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EXECUTIVE SUMMARY MISSION STATEMENT VISION ABOUT KFC. HISTORY OF KFC. Phase 1 Chapter # 1 EXTERNAL ENVIRONMENTAL INFLUENCES: Government requirements, regulations, and laws The union Economic condition/domestic and international Competitiveness Composition of labor force Location of organizations
Strategy Goals Organizational culture Nature of task Work group Leader style and experience
Phase 2 ACQUIRING HUMAN RESOURCES:Chapter 3 Equal employment opportunity & HR planning Chapter 4 Job analysis and design Chapter 5 Recruitment: domestic and international Chapter 6 Selection:& Hiring (domestic and international) Phase 3
DEVELOPING HUMAN RESOURSES: Chapter 7 Orientation & Placement Chapter 8 Training and development
Chapter 9 Career planning& Discipline Phase 4
REWARDING HUMAN RESOURSES:Chapter 10 Performance evolution , Compensation Job analysis and design Benefits and services
Company Profile
Introduction:
KFC is a multinational organization. Based in USA. But having its business its business unit in all over the world about in 37 countries. KFC is related to food & beverages industry. And have very fame in the industry regarding to its standards, quality and specific style of services to its precious customers. Company offers a vast line of products, such as pizza, burgers, chicken meals, ice creams and drinks. All products are prepared on the standard recipe but style of offering based on local culture of the area. KFC has developed its taste and name in the industry and it have many opportunities to survive in future with better customer satisfaction.
EXECDUTIVE SUMMARY
To provide the quality and standard food with a specific taste is the aim of the KFC. This project is about human resource practices performed in the KFC Faisalabad Branch.
In this project address and focus is on the diagnoses about Employee career planning, Human resource planning and Turn over issues face by Global HR management of KFC. We try our best to provide a suitable solution with the HRM process Working at Global level. We start First Phase from External and Internal Environmental Analysis. As our mission was to create a map for the new Human Resource. In Second Phase we focus on the issues about the Equal Opportunity Laws (EEO) and HR Planning. After it we focus on the Job analysis and design and Recruitment issues and define standards for the recruitment. After it we define steps for the selection and for final hiring decision. In next Third Phase we focus on the employee Orientation and Placement in the organization. This is an important issue for the new hired employees. Orientation is better for good job perception. After it we discuss training and development issues of the employee regarding to the need of the current competitive environment. Career planning and development is the next issue for discussion. Career planning and development provide a opportunity to employee to work in a specific field and move forward. In the Next Fourth Phase we discuss the issues of Performance Appraisal, Compensation, Increment, Rewards and Incentives, in this chapter we focus on the standards regarding to these issues. In this phase most focus is based on the standards regarding employee befits and beneficial services offered by the KFC. In the last Fifth Phase of he project we stated end results of our project regarding to the Socially responsible and ethical practices Competitive high quality product Competitive high quality Services In this phase we diagnose the human resource practices in at KFC in view point of Social and Ethical point of view in the society of Pakistan. As competition is basic force of motivation for the movement of organization so all diagnoses is offered in the light of Competitors, and offering competitive products and services for the success full practices in the Pakistan and Global point of view.
Phase 1
Chapter # 1
The Union
As the basic purpose of the employee unions is to follow the employer the standard agreement of employment. But in the KFC union culture does not exist. KFC is follows the employee first policy and have standard personal management system which provide equal employment rights which are mentioned in the laws of the KFC. In the case of pay structure, compensation and working conditions for the employee.
Economic Condition
If we talk on the international level. KFC is serving in the mostly developed countries. In which economic conditions of society are high and the food industry is well established. So HR Strategies for the se developing countries require different parameters for the implementation. But when we talk about the domestic level. In the case of Pakistan. Which is a developing country and food industry is flourishing, KFC focus on the Business/ industry cycles Contractual labor Contingency work force strategies
Competitiveness
Competitive pressure form international level and local competitor is the base for the development of a HR Strategies. As business position and the industry atrtraction is different in different countries. So in every region KFC coordinate every mov of the competitors and rebuild up their HR Strategies for the current position to get maximum advantage of work force. KFC have following competitor on the international level McDonald
KFC have following competitor on the national level AFC Five Hostels Food Clubs and Gymkhanas
Chapter # 3
Goals
To work on local level in Pakistan KFC follow its goals which support its global strategy for personal development. Which are as follow To define the better standards for career planning and personal development.
day. To train employee to reduce customers wait time lesser than the time what we commit as per policy. To aware about handling complaints tactfully in order to placate the customers. To make capable personal for execute customer care policies and procedures in true spirit and constantly provide feedback on how to better serve the customers. To provide excellent product knowledge about customer care, policies, procedures, systems and new promotions and to ensure accurate information flow to the customers. To be able to work in close co-ordination with the employees as a part of KFC team for timely submission of necessary reports. To provide equal opportunities as by policy to employee. To improve appraisal system for the employee. To provide motivated work force to organization. To define better HR Strategies for new branches.
Organization Culture
Every Organization has a specific culture. KFC too have a unique culture. Which is customer oriented. While developing HR Strategies it is tried to make employee more socialized with culture. As on the product and services level global culture (Uniform culture) is followed but in the style of local culture. As the basic objective of Global HR management is to facilitate employee, so most focus is done on the culture which is more employee friendly. For this purpose different equifiniality practices are used to get objective. To develop uniform culture on international level employee are learned by Rituals Material symbols Training and coaching KFC culture is highly global dominated in the strategic, product quality, size, and service level. The main features of employee friendly culture are High communication Less inter departmental conflict Work in the form of teams Equal opportunity standards for all employee Decentralized culture Flat structure of teams
Nature of Task
At KFC job specifications and job performance standards are well defined for each job. And appraisal system work on the bases of feedback received from these standards. Nature of job fro each post, working conditions and requirements, location, time duration and other all specifications are mentioned. While training the employee all nature of tasks and job standards are aware to the employee. At KFC Personal work in shifts Tasks are time oriented
Work Group
At KFC personals are working in the form of teams. While global HR management works as the work team for these teams. In this respect all the teams work as the work teams. Work teams at KFC have following feature Goal is achieved by collective performance All team members have synergy in the work implementation All people in a team are equally skilful. Skills in the relevant fields are complementary Accountability inside the team is individual Accountability out side the team is mutual
Leader member relation Task structure Position and powers Still all teams are working under the scenario. Success of team having influential leader ship qualities, well management of work and collective work force. In practical implementation collective work force strategy is implemented at KFC.
Phase 2
Chapter # 3
At KFC professional requirements of all jobs are defined the candidates who fulfill these requirements are provided equal opportunities for employment. Candidates can apply for the job and the selection is made on the merit. But for the recruitment and selection process KFC have to face some other local laws in every region. KFC follow globally EEOC Equal Employment Opportunity Council. This provides the guide line for recruitment and selection on global level and coordinates it, while talking on the region some other laws also have to follow. Such as in Pakistan. KFC have to follow EEC Federal Act. State and local legislations (For branches) Executive order of Preeminent Country labor Act. Health and security laws The KFC equal employment policy is based on the guide line of these mentioned laws for each country. HR planning department have build up different regions and all information about local laws is build in HRM Information System. This provides help in developing EEO policy for recruitment and selection for every region.
HR Planning
At global level KFC had build its HR Planning department. This contained the experts of the organization which work as a think tank and forecast the demand and supply of employee in each region Demand for the employee is based on the Strategy execution Budgets Sales forecast New ventures Job design change External Effects(economical, legal, competitor, technological Internal Work force effect (Retirement, leaves, death, resignation) Techniques to predict demand While forecasting about the future demands HR planning experts used different techniques to predict the organization future demand for employees. Using Nominal Group technique Extrapolation Statistical analysis Computer models New venture analysis If we talk on the supply of the employee there are two levels for it Internal Supply KFC fulfill its demands on the internal level through Internal audit of the human resource Succession planning Replacement charts External Supply KFC fulfill its demand on the external level by focusing on the Labor market by
Chapter # 4
strategy, so for the sake of establishing a new branch. A meeting conducted between the human resource planning department and the company management. From there an affirmative action plan was developed. In this meting major focus was on fowling heads. 1. Identification of different jobs 2. Development of job analysis information 3. To define specific standards for the new hiring and selection. The HR specialists of KFC become able to recruit those personnel with needed knowledge, skills and abilities. The HR specialists of KFC collect evaluate and organize the information about some specific jobs.
Job Ranking: The HR specialist attempt to determine the relative position of each job in comparison with other jobs and this ranking is done by the job analysts committee. Job Classification: The HR specialist of this organization also uses job classification for evaluation purpose in the form of grades
Human Resources Management & Planning Affirmative Action Plan Specific Requirements from Managers Job Analysis
Managers Comments
Chapter # 5
Recruitment
KFC has prime position in the hotel industry and in a preferred employer amongst prestigious. They recruit good qualified and experienced individuals-both at entry level and for vacancies arising at various levels-who would prove to be asset for the organization. They provide opportunities for improving personal capability to enable staff to take on greater responsibility. In the HR planning other departments inform to the Human Resource Manager by the internal E-mail system about the need of the employees. 1. Experience 2. Education 3. Skill These characteristics are checked and recruit the employee for the fulfillment of the requirements for the new branches. The HR department creates the affirmative action plan. And develop the Requirements. Specifications. Job standards. On the bases of Job analysis information for the new branch. Vacancies are allocated according to the company policy and need for the department. After the complete analysis of the Job analysis information. In HR department, when any job vacancy are allocated. Then the department will be recommending to present employ. For managerial level only. But in many cases it is recommended for new(external) hiring.
problems in international hiring. Any how working Globally KFC have different standards in HR-MIS for the international hiring from different regions. 3. Internal/ Domestic Recruitment Human Resource management also recruits internally. C.Vs are already in record. When there is an opportunity of recruitment for a job, see the record and make contact to the employee from Human Resource Management for the purpose of recruitment. 4. Current Employees When there is any difficulty, faced by Human Resource Management for recruiting a new employee, they hire a person from the current employees if he fulfills the requirements of the job. Management is hesitated to hire current employee because when current employee separates from his previous position, so for the fulfillment of that position procedure of recruitment and hiring is involved again which requires more time and cost.
5. College Hiring College hiring also be done by the Human Resource Management of KFC. When any student of college or university made an outstanding performance in some problem solving or the Human Resource Manager considers him best for the job. They also on contract keep employees bases. They use those places where the potential employees are available like universities colleges. Master degree is necessary for managerial post. but experience is also very important for job. In Faisalabad hiring chain bases method are uses. First of all service center in charge will be keep interview after that manger then HR depart will keep approval for selection of candidate.
Challenges of Recruitment
There are some challenges and the problems, Human Resource Management has to face. The details of these problems are given in the following. 1. Experience Some time experience is a cause as a challenge in a recruitment process for the Human Resource Department. And sometime skill is a big challenge if the person does not provide good work nor has not good skill then the CEO face many problems in success. 2. Expectations Some times expectations of the new hired employees are not being fulfilled by the organization and some times employees do not reach to the level of performance which is expected by the organization. 3. Salary package
Some times salary package can create problem for the management. The new candidates do not satisfy with the salary witch is offered by the organization. And Human resources management try to fulfill the demand of employees according to their will. 4. Equal Opportunity Law Equal opportunity law is a big challenge but HR management provides equal right to the men and womens in organizations. Job opportunities which is offer to both men and women. If HR management need over time work they provide extra payment to our employees.
Chapter # 6
1. Preliminary Reception of Application This organization receives preliminary application from the applicant at the start of any kind of job. Sometimes, organization also provides own design application form for a job. 2. Kinds of Selection Test There are tests taken by Human Resource Management in KFC organization. Ability Test Personality Test Psychological Test Hand Writing Analysis These kinds of tests are held in different kind of jobs. HR manager keep test in which reliability are available. We check the performance of the person after selection for job. Human resources management knows that this person is reliable for job and how many benefits which they get from his reliable person. They also prefer to the ability test in
3. Interview Criteria of Selection There are both techniques, Structured Non Structured Questions Are used during interview of candidates by the Human Resource Management. In this process, first of all Human Resource Manager takes the interview then concerned head of the department conducts an interview from candidates. 4. Reference Check Reference is checked by the Human Resource Manager for the position of the Trainee Officer in the business market. References check here like Personal During the selection criteria for Trainee Management, Human Resource Management gives importance to reference checks about up to 20 percent weight out of total selection marks. 5. Medical Check This organizations specified doctors while during the selection process also check up the medical examination 6. Realistic Job Review Now realistic job review is conducted. when Trainee Officer is doing work by the Human Resource Management. 7. Supervisory Interview There is no supervisory interview are conducted in organization. When the manger start interview he try to create a feasible environment in which candidate does not feel hesitation.. After selection friendly relation will be only on professional limit. Managers have no need to know about the personal circumstances of people.
8. Final Hiring Decision Hiring Decision The final authority which takes the decision about the hiring of the Trainee Officer is the director human resource department. At the end this authority will take decision about the hiring or not hiring because there is a centralize environment in ORGANIZATION. Hiring Conditions There are following conditions for hiring the trainee officer. 1. The qualification of M.B.A (Master of Business Administration) is required. 2. Human Resource Management gives preference to fresh candidates for the position of trainee officer. Salary Packages for Trainee Officer For the post of Trainee Officer, there are different institutions for required educational degree which are categories in 1-Star , 2-Star,..5Star grade. For these grades compensation and salary packages are different. Their detail is given below.
International Hiring and Selection All these eight steps are same for the international hiring and selection process. Some criterias could be different according to the regions and culture of the region, but most focus is done on these eight steps
Phase 3
Chapter # 7
Orientation Program
Brief orientation which contains 2 or 3 days is given by the concerned human resource officer to the trainee officers. This orientation is related to the followings, 1. Disciplines 2. Rules and regulations All contents of orientation program are taken from the standard rule book as specified by KFC organization which specific for every region according to culture and society trend.
5.
Retirement Benefits
Orientation Follow-up
An orientation follow up is conducted and evaluated. Its purpose is to determine either the trainee manager learn from the brief orientation which is given to him at the start of the job, or not and note weak points which is occur during job work from the trainee employee as well as from the organization side. After office time or break time they keep friendly link with their employees. they discussed on different issues, problems which is mostly related with business field. If any person wants to share his personal problem they have to listen and try to solve this problem with best suggestion. Organization environment is very friendly; every person knows his duties and fulfills his duties very well.
Placement
In KFC organization there are three senior posts, which take the decision about the placement of the employee in different branches. Territory manager Regional general manger Branch manager As according to the issue of new branch, all these three positions are responsible for the placement of line mangers and other line staff. Placement is done in following forms. But placement decision should be coupled with orientation and follow up
Promotions
Promotion decision is done on the Best Performance(Merit Based) Appropriate Seniority Base. There is no specific time period of promotion for the merit base promotion. But for seniority base promotion a time for 2 to 3 years is required. Promotion decision is done on the needs of the further challenging environment.
Chapter # 8
While conducting a training and development program the focus, scope, time frame, and goal of the training program is given consideration by the management of the organization. Need Assessment: The first step in career training and development phase is the identification of need for an employee training and the objective of the training program. While assessing the need for training the organizational goals and the tasks and person need is considered important for a job.
Learning principle
Reinforcement principal is used to assess the level of learning for the motivation of the trained work force. The employees are rewarded for the quick learning and the information is used as a feedback to inform the employees about their progress in the training program to modify or maintain their current behavior to a specific job.
Training Approaches
The trainee manager trains the work force through different techniques including on the job and off the job training programs. Off the job training program for the firm includes the job rotation, internship, and job instructions. Computer aided programs are used to meet with the complications of the specific tasks. Trainee managers conduct discussions on different methodologies to develop the exposure of the work force about the specific task requirements and procedures.
Types of Training
KFC conduct different types of training program according to the need and the importance of the skills and the abilities required for a specific task. Skills Training is used to create more skills in the employees due to the skills shortage required performing a specific task. The firm also conducts retraining and cross-functional training program for the capable workers to create more and more skills and working experience to work in multidimensional environments.
1. Bad Performance of Employee 2. Some Personal Reasons As we have discussed very good performance appraisal system and better career planning And Training & development. System. So it is expected that annual turn over rate will be very low in the new branch.
Chapter # 9
Career Development
KFC holds a prime position in the restaurant business sector and is a preferred employer amongst prestigious nationals and multinationals. The firm recruits highly qualified and experienced individuals - both at entry level and for vacancies arising at various levels who would prove to be assets for the organization. The firm provides opportunities for improving personal capability to enable staff to take on greater responsibility. Having a rich and diverse history, the firm encourages its employees to venture forth in new and dynamic areas leading to organizational progress along with individual growth. Sam policies are for the development and training of new hired employee for new branch. Help full to reduce Turnover Second one training and development is also help full in reducing the employee turn over, which is our major issue in the project. Career planning leads to job satisfaction, which reduce the turn over.
Assessment of Job
Assessment is made for all KFC grade officers. For the new employees assessment sheet is given for the purpose of assessment. It is an important part for managerial type job
Organizational Assessment
Organizational assessment is also taken for the purpose that an employee fulfills the need of organization or not. Employees also take interest in developing their career by assessing the information about the new job openings inside the organization to move on the better job. The KFC informs its employees about the new job openings through the general communication of the supervisors and the managers and through the advertisements and via web. The training managers assess the capabilities and the skills of the trained employees through the conduction of psychological tests, & Skill tests to forecast the advancement potential of the trained employees. Through assessment the managers develop the proper follow up charts and make the succession planning for the fulfillment of executive positions in the organization. The employees also develop the networks inside and outside the organization and use their personal and professional contacts, which help them in finding opportunities for career development.
Phase # 4
Chapter # 10
Performance Appraisal
KFC also uses the performance appraisal system to measure the performance of the employees. During job analysis this organization maintain a specific performance criteria by analyzing the performance of the current employees. KFC conducts performance appraisal methods to evaluate the employees performance. It is important from different aspects like For placement decisions, Career planning and development To evaluate the training programs effect on employees performance To check job-design errors
Performance Measures
KFC uses the appraisal form to measure the performance of the employees. This form is used by the organization to reach about the performance position of the employee. Appraisal form is filled by the branch manger about the performance of all employees. KFC has developed a standard appraisal form which is multi factor rating form. Have following rating patterns. Rating scale Forced choice method Filed review method Performance Test and Observation.
Compensation
KFC also compensate the employees during the compensation administration in which the company describes its compensation program for the employees. This is reward of better performance for their motivation. The main goal of the compensation administration, is to design a cost effective pay structure that will attract, motivate and retain competent employees. The followings are the rewards are provided by this organization:
1. Intrinsic Rewards: KFC provides intrinsic rewards at that time when personal satisfaction involves in which one gets from the job itself like pride in the work, feeling of accomplishment of a task which is provided by the manager and a part of the team. KFC provides the intrinsic reward to his employees in the following conditions. Participation in Decision Making More Responsibility More Interesting Work Opportunities for Personal growth Diversity of Activities ( More Authority)
2.
Extrinsic Reward:
KFC also provides extrinsic rewards to his employees at that time when someone gets reward from the employer the organization in terms of money, a promotion or any kind of benefits. The organization gives extrinsic rewards in the following conditions: Financial: This company provides financial rewards in the form of bonuses, which is given on the specific events and occasions. Non-Financial: The non-financial benefits are also provided by this organization to the employees. The organization considers the following important benefits, which comes under non-financial benefits. Preferred Office Furnishing Preferred Lunch Hours Assigned Parking Spaces Preferred Work Assignments Business Cards Impressive Title
Increments
Increments are done usually after 1 year for the position of trainee officers. Increments usually have no limit; normally it is from 10.00 to 5,000. It has no limit because already good salary packages are given to trainee officer from which he highly satisfies. Rewards Types of Rewards There are certain types of rewards are offered to the trainee officer. These rewards are following. 1- Visit of foreign countries. 2- Dinner parties and functions On What Basis Rewards Offered Rewards are offered on the following basis. Performance Based Rewards: Performance based rewards are offered when an employee makes an extra ordinary performance for his motivation.
Incentives
Usually incentives do not offered separately but increase the salary after 1 or 2 years. On What Basis Incentives are offered Mostly incentives are offered on the basis of extraordinary performance. The employee, who gives good and excellent performance in his routine work gets incentives from the Human Resource Management Department. Promotion In this situation when the people have dedication or good work then management is going to move this person on higher post with high salary.
Separation
Its mean termination of the person membership from organization. A person leave an organization because the lack of experience, exposure, information, knowledge, market job attraction. Ratio of voluntary Separation In other word if the person has good opportunity from outside the organization or have any family problems then he leave the job very quickly. In this situation management does not provide any allowance to this person. A good employee is an asset for organization so HR management always tries to provide better opportunity to their employees in the organization. SO the level of separation is minimum 2 in first six months. And level of average turn over un KFC is 4.5%. Ratio of Involuntary Separation There is also zero% ratio of involuntary separation. Involuntary separation exists when there is negligence shown from the employee side.
Retirement
If the employee, who is going to be retired, is beneficial for the organization as well as for the management, organization makes contract with him after his retirement. Staff Retirement Gratuity The Company operates a defined benefit plan-unfunded gratuity scheme covering all permanent employees of the Company who have attained the minimum qualification period and up to previous year the provisions were made on the basis of last drawn salary and number of years in service.
Phase 5
DESIRED TARGETS OF THE DIAGNOSIS:There are there main desired end results. Socially responsible and ethical practices Competitive, high quality product. Competitive, high quality services.
To follow the government laws, rules and regulations. To follow the social culture. To follow the regional culture. Accomplish the local standards. To fulfill the social expectations.
SOCIAL RESPONSIBILITIES OF KFC:These include; Colonel scholars Global diversity Suppliers cod of conduct Animal welfare program COLONEL SCHOLERS:The KFC Colonels Scholars Program is about you, yours dreams and aspirations, and the perseverance to succeed. This program is offered to high school seniors planning to attend a public in-state college or university.
GLOBAL DIVERSITY:Diversity is more than a philosophy at KFC; it is part of founding How KFC Work Together principles. KFC global culture is actively developing a workforce that is diverse in style and background, where everyone can make a difference. SUPPLIER CODE OF CONDUCY:Yum! Brands are committed to conducting business in an ethical and responsible manner. To encourage compliance with all legal requirements and ethical business practices, Yum has established a Supplier Code of Conduct for its suppliers. ANIMAL WELFERE PROGRAM: _ Yum! Brands, parent company of KFC, are committed to the humane treatment of animals.
COMPETITVE HIGH QUALITY PRODUCTS:Product line of KFC is: Chicken Sandwiches Sides Kids Salad Dessert Flavor and snakes Bowls Burgers
COMPETITVE HIGH QUALITY SERVICES:High quality services include; Fast delivery time Customer satisfaction Customer loyalty Service satisfactions KFC Pakistan, the market leader in call center based home delivery, they say, ONE CALL DOES IT ALL 111 KFC (111-532-532) Well trained and energic delivery team waiting to take people orders at their state of the art call center. Order centralized (all center based) delivery is available at all stores in Pakistan. The delivery time of orders is 35 minutes against the order of minimum RS.250/-.
INSTITUTIONAL SALES:KFC currently has 43 restaurants all over Pakistan and is currently present in cities namely Karachi, Lahore, Rawalpindi, Faisalabad, Hyderabad, Sialkot, Islamabad, Multan and Peshawar. KFC for the last seven years stand as the market leader in the fast food category and its strength lies in the mass appeal of our products and great service.