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(Kentucky Fried Chicken)
“We Do Chick Right”




Ms. Toima Raza
Ms. Fatima Sughra ID # 074032-033 Ms. Hafsa Ayoub ID # 074032-051 Mr Muhammad Waqas ID # 074032-003 Mr Hassan Sabir ID # 074032-060 PERSENTED ON:

January 5,2010

University of Management & Technology (UMT) Lahore

Toima Raza. 4 .DEDICATION We would like to dedicate all of our efforts to complete this report to our beloved Parents and respected teacher Ms.

5 . We would like to say thanks Mr.Acknowledgement We would like to say thanks to our teacher Mrs. We also like to say thanks to Mr. Rana Naveed (HR Manager) who provided us all the necessary information about the Performance management system of KFC to complete this report. Furqan (Allumnies) who help us to arrange a meeting with KFC Managers. Toima Raza for her guidance and her precious thoughts which helps us to complete this work in a proper and efficient manner.

.................. serving good value innovative chicken-based products............................................. Generate consistently superior financial returns and benefit our owners and employees......... with fast friendly service.............. we must be dedicated to providing excellent service and delighting customers........13 Mission To establish in Pakistan our position as leading WQSR (Western Quick Service Restaurant) chain............................6 HISTORY........... and value in our product and service..........7 KFC IN PAKISTAN.......... striving always to be the leader in market place challenges................................................. consistently providing a pleasant dining experience................................................................ At all times................................................. Maintain a commitment to innovation for continuous improvement and growth....................................................................... Goals • • • • Build an organization dedicated to excellence...... Values for KFC • Focus all our resources to our restaurant operations because that is where we serve our customers....................................Table of Contents MISSION...............................................................................11 .............................................. in a clean and convenient location................................................ Consistently deliver superior quality................... 6 .

• another. chief cook and cashier and name the dining area "Sanders Court & Café. • Work as a team. insurance salesman. 1930-In the midst of the depression. • Reward result and not simple efforts. Kentucky. blacksmith's helper. • we can be and more." 1936-Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the state's cuisine. honest and direct in our dealing with one • Encourage new and innovative ideas because they are the key to our competitive growth.• individual at KFC. Sanders serve as station operator. Harland Sanders opens his first restaurant in the small front room of a gas station in Corbin. tire salesman and service station operator for Standard Oil. and army private in Cuba. Reward and respect the contributions of each Expand and update training with time and be the best Be open. profit and size of organization. HISTORY 9/9/1890-Harland Sanders. Indiana. the founder of KFC was born just outside Henryville. 7 . • Dedicate ourselves to continuous growth in sales. streetcar conductor. 1900-1924-Harland Sanders holds a variety of jobs including: farm hand. railyard fireman.

and Canada. He decides to go on the road to sell his Secret Recipe to restaurants.S. 1955-An interstate highway is built to bypass Corbin. 8 . 1939-The Sanders Court & Café is first listed in Duncan Hines' "Adventures in Good Eating. faster. but it is rebuilt and reopened. 1952-The Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. Kentucky. After paying debts owed. The pressure cooker is introduced. The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. Sanders sells the service station on the same day that he receives his first social security check for $105.1937-The Sanders Court & Café adds a motel and expands the restaurant to 142 seats. he is virtually broke." Fire destroys The Sanders Court & Café. 1940-Birth date of the Original Recipe 1949-Sanders marry Claudia Price. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers fresh chicken. A handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold. 1957-Kentucky Fried Chicken first sold in buckets 1960-The Colonel's hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U.

dies after being stricken with leukemia. Inc. 1986-PepsiCo. Sanders sell his interest in the U.500 franchised and company-owned restaurants are in worldwide operation when Heublein Inc. 9 . 1965-Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges Association. who came to symbolize quality in the food industry. in England.S. 1979-KFC cooks up 2.) when Heublein.. Flags on all Kentucky state buildings fly at half-staff for four days. The Colonel remains a public spokesman for the company.S. 1982-Kentucky Fried Chicken becomes a subsidiary of R. Inc. Congressional Committee on Aging. 12/16/1980-Colonel Harland Sanders. Canada and the first overseas outlet. acquires KFC Corporation.000 KFC restaurants worldwide with sales of more than $2 billion. Brown Jr. There are approximately 6. Reynolds Industries. 1969-The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange.1964-Kentucky Fried Chicken has more than 600 franchised outlets in the United States. acquires KFC from RJR Nabisco. 1977-Colonel Sanders speaks before a U.7 billion pieces of chicken. Company for $2 million to a group of investors headed by John Y. (now RJR Nabisco. 1966-The Kentucky Fried Chicken Corporation goes public. 1976-An independent survey ranks the Colonel as the world's second most recognizable celebrity. Inc. is acquired by Reynolds. future governor of Kentucky. Inc. 1971-More than 3. Inc.J.

2006-More than a billion of the Colonel's "finger lickin' good" chicken dinners are served annually in more than 80 countries and territories around the world. Inc. Long John Silvers®. headquartered in Dubai and offices in Middle East. Turnover of $200 million with operating staff of 1660. The Cupola Family Found in 1994. 2003-Tricon Global Restaurants. Inc. Pizza Hut® and Taco Bell® restaurants. 10 . 2007-KFC proudly introduces a new recipe that keeps the Colonel's 11 herbs and spices and finger-lickin' flavor. KFC Today • Today. worldwide. with more than 10. the world's largest restaurant company.000 people worldwide.KFC. London. KFC is the world’s largest and most well known chicken restaurant chain.. Inc. but contains Zero Grams of Trans Fat per serving thanks to new cooking oil. Taco Bell and Pizza Hut . KFC and its franchises employ more than 20.into Tricon Global Restaurants. Inc. changes its corporate name to YUM! Brands.5 billion kilo grams of chicken annually.000 locations worldwide. • KFC serves more than 4. announces the spin-off of its quick service restaurants . In addition to KFC. the company owns A&W® All-American Food® Restaurants. in 78 countries. Washington and Karachi.1997-PepsiCo. to approximately 7 million customers a day.

Gujranwala. 11 in Lahore and other in others city of Pakistan like Faisalabad.21 in Karachi.000 restaurants in over 110 countries and territories and more than 1 million associates. They have a total of 63 outlets working in Pakistan.. Rawalpindi and Islamabad (Punjab). gas & water industry) Information: Cupola plastic Cards LTD (Jable Ali). Peshawar and Jhelum.Activities Focus on 4 Sectors: Retail: spinney’s (ME and Lebanon). sakhar. 2 in Rawalpindi.. pizza. based in Louisville. Four of our restaurant brands – KFC. with revenues in excess of $11 billion in 2008. Inc. and Mexicanstyle food and quick-service seafood categories. Cupola Teleservices (USE) THE Yum Family Yum! Brands. Pizza Hut. Taco Bell and Long John Silver's – are the global leaders of the chicken. 1 outlet is in Islamabad. Hyderabad. 11 . is the world's largest restaurant company in terms of system restaurants with more than 36.  North Region including Lahore. Ky. KFC in Pakistan  South Region including Karachi and Hyderabad (interior Sindh). Yum! is ranked # 239 on the Fortune 500 List. Sialkot. Max (SA) Consumer: Oman United Agencies (Oman & Jordan) Engineering: Cupola Engineering Group (Oil. Multan.

KFC say that for the last seven years they stand as the market leader in the fast food category and our strength lies in the mass appeal of our products and great service. 12 .

Hierarchy Chart (Operational Level) Area Manager Territory Manager Restaurant manager Assistant Manager Trainee Manager Shift Supervisor/Customer Relation Officer All Stars Two Stars Star Staff Customer Service Team Member Food Service Team Member 13 Trainee Team Member .

Hierarchy Chart (Cooperate Level in North region) CEO Head of North Associate Regional Manager Finance Administration Human Resource Operation Department Brand Audit New Concept Area Manager Territory Manager Territory Manager Territory Manager Territory Manager 14 .

The purpose of the performance management system is to ensure • • • • • • The work performed by employees accomplishes KFC’s goals Employees have a clear understanding of the quality and quantity of work expected from them Employees receive ongoing information about how effectively they are performing relative to expectations Awards and salary increases based on employee performance are distributed accordingly Opportunities for employee development are identified. This typically includes the employee's manager. KFC started its operations in 1996 and till 4 to 5 years there was no human resource department in KFC and then in the 5th year of its operation in pakistan it developed its human resource department. A mixture of about eight to twelve people 15 . Employee performance that does not meet expectations is addressed. and direct reports. peers. (c) Measuring actual performance relative to performance expectations. What is 360 degree feedback? 360 Degree Feedback is a system or process in which employees receive confidential. anonymous feedback from the people who work around them.What is the existing performance management system of KFC? Performance management – A management process for ensuring employees are focusing their work efforts in ways that contribute to achieving the company’s mission. It consists of three phases: (a) Setting expectations for employee performance (b) Maintaining a dialogue between supervisor and employee to keep performance on track. When KFC started its performance management system so at that it used 360 degree feedback to evaluate its employees in which every employee was evaluated by his supervisor and his peers. The also launched their own ranking scale named by “My Growth Body” and details of their feedback system and “My Growth Body” are given below .

The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. 2. peer.g.fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs. 360 Feedback as a Performance Appraisal Tool to measure employee performance These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 degree feedback into a larger performance 16 . How is 360 Degree Feedback Used? KFC uses 360 feedback systems in two ways which are given below: 1. Individual responses are always combined with responses from other people in the same rater category (e. Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. 360 is highly effective as a development tool. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective When done properly.

but only with clear communication on how the 360 feedback will be used. completed form. As 90% to 95 % of the staff working in KFC is of operations and only 4 to 5% people are working on the managerial positions . • Performance documentation – A letter. or note on which the supervisor indicates the extent to which the employee is currently meeting expectations and provides evidence to support that conclusion. memo. and leadership effectiveness “My Growth Body” This was the rating scale introduced by the HR department of KFC in 2000-01 which they used to measure the performance of their employee. planning. 17 . What a 360 Feedback Survey Measures? • • • • 360 feedback measures behaviors and competencies 360 assessments provide feedback on how others perceive an employee 360 feedback addresses skills such as listening. character. the employee who was a low performer is ranked on 3 and the good performer who achieved his targets was ranked on 5. and goal-setting A 360 evaluation focuses on subjective areas such as teamwork.Operational staff require regular check and balance on their performance so their performance is measured quaterly means 4 times in a year and performance of managerial staff is measured annually. The information which they collected from 360 degree feedback it provided them a base on which they can rank their employee as a good performer or a bad performer. The flow of activities involved in the existing system Supervisors and managers are responsible for managing the performance of their employees. So basically in MGB there were 5 five process.

d. b. c. discussed. At the end of the work cycle. They use verifiable information collected and documented throughout the cycle to determine the extent to which actual performance has met the expectations defined in the work plan. so at the start of each cycle the supervisors meet with their employees. and documented throughout the work cycle. b. supervisors shall evaluate employees’ performance during the past work cycle compared to their performance expectations. Appraisal of operational staff after every 3 months and of managerial staff after every twelve months. Performance expectations shall be written at the “meets expectations” level and shall be documented on a form defined by the KFC – the “work plan c. Conducting performance appraisals a. Work plans are signed and dated by both the supervisor and the employee. b. Maintaining ongoing performance dialogue a. Employees shall be responsible for meeting their performance expectations. c.” which is “My Growth Body” which is a form of questionnaire. 2. 3. Progress toward meeting expectations shall be measured. and impart to them an understanding of how meeting these expectations will contribute to the achievement of the KFC’s mission. reported.1. supervisors communicate these changes and modify work plans as necessary. Communicating employee performance expectations Since KFC has two main cycles on which it assesses its employees the three months cycle for operational staff and the twelve month cycle for managerial staff. 18 . The evaluation shall be documented on a standard form defined by the KFC – the “appraisal. Modifications are signed and dated by both the supervisor and the employee. Supervisors are expected to use appropriate supervisory techniques to support employee efforts to meet or exceed their performance expectations. specify how employees’ actual performance will be measured and their success determined. When expectations change during the course of the work cycle. establish expectations regarding their employees’ performance.

Consistently good performance and a willingness to take on more responsibility might make you consider an employee for promotion. 4. the reward system must recognize both sources of motivation. the supervisor shall document the performance deficiency and take 19 . restructuring. f. The performance appraisal shall use a 5-level rating scale for reporting overall performance. To be effective. A rating at the midpoint of the scale shall indicate that an employee’s performance has met expectations. 5. So reward system of KFC is based on the assumptions of attracting. KFC carefully considers the rewards and strategies utilized and ensure that rewards are linked to or based on performance. Rewarding good Performance Most employees love recognition for a job well done. and boosting performance. an appraisal containing ratings and descriptions of actual performance) with an employee. .d. To make it more effective. Employees are motivated by both intrinsic and extrinsic rewards. a supervisor reviews the appraisal with the next-level manager to ensure that ratings are appropriate and consistent.Supervisors discuss the appraisals with their employees. e. Addressing Poor Performance When an employee’s performance falls below expectations at any time during the performance cycle. KFC’s performance measurement system is tied to compensation or some sort of reward. retaining and motivating its people. but there are other factors that motivate employees and influence the level of performance so they keep on identifying those other factors that can motivate their employees. To ensure the reward system is effective and motivates the desired behaviors. The competitive reasons for the growing emphasis on performance-based compensation are companies cutting costs. Both supervisor and employee sign and date the completed performance appraisal indicating that the discussion has taken place. Prior to discussing a completed performance appraisal (that is. HR manager told us that they know the the fact that financial rewards are an important component of the reward system.

3. 2. Decisions involving promotions. The supervisor provide performance documentation before each salary increase is granted within the progression. To remove an employee from probationary status. shall have work plans established within a certain number of days following the new assignment. lateral transfer. (c) the consequences of failure to improve. 1. 2. The supervisor documents the performance that falls short of expectations by preparing a corrective action plan or other documentation. including (if appropriate) disciplinary action. The documentation will specify (a) the performance problem.actions. Access and Use of Performance Information Properly informed personnel decisions – KFC takes measures to ensure performance information is appropriately and consistently used and that personnel decisions are based on appropriate performance information. or an equivalent document that describes performance expectations. 6. to assure that performance expectations will be met within a reasonable period of time. performancebased disciplinary actions. either within their current position or by transfer (promotion. performance-based salary increases. 1. (b) the steps to be taken to improve performance. Employees whose responsibilities are changed substantially. 7. relevant performance information shall be communicated in a timely way. Employees in training progressions also have work plans. 20 . or demotion). the supervisor provides performance documentation. including the timeframe for improvement. and (d) a followup date. A corrective action plan is considered successfully completed only when the employee’s actual performance has improved to the point where expectations are being met. within a certain number of days of the date of employment. Probationary employees have work plans within a certain number of days of their date of employment. Transitions When employees move into or out of their positions. and reductions in force are supported by a current appraisal on file.

When this is the case. the appraiser that is the members of human resource department and the appraises. and is sometimes called a "360-degree review.The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development.Confidentiality of Appraisal . Results are also used by some organizations in making administrative decisions. In this system the human resource department of the organization reviews the appraisee’s job and job satisfaction.agencies shall clarify which of the documents used for performance management purposes are confidential and which are not. It also includes a self-assessment and. the 360 assessment is for evaluation purposes. This system involves all the employees at KFC and the feed back is provided by subordinates. who are the employees are linked with each other. Human resource department at KFC evaluate the performance of is employees when the performance is evaluated then the department identify the development needs of employees and then provide the training and coaching according to it. and signatures and dates) shall be treated as confidential. Appraisal is concerned with the performance and development of individual members of staff. Completed performance appraisals (with ratings. peers. 21 . How the appraiser and apprises are linked together? Kfc uses the 360 degree which is also knows as “multi-rater feedback” appraisal system to evaluate the performance of its employees and this is the basic method which links the appraiser and appraises. The important thing is that explore the problems the appraisee might have or factors which might prevent the appraisee from improving his/her job performance. During all this. such as pay or promotion. supporting information. feedback from external sources such as customers and suppliers or other interested stakeholders. and supervisors. This system gives the appraisee an opportunity to set and work towards achieving agreed objectives and also identify the appraisee’s personal development needs. as well as define what “confidential” means. in some cases.

feelings and suggestions in a confidential atmosphere. possible areas for development and how these relate to departmental plans and the Organization's Strategic Plan. If some operational staff member is working well then reward is giving to him or her at the spot in the form of employee of the day. • Staff member are encouraged to become directly involved in setting their own job related objectives and finding out when they need support in order to achieve them. 22 .KFC gives value to its employees. • All staff has the opportunity to discuss any problems and agree solutions. The senior manager always linked with the subordinates and identifies the needs of improvement and then directs them through the right path. The emphasis of the appraisal process is on finding ways to improve performance and resolve problems through joint discussion. • All staff (appraisers and appraisees) has the opportunity to give and receive feedback on their role. The appraisal process is separate from the disciplinary process and has a different purpose. performance and contribution. KFC uses the 360 degree evaluation method because it provides the following advantages: • It provides the opportunity for regular communication between managers and their staff. mutual feedback and a clearer view of the responsibilities of their staff. • Appraisal provides the opportunity for the work. • Staffs are able to express their opinions. abilities and achievements of staff to be recognised and recorded. If the operational staff is lacking in something or their efficiency is going down then they are warned at the spot but managerial staff is evaluated and assessed by using some proper evaluation method.

Objectives are statements that describe the intended results of instruction in terms of specific student behaviors. the characteristic that distinguishes goals from objectives is the level of specificity. and sometimes vague. 23 . KFC links its goals and objectives with performance management. Goals are written in broad. global. confusion sometimes arises. He said. The HR manager of KFC explains this with an example. At KFC the goals and objectives are linked with the performance management system. Companies can determine the behavior of employee towards the related objective. This thing creates biasness because there are some employees who are very introvert and there performance is not so much clear. Although both goals and objectives use the language of outcomes. This is the only criteria on which they are measuring the performance of the employees that’s why the performance of the employees are not very clear. assume we have three employees and we assign them a target of 6 million sales. language. Goals express intended outcomes in general terms and objectives express them in specific terms. They are used to inventory the abilities and resources of employees and to let an employee know where he stands so that he will be stimulated to improve his performance. it provides the following advantages to the company: What Appraisal system is used? Performance appraisal systems are designed to serve the company's and employee's interests.How goals and objectives are linked with performance management system? Both the two terms goals and objectives are often used interchangeably. In the end He said “performance speaks for itself”. Companies implement appraisal system to determine whether the employee is doing according to the requirement of the organization or not. Then we will give reward which may be in any form to first two employees although the third one also achieved the target but his performance is not at the same level. Two workers achieved above the target means 10 million that is very good but third one achieved only 6 million that is exact target.

HR department. with an individual figuratively in the center of the circle. so there was the gap of about 5 to 6 years between KFC operations and introduction of its performance management system. (which consist of THREE people) of north region is controlling and evaluating about 2200 employees of KFC in this region. Feedback is provided by subordinates. 24 . Most often they control and solve matters through telephonic discussion and sometimes they visit to particular area to solve their problems. As they are using 360 degree feedback system to get the feedback from each and every employee as every employee has an access to these three people any time and can communicate his or her problem to them. These north regions consist of Punjab and NWFP. How the existing Appraisal system is implemented. KFC use 360 degree feedback (“refers to the 360 degrees in a circle. Implementation of online appraisal system is going through questionnaires and gets feed back very soon through their online feed back. Rana Naveed. they place questionnaires on a log in of an each employee and communicate them to fill that and reply over their results.There are different types of appraisal system used by different companies. north region Pakistan. Existing performance management system is implemented approximately in 2001 to 2002. peers. feedback from external sources such as customers and suppliers or other interested stakeholders. Then on the basis of that feedback they give numbers to those employees and rank them between 3 to 5 and assess whether he or she is a good employee or not and then take a decisions related to his or her objective setting and any bonuses if he or she deserve. Appraisal of employee performance is one of the most important responsibilities of managers. Appraisal reviews of manager’s takes place once in a year and on another sides performance appraisal of operational staff takes place quarterly. HR manager of KFC barkat market. and supervisors. According to Mr. in some cases. It also includes a self-assessment and. Through this process they keep the documentation and can give the proof of their out put at the time of review of their performance. It may be contrasted with "upward feedback.”) they were also using the online feedback. but KFC started its operations in 1996.

Operation level activities play a big role the growth of the KFC. like a free meal or a day off with pay. they also consider those persons has lass then 5 but more then 3 points and give them incentives by offering free meals with in a month in term of coupons. at operation level they have prizes you can win for being best employee that month. So at operation level motivation factor have importance for the employees. What is the formal reward system? Employees are motivated by both intrinsic and extrinsic rewards. retraining and motivating the employees of the organization. And if he achieves this target. 25 . Financial rewards are important components of the reward system on the bases of the employee’s performance. If these objectives are SMART then HR department reinforce to do that objectives and if there is a gap between their performance and actual expectations of the company then they find out whats the problem with the employee. For example if the employee have a target to increase the sale with in the given time period. payoff free meals depending on the level of the employee and how much they perform there job good.Objectives which are assigning to them are review at the time of appraisal. If the person has 5 points he or she can get benefits in term of financial bonuses. At management level they award them in the form of promotion. All rewards systems are based on the assumption of attracting. KFC do not review its Objective as they say that we have set these objectives according to the past achievements and if any one can achieve that objective then every one have capabilities to achieve those objectives. But there are other factors that motivate employees like to organize the training program for them giving them the certification on the bases of these training. Bounces are given to the employees on the basis of “My growth body” points. incentive. performance sheets. because for some employees money is not the most important motivator. the some percentage of his/her salary will increase in the form of reward from the company on his/her performance. KFC also reward there employees in terms of promotion.

According to Mr. 26 . They measure actual performance relative to expected performance. These objectives are SMART and communicated to each employee before he or she has to start work then they also maintain a dialogue between employee and supervisor in case of any problem. we are running our whole system with these two appraisal systems and assign them weight of good and bad on the basis of “My growth body”. about the performance management system. as it is a management process for ensuring employees are focusing their work efforts in ways that contribute to achieving the company’s mission. at the time of start of each performance management cycle. So if we talk about the appraisal system of KFC in term of linkage with its performance management system we determine that at first step they set objectives of a employees. He says that this system is really supporting and leading us towards a good performance organization but it is not a system which is a perfect. So these processes help them to find out those people with good performance. As we discussed above that appraisal of each employee starts after 3 months and review their performance whether they are doing according their requirement or not. For the measurement of performance they get feed back by different appraisal systems. (c) Measuring actual performance relative to performance expectations. Rana Naveed.How the existing system of KFC is linked with its performance management system? As we discussed above. HR manager of KFC north region. We can make this better and more effective to get an excellent performance and cost effectiveness. It consists of three phases: (a) Setting expectations for employee performance (b) Maintaining a dialogue between supervisor and employee to keep performance on track. Like 360 degree feedback system and “MY GROWT BODY”.

etc. 360 feedbacks focus on behaviors and competencies more. Because there are so many issues that arise when people are working together.If we take the example of north region which includes Punjab and NWFP . It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Currently they are using 360 feedback which has following drawbacks What 360 Feedback Surveys do not assess: • • 360 feedback is not a way to measure employee performance by objectives (MBOs) 360 feedback is not a way to determine whether an employee is meeting basic job requirements • • 360 feedback is not focused on basic technical or job-specific skills 360 feedback should not be used to measure strictly objective things such as attendance. job requirements. Proposed performance management system for KFC Currently their Human resource management system is not that much strong and it is obvious because when we asked from the HR manager of KFC that rate your company’s HR then he said that I will give 3 points out of 5 to my company. sales quotas.Develop your own performance management system for that company keeping the above-mentioned points. 27 . Using a 360 degree feedback system for Performance Appraisal is a common practice. Moreover.only three people are managing the performance of 2200 employees so it is not possible for them to efficiently manage people. but not always a good idea. and performance objectives. than on basic skills.

However. This direct linkage helps to create team working and shared responsibility. Within a given department some objectives will be shared within a team or standardized across a number of similar employees. some objectives need to be customized to allow for continued growth.It is important that the process ensures that employees understand how their personal job performance contributes to the overall performance of the company. job description and responsibilities – explaining how the role and responsibilities contribute to wider goals. Team effort stems from shared objectives reflecting organizational goals and clarification and understanding of the roles and responsibilities of each member Within such a framework. it is important to ensure that. Objectives developed in this way should be reflective of the organizational goals and provide linkages between employee and organizational performance. Currently their performance management system has no proper method to evaluate the performance because we asked several times the HR manager about their evaluation method he told us that “performance speaks for itself”. Although performance objectives should be individual and agreed between employee and supervisor.Organizational and employee objectives One of the first steps in developing an effective performance evaluation system is to determine the organization’s objectives. In order to keep each individual employee motivated and committed to performing at his/her best. These are then translated into departmental and then individual position objectives –working with employees to agree their personal performance targets. performance appraisal has higher acceptability. an individual focus is maintained: within any group of employees performing the same job function there may be wide gaps in experience and technical knowledge. this does not mean that they should be easy to attain. so on the basis of this conception they reward and penalize their employees. 28 . no certain ranking criteria they are using so their employees are unaware of the criteria on which their performance is evaluated. why individual and team performance is important and just what is expected within the current planning period. A significant portion of an employee’s performance should be based on these jointly developed objectives. This allows the employee to know “up front” the standards by which his/her performance will be evaluated. If employees are unclear about these criteria how can they perform well? This process involves clarifying the job role. where necessary.

Currently KFC is not focusing on the training of its people and it can suffer from some problem in future. Raters involved in the appraisal process should also be evaluated on how they conduct performance appraisals. Thus training should begin those levels of management that will be involved in administering the programme and providing training for lower levels of supervision. linking the system to pay providing employee feedback Once an individual rater has been through the necessary training. This specific training should include at least the following: • • • • • supervision skills.All objectives. This training should start with a focus on providing the manager with a systematic approach to the practice of effective people management. skills training are needed for junior managers and supervisors. This will help to make sure that evaluations are performed in a similar and consistent manner throughout the organization. Once the senior managers have “bought into” the system. coaching and counseling. This training needs to focus on the process of managing. should challenge the employee to extend him/herself to exceptional levels. periodic refresher courses will be required to help the rater maintain necessary skills in performance assessment. setting performance standards. Since we are asking employees to contribute to the process (by being involved in the setting of 29 . Training A major aspect of developing an effective performance system is training for those individuals involved as raters. motivating and evaluating employee performance because if the people who are going to assist others and they are accountable for the management of people working in the organization are not properly trained then how can they carry out good management? Performance appraisal is only a part of this overall process and it is important that managers see it within its wider context and not as a simple “quick fix” solution. while being attainable. conflict resolution.

Maintaining records is another key to ensuring the effective use of a performance appraisal scheme is keeping and maintaining accurate records of employee’s. Currently they review the performance of operational staff after every three months and that of managerial staff after one year and this is not right they should at least review the performance of managerial staff twice in a year means after every six months. Carefully maintained. In addition frequent reviews give supervisors more opportunity to assure that progress is being made in developmental objectives. This training should include how to set objectives. The longer a problem is allowed to continue. Job demands can frequently prevent employees from achieving specified objectives. Frequent performance appraisals should eliminate the surprise element and help to modify performance prior to any annual review. Eliminating surprises in the appraisal process is also important. Frequent reviews also allow for clarification and revision of objectives. informal reviews of an employee’s performance may be undertaken almost continually. Both the supervisor and employee need to know that there is a performance problem prior to any major annual review. This leads to better informed employees who are better equipped to perform their job satisfactorily. how to keep accurate records. some training is required for all employees. In this case the supervisor must either re-assign work to allow the completion of this objective or modify the objective to reflect the changing conditions of the job. Poor performance should not go unchallenged just because the quarterly review is not due for two months. Of course. and how to communicate all aspects of performance.personal objectives – and obviously in the review process). they establish patterns in an employee’s behavior that may be difficult to spot 30 . Frequency of appraisal Employee reviews should be performed on a frequent and ongoing basis. the more difficult it is to take corrective action and not always problem is with the operational staff and they should regularly evaluate the performance of managerial staff. if there is a good relationship between supervisor and employee. The actual time period may vary in different organizations and with different aims but a typical frequency would be bi-monthly or quarterly.

In this. if a 1-5 scale is used. General Electric Company. USA. Another problem arises when it is made extremely 31 . Peers. “Launch a 540 degree feedback” To ensure the proper assessment of the employees we launch a new system so that the draw backs which current system has can be removed. a majority of employees will be rated a three.Superiors. the customers and suppliers also evaluate the performance which helps us to differentiate from the 360 degree performance appraisal. Clients or Suppliers are known as 540 Degree feedback or appraisal. Since 90 to 95% of their staff is relate with operations so suppliers feedback is also very important. “Launch Proper Measurement system” Currently their managers are using own criteria “My Growth Body” to evaluate employees in which there are 5 points and on the basis of performance they allocate points. five being best. well maintained Records are essential if the need arises to discipline. demote or dismiss an employee. A performance appraisal system which ranks employees according to a numerical rating tends to lead to a great deal of average performers. It is particularly helpful if employees are themselves responsible for part of the process of record-keeping: this helps reinforce the fact that a major part of the process is devoted to employee development – and that employees have a responsibility for their own development. was the first to tryout this concept in early typical incident. Of course. supervision . few people take gratification in being called average.This is an emerging technique and since customer plays a major role in the success or failure of business and for KFC customer satisfaction is the key so their feedback will play a major role in assessing employees. While this may be reflective of their actual performance. The actual measurement or grading system used to rate employee’s performance needs to be designed carefully. The range of feedback on the performance of an employee is generated from the stakeholders .Careful review of the records helps avoid the selective memory mentioned earlier and helps plot appropriate actions. Such an approach to dual documentation also helps in the elimination of surprises. For example. Internal and External Customers.

However. several supervisors may work with an individual employee. gender or age. A possible solution to the average rating problem is to have an even scale. a clear definition of each level of performance must be provided and disseminated to all employees. Some multiple rater systems go as far as involving the use of subordinates in the evaluation process.difficult to perform at a level greater that a three or average. Currently Multiple rater systems can be computerized to allow statistical analysis to identify bias – this can be particularly important where an organization is keen to avoid real or perceived bias with respect to race. It may also be necessary to restrict the number of employees rated by any one individual – especially in todays new. With large spans of control. Use Multiplier rating while conducting the performance appraisal In many systems. The input from all supervisors about the employee’s performance is required to complete a thorough performance review. In developing a rating system. the front-line supervisor is responsible for conducting the performance review. A company in this situation tends to breed mediocre performance even from its outstanding performers. An individual supervisor will no longer be responsible for a single employee’s review. This in turn lifts the burden of “policing” from the supervisor and allows him/her to focus on coaching and developing the employee. Of course. for example or not to have numeric ratings at all. a multiple rater system should be considered. flatter organization in which spans of supervision may be 60 people or more. Employees and all supervisors must clearly believe that a rating higher than average is achievable and attainable. This is especially effective in a work environment which is self-governing. This again will help the employees to clearly understand that the measurement system is accurately reflecting the true level of performance for every employee. General Foods Corporation has used this 32 . they should also clearly believe that ratings lower than average is achievable and will be given if appropriate. So here we suggest that KFC should use “Multiple rater systems” because they provide a form of “triangulation’ that results in ratings in which employees and managers have greater confidence. Another advantage of multiple rating systems is that they can shift the supervisor’s role from that of judge to performance coach.

Lack of such communication may be viewed by the employee as approval of their current work habits and performance. Unsatisfactory performance needs to be conveyed in order to arrange for improvement. Performance appraisal systems are not generic or easily passed from one company to another. undesirable work habits may be formed or good work habits may be modified. Generally speaking people will be at least as tough on themselves as the formal rater. Indeed. Self-appraisals give the supervisor helpful insight as to how the employee views his/her performance. Reward system based on Performance 33 . Self-appraisals can lead to self-improvement. A proper process of employee and supervisor (or multiple rater) review can help employees agree on areas for development and how the organization can help. if performance is satisfactory the supervisor wants to promote continued satisfactory performance. The employee’s self appraisal can also be helpful for the supervisor in opening a communication link and allowing for comparison of performance results. This system of evaluation allows employees to participate in the decisions that affect them directly. In either case. At a basic level.approach in some of its plants utilizing self governing work groups.The supervisor also has a legitimate reason to conduct performance appraisals. Some suggestions for developing an appraisal Developing an appraisal system that accurately reflects employee performance is a difficult task. Performance appraisals are most commonly undertaken to let an employee know how his/her performance compares with the supervisor’s expectations and to identify areas that require training or development. without adequate communication between the employee and the supervisor. their design and administration must be tailor-made to match employee and organizational characteristics and qualities. Employees have a legitimate need to know how their performance is viewed. it helps to have a systematic framework to ensure that performance appraisal is “fair” and consistent. Subordinate evaluations have generally shown to be more accurate than supervisors in truly reflecting employee performance. This helps the employee to be less defensive and passive in the appraisal review.

It builds a good image of the organization in the industry. In the proposed new system that is 540 degree the performance of the employees is strongly linked with the rewards system. This thing will increase the competitiveness among the workers and increase the productivity and help the organization to achieve its objectives in the specific time frame. It helps to achieve the goals of the organization in the time frame. Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals. it provides the following advantages to the company: 34 . Because they know that when they perform well only then they are given benefits and allowances. Although the existing system also linked the performance with the rewards system but in the existing there is no accurate method for measuring the performance of the workers that’s why rewards are not accurately linked with performance workers are not getting what exactly they are doing. Not only the pay but other benefits and allowances also relate with the performance of the employees of the organization. If at KFC the new system is launched then it will provide the following advantages. Because they know that when they perform well only then they are given benefits and allowances.In the system which we proposed for the KFC the reward system is based on performance. They get point if they perform well. This thing also motivates the employees to work hard because it is the natural thing that every one worked for some reward which may be in any form and it varies form person to person. It builds a good image of the organization in the industry. But 540 degree evaluation system has a proper method for measuring the performance and employees are rated according to their performance. At KFC the goals and objectives are linked with the performance management system. It motivates the workers of the organization. It helps to achieve the goals of the organization in the time frame. • • • • • • • • • It motivates the workers of the organization.

Superiors. Now supervisors are going to monitor their performance frequently through observations and feedbacks from them. with the performance management system of KFC. like 540 degree feedback will help to feedback from the stakeholders . If managers find out that there is any weakness in term of skills. As we have looked at the appraisal system of KFC and it’s linkage. Subordinates. This will bring the employee on the right path and he or she can achieve the expected task.• Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals. Linkage of current system with the performance management system of KFC Developing an appraisal system that accurately reflects employee performance is a difficult task. it mean to find out whether they are willingly ready to do these task or not. Internal and External 35 . capabilities and competencies then they can arrange coaching and counseling for them and training session for them to make competent. First of all if we set the objective of an individual and departments and then take the acceptance from them or ownership from them. Peers. On the other hand frequency of appraisal of managerial staff with in 6 month will help to determine the competencies of manager himself. If they take ownership then allow them to start work. Now we will look at the new appraisal system or the system which will also help the organizations to increase the performance and efficiency of employees and its linkage with the performance management system of KFC. A different criterion’s of measuring performance.

Reward will be given to them according to their achievement. managers will give them weight and the input from all supervisors about the employee’s performance is required to complete a thorough performance review. From objective setting to reward paying system. Every body that is related to the organization is giving feedback about the employee and after getting a feed back from all people. these can be great motivational factors for the employees to perform task honestly and properly.Customers. 36 . Clients and Suppliers. each and every effort included in a performance management system is to increase the performance of the organization and develop individual performance towards the success of the organization.