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Human Resource Management Of KFC

It Is A Project Which Describes About The Human Resource Appointing N Managing By Management Of KFC Company

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Human Resource Management Of KFC

  1. 1. Project Report on HUMAN RESOURCE MANAGEMENT OF KFC In partial fulfilment of requirement for the Award of Degree of M.Com Subject: Human Resource Management Submitted By: Mr. Hitesh Rohra Roll No. 25 M.Com. Part – I, Semester - I Under the Guidance of: Prof. Mrs. Reshma Kukreja SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE ULHASNAGAR – 421003 UNIVERSITY OF MUMBAI 2014 – 2015 ~ 1 ~
  2. 2. Human Resource Management Of KFC ~ 2 ~
  3. 3. This is to certify that, Mr. Hitesh Rohra of M.Com Part – I, has successfully completed the project in Human Resource Management titled “Human Resource Management Of KFC” under my guidance for the academic year 2014-15. The information submitted is true and original as per my ~ 3 ~ knowledge. Ms. Reshma Kukreja (Internal Guide) Prof. Gopi Shamnani Dr. Padma V. (Coordinator, M.Com) Deshmukh (I/C Principal) ________________ External Examiner
  4. 4. DECLARATIION I, Mr. Hitesh Rohra student of SMT. CHANDIBAI HIMATMAL MANSUKHANI COLLEGE, ULHASNAGAR studying in M.Com Part – I, Semester – I, hereby declare that I have completed this project on “Human Resource Management Of KFC” for the subject “Human Resource Management” in the academic year 2014-15.The information submitted is true and original to the best of my knowledge. ~ 4 ~ _______________ Mr. Hitesh Rohra
  5. 5. ACKNOWLEGEMENT To list who all have helped me is difficult because they are so numerous and the depth is so enormous. I would like to acknowledge the following as being idealistic channels and fresh dimensions in the completion of this project I take this opportunity to thank the University of Mumbai forgiving me chance to do this project. I would like thank my Principal, Dr. Padma V. Deshmukh for providing the necessary facilities required for completion of this project. I would also like to express my sincere gratitude towards my project guide Prof. Ms. Reshma Kukreja whose guidance and care made the project successful. I would like to thank my college library, for having provided Various reference books and magazines related to my project. Lastly I would like to thank each & every person who directly or indirectly helped me in completion of the project especially my parents & peers who supported me throughout my project ~ 5 ~
  6. 6. EXECUTIVE SUMMARY Kentucky Fried Chicken (KFC) Malaysia is a major Quick Service Restaurant (QSR) operator in Malaysia and has been established for just over 20 years now. It serves mainly chicken related items, but offers side dishes to its consumers as well. Lately, more and more Malaysians have been opting for a healthier eating diet as a large number of them have become more health conscious. This has opened the door for KFC’s main competitors, such as McDonald’s, to come out with a new range of healthier products, allowing them to mount a greater challenge on KFC Malaysia’s current position as Malaysia’s leading fast food operator. As a response to the advancement made by KFC’s competitors in providing healthier fast food, KFC are to introduce a new set of healthier products that would be mainly targeted at health conscious people, living in Malaysia. Its target market would largely be based on segmentation of age, where it would be focused on customers in the age group of between 4 to 40 years old. KFC Malaysia would, nevertheless, have to fight off fierce competition from other fast food operators, such as Kenny Roger’s, Burger King, A&W, Radix Chicken and KFC’s biggest rival, McDonald’s, who are also trying to take hold of the new market of healthier products. The new healthier menu that KFC Malaysia is going to introduce would not only be a new healthier alternative to its existing products, but also an addition to what it already has to offer. The pricing and promotion strategies would also be looked into as KFC Malaysia prepares to introduce its new healthier menu to the public. ~ 6 ~
  7. 7. CONTENTS S.No. Topic Page No 1 Introduction Of HRM 09 2 Definition Of HRM 13 3 Model Of HRM 15 4 Objectives 18 5 Principles Of HRM 19 6 Features OF HRM 20 7 Functions Of HRM 21 8 Contexts Of HRM 23 9 Introduction OF KFC 25 ~ 7 ~
  8. 8. 10 Company Background 26 11 Products Of KFC 27 12 HRM Of KFC 28 13 Recruitment & Selection 29 14 Training & Orientation 34 15 KFC Job Description 36 16 Survey Research Plan For KFC 41 17 Sample Survey 44 18 Summary Of Results 48 19 Conclusion 49 20 Biblography 50 ~ 8 ~
  9. 9. Introduction Of HRM • Managing an organization’s workforce – Training, assessment, rewarding and ~ 9 ~ selection. • A disciplinary department. • Job Opportunities: – HR Admin – Payroll Specialist – Staffing Manager – HR Manager Human resources are the most valuable and unique assets of an organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. Even though specific human resource functions/activities are
  10. 10. the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. Human Resource Management outlines the importance of HRM and its different functions in an organization. It examines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization. Talent Search ~ 10 ~ • Hiring • Assessments • Rewarding
  11. 11. The Human Resource Cycle ~ 11 ~
  12. 12. The Bad Side… • Make sure employees are discipline ~ 12 ~ – Time – Appearance – Attitude • Firing non-performing employees
  13. 13. Definition of HRM • 'Human capability and commitment'. Storey argues that this is what differentiates ~ 13 ~ organisations. • Strategic importance of HRM. It needs to be implemented into the organisational strategy and needs to be considered at the highest management level. • The long term importance of HRM. It needs to be integrated into the management functions and is seen to have importance consequences on the ability of the organisation to achieve its goals. • The key functions of HRM which are seen to encourage commitment rather than compliance.
  14. 14. The Human Resource System ~ 14 ~
  15. 15. Guest’s Model of HRM • Linked to the strategic management of an organisation. • Seeks commitment to organisational ~ 15 ~ goals • Focuses on the individual needs rather than the collective workforce. • Enables organisations to devolve power and become more flexible • Emphasises people as an asset to be positively utilised by the organisation
  16. 16. ~ 16 ~
  17. 17. The Harvard Model of Human Resource Management ~ 17 ~
  18. 18. Objectives • There are four main objectives of HRM. Societal objectives, organizations objectives, functional objectives, and personal objectives. • To maximize the productivity of the organization by optimizing the effectiveness of its employees • Objectives of HRM are influenced by the objectives of the business or organization and include making sure an organization has a supply of willing, motivated, and skilled employees. ~ 18 ~
  19. 19. Principles of HRM • Human resources are the most important assets of the organisation • business success "is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans.“ – Michael armstrong • find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. ~ 19 ~
  20. 20. Features of HRM • The collective bargaining role • The implementer of legislation role • The bureaucratic role • The social conscience of business role. • A growing performance improvement ~ 20 ~ role
  21. 21. The HR Functions ~ 21 ~
  22. 22. Traditional HR Functions ~ 22 ~
  23. 23. The Context of HRM ~ 23 ~
  24. 24. Changing environment of human resource management • Globalization trends • Technological trends • Trends in the nature of work Workforce demographic ~ 24 ~
  25. 25. Introduction Of KFC • KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders," Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. However, the company's rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors led by John Y. Brown, ~ 25 ~ Jr. and Jack C. Massey. • KFC was one of the first fast food chains to expand internationally, opening outlets in the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributorHeublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, which is now the company's single largest market. PepsiCo spun off its
  26. 26. restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands. Company Background • only manage people from their home country, but oKFC Corporation (KFC), known as Kentucky Fried Chicken • KFC Corporation based in Louisville, Kentucky. The world’s most popular chicken restaurant. • KFC is part of Yum! Brands, Inc., which is the world’s largest restaurant system.Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global ~ 26 ~ Restaurants Inc. • R.J. Reynolds acquired KFC in 1982. This gave KFC the financial backing for expanding internationally. • According to the corporate website, KFC is present in 110 countries and territories around the world and 30 ,000 restaurants. • From Traditional HR transform to International HR • HR practitioners not ne that involve managing many diverse nationalities. • new problem for HR practitioners emerged as employees become more diversified and hard to manage.
  27. 27. PRODUCTS ~ 27 ~ • KFC primarily sells -chicken pieces, wraps, salads and sandwiches. • The primary focus is fried chicken. • KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.
  28. 28. KFC Human Resource Management ~ 28 ~ • Responsibilities: – Responsible for all the human resource functions such as policy, recruitment, IR, performance evaluation, compensation and benefit, and other general admin matters.
  29. 29. Recruitment & Selection ~ 29 ~
  30. 30. ~ 30 ~
  31. 31. Discipline • Firms cannot just ‘sack’ workers • Wide range of procedures and steps in dealing with workplace conflict – Informal meetings – Formal meetings – Verbal warnings – Written warnings – Grievance procedures ~ 31 ~
  32. 32. Training “We won’t make you wing it” is KFC’s motto when it comes to training employees. ~ 32 ~ -Training includes: 1) Workbooks 2) Quizzes 3) On-the-job competency based training- Employees are encouraged to work together as a team- KFC is committed to making sure their people grow to their highest potential- KFC does their best to make the job interesting and exciting for workers
  33. 33. ~ 33 ~
  34. 34. Training and Orientation of the Company • Christ Mendel , director of global risk management of ~ 34 ~ Tricon Global Restaurant (an arm of Yum ! Brand ) stated that the company focuses on training and education for all their employees and managers for their 30 ,000 restaurants in 110 countries (cited in Morris ). • the company has developed substantial training programs for all front line people . The training according to him has been integrated into the company 's broader management trainings that deal with issues as sexual harassment , hiring and firing practices , interpersonal relationships , and conflict resolution . The training practices as he further described are on a global basis with the assumption that ``people need to treat people with respect (Morris . The training employed for both franchise and non-franchise managers are on the same basis that everyone is required to attend trainings held at the company 's headquarter at Louisville . Likewise , these front line people will take the responsibility in providing trainings for their
  35. 35. employees using training manuals and product guides . In that ~ 35 ~ way , the top management is assured that the KFC culture penetrates another culture effectively .
  36. 36. KFC Job Description ~ 36 ~ • Area Managers Area Managers are accountable for providing coaching, leadership and operational support to 8-10 KFC Restaurants within a defined Area. -Area Managers are sourced internally, so you will need to earn this position in the Company through promotion. • Restaurant General Managers The Restaurant General Manager is accountable for creating and running an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. -The Restaurant General Manager reports directly to an Area Manager and is accountable for successfully implementing and maintaining all Company policies and procedures in relation to operations, customer service, cash handling, marketing, purchasing, human resources, health & safety, administration, training and development -Restaurant General Managers are sourced internally, so you will need to earn this position in the Company through promotion.
  37. 37. ~ 37 ~ • Assistant Managers The Assistant Manager is responsible for assisting the Restaurant General Manager (RGM) in creating an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. Assistant Managers are also responsible for ensuring all Company policies and procedures are followed in relation to operations, customer service, cash handling, marketing, purchasing, human resources, health & safety, administration, training and development. -Assistant Managers are sourced internally, so you will need to earn this position in the Company through promotion. • Trainee Managers Responsible for assisting the Restaurant General Manager and Assistant Managers in creating an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. Trainee Managers help with day-to-day running of the restaurant, and need to ensure that all operations, customer service, cash handling, marketing, purchasing, human resources, administration and training & development policies are followed. Skills & Abilities
  38. 38. -Trainee Managers must have at least a year 10 education and 2 years work experience in a managerial/supervisory role. -Must have excellent customer service skills and the ability to deal with customers complaints -Excellent communication skills -Must have the ability to develop competent ~ 38 ~ computer skills -Be able to motivate, delegate and co-ordinate -Willing to work shift work with an energetic approach -Able to lift and carry awkward/heavy items -Must have a reliable vehicle and current driver’s license Rewards & Benefits -Attractive performance-based salary and bonuses reviewed quarterly for all Managers -Manager of the Quarter and Manager of the Year Competitions -Annual Champions Club recognizing those Stores that deliver outstanding customer service -Store Managers attend an annual conference
  39. 39. -Top 20 Store Managers attending a week long ~ 39 ~ Development Program -Annual Chairman’s Dinner recognizing those employees with more than 15 years service -"Recognition Culture”, which ensures that hard work and good performance does not go unnoticed • Customer Service Team Members Responsible for working the service areas and ensuring quality product, service and cleanliness is delivered to all customers at top speed and with a smile! Skills & Abilities -Preparation of food -Stock rotation -Cash register operations and ability to follow cash handling procedures -Cleaning of service and dining areas -Must be prepared to work nights and weekends -Friendly disposition with the ability to work as part of a team Rewards & Benefits
  40. 40. -CHAMPS Excellence Recognition Program for Team Members provides the opportunity to earn ~ 40 ~ monetary rewards -Annual CHAMPS Challenge -Discount Card entitles Team Members to 20% off all meals -“Recognition Culture”, which ensures that hard work and good performance does not go unnoticed • Food Service Team Members Responsible for putting the crunch in the coating and the zing in the Zinger…the cook’s main task is to prepare and cook the irresistible KFC products! The cook must also maintain the cleanliness of the cooking area as well as the quality of product and speed of preparation. Skills & Abilities -Food preparation -Stock rotation -Maintaining cleanliness of cooking areas and floors -Must be prepared to work nights and weekends -Friendly disposition with the ability to work as part of a team
  41. 41. ~ 41 ~ Rewards & Benefits -CHAMPS Excellence Recognition Program for Team Members provides the opportunity to earn monetary rewards -Annual CHAMPS Challenge -Discount Card entitles Team Members to 20% off all meals -“Recognition Culture”, which ensures that hard work and good performance does not go unnoticed Survey Research Plan • Client Interview • Told the research team that their main focus was proving to the public that KFC isn’t as unhealthy as many people perceive it to be compared to other fast food restaurants. • Research Objectives • We are conducting this survey to find out what people’s perceptions of the KFC brand is currently.
  42. 42. • To compare KFC’s menu options to the menu options of their major competitor’s. • Research Methodology • Mall-intercept method, it is the most convenient due to the overwhelming student population on ~ 42 ~ campus. • Convenience sampling, because we don’t want biased results and we will get more of a variety students. • Our survey will consist of open ended, multiple choice, and Likert scale questions. • We will try to achieve our goal of 50 completed surveys throughout different campus buildings, and through friends and co-workers. These surveys will take place through the next 2 weeks. • Tabulations and Data Analysis • The scale and multiple choice questions will be tallied. The open ended questions will be categorized into positive and negative responses with noted suggestions. • Research Reporting • We are hoping to gather information from the surveys to better understand why people think KFC is an unhealthy fast food option. While at the same
  43. 43. time maintaining the convenience of the fast food ~ 43 ~ industry. • Time Frame • The survey will be conducted within one week’s time period. • Limitations • We will have a very narrow age range (18-24). • Since we are only using convenience sampling we will only be able to survey people located in Morgantown. • People sometimes rush through open-ended questions, or don’t answer questions truthfully. • People may not be familiar with all of the restaurant options on the survey. Sample Survey • This is a survey about the fast food industry. Through this survey we are trying to understand what consumers like and dislike about the fast food industry and what can be improved. Please answer as honestly as possible. Your participation is appreciated. Thank you. • Please name three fast food restaurants you can think of: • ( ) ( ) ( )
  44. 44. • What type of item do you look for on the menu when you’re eating at a fast food restaurant? • ( ) Combo Meal ( ) Value Menu ( ) ~ 44 ~ Other:_______________ • • How often do you eat fast food in a month? • ( ) never ( ) once a month ( ) 2-3 times a month ( )4-5 times a month ( ) 5+ times a month Which fast food restaurant do you feel gives you the best value? • ( ) Burger King ( ) Chik-fil-A ( ) McDonald’s ( ) KFC • ( )Popeyes ( ) Wendy’s ( ) Subway ( ) Other:________ • How many times do you eat chicken per week? • ( ) 1-2 times a week ( ) 3-4 times a week ( ) 4-5 times a week( ) 6+ times a week • Have you ever eaten at KFC? • ( ) Yes ( ) No If no, skip to question 21 • • If yes, when was the last time you ate at KFC? • ( ) Last week ( ) Last month ( ) Last 6 months ( ) Last year •
  45. 45. • How familiar are you with KFC’s menu selection? • ( ) Not familiar ( ) Somewhat familiar ( ) Very ~ 45 ~ Familiar • What would be the main reason you choose KFC? • ( ) To eat chicken ( ) Good menu selection ( ) Quality of service • ( ) Convenience • KFC is an accurate representation of Southern Cooking: • • Strongly Disagree 4 3 2 1 0 1 2 3 4 Strongly Agree • • Do you view KFC as a family restaurant? • • Strongly Disagree 4 3 2 1 0 1 2 3 4 Strongly Agree • • When you think of KFC what comes to mind? • ( ) Colonel Sanders ( ) Fried Chicken ( ) Home style sides ( ) Family meals • Roughly how many KFC TV or Billboard advertisements have you seen within the last 6 months? • ( ) 0 ( ) 1-3 ( ) 4-6 ( )7-10
  46. 46. • Are you aware of the new, healthier options available at ~ 46 ~ KFC? • ( ) Yes ( ) No ( ) N/A • • On what area do you believe KFC should focus its image? • ( ) Convenience ( ) Family ( ) Health ( ) Other:_____________________ • • Who do you view as KFC’s biggest competitor? • ( ) McDonald’s ( ) Chik-fil-A ( ) Popeyes ( ) Subway • ( ) Burger King ( ) Other:_________________ • Which fast food restaurant has the best chicken? • ( ) KFC ( ) Chik-fil-A • ( )Popeyes ( ) Church’s Chicken • ( ) Burger King • Recently KFC introduced a breakfast menu overseas, would that be something that would appeal to you? • ( ) Yes ( ) No ( ) Maybe • • To the best of your knowledge, please write positive aspects about KFC: •
  47. 47. • __________________________________________________________________ ~ 47 ~ ______ • To the best of your knowledge, please write negative aspects about KFC: • • __________________________________________________________________ ______ • Age:____________ • Gender: Male ( ) Female ( ) • Please state your ethnicity: (i.e. White, African American, Hispanic) ____________________________ • • Class Rank: • ( ) Freshman ( ) Sophomore ( ) Junior ( ) Senior ( ) Graduate • What do you think is KFC’s strongest menu attribute? • ( ) Family value menu ( ) Value menu ( ) Choice of original or extra crispy • ( ) Healthy menu items
  48. 48. Summary of Results • In order to figure out where KFC stood in terms of their competition, we went out to find out how they compared to other fast food restaurants in pricing. Most people when asked in the surveys said they thought McDonald’s had the best value because of options like the dollar menu. Our respondents put great emphasis on this saying that value and convenience were the two main things they typically look for when going out for fast food. When asked about KFC’s pricing, many said that compared to their competitors KFC was a little overpriced. For the most part, they said since KFC also gives a lot of food in their meals that they would probably get KFC only if they were going to be eating with a group of people as opposed to just ~ 48 ~ for themselves.
  49. 49. Conclusion • KFC shows to have a neck for hiring the right person for the job. Putting a Chinese in charge is attacking potential difficulties with Chinese culture. KFC sees the Southeast Asian market as a separate whole. By doing that KFC can target that market as separate marketing and operational-wise. • Southeast Asia is handled by a separate part of the company under the KFC holding. This enables KFC to target the Southeast Asian markets more ~ 49 ~ effectively. • KFC has to change its vision on investing though. A great deal of knowledge of the Asian culture is gained by stores in Indonesia, Malaysia and Singapore.
  50. 50. Biblography • "Annual Report 2012". Yum! Brands. Retrieved ~ 50 ~ April 7, 2013. • ^ Jump up to:a b c d e f g "Restaurant counts". Yum! Brands. Retrieved April 3, 2014. • ^ Jump up to:a b c d e f "Yum! Brands: Senior Officers". Yum! Brands. Retrieved September 8, 2013. • ^ Jump up to:a b Iconic Global Brand. Louisville: Yum! Brands. 2014. p. 98. • ^ Jump up to:a b c Whitworth, William (February 14, 1970). "Kentucky-Fried". The New Yorker. Retrieved February 23, 2013.