EXECUTIVE SUMMARY

As we have prepared our report of KFC. It was a nice

experience to spend there 6 weeks as an apprentice.

Although 6 weeks period is not enough to learn all

practices performed by company because there is a lot to

learn but I got be familiar with about all practices with the

help of whole staff. While studying their system we came

to know their policies their history and their corporate

profile. We came to know about the rules and regulations

of the management that are being followed. It was a nice

experience of doing apprenticeship there due to their full

corporation.

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Background of the Company

K.F.C is an American based company. It was established in mid fifty when

Herland Sanders conducted business in United States with a prospective

Franchises about his colonel Sanders recipe K.F.C. He has also succeeded in

establishing a number franchises in all over the world.

The minority of KFC’s restaurant in Mexico & Poverto Rico were company

owned. However, KFC had established 21 new Franchises in Mexico by the

end of 1993. Now it has nearly 13000 outlet all around the world. KFC is a

fast food industry. It is introduced in Pakistan round about 2 years ago.

Firstly, KFC opened in Karachi and then after in Lahore. KFC has two

branches in Lahore, one is Garden Town and other is Cavalry Road.

KFC Corporation based in Louisville, Kentucky is the world’s most popular

chicken restaurant chain, specializing in original recipe, extra crispy and

colonel’s crispy strips with home styles slides. Everyday 8 million customers

are served around the world KFC Menu Everywhere includes original recipe

chicken made with the same great taste Harland Created more than a half

century ago. KFC is part of Tricon Global restaurants, which is the world

largest restaurant system with nearly 30,000 KFC.

Harland started LFC back in 1952 at the ripe age of 62. His recipe for the

best chicken in the world was made with a special cooking process and a

secret blend of 11 herbs and special the same secret blend that is used today

in KFC original recipe chicken. Today KFC has more than 11,000 units in

over 79 countries. Every week nearly 69 million customers come through

KFC do for the chicken.

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OUR MISSION

To maintain and enhance our position as the leading WQSR (West quick

service restaurant) chain serving good value, innovative chicken based products

through consistently location. At all times, we must be dedicated to providing

excellent service and delighting customer.

MISSION STATEMENT

KFC is an internationally renowned fast food industry in the world. They have the

main ambition to increase & maintain the quality in fast food industry. There main is to

capture the fast food market. Basically they want to provide their products to anyone that

is why they expending there branches in all over the world. They want to increase their

profit through giving maximum satisfaction and other better facilities to people that they

want.

Objectives

One of the major objective of KFC that they run their campaign in such a

way that KFC creates and image in the minds of customers that customers wants to

go in KFC and will be the first choice for the customers. KFC wants to become the

first choice because its they become the first choice it is excellent for the health of

the KFC business because if business is expands then there is eliminate scope and

the opportunity to get the maximum profit and utility.

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OUR VALUES

Dedicate our organization and our selves to excellent service and delighting

customer.

Focus resources to support restaurant operations because that is where we

service are customers.

Recognize and respect the contribution of each individual at KFC.

Expect each individual to achieve his or her fullest potential and provide

support to enable each person to meet the highest expectations of

performance.

Pledge to be open, honest and direct in our dealings with one another.

Adhere to the highest standards to personal professional of integrity at all

time.

Confront issues willingly but never attack personality.

Encourage new and innovate ideas because these gave keys to our

competitive growth.

View failed attempts as learning opportunity.

Reward result, not simple efforts.

Commit to deliver consistent growth and sales, profit and size of

organization.

Commit to teamwork as this surpasses individual effort.

Share information, ideas and credit broadly within the organization.

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ORGANIZATIONAL STRUCTURE

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M. D.

G. M.

H. R. DEPARTMENT MARKETING MANAGER FINANCE MANAGER

RESTAURANT MANAGER

FIRST ASSISTANCE

SECOND ASSISTANCE

TRAINING MANAGER

FLOOR MANAGER

CREW LEADER

CREW

CUSTOMER CARE OFFICER

Human Rights

KFC fully supports the United Nations Global Compact’s two guiding principles

on human rights. KFC therefore:

Supports and respects the protection

of international human rights within its

sphere of influence

(Principle 1)

Ensures that its own companies

are not complicit in human rights’ abuses

(Principle 2)

KFC aims to provide an example of good human rights’ practices throughout its

business activities and has an interest in encouraging the improvement of social

conditions, which are an important factor for sustainable development. KFC also

recognizes that governments are ultimately responsible for the establishment of a

legal framework for protecting human rights within their markets. KFC expects

each market to respect and follow the local laws and regulations concerning human

rights’ practices.

Human Resources and the Workplace

KFC also respects the local laws and regulations applicable to human resources in

each of its markets. Human Resource Policy is also set by the local markets, which

must follow local legal requirements.

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Child Labor

KFC believes policy development must take into account the social and legal

situation of individual countries.

Therefore, KFC:

Is against all forms of exploitation of children. The Company does not

provide

employment to children before they have reached the age to have

completed

their compulsory education, as defined by the appropriate authorities, and

expects

its business partners and industry suppliers to apply the same standards;

Abides by national laws in all countries in which it has operations and

complies with the International Labor Organization (ILO) Convention 138

on the Minimum Age for Employment and the ILO Convention 182 on the

Worst Forms of Child Labor. The ILO recommendations are based on the

United Nations Convention of the Rights of the Child (Article 32);

Offers its co-operation with the relevant United Nations agencies,

governments and the business community in their efforts to deal with the

problem of child labor, which include the encouragement of universal

primary education and all aspects of economic development worldwide.

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Business Partners

KFC aims to deal only with reputable suppliers who are willing to apply KFC

quality standards. Supplier relationships are benchmarked and evaluated with the

objective of striving for continued improvement in the areas of quality, service,

etc. As a relationship between a supplier and KFC strengthens and progresses, it

may evolve into one of preferred supplier status.

Protection of the Environment

Since its early days KFC has been committed to environmentally sound business

practices throughout the world and continues to make substantial environmental

investments. In this way KFC contributes to sustainable development by meeting

the needs of the present without compromising the ability of future generations to

meet their own needs. The KFC Policy on the Environment underlines this

commitment. KFC also adheres to the International Chamber of Commerce (ICC)

Business Charter for

Sustainable Development.

KFC fully supports the United Nations Global Compact’s three guiding principles

on environment. KFC therefore:

Supports a precautionary approach to environmental challenges

(Principle 7)

Undertakes initiatives to promote greater environmental responsibility

(Principle 8)

Encourages the development and diffusion of environmentally friendly

technologies

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•

HR Department

I worked with the Human Resource Department at the KFC. KFC being a human

company strongly supports the idea of giving their employees a comfortable

working enviorment.Its HR department is made to deal with its employees, who

are considered the most important asset of this organization.KFC consider Human

Resources as a Partner & Change Agent to enable Company Transformation.It was

this department that was assigned the task of driving the Transformational

Strategy:

This department keeps on updating their policies regarding the development of

their employees from time to time. They have translated their Business objectives

to be translated into Personal objectives .KFC considers their HR Department as

the driving force for bringing the evolutionary change within the organization.

They are responsible for the continuous checking and improvement of the

Developmental Centers as well as for the hiring , retaining and evaluation of the

employees, for conducing graduate programs, Developing Progress and

Developmental Guides.

The fact that KFC is more people and product than systems oriented is reflected in

the way HR is functioning and is organized. Processes and systems as well as

professional HR tools are there to support HR management but never to the

detriment of the human dimension. The human perspective should be present at all

times and under all circumstances. At KFC the HR function should report to the

manager responsible for a defined operation (Region, Market, Country, Factory)

with a functional relation to the market HR according to the size of that

operation.The HR manager should not only have the skills and competencies from

a purely professional standpoint but also have the charisma and the credibility to

be a trustworthy partner to her/his colleagues.

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Culture

Since it as founded, KFC has always shown a profound respect for the cultures and

traditions of all the countries where the company markets its products. It accepts

cultures and social diversity and rejects discrimination based on ethics, religion or

on any other grounds. Employees ho work at the KFCs headquarters’ come from

70 different nations. Culture within the organization is very professional and yet

flexible at the same time. Its policies, rules and regulations and inter departmental

culture is very open. Attitudes, behaviors and working environment are such that it

motivates and encourages other employees to feel comfortable and wanted in the

organization. Its a very friendly yet 30

professional organization. KFC people call themselves a family and thus keep their

working relations accordingly.

The broader the responsibility of a KFC Manager, the more the following specific

criteria should be considered, in addition to professional skills, practical

experience and result focus:

Personal commitment and courage. This includes the capacity and the

willingness to take initiatives and risks as well as to maintain composure

under pressure.

Ability to motivate and to develop people, addressing all those issues that

allow others to progress in their work and to develop their capabilities.

Curiosity and open-mindedness as well as a high level of interest in other

cultures and life-styles. This also includes a commitment to continuous

learning and improving, as well as to sharing knowledge and ideas freely

with others.

A taste for initiative together with the ability to create a climate of

innovation and to think outside the box. This implies the right to make a

mistake but also the readiness to correct it and to learn from it.

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Willingness to accept change and the ability to manage it.

Adaptability of thought and deed, taking into account the specificity and the

complexity of the environment.

Credibility as a result of coherent action, leadership and achievement.

International experience and understanding of other cultures.

In addition, broad interests, a good general education, responsible behavior as well

as fostering a balanced lifestyle is encouraged. Progressing in the organization,

regardless

of origin, nationality, religion, race, gender or age is practiced.

Review

At KFC HR managers and their staff are there to provide professional support in

handling people matters but should not substitute themselves to the responsible

manager. Their prime responsibility is to contribute actively to the quality of HR

management throughout the organization by proposing adequate policies, ensuring

their consistent application and coherent implementation with fairness. Acting as

business partners, the HR manager advises and offers solutions which results in

positive impact on the organization’s effectiveness.

While dealing with the employees the HR department employees keep in mind the

following things:

A prerequisite for dealing with people is respect and trust. There can be no

room for intolerance, harassment or discrimination of any kind as they are

the expression of an elementary lack of respect. This principle suffers no

exception and is to be applied at all levels and under all circumstances.

Transparency and honesty in dealing with people are a sine qua non for

efficient communication. Based on facts and on a sincere dialogue, such

transparency is the only solid basis for boosting continuous improvement.

This is to be complemented by open communication with the purpose of

sharing competencies and boosting creativity. It is particularly relevant in a

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flat organization to convey systematically all information to those who need

it to do their work properly. Otherwise no effective delegation or

knowledge improvements are possible.

To communicate is not only to inform. It is also to listen and to engage in

dialogue. Every employee has the right to an open conversation with

superiors or colleagues.

The willingness to cooperate and to help others is a required basis for

assessing potential candidates in view of a promotion.

In case of discord between an employee and her/his superior or another

employee, the possibility must be offered for a fair hearing. The HR staff

will provide assistance to ensure that the disharmony is dealt with

impartially and that each party has the opportunity to explain her/his

viewpoint regardless of hierarchical position.

Processes and systems as well as professional HR tools are there to support HR

management but never to the detriment of the human dimension. The human

perspective is present at all times and under all circumstances. The HR function

reports to the manager responsible for a defined operation (Region, Market,

Country, and Factory) with a functional relation to the market HR according to the

size of that operation.

The HR manager not only has the skills and competencies from a purely

professional standpoint but also have the charisma and the credibility to be a

trustworthy partner to her/his colleagues.

Whereas the HR function indeed provides flawless administrative support, its main

role is to add value to the business and to play a proactive role in every situation

where HR action is required. Specific HR KPI’s are useful in assessing the

performance of an HR unit. However, it should be kept in mind that the HR

contribution aims in the first place at optimizing the overall company performance

through improving people performance.

With the evidence that the human capital is of increasing importance, HR plays

indeed a pivotal role in the conception and implementation of the people strategies

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that impact financial results and the organization’s overall reputation and

effectiveness.

The basic functions of HR at KFC Pakistan are

Job Analysis

The person in charge of the Department usually the manager decides what

qualification. Skills and abilities are required to perform that particular job

successfully. This is done by the line manager of the vacant position. They tell

their requirement to the Hr Department and based on those requirements ads are

published in the newspaper. Job specification and job description is given by the

line managers to the HR Managers.

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Human Resource Planning

HR Department of KFC is responsible for making on the all plans regarding

employees and the basic organizational structure. Their basic plans involve:

Inspiring Management

Flat & Flexible Structures

Long-Term Development

Dynamic Compensation

Life-long Learning

HR has planned a new approach for employee development. This new approach

includes

translating Business objectives into Personal objectives. It rather than only

focusing on the WHAT but also on the HOW to deal with different situation that

employee might face and how to train them properly. It Focus on development and

dialogue and it does not rate the employees but evaluating the "Nature of the

Contribution"Trails / Acquires / Masters / Steers / Transforms. It does not involve

any mechanic link with salary.

Leadership Framework has also been developed which mainly focuses on

Recruitment And Selection

The long-term success of the Company depends on its capacity to attract, retain

and develop employees able to ensure its growth on a continuing basis. This is a

primary responsibility for all managers. The KFC policy is to hire staff with

personal attitudes and professional skills enabling them to develop a long-term

relationship with the Company. Therefore the potential for professional

development is an essential standard for recruitment. Each new member joining

KFC becomes a participant in developing a sustainable quality culture which

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implies a commitment to the organization, a sense for continuous improvement

and leaves no place for complacency. Therefore, and in view of the importance of

these KFC values, special attention is paid to the matching between a candidate’s

values and the Company culture.

Moreover, for managerial positions specific leadership qualities and business

acumen will be required. KFC wishes to maintain and develop its reputation as an

employer of high repute. Contacts with universities, attendance at recruitment

events and other contacts are to be undertaken so as to ensure good visibility of the

Company vis-à-vis relevant recruitment sources. Particular care is given to the

treatment of each candidacy regardless of the outcome of the selection process.

Even when promoting employees intensively from within the organization, it is the

role of management and HR to keep an eye on valuable candidates from outside

and to benchmark internal skills with external offers.

Whilst adequate recruitment tools may improve the hiring process, it is understood

that the decision to hire a candidate remains in the hands of the responsible

manager supported by the HR staff. Under no circumstances the decision to hire or

not to hire is left in the hands of an outside consultant or expert.

As mentioned in the KFC Management and Leadership Principles, only relevant

skills and experience and the adherence to the above principles will be considered

in employing a person. No consideration is given to a candidate’s origin,

nationality, religion, race, gender or age. It is as important to hire the right person

as it is to integrate newcomers in the organization so that their skills and behavior

can merge smoothly with the company culture. Whereas from new employees it is

expected to respect our company’s culture, it is accordingly required from all

employees to show an open mind towards new ideas and proposals coming from

outside.

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Orientation

Orientation takes place at KFC at two levels. One is for management staff hired to

work at the Head Office and the other is for the non management staff.

At the head office all the newly hired employees are given full orientation

Arranged by the HR department. Managers from different departments brief

the employees about their departments. Orientation can be for as long as 1

to 6 months. Employees are also sent at the factories for a month or so. This

helps them in understand the function in a far better way.

Non management staff is mostly hired in cities other than Lahore so they

are given orientation by the line managers. Their orientation is also done by

giving them the presentation of each department recorded on a CD

containing all the information about the company.

Training And Development

Learning is part of the Company culture. Each employee, at all levels, is conscious

of

the need to upgrade continuously her/his knowledge and skills. The willingness to

learn is therefore a non-negotiable condition to be employed by KFC. First and

foremost, training is done on-the-job. Guiding and coaching is part of the

responsibility of each manager and it is crucial to make each one progress in

her/his position. When formal training programs are organized they should be

purpose oriented and designed to improve relevant skills and competencies.

Therefore they are proposed in the framework of individual development

programs. As a consequence, attending a program is never be considered as a

reward. Adequate training programs are developed at the level of each

Operating company capitalizing on the availability of local, regional or global

resources of the Group.

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It is the responsibility of HR staff to assist the management in the elaboration of

training programs. Great importance is attached to programs enhancing the

language skills of the employees.

Training programs organized at the International Training Centre Rive-Reine aim

at developing and sharing best practices of the various management disciplines

practiced in the Group. They also strive to strengthen corporate cohesion as well as

to promote networking throughout the Group. Training programs should, as much

as possible, be based on action learning and reduce ex-cathedra teaching to the

strict minimum.

It is necessary to make optimal use of re-learning programs as a complement to or

a substitute for formal training programs. According to needs they should be made

available at shop floor level and enlarge the access to training. It is the role of each

manager to assess progress achieved as a result of training programs. Assessing

and Developing. Each employee is in charge of her/his own professional

development. However, the Company endeavors to offer the opportunity to

progress for those having the determination and the potential to develop their

capabilities.

Regular counseling and guidance are the best tools for improving performance and

for helping people develop their skills. It also allows to correct errors swiftly and

to transform them into a positive learning experience. In an organization with flat

structures this supports better delegation. Direct personal contact should always

been given preference over written communication whenever possible. Each

manager has the duty to actas a mentor for his employees.

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Appraising And Managing Employees

Promotions will exclusively be based on competence, insight, performance and

potential with the exclusion of any consideration for origin, race, nationality,

gender, religion or age.

Flexibility is a requirement for ensuring a positive professional evolution. Staff

may be requested to move to other positions. Managers, especially international

staff, may

be asked to move to other locations. International experience and participation in

group development initiatives such as GLOBE, SMPT and others is acquired in all

countries of the Group and are a requirement for holding high-level positions. The

development of expertise in specific areas of competence is determinant for the

Company’s success. Therefore job rotation should be practiced with caution.

Whilst job rotation might be useful under certain circumstances, it should not

result in weakening our expertise in key areas. Efficient performance management

emphasizing the achievement of agreed objectives is a prime responsibility for

each manager. The necessary time is dedicated to the monitoring and the follow-up

of the progressive achievement of objectives during the year.

This feedback is meant to stimulate performance and should take place through an

open dialogue based on mutual trust and willingness to progress. It is requested to

provide written evidence of such meetings. Focus should be essentially on

continuous improvement, appropriate training measures but also on shaping a

stimulating working environment. In case of serious underperformance, a

termination of employment should be envisaged. Such termination is handled with

due respect of the person and should include, where appropriate, separation terms

that take into account the employee’s personal situation. When assessing potential

it is kept in mind that the best indicator of talent is achievement. Therefore

responsibility is given as early as reasonable to allow people to prove themselves.

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Compensation And Benefits

KFC favors competitive, stimulating and fair remuneration structures offering an

overall competitive and attractive compensation package. Remuneration includes

salary, any variable part of remuneration as well as social, pension and other

benefits. Each operating company will establish a compensation practice taking

into account relevant external compensation levels as well as the requirement of

internal fairness. It is recommended to undertake regular surveys so as to gather

relevant information on the remuneration levels practiced at a local or national

level.

KFC’s policy is to strive to position itself as an employer offering remuneration

levels above the average of the relevant benchmark. KFC reviews regularly its

competitive position with other companies so as to keep in line with the market

trends. However, the evolution of remuneration is in the first instance determined

by the capacity of the Company to improve its productivity. Wage and salary

structures should be kept simple and avoid unnecessary complexity so as to

provide effective compensation and reward.

Remuneration structures should specifically facilitate the implementation of flat

organizational structures and be flexible so as to be able to adapt to the evolution

of the market conditions. This means broad spans allowing sufficient flexibility to

effectively reward high professional insight and performances as well as individual

potential.

It is the responsibility of each manager to propose, within the framework of the

company policy, the remuneration of her/his employees, taking into account the

local market, individual performance, skills and potential for development. It is

also the responsibility of each manager, if needed with the support of HR

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management, to communicate properly, clearly and with sufficient transparency,

the individual remuneration

of each staff member taking into account her/his professional performance and

her/his specific responsibilities.

The quality of communication in these matters is an essential part of the dialogue

that each manager will have with her/his employees on remuneration matters.

Specifically at management level, the variable part of the remuneration may be

substantial. This part is linked to a combination of group, business and individual

or team target achievements. The higher the remuneration level, the more

important will become the variable part. It is realised that, however important

remuneration is for each employee, it is not remuneration alone that will stimulate

the motivation of the staff. The HR management sees to it that the implementation

of the remuneration policy is fair throughout the organisation and that its spirit is

duly reflected.

The benefits offered to the staff at KFC are:

Management Staff

1. Provident Fund

2. Pension Fund on employee’s request

3. Gratuity

4. Leave Fair Assistance

5. Marriage gift scheme once in a service

6. Baby feeding scheme

7. Annual leaves for 15 working days in a year

8. Casual leave 10 working days in a year

9. Casual leave encashment

10. Medical leave 10 days in a year

11. Medical allowance

12. Hospitalization from panel hospitals

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13. Meal subsidy for field staff upto group 1

14. Shift allowance

15. Family day gift once in a year

16. Eid gift on both Eids

17. Company maintained car to group 3.3 managers and above

18. Vehicle Maintenance allowance for Group 2 employees having non field

car loan on production of receipts

19. Relocation package: As per group entitlement

20. Life Insurance: Under group life insurance policy as per group entitlement

21. Hajj Balloting: After 5 years service through balloting

22. Pick and drop service: For factory staff where such facility is available

23. Car loan facility

24. Maternity leaves for female employees

25. 2 pair of shoes per year to only team leaders, engineers & quality assurance

team

26. 2 uniforms per year to only team leaders, engineers & quality assurance

team

27. Bonus as per company policy

28. Incentive to sales staff as per H & O Sales Policy

29. Scholarship Award Scheme

Non- Management Staff

1. Provident Fund

2. Gratuity

3. Leave Fair Assistance

4. Marriage gift scheme once in a service

5. Baby feeding scheme

6. Annual leaves for 14 calendar days in a year

7. Casual leave 10 days in a year

8. Casual leave encashment

9. Medical leave 8 days in a year

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10. Meal subsidy for field staff

11. Shift allowance

12. Family day gift once in a year

13. Eid gift on both Eids

14. Relocation package: As per group entitlement

15. Life Insurance: Under group life insurance policy as per group entitlement

16. Hajj Balloting: After 5 years service through balloting

17. Pick and drop service: For factory staff where such facility is available

18. Fair price shop: If available at site

19. Subsidized meal facility for factories if already available

20. Motor cycle loan facility for non management

21. Maternity leaves for female employees

22. Hospitalization though insurance company

23. At least statutory 10-C bonus

24. Attendance allowance

25. 2 pair of Shoes per year: For non management except field staff

26. 2 Uniforms per year: For non management except field staff

27. Incentive to sales staff as per H & O Sales Policy

28. Scholarship Award Scheme

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