HUMAN_RESOURCE_MANAGEMENT_OF_KFC_Human_R.docx

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Project Report on
HUMAN RESOURCE MANAGEMENT OF KFC
In partial fulfilment of requirement for the
Award of Degree of M.Com
Subject:
Human Resource Management
Submitted By:
Mr. Hitesh Rohra
Roll No. 25
M.Com. Part – I, Semester - I
Under the Guidance of:
Prof. Mrs. Reshma Kukreja
SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE
ULHASNAGAR – 421003
UNIVERSITY OF MUMBAI
2014 – 2015

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Human Resource Management
Of KFC

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This is to certify that, Mr. Hitesh Rohra of M.Com Part – I, has successfully
completed the project in Human Resource Management titled “Human
Resource Management Of KFC” under my guidance for the academic year
2014-15. The information submitted is true and original as per my
knowledge.
Ms. Reshma Kukreja
(Internal Guide)
Prof. GopiShamnani Dr. Padma V.
(Coordinator, M.Com) Deshmukh
(I/C Principal)
________________
External Examiner

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D
DE
EC
CL
LA
AR
RA
AT
TI
IO
ON
N
I, Mr. Hitesh Rohra student of SMT. CHANDIBAI HIMATMAL
MANSUKHANI COLLEGE, ULHASNAGAR studying in M.Com Part – I,
Semester – I, hereby declare that I have completed this project on “Human
Resource Management Of KFC” for the subject “Human Resource
Management” in the academic year 2014-15.The information submitted is
true and original to the best of my knowledge.
_______________
Mr. Hitesh Rohra

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ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project
I take this opportunity to thank the University of Mumbai forgiving
me chance to do this project.
I would like thank my Principal, Dr. Padma V. Deshmukh for
providing the necessary facilities required for completion of this
project.
I would also like to express my sincere gratitude towards my
project guide Prof. Ms. Reshma Kukreja whose guidance and
care made the project successful.
I would like to thank my college library, for having provided
Various reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly or
indirectly helped me in completion of the project especially my
parents & peers who supported me throughout my project

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EXECUTIVE SUMMARY
Kentucky Fried Chicken (KFC) Malaysia is a major Quick Service
Restaurant (QSR) operator in Malaysia and has been established for just
over 20 years now. It serves mainly chicken related items, but offers side
dishes to its consumers as well. Lately, more and more Malaysians have
been opting for a healthier eating diet as a large number of them have
become more health conscious. This has opened the door for KFC’s main
competitors, such as McDonald’s, to come out with a new range of
healthier products, allowing them to mount a greater challenge on KFC
Malaysia’s current position as Malaysia’s leading fast food operator. As a
response to the advancement made by KFC’s competitors in providing
healthier fast food, KFC are to introduce a new set of healthier products
that would be mainly targeted at health conscious people, living in
Malaysia. Its target market would largely be based on segmentation of age,
where it would be focused on customers in the age group of between 4 to
40 years old. KFC Malaysia would, nevertheless, have to fight off fierce
competition from other fast food operators, such as Kenny Roger’s, Burger
King, A&W, Radix Chicken and KFC’s biggest rival, McDonald’s, who are
also trying to take hold of the new market of healthier products. The new
healthier menu that KFC Malaysia is going to introduce would not only be a
new healthier alternative to its existing products, but also an addition to
what it already has to offer. The pricing and promotion strategies would
also be looked into as KFC Malaysia prepares to introduce its new healthier
menu to the public.

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CONTENTS
S.No. Topic Page No
1 Introduction Of HRM 09
2 Definition Of HRM 13
3 Model Of HRM 15
4 Objectives 18
5 Principles Of HRM 19
6 Features OF HRM 20
7 Functions Of HRM 21
8 Contexts Of HRM 23
9 Introduction OF KFC 25
10 Company Background 26

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11 Products Of KFC 27
12 HRM Of KFC 28
13 Recruitment & Selection 29
14 Training & Orientation 34
15 KFC Job Description 36
16 Survey Research Plan For KFC 41
17 Sample Survey 44
18 Summary Of Results 48
19 Conclusion 49
20 Biblography 50
Introduction Of HRM

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• Managing an organization’s workforce
– Training, assessment, rewarding and
selection.
• A disciplinary department.
• Job Opportunities:
– HR Admin
– Payroll Specialist
– Staffing Manager
– HR Manager
Human resources are the most valuable and unique
assets of an organization. The successful management
of an organization's human resources is an exciting,
dynamic and challenging task, especially at a time
when the world has become a global village and
economies are in a state of flux. The scarcity of
talented resources and the growing expectations of the
modern day worker have further increased the
complexity of the human resource function. Even
though specific human resource functions/activities are
the responsibility of the human resource department,
the actual management of human resources is the

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responsibility of all the managers in an organization.
It is therefore necessary for all managers to understand
and give due importance to the different human
resource policies and activities in the organization.
Human Resource Management outlines the importance
of HRM and its different functions in an organization. It
examines the various HR processes that are concerned
with attracting, managing, motivating and developing
employees for the benefit of the organization.
Talent Search
• Hiring
• Assessments
• Rewarding
The Human Resource Cycle

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The Bad Side…
• Make sure employees are discipline
– Time
– Appearance
– Attitude
• Firing non-performing employees

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Definition of HRM
• 'Human capability and commitment'. Storey
argues that this is what differentiates
organisations.
• Strategic importance of HRM. It needs to be
implemented into the organisational strategy
and needs to be considered at the highest
management level.
• The long term importance of HRM. It needs
to be integrated into the management
functions and is seen to have importance
consequences on the ability of the
organisation to achieve its goals.
• The key functions of HRM which are seen to
encourage commitment rather than
compliance.

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The Human Resource System

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Guest’s Model of HRM
• Linked to the strategic management of
an organisation.
• Seeks commitment to organisational
goals
• Focuses on the individual needs rather
than the collective workforce.
• Enables organisations to devolve power
and become more flexible
• Emphasises people as an asset to be
positively utilised by the organisation

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The Harvard Model of Human Resource
Management

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Objectives
• There are four main objectives of HRM.
Societal objectives, organizations
objectives, functional objectives, and
personal objectives.
• To maximize the productivity of the
organization by optimizing the
effectiveness of its employees
• Objectives of HRM are influenced by
the objectives of the business or
organization and include making sure
an organization has a supply of willing,
motivated, and skilled employees.

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Principles of HRM
• Human resources are the most
important assets of the organisation
• business success "is most likely to be
achieved if the personnel policies and
procedures of the enterprise are closely
linked with, and make a major
contribution to, the achievement of
corporate objectives and strategic
plans.“ – Michael armstrong
• find, secure, guide, and develop
employees whose talents and desires
are compatible with the operating
needs and future goals of the company.

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Features of HRM
• The collective bargaining role
• The implementer of legislation role
• The bureaucratic role
• The social conscience of business role.
• A growing performance improvement
role

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The HR Functions

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Traditional HR Functions

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The Context of HRM

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Changing environment of human resource
management
• Globalization trends
• Technological trends
• Trends in the nature of work
Workforce demographic

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Introduction Of KFC
• KFC was founded by Harland Sanders, an entrepreneur who
began selling fried chicken from his roadside restaurant
in Corbin, Kentucky, during the Great Depression. Sanders
identified the potential of the
restaurant franchising concept, and the first "Kentucky
Fried Chicken" franchise opened in Utah in 1952. KFC
popularized chicken in the fast food industry, diversifying
the market by challenging the established dominance of
the hamburger. By branding himself as "Colonel Sanders,"
Harland became a prominent figure of American cultural
history, and his image remains widely used in KFC
advertising. However, the company's rapid expansion saw it
overwhelm the ageing Sanders, and in 1964 he sold the
company to a group of investors led by John Y. Brown,
Jr. and Jack C. Massey.
• KFC was one of the first fast food chains to expand
internationally, opening outlets in the United Kingdom,
Mexico, and Jamaica by the mid-1960s. Throughout the
1970s and 1980s, KFC experienced mixed fortunes
domestically, as it went through a series of changes in
corporate ownership with little or no experience in the
restaurant business. In the early 1970s, KFC was sold to
the spirits distributorHeublein, who were taken over by
the R.J. Reynolds food and tobacco conglomerate, who sold
the chain to PepsiCo. The chain continued to expand
overseas however, and in 1987 KFC became the first
Western restaurant chain to open in China. The chain has
since expanded rapidly in China, which is now the
company's single largest market. PepsiCo spun off its

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restaurants division as Tricon Global Restaurants, which
later changed its name to Yum! Brands.
Company Background
• only manage people from their home country, but oKFC
Corporation (KFC), known as Kentucky Fried Chicken
• KFC Corporation based in Louisville, Kentucky. The world’s
most popular chicken restaurant.
• KFC is part of Yum! Brands, Inc., which is the world’s
largest restaurant system.Yum! Brands since 1997 when
that company was spun off from PepsiCo as Tricon Global
Restaurants Inc.
• R.J. Reynolds acquired KFC in 1982. This gave KFC the
financial backing for expanding internationally.
• According to the corporate website, KFC is present in 110
countries and territories around the world and 30 ,000
restaurants.
• From Traditional HR transform to International HR
• HR practitioners not ne that involve managing many
diverse nationalities.
• new problem for HR practitioners emerged as employees
become more diversified and hard to manage.

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PRODUCTS
• KFC primarily sells
-chicken pieces, wraps, salads and sandwiches.
• The primary focus is fried chicken.
• KFC also offers a line of grilled and roasted chicken
products, side dishes and desserts. Outside America, KFC
offers beef based products such as hamburgers or kebabs,
pork based products such as ribs and other regional fare.

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KFC Human Resource Management
• Responsibilities:
– Responsible for all the human resource
functions such as policy, recruitment,
IR, performance evaluation,
compensation and benefit, and other
general admin matters.

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Recruitment & Selection

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Discipline
• Firms cannot just ‘sack’ workers
• Wide range of procedures and steps
in dealing with workplace conflict
– Informal meetings
– Formal meetings
– Verbal warnings
– Written warnings
– Grievance procedures

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Training
“We won’t make you wing it” is KFC’s motto
when it comes to training employees.
-Training includes:
1) Workbooks
2) Quizzes
3) On-the-job
competency based training- Employees are
encouraged to work together as a team-
KFC is committed to making sure their
people grow to their highest potential- KFC
does their best to make the job interesting
and exciting for workers

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Training and Orientation of the Company
• Christ Mendel , director of global risk management of
Tricon Global
Restaurant (an arm of Yum ! Brand ) stated that the
company focuses on
training and education for all their employees and
managers for their
30 ,000 restaurants in 110 countries (cited in Morris ).
• the company has developed substantial training programs
for all front line people . The training according to him has
been
integrated into the company 's broader management
trainings that deal
with issues as sexual harassment , hiring and firing
practices ,
interpersonal relationships , and conflict resolution .
The training practices as he further described are on a global
basis with
the assumption that ``people need to treat people with respect
(Morris .
The training employed for both franchise and non-franchise
managers are
on the same basis that everyone is required to attend trainings
held at
the company 's headquarter at Louisville . Likewise , these front
line
people will take the responsibility in providing trainings for their

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employees using training manuals and product guides . In that
way , the
top management is assured that the KFC culture penetrates
another
culture effectively .

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KFC Job Description
• Area Managers
Area Managers are accountable for providing coaching,
leadership and operational support to 8-10 KFC
Restaurants within a defined Area.
-Area Managers are sourced internally, so you will
need to earn this position in the Company through
promotion.
• Restaurant General Managers
The Restaurant General Manager is accountable for
creating and running an energetic and valuable work
environment, which is committed to serving the best
chicken at the fastest speed and with a smile.
-The Restaurant General Manager reports directly
to an Area Manager and is accountable for successfully
implementing and maintaining all Company policies and
procedures in relation to operations, customer service,
cash handling, marketing, purchasing, human
resources, health & safety, administration, training and
development
-Restaurant General Managers are sourced
internally, so you will need to earn this position in the
Company through promotion.

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• Assistant Managers
The Assistant Manager is responsible for assisting the
Restaurant General Manager (RGM) in creating an
energetic and valuable work
environment, which is committed to serving the best
chicken at the fastest speed and with a smile.
Assistant Managers are also responsible for ensuring all
Company policies and procedures are followed in
relation to operations, customer service, cash handling,
marketing, purchasing, human resources, health &
safety, administration, training and development.
-Assistant Managers are sourced internally, so you will need
to earn this position in the Company through promotion.
• Trainee Managers
Responsible for assisting the Restaurant General
Manager and Assistant Managers in creating an
energetic and valuable work environment, which is
committed to serving the best chicken at the fastest
speed and with a smile.
Trainee Managers help with day-to-day running of the
restaurant, and need to ensure that all operations,
customer service, cash handling, marketing,
purchasing, human resources, administration and
training & development policies are followed.
Skills & Abilities

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-Trainee Managers must have at least a year 10
education and 2 years work experience in a
managerial/supervisory role.
-Must have excellent customer service skills and
the ability to deal with customers complaints
-Excellent communication skills
-Must have the ability to develop competent
computer skills
-Be able to motivate, delegate and co-ordinate
-Willing to work shift work with an energetic
approach
-Able to lift and carry awkward/heavy items
-Must have a reliable vehicle and current driver’s
license
Rewards & Benefits
-Attractive performance-based salary and bonuses
reviewed quarterly for all Managers
-Manager of the Quarter and Manager of the Year
Competitions
-Annual Champions Club recognizing those Stores
that deliver outstanding customer service
-Store Managers attend an annual conference

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-Top 20 Store Managers attending a week long
Development Program
-Annual Chairman’s Dinner recognizing those
employees with more than 15 years service
-"Recognition Culture”, which ensures that hard
work and good performance does not go unnoticed
• Customer Service Team Members
Responsible for working the service areas and ensuring
quality product, service and cleanliness is delivered to
all customers at top speed and with a smile!
Skills & Abilities
-Preparation of food
-Stock rotation
-Cash register operations and ability to follow cash
handling procedures
-Cleaning of service and dining areas
-Must be prepared to work nights and weekends
-Friendly disposition with the ability to work as part
of a team
Rewards & Benefits

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-CHAMPS Excellence Recognition Program for
Team Members provides the opportunity to earn
monetary rewards
-Annual CHAMPS Challenge
-Discount Card entitles Team Members to 20% off
all meals
-“Recognition Culture”, which ensures that hard
work and good performance does not go unnoticed
• Food Service Team Members
Responsible for putting the crunch in the coating and
the zing in the Zinger…the cook’s main task is to
prepare and cook the irresistible KFC products! The
cook must also maintain the cleanliness of the cooking
area as well as the quality of product and speed of
preparation.
Skills & Abilities
-Food preparation
-Stock rotation
-Maintaining cleanliness of cooking areas and
floors
-Must be prepared to work nights and weekends
-Friendly disposition with the ability to work as part
of a team

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Rewards & Benefits
-CHAMPS Excellence Recognition Program for
Team Members
provides the opportunity to earn monetary
rewards
-Annual CHAMPS Challenge
-Discount Card entitles Team Members to 20% off
all meals
-“Recognition Culture”, which ensures that hard
work and
good performance does not go unnoticed
Survey Research Plan
• Client Interview
• Told the research team that their main focus was
proving to the public that KFC isn’t as unhealthy as
many people perceive it to be compared to other
fast food restaurants.
• Research Objectives
• We are conducting this survey to find out what
people’s perceptions of the KFC brand is currently.

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• To compare KFC’s menu options to the menu
options of their major competitor’s.
• Research Methodology
• Mall-intercept method, it is the most convenient
due to the overwhelming student population on
campus.
• Convenience sampling, because we don’t want
biased results and we will get more of a variety
students.
• Our survey will consist of open ended, multiple
choice, and Likert scale questions.
• We will try to achieve our goal of 50 completed
surveys throughout different campus buildings, and
through friends and co-workers. These surveys will
take place through the next 2 weeks.
• Tabulations and Data Analysis
• The scale and multiple choice questions will be
tallied. The open ended questions will be
categorized into positive and negative responses
with noted suggestions.
• Research Reporting
• We are hoping to gather information from the
surveys to better understand why people think KFC
is an unhealthy fast food option. While at the same

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time maintaining the convenience of the fast food
industry.
• Time Frame
• The survey will be conducted within one week’s
time period.
• Limitations
• We will have a very narrow age range (18-24).
• Since we are only using convenience sampling we
will only be able to survey people located in
Morgantown.
• People sometimes rush through open-ended
questions, or don’t answer questions truthfully.
• People may not be familiar with all of the
restaurant options on the survey.
Sample Survey
• This is a survey about the fast food industry. Through this
survey we are trying to understand what consumers like
and dislike about the fast food industry and what can be
improved. Please answer as honestly as possible. Your
participation is appreciated. Thank you.
• Please name three fast food restaurants you can think of:
• ( ) ( ) ( )

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• What type of item do you look for on the menu when you’re
eating at a fast food restaurant?
• ( ) Combo Meal ( ) Value Menu ( )
Other:_______________
•
• How often do you eat fast food in a month?
• ( ) never ( ) once a month ( ) 2-3 times a month ( )4-5
times a month ( ) 5+ times a month
Which fast food restaurant do you feel gives you the best value?
• ( ) Burger King ( ) Chik-fil-A ( ) McDonald’s ( ) KFC
• ( )Popeyes ( ) Wendy’s ( ) Subway
( ) Other:________
• How many times do you eat chicken per week?
• ( ) 1-2 times a week ( ) 3-4 times a week ( ) 4-5 times a
week( ) 6+ times a week
• Have you ever eaten at KFC?
• ( ) Yes ( ) No If no, skip to question 21
•
• If yes, when was the last time you ate at KFC?
• ( ) Last week ( ) Last month ( ) Last 6 months
( ) Last year
•

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• How familiar are you with KFC’s menu selection?
• ( ) Not familiar ( ) Somewhat familiar ( ) Very
Familiar
• What would be the main reason you choose KFC?
• ( ) To eat chicken ( ) Good menu selection ( ) Quality
of service
• ( ) Convenience
• KFC is an accurate representation of Southern Cooking:
•
• Strongly Disagree 4 3 2 1 0 1 2
3 4 Strongly Agree
•
• Do you view KFC as a family restaurant?
•
• Strongly Disagree 4 3 2 1 0 1 2
3 4 Strongly Agree
•
• When you think of KFC what comes to mind?
• ( ) Colonel Sanders ( ) Fried Chicken ( ) Home style
sides( ) Family meals
• Roughly how many KFC TV or Billboard advertisements
have you seen within the last 6 months?
• ( ) 0 ( ) 1-3 ( ) 4-6 ( )7-10

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• Are you aware of the new, healthier options available at
KFC?
• ( ) Yes ( ) No ( ) N/A
•
• On what area do you believe KFC should focus its image?
• ( ) Convenience ( ) Family ( ) Health ( )
Other:_____________________
•
• Who do you view as KFC’s biggest competitor?
• ( ) McDonald’s ( ) Chik-fil-A ( ) Popeyes ( ) Subway
• ( ) Burger King ( ) Other:_________________
• Which fast food restaurant has the best chicken?
• ( ) KFC ( ) Chik-fil-A
• ( )Popeyes ( ) Church’s Chicken
• ( ) Burger King
• Recently KFC introduced a breakfast menu overseas, would
that be something that would appeal to you?
• ( ) Yes ( ) No ( ) Maybe
•
• To the best of your knowledge, please write positive
aspects about KFC:
•

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• __________________________________________________________________
______
• To the best of your knowledge, please write negative
aspects about KFC:
•
• __________________________________________________________________
______
• Age:____________
• Gender: Male ( ) Female ( )
• Please state your ethnicity: (i.e. White, African American,
Hispanic)
____________________________
•
• Class Rank:
• ( ) Freshman ( ) Sophomore ( ) Junior ( ) Senior
( ) Graduate
• What do you think is KFC’s strongest menu attribute?
• ( ) Family value menu ( ) Value menu ( ) Choice of
original or extra crispy
• ( ) Healthy menu items

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Summary of Results
• In order to figure out where KFC stood in terms of
their competition, we went out to find out how they
compared to other fast food restaurants in pricing.
Most people when asked in the surveys said they
thought McDonald’s had the best value because of
options like the dollar menu. Our respondents put
great emphasis on this saying that value and
convenience were the two main things they
typically look for when going out for fast food.
When asked about KFC’s pricing, many said that
compared to their competitors KFC was a little
overpriced. For the most part, they said since KFC
also gives a lot of food in their meals that they
would probably get KFC only if they were going to
be eating with a group of people as opposed to just
for themselves.

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Conclusion
• KFC shows to have a neck for hiring the right
person for the job. Putting a Chinese in charge is
attacking potential difficulties with Chinese
culture. KFC sees the Southeast Asian market as a
separate whole. By doing that KFC can target that
market as separate marketing and operational-
wise.
• Southeast Asia is handled by a separate part of the
company under the KFC holding. This enables KFC
to target the Southeast Asian markets more
effectively.
• KFC has to change its vision on investing though. A
great deal of knowledge of the Asian culture is
gained by stores in Indonesia, Malaysia and
Singapore.

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Biblography
• "Annual Report 2012". Yum! Brands. Retrieved
April 7, 2013.
• ^ Jump up to:a b c d e f g
"Restaurant counts". Yum!
Brands. Retrieved April 3, 2014.
• ^ Jump up to:a b c d e f
"Yum! Brands: Senior
Officers". Yum! Brands. Retrieved September 8,
2013.
• ^ Jump up to:a b
Iconic Global Brand. Louisville:
Yum! Brands. 2014. p. 98.
• ^ Jump up to:a b c
Whitworth, William (February 14,
1970). "Kentucky-Fried". The New Yorker.
Retrieved February 23, 2013.