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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

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Human Resource Management

Of KFC

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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

knowledge.

Ms. Reshma Kukreja (Internal Guide)

Prof. Gopi Shamnani Dr. Padma V. (Coordinator, M.Com) Deshmukh (I/C Principal)

________________ External Examiner

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DDEECCLLAARRAATTIIOONN

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.

_______________

Mr. Hitesh Rohra

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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

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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.

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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

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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

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Introduction Of HRM

• Managing an organization’s workforce

– Training, assessment, rewarding and

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

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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

• Hiring

• Assessments

• Rewarding

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The Human Resource Cycle

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The Bad Side…

• Make sure employees are discipline

– Time

– Appearance

– Attitude

• Firing non-performing employees

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Definition of HRM

• 'Human capability and commitment'. Storey

argues that this is what differentiates

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.

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The Human Resource System

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Guest’s Model of HRM

• Linked to the strategic management of

an organisation.

• Seeks commitment to organisational

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

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The Harvard Model of Human Resource

Management

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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.

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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.

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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

role

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The HR Functions

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Traditional HR Functions

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The Context of HRM

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Changing environment of human resource

management

• Globalization trends

• Technological trends

• Trends in the nature of work

Workforce demographic

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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,

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

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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

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.

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PRODUCTS

• 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.

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KFC Human Resource Management

• Responsibilities:

– Responsible for all the human resource

functions such as policy, recruitment,

IR, performance evaluation,

compensation and benefit, and other

general admin matters.

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Recruitment & Selection

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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

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Training

“We won’t make you wing it” is KFC’s motto

when it comes to training employees.

-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

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Training and Orientation of the Company

• Christ Mendel , director of global risk management of

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

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employees using training manuals and product guides . In that

way , the

top management is assured that the KFC culture penetrates

another

culture effectively .

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KFC Job Description

• 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.

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• 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

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-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

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

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-Top 20 Store Managers attending a week long

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

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-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

• 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

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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.

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• 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

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

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time maintaining the convenience of the fast food

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:

• ( ) ( ) ( )

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• What type of item do you look for on the menu when you’re

eating at a fast food restaurant?

• ( ) Combo Meal ( ) Value Menu ( )

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

•

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• How familiar are you with KFC’s menu selection?

• ( ) Not familiar ( ) Somewhat familiar ( ) Very

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

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• Are you aware of the new, healthier options available at

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:

•

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• __________________________________________________________________

______

• 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

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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

for themselves.

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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

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.

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Biblography

• "Annual Report 2012". Yum! Brands. Retrieved

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.