-C bonus
24. Attendance allowance
25. 2 pair of Shoes per year: For non management except field staff
26. 2 Uniforms per year: For non management except field staff
27. Incentive to sales staff as per H & O Sales Policy