Professional Documents
Culture Documents
KFC Kentucky fried chicken is one of the most known fast food chain in the world started in
early 1930’s 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 everyone’s 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.
It’s rich history began with its founder’s 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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• Deep regards for Customers, Business partners and employees
• Providing customer’s unparalleled levels of Quality, Service, Cleanliness and
Value.
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• To provide its customers with food of a high standard, quick service and value for
money.
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
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2. Chicken sandwiches
3. French fries
4. Soft drinks
5. Desserts
6. Salads
7. Breakfast items
8. Milkshakes
9. Coffee
Services:
1. Self-Service System
• McDonald’s
• Subway
• AFC
• Mr. Burger
• KFC
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• AFC
• Subway
• Mr. Burger
Support:
Creating and running an energetic and valuable work environment, to commit employees
to serve the best to the customers.
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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.
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.
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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,
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.
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Organizational structure:
M. D.
G. M.
H. R. MARKETING FINANCE
RESTAURANT
MANAGER
FIRST
ASSISTANCE
SECOND
ASSISTANCE
TRAINING
MANAGER
FLOOR MANAGER
CREW
LEADER
CREW
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12
OFFICER
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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
• Life-long Learning
KFC
Marketing
Project
Quality Assurance
Finance
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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.
Restructuring to create
business specialization
Performance Management
People
People
Employee communication/
Relations
Incorporating flatter
structures
Maintain Industrial Peace
Reward
Human Resources
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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RESTAURANT
MANAGER
FIRST ASSISTANCE
SECOND
ASSISTANCE
TRAINING
MANAGER
FLOOR MANAGER
CREW
LEADER
CREW
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OFFICER
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• Finance Department
• Human Resource Management
• Marketing Department
• Operation Department
• IT Department
Functions of HRM:
The functions of HRM in McDonald’s are:
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• 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.
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
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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.
Office jobs:
For office jobs Job Description is named as “Category Profile”
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Strong communication skills to act as a liaison between stakeholders and team
leaders
Restaurants jobs:
Trainee managers:
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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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Restaurants jobs:
Trainee manager:
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Age: 24 years maximum
Gender: Females only
Crew members:
Qualification: Intermediate
Experience: Fresh candidates
Age: 18-25 years
Gender: Male or Female
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
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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 .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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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:
External recruitment:
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• Recruiting via internet .McDonalds has its own site where they publicize for the
jobs and offer people to send their CV’s 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.
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 candidate’s origin, nationality, religion, race, gender or
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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 company’s 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:
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
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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.
• Testing
• Interviewing
• Background investigation
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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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Involves taking into consideration the personal interests and motivations of the person in
his field.
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 McDonald’s 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 manager’s posts. After the selection is made the General
Manager approves the candidates
Background investigation:
Once an employee is appointed the investigations and reference checks are done by the
HR manager. In McDonald’s, reference checking is referred to as revising the ‘Job
History’ which contains
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• 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
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
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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.
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.
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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
Development:
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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
The most used training methods that McDonalds follow are given as:
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• 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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McDonald’s 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 employee’s 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 employee’s 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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Graphical Rating scale:
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.
McDonalds uses the Graphic Rating Scale Method for evaluating the performance
appraisal of employees. Through the Graphic Rating Scale the head of the department
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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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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.
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
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
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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 employee’s 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
• 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
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• 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
• 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
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• 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
McDonalds to set the pays of employees. McDonalds don’t 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
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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 MacDonald’s 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
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
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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:
Benefits program:
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• Medical Aid
• Pension or Provident Fund
• Disability Cover
• Funeral Cover
• Accidental death & dismemberment (AD&D)
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
• Medical allowance
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• 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 McDonald’s 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:
Proper ventilation systems such as exhausts are placed so that the high temperatures don’t
cause any health problem to employees who work in production lobby (cooking area).
Inspection:
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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 doesn’t 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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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.
Scanner:
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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 doesn’t take place.
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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, service…Hospitality & Catering -
Restaurant Manager.
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In any organization employee relation plays a key role. If the employees of an
organization are satisfied it means that the organization could touch to the heights of
success because a satisfied employee will work more passionately.
Collective bargaining is a process in which employee’s union and the management
negotiates with each other and signs an agreement on the labor issues such as pays,
benefits, working or other facilities. There is no such collective bargaining system is
McDonalds because McDonalds don’t have a predefined labor or crew unions.
McDonald’s culture supports anti-union concept.
When a crew member or any lower level employee joins the McDonalds he/she have no
basic knowledge of Unions, but after working for a period of time, when they get familiar
with the culture of McDonalds they become more firm at anti-union concept.
The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifle
Creativity”; “there is no place for unions at McDonalds”; “ I have spent my entire life
opposing unions”; “I have had some horrible and stressful fights with union leaders, it’s
often very difficult keeping them out” McDonalds has a well systematic pay rates,
benefits and employee needs program so when a new employee comes to join
McDonalds they define every single policy, values, culture and employee benefits or
compensation programs. So he employee working in McDonalds is well-aware of their
procedure of employee relations. More precisely, when McDonalds hire an employee
they make every thing clear and if the employee agrees to work in such environment than
they allow him to work. Unions play an important role in pay-related issues. Most of the
time employees are not satisfied with their pays. So they create problems, although many
different agreements are signed between employees and management. But as in
McDonald’s there are no such unions so the problem related to pay to employees would
be that if a crew member do wage bargaining with employer individually
In McDonalds most of the employees don’t favor for this method because they typically
believe that such strategies would be:
• Bad for morale
• Difficult to administer
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• 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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For executive post KFC mostly make search through various industries while
McDonald’s mostly go for internal recruitment for executive post.
Interview:
Orientation:
Orientation time of KFC ranges from 1 to 6 months and Macdonald’s 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:
Empowerment:
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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.
Technology:
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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.
Environment:
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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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HR POLICIES AND PRACTICES OF MCDONLADS
The HR polices and practices involve certain core tasks to fill such as: Recruitment,
Selection, Evaluation, Performance, Compensation and certain other factors.
The HR department of McDonald’s fulfills all the requirements of these tasks or
functions in a true sense of the meaning.
McDonald’s strongly believes in the well being of people and its workforce and that is
one reason why it is the leader in the fast food industry and it proves that the strategies
the company has chosen are right and efficient for their business.
SUGGESTIONS
After critically evaluating the HR Functions of McDonald’s 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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estimate their need of employees through computerized system it would be easier for
them.
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 McDonald’s
both needed improvement. To begin with, our McDonald’s 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
stop the entire time. This prevents the guests from enjoying their meals in a soft, relaxing
atmosphere. Quiet background music at McDonald’s 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
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we found with KFC was the lack of menu consistency. The location that we visited did
not offer salads, while most other KFC’s 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. McDonald’s 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
will have a life long patron. He will be back again, and again, increasing long run
profitability. This concept should be applied to McDonald’s as well as KFC, to help
attain their corporate goals.
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