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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