KFC

(Kentucky Fried Chicken)

We Do Chick Right

Mission
To establish in Pakistan our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value innovative chicken-based products, consistently providing a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all times, we must be dedicated to providing excellent service and delighting customers.

Goals
Build an organization dedicated to excellence. Consistently deliver superior quality, and value in our product and service. Maintain a commitment to innovation for continuous improvement and growth, striving always to be the leader in market place challenges. Generate consistently superior financial returns and benefit our owners and employees.

Values for KFC

Focus all our resources to our restaurant operations because that is where we serve our customers. individual at KFC. we can be and more. another. Encourage new and innovative ideas because they are the key to our competitive growth. Reward result and not simple efforts. Be open, honest and direct in our dealing with one Expand and update training with time and be the best Reward and respect the contributions of each

 Dedicate ourselves to continuous growth in sales, profit and size of organization. Work as a team.

HISTORY
9/9/1890-Harland Sanders, the founder

of

KFC was born just outside Henryville, Indiana.

1900-1924-Harland Sanders holds a variety of jobs including: farm

hand, streetcar conductor, and army private in Cuba, blacksmith's helper, railyard fireman, insurance salesman, tire salesman and service station operator for Standard Oil.
2006-More than a billion of the Colonel's "finger lickin' good" chicken

dinners are served annually in more than 80 countries and territories around the world.
2007-KFC proudly introduces a new recipe that keeps the Colonel's

11 herbs and spices and finger-lickin' flavor, but contains Zero Grams of Trans Fat per serving thanks to new cooking oil.

KFC Today
Today, KFC is the worlds largest and most well known chicken

restaurant chain, with more than 10,000 locations worldwide, in 78 countries. KFC and its franchises employ more than 20,000 people worldwide.

KFC serves more than 4.5 billion kilo grams of chicken annually, to approximately 7 million customers a day, worldwide.

The Cupola Family

Found in 1994, headquartered in Dubai and offices in Middle East, London, Washington and Karachi. Turnover of $200 million with operating staff of 1660.
Activities Focus on 4 Sectors:

Retail: spinneys (ME and Lebanon), Max (SA) Consumer: Oman United Agencies (Oman & Jordan) Engineering: Cupola Engineering Group (Oil, gas & water industry) Information: Cupola plastic Cards LTD (Jable Ali), Cupola Teleservices (USE)
THE Yum Family

Yum! Brands, Inc., based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with more than 36,000 restaurants in over 110 countries and territories and more than 1 million associates. Yum! is ranked # 239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008. Four of our restaurant brands KFC, Pizza Hut, Taco Bell and Long John Silver's are the global leaders of the chicken, pizza, and Mexicanstyle food and quick-service seafood categories.

KFC in Pakistan
South Region including Karachi and Hyderabad (interior Sindh). North Region including Lahore, Rawalpindi and Islamabad (Punjab). They have a total of 63 outlets working in Pakistan. 1 outlet is in Islamabad, 2 in Rawalpindi,21 in Karachi, 11 in Lahore and other in
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others city of Pakistan like Faisalabad, Hyderabad, sakhar, Gujranwala, Sialkot, Multan, Peshawar and Jhelum. KFC say that for the last seven years they stand as the market leader in the fast food category and our strength lies in the mass appeal of our products and great service.

Hierarchy Chart
(Operational Level) Area Manager

Territory Manager

Restaurant manager

Assistant Manager

Trainee Manager

Shift Supervisor/Customer Relation Officer

All Stars

Two Stars

Star Staff

Customer Service Team Member

Food Service Team Member

Trainee Team Member

Hierarchy Chart
(Cooperate Level in North region) CEO

Head of North

Associate Regional Manager

Finance

Administration

Human Resource

Operation

Department

Brand

Audit

New Concept

Area Manager

Territory Manager

Territory Manager

Territory Manager

Territory Manager

What is the existing performance management system of KFC?

Performance management A management process for ensuring employees are focusing their work efforts in ways that contribute to achieving the companys mission. It consists of three phases: (a) Setting expectations for employee performance (b) Maintaining a dialogue between supervisor and employee to keep performance on track, (c) Measuring actual performance relative to performance expectations. The purpose of the performance management system is to ensure The work performed by employees accomplishes KFCs goals Employees have a clear understanding of the quality and quantity of work expected from them Employees receive ongoing information about how effectively they are performing relative to expectations Awards and salary increases based on employee performance are distributed accordingly Opportunities for employee development are identified. Employee performance that does not meet expectations is addressed.

KFC started its operations in 1996 and till 4 to 5 years there was no human resource department in KFC and then in the 5th year of its operation in pakistan it developed its human resource department. When KFC started its performance management system so at that it used 360 degree feedback to evaluate its employees in which every employee was evaluated by his supervisor and his peers. The also launched their own ranking scale named by My Growth Body and details of their feedback system and My Growth Body are given below ;

What is 360 degree feedback? 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. How is 360 Degree Feedback Used? KFC uses 360 feedback systems in two ways which are given below: 1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs. 2. 360 Feedback as a Performance Appraisal Tool to measure employee performance These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 degree feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used. What a 360 Feedback Survey Measures? 9

360 feedback measures behaviors and competencies 360 assessments provide feedback on how others perceive an employee.

My Growth Body This was the rating scale introduced by the HR department of KFC in 2000-01 which they used to measure the performance of their employee. The information which they collected from 360 degree feedback it provided them a base on which they can rank their employee as a good performer or a bad performer. So basically in MGB there were 5 five points, the employee who was a low performer is ranked on 3 and the good performer who achieved his targets was ranked on 5. Performance documentation A letter, memo, completed form, or note on which the supervisor indicates the extent to which the employee is currently meeting expectations and provides evidence to support that conclusion.

The flow of activities involved in the existing system

Supervisors and managers are responsible for managing the performance of their employees. As 90% to 95 % of the staff working in KFC is of operations and only 4 to 5% people are working on the managerial positions .Operational staff require regular check and balance on their performance so their performance is measured quaterly means 4 times in a year and performance of managerial staff is measured annually. 1. Communicating employee performance expectations Since KFC has two main cycles on which it assesses its employees the three months cycle for operational staff and the twelve month cycle for managerial staff, so at the start of each cycle the supervisors meet with their employees, establish expectations regarding their employees performance, specify how employees actual performance will be measured and their success determined, and impart to them an understanding of how meeting these expectations will contribute to the achievement of the KFCs mission. A. Work plans are signed and dated by both the supervisor and the employee.

2. Maintaining ongoing performance dialogue

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a. Employees shall be responsible for meeting their performance expectations. b. Progress toward meeting expectations shall be measured, reported, discussed, and documented throughout the work cycle. 3. Conducting performance appraisals a. Appraisal of operational staff after every 3 months and of managerial staff after every twelve months. c. The evaluation shall be documented on a standard form defined by the KFC the appraisal. which is My Growth Body which is a form of questionnaire. 4. Rewarding good Performance Most employees love recognition for a job well done. Consistently good performance and a willingness to take on more responsibility might make you consider an employee for promotion. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. So reward system of KFC is based on the assumptions of attracting, retaining and motivating its people. HR manager told us that they know the the fact that financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance so they keep on identifying those other factors that can motivate their employees. 5. Addressing Poor Performance When an employees performance falls below expectations at any time during the performance cycle, the supervisor shall document the performance deficiency and take actions, including (if appropriate) disciplinary action, to assure that performance expectations will be met within a reasonable period of time. 1. The supervisor documents the performance that falls short of expectations by preparing a corrective action plan or other documentation. The documentation will specify (a) the performance problem, (b) the steps to be taken to improve performance, including the timeframe for improvement,

6. Transitions 11

When employees move into or out of their positions, relevant performance information shall be communicated in a timely way. 1. Probationary employees have work plans within a certain number of days of their date of employment. To remove an employee from probationary status, the supervisor provides performance documentation. 7. Access and Use of Performance Information Properly informed personnel decisions KFC takes measures to ensure performance information is appropriately and consistently used and that personnel decisions are based on appropriate performance information. Decisions involving promotions, performancebased disciplinary actions, performance-based salary increases, and reductions in force are supported by a current appraisal on file. Confidentiality of Appraisal - agencies shall clarify which of the documents used for performance management purposes are confidential and which are not, as well as define what confidential means. Completed performance appraisals (with ratings, supporting information, and signatures and dates) shall be treated as confidential. How the appraiser and apprises are linked together? Kfc uses the 360 degree which is also knows as multi-rater feedback appraisal system to evaluate the performance of its employees and this is the basic method which links the appraiser and appraises. In this system the human resource department of the organization reviews the appraisers job and job satisfaction. The important thing is that explore the problems the appraise might have or factors which might prevent the appraise from improving his/her job performance. This system gives the appraise an opportunity to set and work towards achieving agreed objectives and also identify the appraisers personal development needs. This system involves all the employees at KFC and the feed back is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested stakeholders. KFC uses the 360 degree evaluation method because it provides the following advantages:

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It provides the opportunity for regular communication between managers and their staff, mutual feedback and a clearer view of the responsibilities of their staff, possible areas for development and how these relate to departmental plans and the Organization's Strategic Plan.

Staff member are encouraged to become directly involved in setting their own job related objectives and finding out when they need support in order to achieve them.

Appraisal provides the opportunity for the work, abilities and achievements of staff to be recognised and recorded. All staff (appraisers and appraises) has the opportunity to give and receive feedback on their role, performance and contribution. Staffs are able to express their opinions, feelings and suggestions in a confidential atmosphere. All staff has the opportunity to discuss any problems and agree solutions.

How goals and objectives are linked with performance management system? Both the two terms goals and objectives are often used interchangeably, confusion sometimes arises. Although both goals and objectives use the language of outcomes, the characteristic that distinguishes goals from objectives is the level of specificity. Goals express intended outcomes in general terms and objectives express them in specific terms. Goals are written in broad, global, and sometimes vague, language. Objectives are statements that describe the intended results of instruction in terms of specific student behaviors.

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KFC links its goals and objectives with performance management. The HR manager of KFC explains this with an example. He said, assume we have three employees and we assign them a target of 6 million sales. Two workers achieved above the target means 10 million that is very good but third one achieved only 6 million that is exact target. Then we will give reward which may be in any form to first two employees although the third one also achieved the target but his performance is not at the same level. In the end He said performance speaks for itself. What Appraisal system is used? Performance appraisal systems are designed to serve the company's and employee's interests. They are used to inventory the abilities and resources of employees and to let an employee know where he stands so that he will be stimulated to improve his performance. Companies implement appraisal system to determine whether the employee is doing according to the requirement of the organization or not. Companies can determine the behavior of employee towards the related objective. How the existing Appraisal system is implemented. Appraisal of employee performance is one of the most important responsibilities of managers. Existing performance management system is implemented approximately in 2001 to 2002, but KFC started its operations in 1996, so there was the gap of about 5 to 6 years between KFC operations and introduction of its performance management system. According to HR manager of KFC bark at market, north region Pakistan, HR department, (which consist of THREE people) of north region is controlling and evaluating about 2200 employees of KFC in this region. These north regions consist of Punjab and NWFP. As they are using 360 degree feedback system to get the feedback from each and every employee as every employee has an access to these three people any time and can communicate his or her problem to them. Most often they control and solve matters through telephonic discussion and sometimes they visit to particular area to solve their problems.

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What is the formal reward system? Employees are motivated by both intrinsic and extrinsic rewards. All rewards systems are based on the assumption of attracting, retraining and motivating the employees of the organization. Financial rewards are important components of the reward system on the bases of the employees performance. But there are other factors that motivate employees like to organize the training program for them giving them the certification on the bases of these training, because for some employees money is not the most important motivator. KFC also reward there employees in terms of promotion, incentive, payoff free meals depending on the level of the employee and how much they perform there job good. At management level they award them in the form of promotion, performance sheets. For example if the employee have a target to increase the sale with in the given time period. And if he achieves this target, the some percentage of his/her salary will increase in the form of reward from the company on his/her performance. Operation level activities play a big role the growth of the KFC. So at operation level motivation factor have importance for the employees, at operation level they have prizes you can win for being best employee that month, like a free meal or a day off with pay. Bounces are given to the employees on the basis of My growth body points. If the person has 5 points he or she can get benefits in term of financial bonuses, they also consider those persons has lass then 5 but more then 3 points and give them incentives by offering free meals with in a month in term of coupons.

How the existing system of KFC is linked with its performance management system? As we discussed above, about the performance management system, as it is a management process for ensuring employees are focusing their work efforts in ways that contribute to achieving the companys mission. It consists of three phases: 15

(a) Setting expectations for employee performance (b) Maintaining a dialogue between supervisor and employee to keep performance on track. (c) Measuring actual performance relative to performance expectations.

Develop your own performance management system for that company keeping the above-mentioned points.
Proposed performance management system for KFC Currently their Human resource management system is not that much strong and it is obvious because when we asked from the HR manager of KFC that rate your companys HR then he said that I will give 3 points out of 5 to my company. If we take the example of north region which includes Punjab and NWFP, only three people are managing the performance of 2200 employees so it is not possible for them to efficiently manage people. Because there are so many issues that arise when people are working together. Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedbacks focus on behaviors and competencies more, than on basic skills, job requirements, and performance objectives. What 360 Feedback Surveys do not assess: 360 feedback is not a way to measure employee performance by objectives (MBOs. 360 feedback is not focused on basic technical or job-specific skills.

Organizational and employee objectives

One of the first steps in developing an effective performance evaluation system is to determine the organizations objectives. These are then translated into departmental and then individual position objectives working with employees to agree their personal performance targets. This allows the employee to know up front the standards by which his/her performance will be evaluated.

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Currently their performance management system has no proper method to evaluate the performance because we asked several times the HR manager about their evaluation method he told us that performance speaks for itself, so on the basis of this conception they reward and penalize their employees, no certain ranking criteria they are using so their employees are unaware of the criteria on which their performance is evaluated.

Training
A major aspect of developing an effective performance system is training for those individuals involved as raters. Currently KFC is not focusing on the training of its people and it can suffer from some problem in future. This training should start with a focus on providing the manager with a systematic approach to the practice of effective people management. This training needs to focus on the process of managing, motivating and evaluating employee performance because if the people who are going to assist others and they are accountable for the management of people working in the organization are not properly trained then how can they carry out good management? Performance appraisal is only a part of this overall process and it is important that managers see it within its wider context and not as a simple quick fix solution. Thus training should begin those levels of management that will be involved in administering the programme and providing training for lower levels of supervision. Once the senior managers have bought into the system, skills training are needed for junior managers and supervisors. This specific training should include at least the following: supervision skills; coaching and counseling; conflict resolution; setting performance standards; linking the system to pay providing employee feedback

records, and how to communicate all aspects of performance.

Frequency of appraisal

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Employee reviews should be performed on a frequent and ongoing basis. The actual time period may vary in different organizations and with different aims but a typical frequency would be bi-monthly or quarterly. Eliminating surprises in the appraisal process is also important. Both the supervisor and employee need to know that there is a performance problem prior to any major annual review. Currently they review the performance of operational staff after every three months and that of managerial staff after one year and this is not right they should at least review the performance of managerial staff twice in a year means after every six months. The longer a problem is allowed to continue, the more difficult it is to take corrective action and not always problem is with the operational staff and they should regularly evaluate the performance of managerial staff.

Use Multiplier rating while conducting the performance appraisal

In many systems, the front-line supervisor is responsible for conducting the performance review. However, a multiple rater system should be considered. So here we suggest that KFC should use Multiple rater systems because they provide a form of triangulation that results in ratings in which employees and managers have greater confidence. It may also be necessary to restrict the number of employees rated by any one individual especially in todays new, flatter organization in which spans of supervision may be 60 people or more. With large spans of control, several supervisors may work with an individual employee. The input from all supervisors about the employees performance is required to complete a thorough performance review.

Some suggestions for developing an appraisal

Developing an appraisal system that accurately reflects employee performance is a difficult task. Performance appraisal systems are not generic or easily passed from one company to another; their design and administration must be tailor-made to match employee and organizational characteristics and qualities. Performance appraisals are most commonly undertaken to let an employee know how his/her performance compares with the supervisors expectations and to identify areas that require training or development. Employees have a legitimate need to know how their performance is viewed. At a basic level, without adequate communication between the employee and the supervisor, undesirable work habits may be formed or good work habits may be 18

modified. Lack of such communication may be viewed by the employee as approval of their current work habits and performance. The supervisor also has a legitimate reason to conduct performance appraisals. Unsatisfactory performance needs to be conveyed in order to arrange for improvement. Indeed, if performance is satisfactory the supervisor wants to promote continued satisfactory performance. In either case, it helps to have a systematic framework to ensure that performance appraisal is fair and consistent.

Reward system based on Performance

In the system which we proposed for the KFC the reward system is based on performance. Not only the pay but other benefits and allowances also relate with the performance of the employees of the organization. In the proposed new system that is 540 degree the performance of the employees is strongly linked with the rewards system. KFC the new system is launched then it will provide the following advantages. It motivates the workers of the organization. Because they know that when they perform well only then they are given benefits and allowances. Linkage of current system with the performance management system of KFC Developing an appraisal system that accurately reflects employee performance is a difficult task. As we have looked at the appraisal system of KFC and its linkage, with the performance management system of KFC. Now we will look at the new appraisal system or the system which will also help the organizations to increase the performance and It motivates the workers of the organization. Because they know that when they perform well only then they are given benefits and allowances. It builds a good image of the organization in the industry. It helps to achieve the goals of the organization in the time frame. Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals. At KFC the goals and objectives are linked with the performance management system, it provides the following advantages to the company:

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efficiency of employees and its linkage with the performance management system of KFC. First of all if we set the objective of an individual and departments and then take the acceptance from them or ownership from them, it mean to find out whether they are willingly ready to do these task or not. If they take ownership then allow them to start work. Now supervisors are going to monitor their performance frequently through observations and feedbacks from them. On the other hand frequency of appraisal of managerial staff with in 6 month will help to determine the competencies of manager himself. If managers find out that there is any weakness in term of skills, capabilities and competencies then they can arrange coaching and counseling for them and training session for them to make competent. This will bring the employee on the right path and he or she can achieve the expected task. A different criterions of measuring performance, like 540 degree feedback will help to feedback from the stakeholders - Superiors, Subordinates. Peers, Internal and External Customers, Clients and Suppliers.

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