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

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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.

Reward and respect the contributions of each individual at KFC.

Expand and update training with time and be the best we can be and more.

Be open, honest and direct in our dealing with one another.

Encourage new and innovative ideas because they are the key to our

competitive growth.

Reward result and not simple efforts.

Dedicate ourselves to continuous growth in sales, profit and size of

organization.

Work as a team.

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HISTORY9/9/1890-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 world’s 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:

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Retail: spinney’s (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 FamilyYum! 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 Mexican-

style 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

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.

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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 (Operational Level)

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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

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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 company’s 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 KFC’s 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 ;

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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?

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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 KFC’s 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 employee’s 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

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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, performance-

based 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 appraiser’s 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 appraiser’s 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 employee’s 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 company’s 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.

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(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 company’s

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 organization’s 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.

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

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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

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

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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 employee’s 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 supervisor’s 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

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

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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.

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:

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 it’s 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

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

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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 criterion’s 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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