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Human Resource Management Report on Cupola

1. INTRODUCTION

1.1 CUPOLA GROUP INTERNATIONAL

Cupola Group is a Development Capital and Operations Group with a specific


regional focus, recognized for its dynamism in capital activities, consumer markets,
industrial projects, and in the information sector. Their avowed mission is to harness
and reap the potential of the rapidly developing markets in the Arabian Peninsula
and South Asia. Cupola International has offices in United Arab Emirates, United
Kingdom, Switzerland and Pakistan. Their corporate head office is centered in Dubai.
Their broad spectrum of activities are conducted through four clearly defined
business groups (capital activities, consumer markets, industrial projects, and
information sector).

1.2 CUPOLA PAKISTAN

Cupola Pakistan is a part of Cupola Group International. Cupola was institutionalized


in the business hub of Karachi in 1994 at Park Towers (previously known as The
Point), to surge the growing Pakistani business and consumer market. With the
booming economy and intensive growth opportunities, Cupola Pakistan launched
successive diversified products to cater the different untargeted segments of
Pakistan.

The first product that came out from the business manifold of Cupola Pakistan was
TGI Fridays in 1997. TGI Fridays was a casual dine-in chain. TGI Fridays Pakistan was
launched as a franchise of TGI Fridays Inc. operated by Whitbread & Co. PLC. Later
on in the same year, KFC was established by Artel Group, as the franchise of KFC
International; operated by Gray Mackenzie Restaurants International Limited. In
April 2000, Cupola Pakistan acquired KFC and renamed it as ‘KFC Pakistan”. Due to

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excessive expenses and low profits, TGI Fridays was closed down. But KFC grew and
opened its boundaries to the unchartered shores of Pakistan.

Currently in Pakistan, Cupola Pakistan has the franchise of KFC under Gray
Mackenzie Restaurants International Limited. They also have Indulge, Freshens,
Casa, Nafura and My Super Store under their business manifold.

Since Cupola Pakistan is present in Pakistan for 13 years, now it has considerable
knowledge about the Pakistani norms and cultural values. Cupola’s different
diversified strategic business units are catering different target markets, in various
cities across the nation. Initially Cupola Pakistan was limited to the restaurants and
food chain industry. However, after witnessing the global market trends and
comprehensive analysis of macro and micro environmental variables, Cupola
Pakistan has undergone diversification. Now it is also present in the departmental
stores, and bakery category. Besides that, Cupola Pakistan also understands its
social responsibility and has institutionalized a non-profit charitable organization by
the name of ‘Cupola Cares Foundation’.

1.3 KEY DIVERSIFIED OFFERINGS OF CUPOLA PAKISTAN


 KFC PAKISTAN

The famed brand KFC that laid the foundations stone for Cupola Pakistan’s
success. Opened in 1997, KFC was able to slowly and gradually work its way
to a network of 44 nation-wide outlets in nine cities, and the figure is still
growing.

Through the devotion, dedication and commitment of Cupola Pakistan family,


Cupola Pakistan has been able to maintain KFC’s position as the market
leader.

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Human Resource Management Report on Cupola

 INDULGE

Indulge chain of restaurants are a hip, trendy and happening “hang out” for
a relaxing eat-out. Targeted for the “young at heart” with ever-friendly
service and cheerful ambience as its trademark.

Indulge as a concept has certainly matured since its inception in May 2004.
Indulge has been doing very well and has grown to 6 outlets with 5 in
Karachi and 1 in Multan bearing great potential to expand countrywide.

 MY SUPER STORE

Cupola Pakistan previously known for its bakeries, food chains and
restaurants, decided to diversify its portfolio of products. They analyzed the
market scenario and came up with the idea to open a chain of departmental
stores known as “My Super Store”.

The first outlet of My Super Store was opened in September, 2006 in


Karachi. Currently My Super Store has 6 outlets located in Karachi, Lahore,
and Islamabad.

So after analyzing the corporate profile and product offerings of Cupola


Pakistan; we knew that a company which has such an extensive corporate
profile, employing over 1500 people, giving Rs. 11 million as direct taxes
must have a commendable Human Resource Department. So based upon
these facts and statistics, we have based our HR research on Cupola
Pakistan.

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Human Resource Management Report on Cupola

1.4 HUMAN RESOURCE ISSUES UNDER STUDY

The HR topics that we are covering in this report are as follows:

 ORIENTATION

Cupola Pakistan deals in both business-to-business and business-to-consumer


transactions. Its main product offerings are consumer related; employees at
restaurant and stores deal directly with customers and the employees at
corporate office overlook the entire staff and other strategic work such as
marketing, finance, and HR etc. Therefore, Cupola Pakistan has two different
and distinctive levels of jobs, Corporate Office and Restaurant and Store level
jobs.

For these varying levels, Cupola Pakistan must have different methods of
orientation. Orientation is a very important part related to the overall
efficiency of the employees and the organization. Because if the
organization’s employees are not acquainted with the culture of the
organization, what the employees have to do and what is expected from
them, then the organization would not be able to achieve its strategic goals.

Therefore, its important for Cupola Pakistan to orient its employees about
the Cupola culture, how they perform tasks, and what their mission is. This
message has to be conveyed from the top of the ladder (CEO) to the bottom
of the ladder (security guard). So for different levels of jobs they must have
different orientations.

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We decided to study this issue on Cupola Pakistan; to identify and


understand the orientation methodology employed by the HR department in
Cupola on varying job levels.
 TRAINING

Cupola Group’s competitive advantage is its effective and extensive training


program. They believe that better HR practices produce prized results. They
also consider training an integral part of their HR campaign, which harnesses
and polishes their employee’s skills and competencies. So well trained and
polished employees means that they are competent enough to handle the
macro and micro environmental variables and successfully perform their
tasks and duties in order to achieve organizational goals and objectives.

They also train their employees to promote them and for internal hiring
(succession planning). So that they are competent enough to be promoted to
next level of job. This can be verified by the fact that the CEO of Cupola
Pakistan Mr. Rafiq Rangoonwala, who joined KFC as a Cook in Houston,
Texas. Later on, after undergoing through extensive training and
management development programs, was promoted to different job levels.
Step by step, he climbed up each step of the ladder; at each step he received
different modes of training which helped him polish his skills and
competencies. Now he is the CEO of Cupola Pakistan the parent company of
KFC Pakistan. So in 20 years he transformed from a cook at KFC to the CEO of
Cupola Pakistan.

So after analyzing these facts we decided to study the training procedures


applied by Cupola Pakistan to train their employees efficiently on varying job
levels.

 PERFORMANCE APPRAISAL

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No promotion and job retention is complete without an accurate


performance appraisal. Performance appraisals are conducted to judge the
performance of the employee; whether that person has performed well or
not? So it is important for the firm to accurately and transparently conduct
performance appraisal.

Cupola Pakistan believes in internal hiring and analyzing the past records and
the example of Mr. Rafiq Rangoonwala (CEO Cupola Pakistan), it has been
verified. As internal hiring, is less costly and produces more committed
employees towards the goals of the organization. So organizations like
Cupola Pakistan prefer to use this hiring strategy. An accurate performance
appraisal is necessary to select the candidates who are ready to be promoted
and those candidates who require further training and experience. Then the
process of internal hiring can be accomplished. So for Cupola Pakistan
performance appraisal is an important step in its HR strategy.

So we decided to study this issue on Cupola Pakistan and to identify the


performance appraisals techniques employed by the HR department in
Cupola on varying job levels.

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2. LITERATURE REVIEW

After analyzing the background of Cupola and a brief discussion with the CEO of
Cupola Pakistan, we decided to study three core topics related to HR. Keeping this in
mind we have covered the given topics in the field study on Cupola.

 Orientation

 Training

 Performance Appraisal

(The references for all the below mentioned information are included in the section
7. References.)

2.1. ORIENTATION

Developing an effective employee orientation program is a crucial component of the


HR strategy, as it inculcates values, culture, history, mission of the organization in
the employee. A well thought out orientation program, whether it lasts one day or
six months, will help not only in retention of employees, but also in productivity.
Organizations that have good orientation programs have better alignment between
what the employees do and what the organization needs them to do, and have
lower turnover rates plus improved employee competence.

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The program fails when it is not backed by proper assistance and guidance by the HR
department, or if too much information is bombarded in a small time. Therefore, the
orientation duration should be well thought out to deliver the desired contents to
the new incumbent. The orientation program should cover all aspects such; job
descriptions, policy manuals, organizational culture and vision so that employee
understands what is expected from him/her.

All new employees should complete a new employment orientation program that is
designed to assist them in adjusting to their jobs and work environment and to instill
a positive work attitude and motivation at the onset.

2.1.1. DEVELOPMENT IN ORIENTATION

The orientation process has three stages:

 General orientation
 Departmental based orientation
 Specific job orientation

The three afore mentioned orientation strategies are implemented by different


departments. The General Orientation is usually managed by either the Training
Department or the Human Resources Department, with the Departmental
Orientation by the Department Head or first Assistant, while an experienced and
trained employee who knows orientation techniques can carry out the specific Job
Orientation. However, it is the responsibility of the HR department to administer all
the orientation programs and to follow-up and assist the new incumbents.

Nowadays, the organizations are more focused towards building interpersonal and
inter-organizational relationships along with necessary paperwork. Furthermore,
orientation is becoming more interactive by incorporating technology savvy

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components such as interactive multimedia CD-ROMs to make the orientation


program more effective.

2.2. TRAINING

Quality and variety of training is key the to employee motivation. Why is training
done? Reasons for training range from new-hire training about your operation, to
introducing a new concept to a workgroup to bringing in a new computer system or
maybe, just to perk up skills and competencies, to improve employee efficiency
ratio. Whatever the reason for conducting a training session, the important thing is
that you need to develop a comprehensive, ongoing and consistent training program
to suit the employee and organizational dynamics.

2.2.1. TYPES OF EMPLOYEE TRAINING

1. Communications: The increasing diversity of today's workforce brings a wide


variety of languages and customs.
2. Computer skills: Computer skills are becoming a necessity for conducting
administrative and office tasks.
3. Customer service: Increased competition in today's global marketplace
makes it critical that employees understand and meet the needs of
customers.
4. Diversity: Diversity training usually includes explanation about how people
have different perspectives and views, and includes techniques to value
diversity
5. Ethics: Today's society has increasing expectations about corporate social
responsibility. In addition to that, today's diverse workforce brings a wide
variety of values and morals to the workplace.

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6. Human relations: The increased stresses of today's workplace can include


misunderstandings and conflict. Training can people to get along in the
workplace.
7. Quality initiatives: Initiatives such as Total Quality Management, Quality
Circles, benchmarking, etc., require basic training about quality concepts,
guidelines and standards for quality, etc.
8. Safety: Safety training is critical where working with heavy equipment,
hazardous chemicals, repetitive activities, etc., but can also be useful with
practical advice for avoiding assaults, etc.
9. Sexual harassment: Sexual harassment training usually includes careful
description of the organization's policies about sexual harassment, especially
about what are inappropriate behaviors.

2.2.2. BENEFITS FROM EMPLOYEE TRAINING

The general benefits of conducting employee training include:

 Increased job satisfaction and morale among employees


 Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain
 Increased capacity to adopt new technologies and methods
 Increased innovation in strategies and products
 Reduced employee turnover
 Enhanced company image
 Risk management, e.g., training about sexual harassment, diversity training

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2.2.3. TRAINING PROCESS

1. Assess and 2. Create 3. Consider 4. Plan training 5. Design


agree training training or learning styles and evaluation materials,
needs development and personality methods and
specification deliver training

 Conduct some  Having  People's  Consider  Consider


sort of identified learning styles evaluation modern
training needs what you greatly affect training innovative
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develop in will find
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must break most
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down the effective.
process. delivery.
training or Look also at

 Involve the learning personality  Good


people in requirement types. writing
identifying into Remember techniques
and agreeing manageable you are help with
relevant elements. dealing with the design

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Human Resource Management Report on Cupola

aligned  Attach people, not of materials.


training. standards, objects.
measures, People have
 Consider
or feelings as
organizational
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2.2.4. FUTURE TRENDS AFFECTING TRAINING

If we analyze training with respect to the changing world, then training methods
need to be modified as per the requirements of the employee and organization. So
for that purpose the traditional modes of training have to be modified. However,
change in an organization has certain obstacles.

 For new training practices to be successfully implemented, managers, upper


management, and employees must first accept it.

 For managers and employees, change is not easy.

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 Resistance to new training and development practices is likely.

 Different types of change-related problems occur depending on the


organizational component that is influenced by the change.

2.3. PERFROMANCE APPRAISAL

Effective performance appraisal systems contain two basic systems operating in


conjunction: an evaluation system and a feedback system. The main aim of the
evaluation system is to identify the performance gap (if any). This gap is the shortfall
that occurs when performance does not meet the standard set by the organization
as acceptable. The main aim of the feedback system is to inform the employee about
the quality of his or her performance. (However, the information flow is not
exclusively one way. The appraiser also receives feedback from the employee about
job problems, etc.)

One of the best ways to appreciate the purposes of performance appraisal is to look
at it from the different viewpoints of the main stakeholders: the employee and the
organization.

 Employee Viewpoint

From the employee viewpoint, the purpose of performance appraisal is four-


fold:

(1) Tell me what you want me to do

(2) Tell me how well I have done it

(3) Help me improve my performance

(4) Reward me for doing well.

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Human Resource Management Report on Cupola

 Organizational Viewpoint

From the organization's viewpoint, one of the most important reasons for having
a system of performance appraisal is to establish and uphold the principle of
accountability.

2.3.1. BENEFITS OF PERFORMANCE APPRAISAL

Benefits of performance appraisal are illustrated below.

 MOTIVATION AND SATISFACTION

Performance appraisal can have a profound effect on levels of employee


motivation and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work


efforts. The power of social recognition as an incentive has been long noted.
In fact, there is evidence that human beings will even prefer negative
recognition in preference to no recognition at all.

 TRAINING AND DEVELOPMENT

Performance appraisal offers an excellent opportunity - perhaps the best that


will ever occur - for a supervisor and subordinate to recognize and agree
upon individual training and development needs.

Performance appraisal can make the need for training more pressing and
relevant by linking it clearly to performance outcomes and future career
aspirations.

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Human Resource Management Report on Cupola

 RECRUITMENT AND INDUCTION

Appraisal data can be used to monitor the success of the organization's


recruitment and induction practices. For example, how well are the
employees performing who were hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in


recruitment strategies. By following the yearly data related to new hires (and
given sufficient numbers on which to base the analysis), it is possible to
assess whether the general quality of the workforce is improving, staying
steady, or declining.

 EMPLOYEE EVALUATION

Though often understated or even denied, evaluation is a legitimate and


major objective of performance appraisal.

However, the need to evaluate (i.e., to judge) is also an ongoing source of


tension, since evaluative and developmental priorities appear to frequently
clash. Yet at its most basic level, performance appraisal is the process of
examining and evaluating the performance of an individual.

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3. METHOD

3.1. METHODS OF STUDY

When conducting a field study, it is extremely important to select the ideal method
for collecting information. The methodology determines the pace, efficiency, time,
accuracy and relevance of information. The most popular methods of obtaining
qualitative data include questionnaires, observations and interviews. However, each
one of the specified techniques has its own pros and cons.

Interviews can be very informative but it is difficult to get an appointment from an


interviewee; and interviewees often tend to give a more flowery perspective of the
true picture. Therefore time and information bias become crucial problems.

Questionnaires are widely used as an effective tool for gathering information;


however, they too are not a perfect solution. Designing the right questionnaire is
also an intricate task and requires professional skills. The language of the
questionnaire, complexity of questions and the length of the questionnaire need to
be balanced for maximum effect.

Observation is a comparatively easier alternative, but the information obtained may


vary observer to observer. In addition to this, people behave differently when they
are observed; making information further biased. Furthermore, observations vary
from observer to observer; as every individual has its own analytical and reasoning
skill. So they may interpret information in a different perspective comparative to
others.

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Therefore, it is the job of the researcher to carefully select the methodology to


obtain the best possible information efficiently. We decided to use questionnaires
and interviews for gathering information on Cupola Pakistan for the purpose of this
project.

3.1.1. INTERVIEWS

In order to gather information and to have a crystal clear picture of the HR practices
in Cupola, we conducted two interviews: one with Ms. Tazeen Shaukat Ali (Manager
HRD) and Mr. Farhan Inaam (Sr. HR Executive). The reason behind this was to get
information from both sides of the coin: manager and the executive. So that we can
effectively comprehend, the HR issues and comprehensively analyze those issues to
give better recommendations.

3.1.2. QUESTIONNAIRES

In order to capture in-depth knowledge about the HR practices in Cupola, we use


questionnaire as a primary tool to find out the answers to our research questions.
The sample size of the questionnaire survey was 11. So we floated 11 questionnaires
in the corporate office of Cupola at Park Towers and incumbents from different
departments such as Administration, HR, and Finance etc filled all of them.
Questionnaire survey was conducted to get the perspective of the sample (a mixture
of employees from different departments consisting of both high level and low-level
managers and assistants) regarding the HR issues under study.

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3.2. CONTACT PERSONS

1. Mr. Rafiq Ragoonwala

(CEO)

2. Ms. Tazeen Shaukat Ali

(Group Manager HRS)

3.3. PARTICIPANTS IN THE FIELD STUDY

3.3.1. INTERVIEWEES

1. Ms. Tazeen Shaukat Ali

(Group Manager HRS)

2. Mr. Farhan Inaam

(Sr. HR Executive)

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Serial No. Name Designation

3.3.2. PARTICPANTS IN THE SURVEY

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01 Sadaf Ahmed Sr. HR Executive

02 Shehla Ebrahim Admin Executive

03 Aisha Khalid Asst. HR Executive

04 Feroz Ali Payroll Executive

05 Mohammad Hanif Admin Executive

06 Shujat Hussain Territory Manager

07 Richard Sparks Sr. Manager HR

08 Col (R) Khizar Head of Admin. & security

09 Tazeen Shaukat Group Manager HR

10 Maqsood Zafar Manager Admin

11 Mohammad Farhan Inam Sr. HR Executive

3.4. RESEARCH QUESTIONS

Our questionnaire was based around the following key questions with respect to the

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areas of study.

3.4.1. ORIENTATION

What procedures are followed at Cupola to acquaint new employees to their


respective working environment and to their colleagues? How successful has Cupola
been to achieve its core purpose of conducting an orientation? How Cupola conducts
its orientation program and to what extent it has been successful to acquaint its
employees with the corporate culture of Cupola in order to bring the best out of
their employees to serve their valued customers efficiently?

3.4.2. TRAINING

What methodology does Cupola apply in training its employees (modern, traditional
or a combination of both)? How does Cupola incorporate the training and
development process in their procedure for training?

3.4.3. PERFORMANCE APPRAISAL

How does the HR Department of Cupola provide feedback to the employees in a way
that enhances their performance? What performance appraisal techniques does
Cupola incorporate in its performance evaluation process?

4. RESULTS AND ANALYSIS

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Since we conducted the survey via two different modes, interview and
questionnaires. Interviews were used to gather information about the actual HR
practices employed at Cupola. They were detailed discussion to grasp intricate
details about the HR issues covered in this report. The questionnaire survey was
conducted to gather the perspective of the employees at Cupola; what do they think
and feel about the HR issues covered in this report and to verify whether the
interviewee has told us the true picture or a flowery perspective? Therefore, we
have analyzed the results of both the tools separately.

4.1. INTERVIEW ANALYSIS

After conducting the analysis of the interview, we now understand that there are
two types of organizational setups at Cupola. The description about these setups is
illustrated below:

 RESTAURANT SUPPORT CENTER (RSC)

Restaurant Support Center or RSC functions as brain of the system of Cupola.


All the goals, objectives, strategic planning, marketing objectives, financial
analysis, business research and development, policymaking and its
implementation, procurements etc. are carried out by the RSC. RSC is also the
corporate office of Cupola, where all the dealings and decisions regarding the
brands of Cupola Pakistan are thought and materialized.

The secondary function of the RSC is to overlook all the departments of the
restaurants and stores. RSC is present to provide the backup support to all
the Cupola Pakistan’s brand outlets. All the departments such as Finance,
Sales, Marketing, Administration, and HR are located in the RSC. RSC is the
source and hub of all the HR activities. All kinds of HR decisions, policies are

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formulated and implemented by the HR department, which is located at the


RSC.

 RESTAURANT AND STORE LEVEL

Restaurant and store level setup consists of different business units


(restaurants and departmental stores) and different incumbents employed at
these business units. Incumbents at these business units range from business
unit managers to janitors. Restaurants deal directly with customers and the
staff employed at the restaurants and stores interacts directly with the
customers.

The restaurant personnel are important people as they interact directly with
the customers. Since Cupola Pakistan main line of business consists of
restaurants and departmental stores, so these people require extensive
support from the RSC in the form of different policies implemented by the HR
department. HR plays a key role in restaurant and store development and to
guarantee their efficient operation.

Therefore, for these two distinctive setups the HR departments deploys different
policies and strategies. Now, we will separately analyze the results and findings
about the HR issues covered in this report.

4.1.1. ORIENTATION

The HR department conducts the orientation process. Orientation process differs


from RSC to Restaurant and Store level.

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 ORIENTATION AT THE RESTAURANT LEVEL

At the restaurant level, orientation is a formal structured process; the


duration of the orientation program varies from 3-6 days. In this process,
employees are briefed about the company, its organizational culture, policies
etc. They are also informed about; what does Cupola do? How do they do
their work? What work to do? How to do the work? Therefore, these kinds of
questions are answered through the orientation program.

Furthermore, the orientation itinerary also involves introduction with other


staff members, tour of the corporate office (usually 3-4 hours long),
interaction with the corporate office personnel, information about their
respective job descriptions etc. Training Manager assists the new incumbent
in the socialization process. Periodic reviews are conducted time to time after
the orientation process to judge the effectiveness of the orientation program.

 ORIENTATION AT THE RESTAURANT SUPPORT CENTER

The orientation process at the RSC level is a much more formalized and
structured process; the duration of the orientation program varies from 6-7
days. In this process, employees are briefed about the company, its
organizational culture, policies etc. They are also informed about; what does
Cupola do? How do they do their work? What work to do? How to do the
work? Therefore, these kinds of questions are answered through the
orientation program.

Furthermore, the orientation itinerary also involves introduction with other


staff members, tour of different business units, interaction with the business
unit personnel, information about their respective job descriptions etc.
Training Manager assists the new incumbent in the socialization process.
Periodic reviews are conducted repeatedly, after the orientation process to
judge the effectiveness of the orientation program.

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4.1.2. TRAINING

It is the obligation of an effective HR department to conduct the training program. In


Cupola, the HR department supervises and conducts the training curriculum. Training
program differs from RSC to Restaurant and Store level.

 TRAINING AT THE RESTAURANT LEVEL

As soon as the orientation program ends, all new restaurant incumbents


undergoes 6-7 days of initial compulsory training on each sections of
restaurant and store. The purpose of this training is to acquaint people with
the restaurant’s environment, operations and to teach people on how to
perform their tasks and duties.

However, there are other specific training programs, which are much formal
and structured in nature. In such specific training programs, a Training Need
Analysis (TNA) is conducted after every six months to know the areas where
the employees require training.

After conducting the TNA and formulating the training design, incumbents
are provided specific training on certain guidelines. The two types of specific
training techniques adopted at the restaurant and store level are:

1. Customer Services Module (CSM) Training – In this training the


incumbents such as attendants, cashiers etc. are trained to polish
their interpersonal skills, comprehension skills and decision making
skills. Such kind of training is provided to personnel who are
continuously involved in the process of customer interaction.
Therefore, such training encompasses all the modes of customer
services training requirements.

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2. Food Services Module (FSM) Training – In this training the incumbents


such as cooks etc. are trained to maintain strict food quality
standards and to polish their skills. Such kind of training is provided
to personnel who are continuously involved in the process of food
services. Therefore, such training encompasses all the modes of food
services training requirements.

 TRAINING AT THE RESTAURANT SUPPORT CENTER

As soon as the orientation program ends, all new RSC incumbents undergoes
15 days of initial compulsory training on each sections of restaurant and
store. This training is obligatory for very RSC incumbent irrespective of the
fact that he or she is a high-level manager or a low level incumbent. The
training starts with the mopping job and progresses day by day. The purpose
of this training is to acquaint people with the restaurant’s environment,
operations. So that when they are formulating policies, they have an idea
that what is possible and how can that policy be implemented?

However, there are other specific training programs, which are much formal
and structured in nature. In such specific training programs, a Training Need
Analysis (TNA) is conducted after every six months to know the areas where
the employees require training.

After conducting the TNA and formulating the training design, incumbents
are provided specific training such as skill development training which is
provided: in house and out of the house. Techniques commonly used for
conducting skill development programs are Lecture based training, Workshop
Training techniques.

For Business Unit Managers and High – level Managers, a management


development program is conducted known as the Business Management
Development Program. This training itinerary duration is for six months. This

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is a kind of On The Job Training method. The time for the training is
dependant upon the nature of the training. After the completion of each
training program, a feedback session is conducted and the trainee is
interviewed to gather insights about the training program. So as to judge the
effectiveness of the training program and to make further amendments to it.

4.1.3. PERFORMANCE APPRAISALS

In Cupola, the HR department is assigned with the task of conducting an accurate


and transparent performance appraisal. Initially the HR department used the 360-
degree appraisal method. Now the primary tool is that the supervisor conducts the
performance appraisal. These performance appraisals are based on the method of
graphical rating scales.

Performance appraisal methods used by the HR department vary from RSC to


Restaurant and store level. At RSC, the graphic rating scale method of performance
appraisal is used. Whereas, in restaurants critical incident method of performance
appraisal is used.

However, HR department also incorporates specific performance appraisal programs


such as the ‘Voice of Champion’ program. This a customized performance appraisal
technique employed at Cupola to judge the performance and skills of the Business
Unit Managers (Restaurant Managers). This technique consists of two components;
first appraisal is based on the scorecards filled by selected restaurant staff and
customer feedback cards, second appraisal is based on the appraisal is based on the
supervisor’s feedback.

Performance appraisal biases are controlled to a certain extent by including HR


personnel in every meeting regarding performance appraisal plus by verifying the
appraisal through cross-reference checking.

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Human Resource Management Report on Cupola

Performance appraisal at Cupola is a dynamic document and the performance


appraisal is conducted based on objectives (what objectives have been accomplished
and their outcome), professional skills, and soft skills. Objectives are set with mutual
consent from the employee. The supervisor and HR department to track the status
of the objectives conducts six monthly follow-ups. However, HR department is
constantly modifying techniques to perk up the performance appraisal method to
make it more transparent and precise.

4.2. QUESTIONNAIRE SURVEY ANALYSIS

We conducted a questionnaire survey on a sample of 11 employees from different


departments. All of the questionnaires were completely filled and aggregate
response percentage was 100%. The purpose of questionnaire survey was to collect
information from other employees in order to get a broader perspective about the
HR issues under study. We have prepared graphs for the questions we asked in the
questionnaire, to illustrate the findings of the questionnaire survey.

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Human Resource Management Report on Cupola

4.2.1. ORIENTATION

This illustrates that the orientation program employed at Cupola provided sufficient
information to the employees such as what the employees need to do, what is
expected from them, what are the organizational values and policies.

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This illustrates that the orientation program employed at Cupola was successful in
acquainting the employees with the organizational culture and policies.

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Human Resource Management Report on Cupola

4.2.2. TRAINING

This illustrates that the training program employed at Cupola was compatible with
the expectations of the employees associated with the training program and the
training program matched the expectations of the employees.

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Human Resource Management Report on Cupola

Do you feel that the training procedures


and opportunities provided by Cupola are
effective?
5

0
Absolutely No Usually No Average Usually Yes Defintely Yes

This illustrates that Cupola provides its employees with sufficient training
opportunities and the number of satisfied employees at Cupola, and the
organizational brilliance verify the eminence of the training program. This graphical
representation also shows that the training program is efficient in carving out and
polishing the skills of the employees.

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Human Resource Management Report on Cupola

4.2.3. PERFORMANCE APPRAISAL

This illustrates that the supervisor performs the majority of the performance
appraisals.

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Human Resource Management Report on Cupola

This illustrates that employees prefer the current method of performance appraisal
and are satisfied with it.

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Human Resource Management Report on Cupola

5. RECOMMENDED SOLUTIONS

After comprehensive analysis of the information obtained through interview and


questionnaire survey, we have projected certain solutions that will help in the
implementation of improved HR policies.

5.1. ORIENTATION

There is no such problem with the orientation programs and through the survey it
was verified, that the incumbents are overwhelmingly satisfied with the current
orientation technique. However, in our analysis we noticed that the entire
orientation program was totally paper and manual based, which was sort of a rigid
and less interactive interface. Their orientation program lacked, on technology
grounds. As the world is changing, the demand for technology savvy products is
increasing. More and more firms are incorporating technology savvy products in
their portfolio of techniques for HR development.

Therefore, what we propose is to induce high-tech approach in the orientation


methodology at Cupola by producing interactive multimedia CD-ROMs to provide
consistent orientation information to new employees employed at the RSC and
nationwide wide outlets of food and departmental stores chain. This will also help
reduce the cost of orientation (travelling and hospitality cost of the training
personnel).

So according to the information we have at hand, the orientation process should


consists of following aspects:

1. An interactive presentation providing an overview of the firm

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Human Resource Management Report on Cupola

2. An interactive multimedia CD-ROM that covers the entire orientation


process, and modules of orientation

3. An administrative checklist of tasks to be conducted prior to a new


employee’s start date and during the first three months of employment

4. A binder explaining the firm’s vision, values, strategies, and structures

5. Computer and voice mail training (for people who are not computer literate)

6. A form for employee feedback

7. An intranet site with information about the firm

These suggestions are beneficial for all the incumbents both at RSC and Restaurant
level jobs. A constraint in implementing this solution is the resistance to change
attitude (changing the orientation methodology) that might exist in the organization
especially amongst the older work force.

5.2. TRAINING

There is no such problem with the training programs employed in Cupola and
through the survey it was verified, that the incumbents are satisfied with the current
training technique. However, during our analysis we noticed that training techniques
followed in Cupola are mostly traditional training techniques such as On The Job
training and workshop based training. These training methods are equally good. On
the Job, training includes job rotation, coaching by an experienced worker, special
assignments given to low-level executives. While workshop based training, include
training to improve certain skills of the employees for their current and future roles.
However, such training techniques are mostly outdated, and they require
modification, and rejuvenation order, to produce employees who are competent
enough to survive in the world where competition is growing day by day. Training is
a competitive necessity for firms like Cupola Pakistan.

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Human Resource Management Report on Cupola

Therefore, we propose that Cupola should incorporate technology based e-training


systems that are competent, flexible, personalized, and yet cost effective. Why?
Because e-learning systems represent state-of-the-art, approach to how knowledge
is acquired and human capital is developed.

There are three types of e-learning programs. However, we have selected only one
type of e-learning program to be incorporated in Cupola. That program is Computer
Based Training (CBT): where trainee uses interactive skills to increase his or her
knowledge or skills. CBT involves multimedia training, which is more interactive than
the traditional paper-based training methods. CBT programs are also cost-effective.
Although traditional training techniques cost less to develop, but media based
training has a lower cost of delivery over its life span. Other advantages include
instructional consistency (elimination of human errors), mastery of learning
(systematic learning), increased retention, and flexibility for the trainee, and
increased trainee motivation (continuous responsive feedback)

Constraints in implementing Computer Based Training are the high cost of


development and resistance to change attitude (changing the methods of learning)
that might exist in the organization especially amongst the old workers.

5.3. PERFORMANCE APPRAISAL

There is no such problem with the performance appraisal program employed in


Cupola and through the survey it was verified, that the incumbents are satisfied with
the current performance appraisal technique. Currently the Graphic Rating Scale
method is used for appraising performance, because of its easy to develop and use.
However, there are certain disadvantages attached to it such as it appraises traits
which results in more focus on the person rather than the behavior of the person
and this method is also ambiguous in nature.

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Human Resource Management Report on Cupola

However based upon our research and our understanding of concepts of HR, we
have identified a better method for appraising performance at Restaurant level,
which is Behaviorally Anchored Rating Scale (BARS). BARS combine the benefits of
critical incidents and quantified ratings by anchoring a quantified scale with specific
behavioral examples of good or poor performance.

BARS also give employees specific example of the types of behaviours to do well in if
they want to succeed in the organization. Constraints in implementing BARS would
be the time required to develop BARS, and resistance to change attitude (changing
the methods of performance appraisal) that might exist in the organization especially
amongst the old workers.

For the RSC level, we have identified a recommendation in the performance


appraisal method. That recommendation is to incorporate Management By
Objectives (MBO) in the performance appraisal method. MBO if applied in a proper
way (by developing clear, fair, attainable and measureable objectives) results in clear
outcome that is unambiguous. In addition, it eliminates subjectivity and bias on the
part of the appraiser and if designed properly it can be quite flexible and adaptable
to changes the organization might experience.

Constraints in implementing MBO are that it is time consuming, and it can result in
employee tug of war with the manager pushing for higher goals.

Another recommendation to the performance appraisal process is to incorporate


360-degree appraisal along with the current technique that is supervisors based
appraisals. 360-degree appraisal is a multisource feedback that involves the internal
and external customers, supervisors, subordinates, peers doing the appraisal. It is a
much transparent technique than other techniques, as the appraisal is not
conducted by one person but by a group of persons. Hence, it is also less biased.

Constraints in implementing 360 degree appraisal would the amount of effort


required and resistance to change attitude (perceptions prevailing in the minds of

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Human Resource Management Report on Cupola

the HR personnel that this method is biased and changing the performance appraisal
technique) that might exist in the organization especially amongst the old workers.

6. POSSIBLE LIMITATIONS OF THE STUDY

AND SOLUTIONS

Although while conducting the field study at Cupola, regarding the HR issues such as:
Orientation, Training, and Performance Appraisal, we were given comprehensive
knowledge about Cupola’s HR practices. However, the presence of certain additional
information would have been nice to us and would have provided a complete crystal
clear picture.

6.1. POSSIBLE LIMITATIONS

6.1.1. QUESTIONNAIRE SURVEY LIMITATIONS

As we conducted the field study, we did not personally meet the employees who
filled the questionnaire, the questionnaire were distributed by a senior HR Manager
amongst the incumbents. As we did not personally meet the incumbents who filled
the questionnaire, so there is a slight possibility that the incumbents might have
comprehended the questions in a different manner.

We have based this assumption on the fact that we received one filled questionnaire
by the Head of Admin and Security, which was not answered in the way; we wanted
the incumbent to answer. Therefore, we are assuming the fact that the incumbent
might have comprehended the question in a different manner and if we had the
chance to give a pre-amble (introduction and guidelines) to the survey participants
about the questions, then the scenario would have been different.

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Human Resource Management Report on Cupola

Another limitation is that, since the questionnaire were distributed by a senior HR


manager, so the lower levels incumbents who participated in the field study might
have suffered from peer pressure. As a senior level manager was conducting the
questionnaire survey, so the low incumbents might have had to restrain and curtail
from giving the true picture regarding the transparency, accurateness and
effectiveness of the HR issues covered in the field study.

6.1.2. LACK OF ADDITIONAL INFORMATION

Although the information provided to us was sufficient in analyzing the HR practices


employed at Cupola. However, additional information would have been an added
boost and augmented our field study and analysis. Additional information includes a
sample performance appraisal form and skills, orientation documents and manuals,
and training brochures and documents about the training opportunities provided at
Cupola.

For example, a sample performance appraisal form would have helped in analyzing
what exact methodology such as graphic rating scale etc. is applied in the
performance appraisal program and how they have used it as per their
requirements. Furthermore, a sample orientation profile or presentation would have
helped in improved understanding of the orientation strategy adopted by Cupola.
Similarly, if we had had any training program brochure and sample TNA form, it
would have augmented our analysis and provided us with an improved
understanding of the training procedures employed at Cupola.

6.2. CONSTRAINTS IN IMPLEMENTING CHANGE

6.2.1. RESISTANCE TO CHANGE

There are certain factors that might cause hindrances to changes. In implementing
changes, there are obstructions such as lack of technology savvy professionals, when

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Human Resource Management Report on Cupola

implementing technology based training methods. So firstly, incumbents have to be


trained in order to be flexible with the technology savvy environment, and then an e
- learning module can be employed.

Cupola has a diversified workforce hiring: 60% old incumbents and 40% new
incumbents. Old peoples such as Baby Boomers are resistant to changes in the
environment and can exert group inertia on the young blood. So the older workforce
can act as factor to resistant to change. Furthermore, as Cupola does internal hiring
and succession planning so the older and the experienced people have much higher
job security so they can execute the group think and group shift phenomenon on the
younger incumbents who have recently joined Cupola. Therefore, the older
workforce at Cupola does have the pendulum of power and authority slightly tilted
in their side.

6.3. POSSIBLE SOLUTIONS

We have identified certain possible solutions to overcome the constraints in


implementing change. These possible solutions are illustrated below:

 EDUCATION AND COMUNICATION

Resistance can be reduced through communicating the incumbents,


particularly older ones, to help them see the logic of change. This tactic
eradicates the assumption that source of resistance lies in misinformation or
poor communication: if employees receive the full facts and get any
misunderstandings cleared up, resistance will subside. Communication can be
achieved through one-on-one discussions, memos, group presentations, and
reports.

 PARTICIPATION

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Human Resource Management Report on Cupola

It is difficult for individuals to resist a change decision in which they


participated. Prior to making a change, those opposed can be brought into
the decision process. Assuming that the participants have expertise to make a
meaningful contribution, their involvement can reduce resistance, obtain
commitment, and increase the quality of the change decision.

 FACILITATION AND SUPPORT

Change agents can offer a range of supportive efforts to reduce resistance.


When employees’ fear and anxiety are high, employee counseling and
therapy, new-skills and adaptation training may facilitate adjustment

In implementing change in the HR policies and strategies, Lewin’s Three Step Model
for change can be used to implement change and over come change resistance.
Lewin’s Change model is illustrated below:

Unfreezing
from the
status quo

Movement
towards a
new state

Refreezing
the change

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Human Resource Management Report on Cupola

7. REFERENCES

 BNET, Articles on Employee Orientation

(http://jobfunctions.bnet.com/whitepaper.aspx?docid=48134)

 Wexley and Latham, Developing Training Human Resources

 Archer North, Guide to Performance Appraisal

(http://www.performance-appraisal.com/intro.htm)

(http://www.performance-appraisal.com/benefits.htm)

(http://www.performance-appraisal.com/methods.htm)

 Human Resources.Com, Article on Orientation by Brian Platz

(http://humanresources.about.com/od/orientation/a/onboarding.htm)

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Human Resource Management Report on Cupola

 Chapter 6, and 7, G. Dessler, N.D. Cole, P.M. Goodman, and V.L. Sutherland
“Management of Human Resources”, Second Canadian Edition, PEARSON,
2005.

 Chapter 8, 9, and 10, R.J. Stone “Human Resource Management”, Fourth


Edition, Wiley, 2001.

 Chapter 6, and 7, D.R. Newman and R.M. Hodgetts “Human Resource


Management”, International Edition, Prentice Hall, 2002.

 Chapter 7, and 12, Davis and Newstrom, “Human Behaviour At Work:


Organizational Behaviour”, 7th Edition, McGraw Hill, 1992.

 C. Fletcher “Appraisal: Routes to Improved Performance”, Jaico Books, 1999.

 Chapter 3, and 4, C. Mabey and G. Salaman “Strategic Human Resource


Management For Change, Development, and Performance”, Beacon Books,
1998.

 Chapter 9, 10, and 12, L.L. Byers and L.W. Rue “Human Resource
Management”, 6th Edition, McGraw Hill, 2002.

 Chapter 7, and 13, B. Ghosh “Human Resources Development and


Management”, Vikas Publishing House, 2005.

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Human Resource Management Report on Cupola

 Chapter 8, 9, and 10, K. Aswathappa “Human Resource and Personal


Management” 3rd Edition, Tata McGraw Hill, 2003.

 Business Balls.Com, Training and Development

(http://www.businessballs.com/traindev.htm)

 ManagementHelp.Org, Employee Training by Carter McNamara

(http://www.managementhelp.org/trng_dev/basics/reasons.htm)

 Human Resources.Com, Article on Orientation by Susan M. Heathfield

(http://humanresources.about.com/cs/orientation/qt/tipneonew.htm)

 Chapter 17 and 18, S.P. Robbins and S. Sanghi “Organizational Behavior”,


11th edition, PEARSON Education, 2006.

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Human Resource Management Report on Cupola

8.1. APPENDIX A - QUESTIONNAIRE

Name: __________________________________

Job Title: ________________________________

8.1.1. ORIENTATION

Q1. Which kind of orientation was given to you?

Informal Introduction (2-3 hours) Lengthy formal Program (2-3 days)

Q2. Did the orientation provide you sufficient information about your job and the
organization’s culture and policies?

Yes No

Q3. Were you assigned a peer as a “buddy” or a mentor to guide you during the
first few weeks of employment?

Yes No

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Human Resource Management Report on Cupola

Q4. Did the HR Manager/ Supervisor follow up with you after the initial orientation
to address any remaining questions?

o Yes No

Q5. Was the orientation helpful in acquainting you with the organization and its
policies?

Yes No No

Q6. What kind of assistance did orientation provide you? Please comment.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

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8.1.2. TRAINING

Q1. Have you attended any training session organized by Cupola?

Yes No

If yes

a. What type of training did you attend?

Workshop

Online

In-house

Others, Please Specify _____________

b. Did you benefit from that training session?

Yes No

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Human Resource Management Report on Cupola

Q2. Do you feel that the training procedures and opportunities provided by Cupola
are effective?

Rate from a scale of 1 to 5 – where 5 being the highest and 1 being the lowest:

_____________

Q3. Is the time span allotted to each training program adequate?

Rate from a scale of 1 to 5 – where 5 being the highest and 1 being the lowest:

_____________

Q4. How would you rate your training experience?

Exceeded your expectations __________

Matched expectations __________

Fallen below expectations __________

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Human Resource Management Report on Cupola

8.1.3. PERFORMANCE APPRAISALS

Q1.Who does the performance appraisal? (You can select more than one option)

_____ Supervisor

_____ Peers

_____ Self ratings

_____ Rating Committee

_____ Appraisals of supervisors by employees

Q2. Do Performance appraisals benefit you?

Rate from a scale of 1 to 5 – where 5 being the highest and 1 being the lowest:

_____________

Q3. Does your performance appraisal help you in career development?

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Human Resource Management Report on Cupola

Yes No

Q4. Is the appraisal at Cupola free from errors and biases?

Rate from a scale of 1 to 5 – where 5 being the highest and 1 being the lowest:

_____________

Q5. In your opinion, is the present appraisal procedure best or do you suggest any
other procedure?

Current _______ 360 degree appraisal ________ Peer appraisal _______

Rating committees _____

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Human Resource Management Report on Cupola

8.2. APPENDIX B – GRAPHS FROM


QUESTIONNAIRE SURVEY

8.2.1. ORIENTATION

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8.2.2. TRAINING

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8.2.3. PERFORMANCE APPRAISAL

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