Pizza hut hrm

Human Resource Management

July-12-2005

Presented By:

Najeeb Ullah (2057)

Madah Hussain (0050)

Arslan Asghar (2069)

Mubeen Ahmad (2071)

Rashid Hassan (2053)

Khuram Baloch (0106)

Presented To:

Prof. Ossama Fazal

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Principles of Management

HRM of Pizza Hut and how it effects all Managers


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Introduction

Pizza Hut was initiated in the year June 13 ,1958 by 2 brothers Dan and Frank Carney in their hometown of Wichita, Kansas.

It is an American restaurant chain and an international franchise.

Pizza Hut offers different styles of Pizza along with side dishes including Starters, Soups & Salads, Pastas, Sandwiches, Desserts and Beverages. Pizza Hut is a subsidiary of Yum! Brands,-Inc. the world’s largest restaurant company. More than 6000 Pizza Hut restaurant in USA.

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Introduction

More than 12,000 restaurants across 100 countries. Serving 1.7 million pizzas everyday to more than

seven million customers. Employing more than 300,000people.


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Welcome to Pizza Hut Pakistan

• Pizza Hut initiated its operations in Pakistan with its first restaurant way back in 1993 in Karachi.

• Chain consists of over 40 outlets spread all across Pakistan.

• The largest restaurant chain in Pakistan.• It has its 40 outlets in 9 different cities of Pakistan that

include:• •Rawalpindi• •Islamabad


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• Peshawar

• Lahore

• Faisalabad

• Sialkot

• Multan

• Hyderabad

• Karachi

• As of 2009, Pizza sales in Pakistan generate over $2 billion annually, which is the second largest pizza sales revenue in the world after the US.

• Pakistan has the world's largest Pizza Hut store in Karachi with a seating capacity of over 5,000 people.


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Vision.“To improve the well being of our customers, community and people connected to our enterprise. Run-Great-Restaurants.’’

1. Be the best employer for people in each community around the world.

2. Deliver optional excellence to customers in each restaurant.

3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of Pizza Hut’s system through innovation and technology.

To achieve their vision they are focused on three world wide strategies:

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Pizza Hut’s HR Vision

“HR team, fully committed with Pizza Hut members, strives to foster a work environment that attract and inspires excellence in people, so that together we realize the Plan to Win”.


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Principles Of Management

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Pizza Hut Objectives

• Pizza Hut objectives is to attain QSCV at all of its restaurants, where:

• · Q is Quality• · S is Service• · C is Cleanliness• · V is Value


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Human Resource management

Country HR Manager says:

“HR means keeping a balance between employer & employees because it is our strong belief that it is people, not machines, which make the difference.”

Objective

“To satisfy the internal customers because they are the window to the external customers.”

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Designing of Job

Mission Statement:

"We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!"

Country HR Manger says:

“We actually blended the business needs of our local business with the international guidelines, then create the job and accountability profile and define the scope of the work and responsibilities.”

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Job profile of a Restaurant Manager • A Restaurant Manager is responsible for running an independent restaurant.

• Training, motivating and leading a team of 50-100 employees.

• Independently managing the restaurant's operations in terms of sales, profitability and community relations.

• Delivering 100% Total Customer Satisfaction to every customer.

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HR Department Activities

• Recruitment and Derecruitment

• Training and Development

• Performance Appraisal

• Employee Benefits

• Incentives

• Medical Cover

• Welfare amenities

• Health & Safety

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Recruitment & Selection

Mission Statement:

“Some people wait for the future. Some push it along. We don't have waiters.”

Core Values

At Pizza Hut, people are the most important factor. They seek only those people, who can think, feel, express themselves, learn, teach and hence grow. Their growth is the company’s growth.

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Fresh People:Pizza Hut provides thorough In-house training to fresh people relatively inexperience people. Hiring people having no previous work experience also helps them greatly in adjusting to the distinct culture of the organization.

Justified Selection: The selection is entirely based on merit which conforms the selection criteria without any bias towards gender, religion, race, color, nationality, age.

Core Values

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Role of HR Department• Develop guidelines and procedures.

• Provide recruiting services and staff support.

• Council Restaurant Manager to make final employments decision.

• Provide basic training to newly hired employees.

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Types of Recruitment

• Internal

• External

Sources in Internal Recruitment

• Job Posting

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• Advertisements in Print Media

• Advertisements on website

• Internship Programs

Sources in External Recruitment

Pizza Hut advertisement depending on the vacancies as the need arises.

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Selection Procedure1. Screening of ApplicantsAfter building a pool of candidate’s applications, short listing of selective applications is done by the HR manager.

2. Written TestThis is the written test. The reason for the written test is to assess that whether the recruits are able enough to fulfill the general practical requirements of the job.The HRM department designs and conducts the tests as and when hiring needs arises.3. Initial InterviewThe ONE to ONE interviews conducted by Restaurant Manager.

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4. O-J-EShort listed candidates undergo 3 to 10 day OJE at a Pizza Hut restaurant which provides the candidate with an opportunity to look at as a potential employer. It also gives Pizza Hut a chance to observe and assess the candidate's performance.

5. Reference ChecksThey look at the references that have been provided by the candidate, they check if the references are valid or not.

6. Final InterviewCandidates who have passed their OJE are called for the final interview. Interview is done by a panel of three or four interviewers.

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Orientation• Provides new employees with basic background information they need to perform their job satisfactorily.

• New employees get a handbook:-- Working hours- Performance reviews

- Vacations - Employee benefits - Personnel policies - Safety measures and regulations

The orientation is performed by the HRD Manager and the employees are introduced to their supervisors.

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Training & Development

According to training coordinator Awais Skeikh:

“Training is an important part for our employee’s work experience and starts as soon as he joins the Pizza Hut team. Crew Trainers, Managers and other employees will work shoulder to shoulder with him. Training programs are ongoing with new things to learn all the time.”

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Types of Training

1) On the Job Training:Every day, around the world, restaurant members receive on-the-job training and coaching in skills and procedures essential to their work.

2) Classroom Training:Classroom courses, developed and led by training experts, prepare outstanding restaurant employees for advancement.

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Types of Training

3) Computer-Based Training:New computer-based training system is bringing interactive learning experiences to crew members and managers right in the restaurants.

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Levels of Training

1) Crew Member’s Training:At Pizza Hut, training never stops. Crew members are trained extensively on all food safety and food handling processes. Trainees work while they learn the operational skills necessary for running each of the 23 positions in restaurant - from front counter to the grill area.

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2) Manager’s Training:Pizza Hut is dedicated to professional training and development. The average Pizza Hut restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.

Levels of Training

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Conclusion about the Training

"Part of training focus ensures that every one of our employees, from regional managers to crew members, understands Q, S, C and V - quality, service, cleanliness and value.

Mr. Awais Shiekh says "That's what brings people into our restaurants day-in and day-out. Our training also shows them how to serve one pizza to one person at a time, hundreds of times a day."

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Specific Training Courses

1. Floor Management Course (FMC):The FMC is geared towards improving the trainee's ability to deliver Q,S,C & V as a Floor Manager.

2. Management Development Program (MDP): The MDP series is designed to help you become the most effective c . manager that you can be.

3. Operations Consultant Course (OCC)

4. Training Consultant Course (TCC)

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Performance Appraisal

"None of us is as good as all of us."

According to Country HR Manager:

“To embed our values, we give our people 360-degree evaluation, with inputs from superiors, peers, and subordinates. These are the roughest evaluation we get, because people hear things about themselves they’ve never heard before.”

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Performance Review is a formal process in Pizza Hut twice a year where each employee is evaluated in order to determine how he or she is performing. The appraisal process in Pizza Hut includes PA forms for every particular job which involves:

-International Pizza Hut standards.

- Assessing the employees’ actual performance relative to these standards.

- Providing feedback to the employees.

Performance Appraisal Process

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Out Standing

Excellent

Good

Need Improvement

Levels ofPerformance Appraisal

After giving the total grade to the employee the appraiser writes down about the strength and the areas needing improvement of the employee.

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Incentives

“The best results come when we combine profit sharing with greater worker involvement and give employees information about the Company’s financial performance.”

1. Cash Based

2. Non Cash Based

Types of Incentives

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Cash Based Incentives

• Attendance Allowance

• Annual Allowance

• Medical Allowance

• Leave Fair Assistance [LFA]:Once in two year managerial level employees are allowed to choose any area for tourism in Pakistan with family for 10 days.

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• Crew of the Year

• Crew of the Month

• Branch of the Year

• Employee of the Month

• Merchandise

Non Cash Base Incentives

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Benefits

When employee joins the Pizza Hut management team, he will receive the following:

Profit Sharing: Profit will be share as according to company policy.

Vacation:Increased vacation time per years of service.

“We know we can’t afford everything for every one but neither do we deny to any one.”

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Leaves: Pizza Hut employees can also apply and obtain a leave of up to two months for personal reasons or to study for examinations or school projects.

Company Car:Restaurant managers are eligible for a company vehicle after only three years of service.

Educational Assistance:Pizza hut offers an educational assistance program for its employees.

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Social Activities: Enjoy a variety of activities with his team which could include an annual Convention, summer picnic or outing, Eid Party etc.

Uniform: All the employees accept those working in the offices are given uniforms.

Flexible hours: The restaurant opens for business 18 hours a day and that means work at Pizza Hut can fit into anyone's schedule. Schoolwork, family or personal activities can be scheduled around working hours.

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Workplace Safety

“Pizza Hut restaurants have workplace safety programs in place to ensure that Pizza Hut high safety standards and procedures are clearly communicated and reinforced day-to-day. As an important member of Pizza Hut team, Employee will be taught to identify and report any potential hazards and encouraged to suggest ways that health and safety can be continually improved.”

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Separation/Firing:Reasons:

1)Disciplinary:

Violation

Stealing

Confrontation

2) Performance:

Poor Performance

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Country HR ManagerAwais SheikhMessage

“People are hired on the basis of their personality traits (i.e. education, family, social class, style, experience, etc), but are fired due to character traits (i.e. dishonest, cheater, untruthful, corrupt, etc.)”

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• As we know there is increasing trend in fast food industry and people are more conscious about their health. Similarly Pizza Hut should open as many branches in other cities of Pakistan like Gujranwala, Sargodha, and other cities like these. So it should develop the market for its products, only in this way it can maintain its competitive advantage over its competitors like domino’s.

• Pizza Hut in Pakistan has not using computer technology to a large extent. They should focus on this factor to improve there overall performance.

Recommendations

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• Similarly Pizza Hut should go for its own cattle/vegetable farm in Pakistan so it will reduce its input cost and it will lead to lower market price of its products as compared to its competitors. By this type of diversification Pizza Hut can also save its time And can improve the quality because if the inputs are fresh, they can have more quality products.

• They even not make their website. They should make their website so that people should be keeping in touch with new changes occurring in the Pizza Hut.

• There is need to change in the culture of the Pizza Hut its culture is bureaucratic it should be clan culture because it realizes the creativity of employee to

respond to changing taste.


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• Pizza Hut is doing a good job internationally and nationally. They introduce new taste in pizzas according to their locations i.e. where they are situated. They are basically concern with successful production and service and profit. They want to take advantage of their customer. In Pakistan the performance of Pizza Hut is very well. In Lahore, three outlets of Pizza Hut are working. They maintain their international standard by giving good service to their customers. Over all performance of Pizza Hut is superior.


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Conclusion:


ThankYou

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Business

Pizza hut hrm