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.

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.

ORGANIZATIONAL STRUCTURE

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

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.

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.

Organizational Structure And Design

KFC Organization structure is basically decentralized, leaving a great deal of

responsibility and competencies to the mangers of its operating companies. The

group encourages as decentralized an organization as possible, within the limits of

the basic policies and strategies defined but its international Headquarters. The

operating companies implement them according to their own situation and the

local conditions. this is a good application of the principle of “Global Thinking

And Strategy, but local action and commitment”

KFC favor people and product over the system. The group also encourages flat

organization, with few levels of hierarchy and broad scope of responsibilities,

following the concept of “as much hierarchy as necessary, as little as possible”.

Organizing The Human Resources

The kfc policy is to hire staff with personal attitudes and professional skills

enabling them to develop a long-term relationship with the Company. the

organization have certain rules and policies that all the managers and staff have to

follow while working and maintaining relationship with their colleagues

Some of the rules that the managers keep in their mind while organizing and

maintaining a proper working environment are:

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

flat organisation to convey systematically all information to those who need

it to do their work properly. Otherwise no effective delegation or

knowledge improvement is 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 employees 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.

Leading

Motivational Techniques Used To Increase Productivity

KFC is called a family company. For this company its employees are of vital

importance. They strongly believe in maintaining a stress less, friendly and

encouraging environment within the company. For keeping their employees

motivated KFC has a keeps a balanced working conditions.

All employees regardless of their backgrounds, nationality, religion and

gender are given equal opportunity to work and progress.

Other than this work life balance attitude is adapted by the company.

Understanding the employee’s problems and dealing with them accordingly

is declared mandatory.

Employees are appreciated and encouraged. Benefits and incentives are

offered to employees on performing well.

Also gifts are given on eid and other occasion.

Within the organization parties and celebrations are held to acknowledge

the workers. Employees are taken out on picnics along with their families to

give them a break from the monotonous routine and relax them.

Different projects are assigned to the employees and they are given

authority to use their creativity instead to forcing them to follow strict

orders.

It is basically the friendly and encouraging environment that has no discrimination

and the feeling of being an important part of the organization that motivates them

to work harder.

Leadership Styles Of Managers

Members of the kfc Management at all levels are more concerned with

continuously adding value to the Company than exercising formal authority. This

can only materialize with a high involvement of each employee and a common

mindset geared to results. Contributing to results through project work and special

assignments becomes more frequent, reaching beyond conventional boundaries in

order to contribute to wider group performance. 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.

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 are required to hold high-level management

positions.

Controlling

Basic Controlling Authorities

KFC has a very organized and structural system. All departments have heads that

are responsible for all the activities going on there. The basic controlling

authorities at different level of KFC are:

Board of directors

Divisional heads

Management committee

Executive committee

These are the major controlling people and the decision makers at various levels.

Structural Dimensions

Hierarchy Of Authority

At KFC Pakistan the highest authority goes like:

Managing Director → Manager of Departments → Managers of Different

Functions →

Assistant Manager → Coordinator → Officers.

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

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.

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.

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.

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.

Candidates for managerial positions have clearly demonstrated their willingness

and ability to apply the KFC Management and Leadership Principles.

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

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

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

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

28. Scholarship Award Scheme