Professional Documents
Culture Documents
KFC Kentucky fried chicken is one of the most known fast food chain in the world started in
early 1930s by kernel senders in southern USA as a small franchise operation. It is the project of
Mackenzie Restaurants International limited.
Food, fun & Festivity, this is what KFC is all leading the market since its inception; KFC
provides the ultimate chicken meals for a chicken loving nation. Perfecting its secret
recipe of 11 herbs and spices in 1939, KFC has come a long way. KFC was acquired by
Pepsi co in 1986. With over 11,000 outlets in 80 countries and territories around the
world, KFC has maintained its title, for being the chicken Experts.
First KFC outlet was opened in Gulshan-e- Iqbal in 1997. KFC wore the title of being the
market leader in its industry. Serving delicious and hygienic food in a relaxing
environment made KFC everyones favorite. Since then, KFC has been constantly
introducing new products and opening new restaurants for its customers.
Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore,
Gujranwala, and Sukkur & Muree) with more than 60 outlets nation-wide. In Pakistan all
chicken provided is 100 % Halal.
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Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000
individuals directly dependent in KFC Pakistan.
The Government of Pakistan receives over Rs.10 million per month from KFC
Pakistan as direct taxes.
95% of all food and packing material used in KFC Pakistan is procured locally,
which sums up to a purchase of over Rs.35 million per month.
Each new outlet developed by KFC Pakistan costs approximately Rs.40 million,
which is a huge amount for our construction industry.
KFC and Pakistan are Growing Together.
Its rich history began with its founders vision and their commitment to be peoples'
favorite place and way to eat with inspired employees who delight each customer with
unmatched quality, service, cleanliness and value every time. The business was started in
1940 by two brothers DICK and MAC MCDONALD in San Bernardino. Formed in
1954, McDonald's brand is the leading global foodservice retailer with more than 30,000
local restaurants serving nearly 50 million people in more than 120 countries each day.
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Aiming to be the world's best quick service restaurant experience, McDonald's started its
operations in Pakistan in 1998 and is a leading fast food service retailer for its valued
customers. With a strong belief in the phrase when it's green it's growing, McDonald's
Pakistan is growing with the focus to provide friendly and quick service restaurant
experience to their customers. Currently McDonald's Pakistan is operating in various
cities of Pakistan I-e Lahore, Faisalabad, Karachi, Hyderabad, and Islamabad &
Rawalpindi with the plans to cover the customer base in various other cities of the
country.
McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office
in Lahore and the main Head Office in Karachi. They are operating with a network of
restaurants to reach our customers for providing friendly services in all different regions
of the country.
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Food, Fun & Festival, this is what KFC is all about .KFC provides the ultimate chicken
meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipe Chicken
or the Hot & Spicy Version, every bite brings a YUM on our face. At KFC we can
proudly say, We Do Chicken right.
To be the world's best quick service restaurant experience, Being the best means
providing outstanding quality, service, cleanliness and value, so that their food makes
every customer in every restaurant smile .
KFC mission is to establish its position as the leading WQSR (Western Quick
Service Restaurant) chain, serving good value, and innovative chicken based
products. KFC is consistently providing a pleasant dining experience with fast
friendly service in a clean and convenient location. At all times it must be dedicated
to providing excellent service and delighting customers.
McDonald's mission is to be their customers' favorite place and way to eat with inspired
people who delight each customer with unmatched quality, service, cleanliness and value
every time.
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Providing customers unparalleled levels of Quality, Service, Cleanliness and
Value.
Committed to people because knowing that diverse team of well-trained
individuals, working together, is the key to our continued success.
Give back to the communities in which we do business.
Celebration of achievements, yet always strive to achieve new heights.
Believe in the McDonalds System.
Growth of the business profitably.
Strive continually to improve.
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Products:
1. Burgers
2. Arabic Rice
3. Fruit Salad
4. Corn on the cob
5. Scoop of Walls
6. Fries
7. Hotshots
8. Rice Spice
9. Chicken Meals
10. Soft drinks
Services:
1. Self-Service System
2. Home delivery
3. Mobile van
Products:
1. Burgers
2. Chicken sandwiches
3. French fries
4. Soft drinks
5. Desserts
6. Salads
7. Breakfast items
8. Milkshakes
9. Coffee
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Services:
1. Self-Service System
2. Drive-In through Service
McDonalds
Subway
AFC
Mr. Burger
KFC
AFC
Subway
Mr. Burger
Support:
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Optimistic Working Environment:
Creating and running an energetic and valuable work environment, to commit employees
to serve the best to the customers.
Competitive compensation:
Get the competitive edge in providing compensation to employees.
Every employee is consistently treated with dignity and respect. All employees are valued
and recognized for their contribution to the organization.
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Every employee is a leader who listens and communicates openly and honestly and every
employee acts in the interest of all other people who contribute to the success of the
business, including customers, owner, and suppliers.
Total Compensation:
To recognize people part in business success, Pay and Rewards program follows a Pay-
for-Performance philosophy, the better results produced by employees, the greater pay
opportunities.
Employees has the opportunity to advance in skill, contribution and career level through
high-quality training, coaching and feedback.
It is ensured that a comfortable place to work with access to the materials, equipment and
information has been provided to do the job.
Since its inception, KFC has evolved through several different organizational changes.
These changes were brought about due to the changes of ownership that followed since
Colonel Sanders first sold KFC in 1964. In 1964, KFC was sold to a small group of
investors that eventually took it public. Heublein, Inc, purchased KFC in 1971 and was
highly involved in the day to day operations. R.J. Reynolds then acquired Heublein in
1982. R.J. took a more laid back approach and allowed business as usual at KFC. Finally,
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in 1986, KFC was acquired by PepsiCo, which was trying to grow its quick serve
restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut, and KFC. The PepsiCo
management style and corporate culture was significantly different from that of KFC.
G. M.
H. R. MARKETING FINANCE
RESTAURANT
MANAGER
FIRST ASSISTANCE
SECOND
ASSISTANCE
Organizational structure:
TRAINING
MANAGER
FLOOR MANAGER
CREW
LEADER
CREW
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CUSTOMER CARE
OFFICER
MacDonalds
HR Department of KFC is responsible for making all the plans regarding employees and
the basic organizational structure. Their basic plans involve:
Inspiring Management
Flat & Flexible Structures
Long-Term Development
Dynamic Compensation
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Life-long Learning
KFC
Marketing
Project
Quality Assurance
Finance
Operational
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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, and 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.
HR has planned a new approach for employee development. This new approach includes,
translating the 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.
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Functions of HR department:
Training and retaining
Reward for good performance
Maintenance of industrial peace
Employee communication system
Performance management
Restructuring to create business specialization
Creation of shared vision and values
Establishment of fair HR policies
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Share in the organizations affairs
Creation of competitive edge
Using workforce as major input to flourish business
Organizational structure:
M. D.
G. M.
RESTAURANT
MANAGER
FIRST ASSISTANCE
SECOND
ASSISTANCE
TRAINING
MANAGER
FLOOR MANAGER
CREW
LEADER
CREW
CUSTOMER CARE
OFFICER
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Departments of the Organization:
Finance Department
Human Resource Management
Marketing Department
Operation Department
IT Department
Functions of HRM:
The functions of HRM in McDonalds are:
Establishing major policies that cover the place and importance of people in
McDonald's.
Responsible for pay rate system and supervision implementation of health and
safety laws, etc.
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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.
McDonalds has many employees who are working on different posts and are working
hard according to their own capacity. McDonalds conducted job analysis in order to hire
new employees at every year that sometimes on quarterly basis. This also enables
management to have a better understanding of the jobs and duties being performed at
every level and also helps them in training the people who are freshly recruited.
McDonalds applies the basic methods of Job analysis by which HRM can determine job
elements and the essential knowledge, skills and abilities for successful performance
methods.
McDonalds uses the following job analysis methods according to their jobs:
Observation Method
Interview Method.
Questionnaire Method.
The job analysis is used to generate a job description, which defines the duties of each task,
and other responsibilities of the position. The description covers the various task
requirements, such as mental or physical activities; working conditions and job hazards.
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Office jobs:
For office jobs Job Description is named as Category Profile
Restaurants jobs:
Trainee managers:
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Flexibility to adapt to a diversified work culture
Customer orientation with a positive attitude towards provision of quality
services.
Crew members:
The job
specification describes the person expected to fill a job. It details the knowledge (both
educational and experiential), qualities, skills and abilities needed to perform the job
satisfactorily. The job specification provides a standard against what to measure; how well
an applicant matches a job opening and it should be used as the basis for recruiting.
Job specification as per job:
In McDonalds the Job specification is written under heading known as Profile and
Competency Level
Office jobs:
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Initial entry level:
Restaurants jobs:
Trainee manager:
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Age: 28 years maximum
Gender: Male or Female
Crew members:
Qualification: Intermediate
Experience: Fresh candidates
Age: 18-25 years
Gender: Male or Female
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Recruitment refers to the process of attracting, screening, and selecting qualified people
for a job at an organization or firm. Recruitment is the first part of the process of filling a
vacancy. 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.
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
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 candidates values and the
Company culture .KFC recruitment process is decentralized. 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.
Internal recruitment:
KFC also believes in promoting from within, as it encourages employees to perform well
on their jobs. They publicize their jobs on site www.jobswithkfc.com
External recruitment:
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. Their external recruitment includes
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Attendance at recruitment events and other contacts are to be undertaken so as to
ensure good visibility of the Company
News paper is used for whole country
Local media is used for specific city
Cable network
Banners
Recruitment is also done through internet
When KFC was looking for senior executives who could run a business, for two years it
scoured the management teams across various industries and offered senior executives of
companies like Coca Cola attractive benefits and a better salary scale to get them on the
team. These executives were promised quick advancement on their jobs, and apparently
given such incentives to join that most of the people offered jobs joined KFC even though
they were told before hand that at immediate present, no senior position was vacant.
Internal Recruitment:
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For the executive posts McDonalds follow a succession planning technique where they
recruit their managers or senior employees to executive level on the basis of their
performance.
External recruitment:
Recruiting via internet .McDonalds has its own site where they publicize for the
jobs and offer people to send their CVs through online process and often recruit
employees from their.
Selection is a process of picking individuals (out of the pool of job applicants) with
requisite qualifications & competence to fill jobs in Organization.
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There are 3 shifts operated in KFC
Morning Shift
Evening Shift
Night Shift
According to KFC Management and Leadership Principles, only relevant skills and
experience and the adherence to the principles will be considered in employing a person.
No consideration is given to a candidates 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 the companys culture, it
is accordingly required from all employees to show an open mind towards new ideas and
proposals coming from outside. The selection process involves the following:
Initial screening
Test
Interview
Initial screening:
The application received through various sources are screened according to job
requirement
KFC test:
By using pre-employment tests KFC has not only saved valuable time, but also made sure
they hire the best candidates for their organization. Three major tests are included
Skills test
Behavioral test
Physical test
Skills test:
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This test includes the tests that measure reading and writing skills. These skills most
utilized by employees. The writing test evaluates the candidate for a number of structural
and logical skills based on an essay composed by the candidate. This results in further
insight, beyond the writing skills score, as to how the candidate feels about the topic and
how it pertains to the job. The reading test requires the candidate/employee to read a
number of passages and answer questions based on these passages to determine their
level of comprehension
Behavioral test:
They are also used to evaluate employees and teams of employees. The behavioral
assessments can build benchmarks to compare potential employees.
Physical test:
Physical test will be designed to measure your ability to perform typical tasks. Potential
candidates before employment take a medical or physical examination. They might reject
the potential employee if the exam shows that he or she cannot perform the essential job
functions with or without a reasonable accommodation
KFC Interview:
Both structured and unstructured interviews can be conducted and final decision about
the candidate selection is made.
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Initial screening:
In initial screening McDonalds collects the application forms of candidates from their
Website online and also by Mail or Fax and than they choose those applications which are
according to their job requirements and call those candidates for further process.
McDonalds Test:
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Interview:
Paneled interviews are taken from the candidates and the panel consists of the HR
manager and the head of the particular department for the interview is being conducted. If
an interview for an important post has to be done for a function head then the GM
himself indulges into it and performs a combined interview.
All candidates after formal testing are called for the final interview. This is where the
final and overall assessment of the candidate takes place and selection decisions are
made. McDonalds employ Structured or Directive Interview content; the managers first
make a set of proper Questionnaires related to job and also predetermine their answers
and ask those questions from applicants in a structured order. Here questionnaires are
prepared according to the job requirements. McDonalds has a set interview content
known as Situational Interview, they ask situational questions from their employees like
give them a situation and ask their opinion that what would they do in that situation but
the situations are job-related. The interview is taken from the employees in two ways i.e.
Top level interviews
Low-level interviews.
In top-level interviews the General and Division Manager of McDonalds takes the
interview of candidates for the Executive post. In low-level interviews the Heads of the
departments takes the interviews of candidates for the Associate heads, officers,
managers, and assistant managers posts. After the selection is made the General Manager
approves the candidates
Background investigation:
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Once an employee is appointed the investigations and reference checks are done by the
HR manager. In McDonalds, reference checking is referred to as revising the Job
History which contains
Job applied for i.e. the experience of the employee for the job.
Relevant qualifications.
Salary
Orientation is a function that allows a new employee to learn about the organization, what
the expectations are in the position, which is responsible and accountable, and in general
what they need to know to become an integral part of the company
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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.
These are the planed or unplanned activities /opportunities provided or given to enhance
employee knowledge and skills for current and future job.
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Training:
Learning is part of the Company culture. Each employee, at all levels, need to upgrade
continuously her/his knowledge and skills. The willingness to learn is therefore a non-
negotiable condition to be employed by KFC.
Lectures:
The employees are given lectures to inform them what KFC is expecting from them .A
complete guide line is given about the work.
On job training:
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. At KFC our "Customer Service Workers" and "Food Service Workers" have
extensive training in Customer Service, Health and Safety, Cleaning procedures and Food
preparation.
All training is completed within specific time requirements using a module based training
program with a strong emphasis on practical hands on learning
Job rotation:
Employees are rotated to different job with in there work area to enhance their skills
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HR staff is responsible to assist the management in the elaboration of language skills
training programs too. Great importance is attached to programs enhancing the language
skills of the employees
Development:
Regular counseling and guiding:
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 KFC each mentor have the duty to
act as a mentor for employees
Training:
McDonalds follow a highly structured training process. Employees in McDonalds are
trained at all levels. They are trained to work on floor base area to back area.
McDonald's employee training programs are based on the company's core principles such
as:
Quality
Service
Cleanliness
Value
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The most used training methods that McDonalds follow are given as:
Lectures
On-The-Job Training
Job Rotation
courses
These training methods are often practiced by entry-level workers or crew members
basically for the new employees.
Lectures:
The first stage of training is at the Welcome Meetings. These are usually arranged in a
Training Centre or Room. These lectures set out the company's standards and
expectations for the new employees. Where, employees are introduced with a complete
description about the job, and a guideline that how to work and what are the job
requirements and procedures. A verbal outline is given to the employees
The majority of training is floor based, or "On-The-Job" training because people learn
more and are more likely to retain information if they are able to practice as they learn.
All new employees have an initial training period. Here they are shown the basics and
allowed to develop their skills to a level where they are competent in each area within the
restaurant.
Job rotation:
McDonalds also uses the most known type of on the job training Job Rotation. It is
done within the specific department so that the employee becomes familiar with all level
of jobs.
Courses:
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McDonalds arranges summer crash courses and wrap section for the employees
Development:
Summer crash courses: Different training courses are offered to their employees
such as summer crash courses arranged. Transfers of the employees are carried out with
the consent of the employees.
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Performance and potential
Team work
There is exclusion of any consideration for origin, race, nationality, gender, religion or
age.
KFC uses 360 appraisals. It is very thorough but time consuming. Upward feedback is
done by 360 degrees i.e. information is collected all around an employee from his or
her supervisors, subordinates, peers and customers. This term is also known as multi
source assessment. Subordinates can appraise their seniors. With the help of the
Employee Satisfaction Survey the heads get to know which employee is giving what
type of output.
Performance appraisal compares each employees actual performance with his or her
performance standard. Managers use job analysis to determine the job specific activities
and performance standards.
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Performance appraisal helps in estimating employees current performance, setting work
standards and then providing feedback to employees with the aim of eliminating
performance deficiencies.
At McDonalds every employee is on a race to give the best performance through their
knowledge, abilities and skills. An appraisal session is also arranged for the employees.
An appraisal interview in McDonalds is taken by Head of the Department only and the
progress report of the employee is also in the hands of the Head of the Department. In
McDonalds the yearly appraisals of employees are done in June to July.
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McDonalds uses the Graphic Rating Scale Method for evaluating the performance
appraisal of employees. Through the Graphic Rating Scale the head of the department
rate the person according to the performance of its work, skill, knowledge, experience
and after the assessment according to the rating scale, rate the employee as appraised.
Through the graphical rating scale the head of the department rate the person according to
the performance of its work, skill, knowledge, experience and also on the performance in
the training programs and after the assessment according to the rating scale rate the
employee is appraised.
Communication
Personal effectiveness/efficiency
Productivity
Quality of work
Reliability
360 degree feed back is also used to evaluate the out put of employees through multiple
sources. Raise in salary is done by 10%and if performance is also counted then 20%
increment is given at any time of the year.
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MacDonalds
McDonalds uses the Graphic Rating Scale Method for evaluating the performance
appraisal of employees. Through the Graphic Rating Scale the head of the department
rate the person according to the performance of its work, skill, knowledge, experience
and after the assessment according to the rating scale, rate the employee as appraised.
Communication
Personal effectiveness/efficiency
Productivity
Quality of work
Reliability
In McDonalds employees are rated according to these or more traits. Rated on his/her
performance that the employee is good in communication skills or not, the employee
could work independently on its own. The employee is cooperative with other his/her co-
workers. The productivity of work that weather he/she could work more and proper in
less time and finally is the employee is reliable means he/she will work on time
appropriately.
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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 management, to communicate
properly, clearly and with sufficient transparency, the individual remuneration
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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
realized 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
organization and that its spirit is duly reflected.
Benefits:
Management Staff:
Provident Fund
Pension Fund on employees request
Gratuity
Leave Fair Assistance
Marriage gift scheme once in a service
Baby feeding scheme
Annual leaves for 15 working days in a year
Casual leave 10 working days in a year
Casual leave encashment
Medical leave 10 days in a year
Medical allowance
Hospitalization from panel hospitals
Meal subsidy for field staff up to group 1
Shift allowance
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Family day gift once in a year
Eid gift on both Eids
Company maintained car to group 3.3 managers and above
Vehicle Maintenance allowance for Group 2 employees having non field car loan
on production of receipts
Relocation package: As per group entitlement
Life Insurance: Under group life insurance policy as per group entitlement
Hajj Balloting: After 5 years service through balloting
Pick and drop service: For factory staff where such facility is available
Car loan facility
Maternity leaves for female employees
2 pair of shoes per year to only team leaders, engineers & quality assurance team
2 uniforms per year to only team leaders, engineers & quality assurance team
Bonus as per company policy
Incentive to sales staff as per H & O Sales Policy
Scholarship Award Scheme
Provident Fund
Gratuity
Leave Fair Assistance
Marriage gift scheme once in a service
Baby feeding scheme
Annual leaves for 14 calendar days in a year
Casual leave 10 days in a year
Casual leave encashment
Medical leave 8 days in a year
Meal subsidy for field staff
Shift allowance
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Family day gift once in a year
Eid gift on both Eids
Relocation package: As per group entitlement
Life Insurance: Under group life insurance policy as per group entitlement
Hajj Balloting: After 5 years service through balloting
Pick and drop service: For factory staff where such facility is available
Fair price shop: If available at site
Subsidized meal facility for factories if already available
Motor cycle loan facility for non management
Maternity leaves for female employees
Hospitalization though insurance company
At least statutory 10-C bonus
Attendance allowance
2 pair of Shoes per year: For non management except field staff
2 Uniforms per year: For non management except field staff
Incentive to sales staff as per H & O Sales Policy
Scholarship Award Scheme
Compensation:
McDonald uses Broad banding trend of compensation, in this trend wide range of jobs
and salary levels are represented by Bands. So the employee, whose job falls on one of
these grades, gives the pay range listed on that grade and determines his or her salary.
McDonalds has this system of compensation because, broad banding allows for flexibility
in terms of pay, growth and movement.
As there are so many jobs and each job has its own description and value so by making
bands of similar jobs and assigning them the appropriate salaries will make easy for
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McDonalds to set the pays of employees. McDonalds dont apply the Competency-Based
Pay Method because in this method pays are established as according to the performance
of employee such as: If a crew member is working according to the level of manager his
performance is equivalent to manger so their pays will be same.
But McDonalds pay their employees according to the job or level. Mangers own different
higher pays as compared to worker or Crew members. It is very difficult to set pay for
any organization without conducting pay rates. Pay rates are necessary to define because
it is better for both employer and employee. Employer sets salaries according to the
market or could be more from market and employer get knowledge about market. Similar
nature of jobs categorized in groups and employee feel secure that he is getting salary
according to market rate or could be more.
McDonalds conduct salary survey, that what other employers are paying for the same
nature of job to there employees. McDonalds pays more to their employees as compare to
market. So, the salary survey is necessary for establishing pay rates. McDonalds has also
given its salary ranges on different jobs in their site. The second step in establishing pay
rates is evaluating jobs .In Job Evaluation jobs are evaluated or compared with each other
on the basis of qualifications, skills, responsibilities and working conditions.
McDonalds follows the Job Classification method of job Evaluation because they have
categorized their jobs into two main classes. McDonalds evaluate its job on the basis of
working hours of their employees more clearly for the crew members they use the part
time job evaluation and for managerial level staff they use full time evaluation. For part
time employees MacDonalds pay them on the basis of their working hours means hourly
wages. The Full Time Working Employees are given salary on monthly basis they are
known as permanent employees. After job evaluation, McDonalds grouped similar nature
of jobs into pay grades for establishing pay rates. As McDonalds uses the job
classification technique so their jobs are already in a grouped form and they establish pay
grades according to part time and full time jobs. For assigning pay rates to any level of
job, McDonalds uses Wage Curve which shows the relationship between value of the job
and wage price for the job. McDonalds through wage curve assign pay rates to part time
and full time jobs according to the requirement of job. More specifically according to the
job nature of employee such as for part time crew member the pay rate will be different
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from full time depending on their work. McDonalds price their managerial jobs on the
basis of their performance of work, skill, knowledge and experience. It is different for all
level of managerial job. Employees' base pay is the most significant portion of their
compensation, McDonald's maintains the competitiveness of base pay through an annual
review of both external market data and internal peer data. Incentive pay provides their
employees with the opportunity to earn competitive total compensation when
performance meets and exceeds goals. The Target Incentive Plan links employee
performance with the performance of the business they support. TIP pays a Bonus to top
of employees in their base salaries.
Incentives program:
McDonalds has developed under given People Philosophy for compensating and
motivating their employees and that are:
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MacDonalds
Benefits program:
McDonald's believe in work and life balance and they offer the following programs to
assist their employees:
Annual Leave
Leave of Absence
Educational Assistance
Employee Discount Card
Staff Appreciation Days
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MacDonalds
Opportunity for local and/or international training at all levels
Medical allowance
Hospitalization from panel hospitals
Life Insurance
Meal subsidy for field staff up to group 1
Maternity leaves for female employees
McDonalds has a safe environment regarding to health, there are no such serious health
safety threats in McDonalds but they have developed a systematic health and safety
program for those employees specially who work in production lobby.
Such factors could be a health and safety problem for McDonalds employees:
High temperature
Hygiene
Smoking
Infectious disease
McDonalds keeping in view the above factors take the following steps ahead to prevent
their employees from any health hazard:
Ventilation system:
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Proper ventilation systems such as exhausts are placed so that the high temperatures dont
cause any health problem to employees who work in production lobby (cooking area).
Inspection:
For the hygiene of office and cooking place per month a inspector from food department
visits to observe the cleanliness system, this is better for employees themselves and the
customers as well.
No smoking rules:
In the office a smoking rule is obeyed for the health protection of employees and
restaurant environment.
Infectious rules:
A medical check up of employees is conducted to know that any employee doesnt have
any viral disease and if any employee becomes serious ill he/she is granted a leave so that
no other employee could suffer from same problem. When employees are hired in the
training session they are informed with a complete description and safety measures
related to their health.
For safety and security of employees two areas are considered such as, Inner area of the
office and outside threats. Inside office means that the safety and security of office, like
McDonalds has a production lobby inside their restaurant where they cook or prepare
food so the danger of Fire Explosion is always there for them and as well like all other
offices the threat of Electric Short-Circuit. Also any sort of Criminal Act from employees.
Outside area signifies that if in McDonalds any one enters and makes them HOSTAGE or
Commits Bomb Blast, is a sign of big threat to their employees and restaurant as well.
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MacDonalds
McDonalds according to the above mentioned security risks use two basic facilities of
security given as:
Natural Security
Mechanical Security
Natural safety:
Natural security means securing your office architectural area. McDonalds has Security
Guards and Check Post in parking lot.
Security guards:
They have security guards in their Parking Area and at the Entrance Door as well.
Check post:
Mechanical security:
In mechanical security system technological systems or machines are used to enhance the
security system. McDonalds has placed a scanner at their entrance door, CCTV cameras
are also fixed in and outer area of the restaurant, fire extinguishers and stabilizers for
short circuit.
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MacDonalds
Scanner:
Scanners are placed at Entrance door for every customer or person to detect any metallic
thing like weapons etc.
CCTV cameras:
Help McDonalds to monitor every movement of customers or any person who is in the
restaurant.
Fire extinguishers:
For the danger of fire explosion Fire Extinguishers and other Aid Equipments are placed
in the office area and production lobby of McDonalds. Fire alarms are also placed.
Stabilizers:
In the case of electric short-circuit are used to retain the voltage of electricity and any
mishap doesnt take place.
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MacDonalds
They are committed to attracting, training, developing, and rewarding world class people
for their fast growing business. Employee Relations is a KFC program whose primary
objectives are to develop team building and to instill a sense of camaraderie among
employees.
It also promotes the health and well-being of KFC employees through fun social and
physical activities that give enjoyment and relaxation to KFC staff. Employee Relations
encourages positive employee connections needed to achieve a balanced work and social
life. Leaders, Assistant Managers, Assistant Restaurant General Managers. Handle
employee relations issues. At KFC they put people first. Their restaurants are run by
people who know and love the restaurant. Manager manages a KFC restaurant within
Company policies and guidelines to ensure sales, serviceHospitality & Catering -
Restaurant Manager.
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MacDonalds
Bad for morale
Difficult to administer
More time consuming
Encourage discrimination or favoritism
Although on other hand some employees believe that it should be done on the basis of:
On-the-job performance or workplace effort. Like if an employee performs well his/her
pay should be increased through individual bargaining, that the employee himself should
demand for more pay. But the management or managers of McDonalds believe that pay is
not a subject on which employees negotiate individually, because according to them they
have no discretion to enter into such arrangements that involve altering individual crew
or small group wages on the grounds of performance. In McDonalds when employee is
recruited they specially discuss the terms and conditions about the pays and negotiation
issues on pays. McDonalds has a comprehensible strategy of occupational health, safety
and security of employees.
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MacDonalds
Comparison between McDonald's and KFC Analysis:
For executive post KFC mostly make search through various industries while
McDonalds mostly go for internal recruitment for executive post.
Interview:
Orientation:
Orientation time of KFC ranges from 1 to 6 months and Macdonalds orientation time
ranges from 5 to 6 months. So KFC have more variations in orientation time period as
compared to McDonalds depending upon the employee caliber.
Development:
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MacDonalds
Empowerment:
Performance appraisal:
Macdonald uses graphical rating scale as well as 360 degree feed back for performance
appraisal but KFC uses only 360 degree feed back. So in comparison performance
appraisal chances for being effective are more in McDonalds.
Organizational Goals:
Both McDonald's and KFC share the same basic organizational goals of profitability,
sales volume, fast and courteous service, and cleanliness. There are minor variations to
these goals by both companies.
Organizational Structure:
When observing McDonald's and KFC, the organizational structures of the two
restaurants were very similar. There appeared to be a crew leader who was a non-
managerial employee and, there was a manager who was present behind the counter. The
managers of the restaurants seemed to be in control of every aspect of the entire food
service process. He had keys to the store, and registers, and also was the only one to take
phone calls.
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MacDonalds
Technology:
Both McDonald's and KFC are on the cutting edge of technology. They both employ state
of the art cash registers and both have electric timers built into their cooking machines.
Although the cooking styles vary between KFC and McDonald's, the method of
production is the same. Large batches of food are cooked at once then placed under heat
lamps or put in the microwave when an order is placed. Both stores have the same drive
through technology with a speaker and a well-lit menu to relay the message to the cooks.
Usually whoever takes the order is also the same person to collect the money; however, a
different person usually puts the order together for the customer.
Employee Motivation:
The motivation of both stores for employees to perform well is hard to ascertain from just
observing, but it appears somewhat obvious. The people working in these establishments
appear to have a lower social economic status, and the fact that a paycheck is coming at
the end of the week may be the only motivation they have. The stores do have an
"employee of the month" plaque on the wall, but it is doubtful that this is motivation to
strive day in and day out for. There is also the fear of potentially losing their jobs if they
perform sub standard.
Communication:
Both stores employed a very open communication policy. Employees were talking,
sometimes shouting at one another to be heard. The management was openly involved in
the employees routines and the employees felt no barriers to prevent their communication
with the manager. Sometimes in both stores, there would be a break down in
communication somewhere along the line and that would result in extended waiting times
for customers and sometimes, screwed up orders.
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MacDonalds
Environment:
The environment at McDonald's and KFC seems to be a simple, yet unstable one. It is
apparent that the majority of people who work there, are not choosing their employment
as a career option. Therefore, the workforce is constantly changing and adapting to new
employees and new situations.
Policies/Procedures/Rules/Standards:
Standardization seemed to be the key at both stores. One can walk into any McDonald's
in the country and find that a "Big Mac" is the same everywhere. Similarly, a "Whopper"
will taste the same at every location. Therefore, the ingredients, and cooking methods
must remain constant throughout. There can be no variation. Rules and procedures were
posted on clear signs and made directly available to the employee.
Organization Climate:
There seemed to be individual autonomy for the most part at both stores. However, the
reward system was not easy to identify. They seemed expected to do their job consistently
and accurately, perhaps in fear of punishment. They received cooperation from
management as long as they were working diligently.
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MacDonalds
SUGGESTIONS
After critically evaluating the HR Functions of McDonalds we recommend the following
suggestions according to the each section of HR:
JOB ANALYSIS: For job analysis we recommend that McDonalds should also include
Performance Standards and Human Requirements which would help them more in
making job description and specification.
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perform. Similarly in Job Specification they have just written general information not
about the skills and personality traits.
TESTING: All over McDonalds has a good formal testing system but in our view for
crew members specially who deal with customer care area a Communication Skill Test
should be taken which includes testing of accent, language, talking way and facial
expression of employees.
INTERVIEW: McDonalds should also ask Behavioral Questions from the candidates so
by knowing their past experience they could judge their attitude and mental abilities more
accurately.
COMPENSATION & BENEFITS: For the employees at lower level like crew
members, a proper Medical Check-up after every month should be provided to them and
their pays should be increased comparing to the economic conditions of country. For
higher level employees a Life-insurance policy should be made.
After our group observed the interactions between management, employees, and
customers at both operations, we discovered a few areas where KFC and McDonalds
both needed improvement. To begin with, our McDonalds experience was overall
enjoyable, yet a few small, but important, details should be considered. Most of the
employees uniforms were worn properly and neatly, but the rest were just plain sloppy.
Shirts should be tucked in and clean, and hats should be worn the way hats were meant to
be worn. This would show that employees value their jobs, and take them seriously.
While we were dining, we could not help but notice the loud, high pitched, constant
beeping noises coming from the kitchen area. These extremely irritating noises did not
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stop the entire time. This prevents the guests from enjoying their meals in a soft, relaxing
atmosphere. Quiet background music at McDonalds would probably help the ambiance a
bit and offset some of the noises coming from the kitchen. We also noticed that even
though it was not busy, there was not a manager in sight. In fact, we can not be sure that
one was on duty at the time of our visit. At KFC it was nice to see the manager working
along with the employees by taking orders and preparing food. The major problem that
we found with KFC was the lack of menu consistency. The location that we visited did
not offer salads, while most other KFCs do. We feel that if a salad is available at one
location, then a customer should expect to be able to enjoy the same salad at any KFC. It
is comforting to a customer to know that the food will be the same (in preparation and
availability) at whichever store he or she chooses to visit. We did enjoy how they were
willing to accommodate our personalized orders, but it is not appropriate to charge for
one slice of tomato or lettuce. McDonalds did advertise quite a bit of community
involvement and service. At KFC we did not see signs of any type of contribution to the
community. People may think that the company is greedy and only cares about profit. A
charity would show that KFC cares about the community. In addition, both of these
restaurants desperately need to incorporate the fundamentals of great service into their
game plans. It would make a tremendous difference if a cashier would very simply smile
and say thank you after returning your change. From the expressions on the faces of
some of the employees we felt as if we ruined their entire day just by walking through the
door! Personality and attitude should be major considerations when hiring employees.
Hire only those who will take pride in their jobs, be professional, and treat the guests very
well. Our final recommendation for both operations is to adopt a Total Quality
Management philosophy. Food should come out with the right ingredients and at the
correct temperature. It is a waste of time and money to make an order over again if it is
not perfect the first time. With better training and communication there should be no
reason for orders to be less than perfect. The proper attention could be directed to the next
customer waiting in line. If things are done correctly the first time, it will save
aggravation for the guest, who, by the way, will remember that his order came out exactly
how he wanted it. Basically, just take care of the customer. Give employees the power to
do whatever it takes to make them happy. Exceed their expectations and, in return, you
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will have a life long patron. He will be back again, and again, increasing long run
profitability. This concept should be applied to McDonalds as well as KFC, to help attain
their corporate goals.
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