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Project of Management
Report On the

Organizational
Structure Of Kentucky
Fried Chicken
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Acknowledgements
He gave us a world full of challenges,
And gave us ambition to try…………..
A world that hold marvelous secrets,
And mind that would ask why.
He gave us a world bright with beauty,
And gave us awareness to see
A world where all could be different,
And hearts that could seek ha
He gave us His guidance; He gave us His strength,
He gave us His infinite love
To help us in making our wonderful world
More and more like His world up above.

We are thankful to Allah Almighty who has given us the abilities to do sheer hard
work and enthusiasm to perform well. We owe a special debt of gratitude to our
generous teacher Ms. Lalarukh Saud.

I owe thanks to Mr. Rafiq Chief Executive Officer, KFC Ltd. (Islamabad), Asim
Hussain Operation Manager, KFC Ltd. (Islamabad), Omer Khokhar Area
Manager, KFC Ltd. (Islamabad) and Mr. Sohail Shiekh Salesman, KFC Ltd.
(Islamabad) and Mr. Wasim Jan Sales Manager, KFC Ltd. (Islamabad) for
giving me all the information I needed. These people at KFC were really polite
and helpful to me and without them it must have been impossible to complete
this task.

We are grateful to Ms. Lalarukh Saud, who gave us a chance to write a report
which groomed us in the art of identification and statement of issues, problems
and concerns; determination of parameters for purpose of in depth inquiry;
drawing of a blowup of all the reluctant knowledge in order to reach a synthesis
or a reasoned out point of view at the end. We are thankful to our teacher Ms.
Lalarukh Saud, who taught us with such a zeal and vigor to enable me to
present our thoughts and ideas in an arranged manner.

At the end I would like to thanks the group fellows’ co-operation throughout the
project. Without Their co-operation it would have been impossible to complete
this task marvelously.
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Due to the wide network and range of KFC restaurants through-out the world, it is
voted to be the most favorite fast food in the world.

When it comes to chicken:

“NO ONE DOES CHICKEN LIKE KFC”

Introduction

In the beginning...
Colonel Harland Sanders, born September 9, 1890, actively began
franchising his chicken business at the age of 65. Now, the Kentucky Fried
Chicken® business he started has grown to be one of the largest retail food
service systems in the world. And Colonel Sanders, a quick service restaurant
pioneer, has become a symbol of entrepreneurial spirit.
More than two billion of the Colonel's chicken dinners are served annually.
And not just in North America. The Colonel's cooking is available in more than 82
countries around the world.
When he was 40, the Colonel began cooking for hungry travelers who
stopped at his service station in Corbin, Ky. He didn't have a restaurant
then, but served folks on his own dining table in the living quarters of his
service station.
As more people started coming just for food, he moved across the
street to a motel and restaurant that seated 142 people. Over the next
nine years, he perfected his secret blend of 11 herbs and spices and the
basic cooking technique that is still used today.
As we grew...
Sander's fame grew. Governor Ruby Laffoon made him a Kentucky Colonel in
1935 in recognition of his contributions to the state's cuisine. And in 1939, his
establishment was first listed in Duncan Hines' "Adventures in Good Eating."
In the early 1950s a new interstate highway was planned to bypass the town
of Corbin. Seeing an end to his business, the Colonel auctioned off his
operations. After paying his bills, he was reduced to living on his $105 Social
Security checks.
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Confident of the quality of his fried chicken, the Colonel devoted himself to
the chicken franchising business that he started in 1952. By 1964, Colonel
Sanders had more than 600 franchised outlets for his chicken in the United
States and Canada. That year, he sold his interest in the U.S. company for $2
million to a group of investors including John Y. Brown Jr., who later was
governor of Kentucky from 1980 to 1984. The Colonel remained a public
spokesman for the company. In 1976, an independent survey ranked the Colonel
as the world's second most recognizable celebrity.
Under the new owners, Kentucky Fried Chicken Corporation grew rapidly. It
went public on March 17, 1966, and was listed on the New York Stock Exchange
on January 16, 1969. More than 3,500 franchised and company-owned
restaurants were in worldwide operation when Heublein Inc. acquired KFC
Corporation on July 8, 1971, for $285 million.
Kentucky Fried Chicken became a subsidiary of R.J. Reynolds Industries, Inc.
(now RJR Nabisco, Inc.), when Heublein Inc. was acquired by Reynolds in 1982.
KFC was acquired in October 1986 from RJR Nabisco, Inc. by PepsiCo, Inc., for
approximately $840 million.
In January 1997, PepsiCo, Inc. announced the spin-off of its quick service
restaurants -- KFC, Taco Bell and Pizza Hut -- into an independent restaurant
company. TRICON Global Restaurants, Inc., is the world's largest restaurant
system with nearly 30,000 KFC, Pizza Hut and Taco Bell restaurants in more
than 100 countries and territories. Until he was fatally stricken with leukemia in
1980 at the age of 90, the Colonel traveled 250,000 miles a year visiting the KFC
Empire he founded.

And it all began with a 65-year-old gentleman who

used his $105 Social Security check to start a
business.

Interesting Facts And Figures

Things You Never Knew About KFC
Here are some fascinating facts about KFC

 KFC serves over 8 million customers worldwide every day.

 5.89 billion KFC chicken pieces are sold around the world each year.
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 There are 9,900 KFC restaurants worldwide in 82 countries.

 There are 500 KFC outlets in the UK alone, with 50 new restaurant openings
planned per year.
 In 1939 he developed his secret recipe of 11 herbs and spices which is still
used across the world today.

Facility USA International Worldwide

Company 1,439 1,185 2,624
Franchised 3,743 3,841 7,584
(US)
Licensed(US) 49 55 104
Joint Venture 514 514
Total 5,231 5,595 10,826

Organizational structure
KFC currently have in the region of:

 3,600 Team Members

 650 Team Members & Trainee Team Leaders
 185 Assistant Restaurant Managers/Trainees
 205 Restaurant General Managers/Designates
 4,650 staff in our Franchise stores
 160 RSC based staff

KFC’s culture is based around the How We Work

Together principles and is a culture of recognition. Hourly paid
staff may participate in the store based scheme No Limits - a
points based scheme where staff can save points for prizes
they have earned for prizes ranging from CD’s to mountain
bikes.
Other recognition programmes include Gold Standard
Awards and Putting People First Awards.
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Organizational Chart of KFC, Pakistan Ltd.

C.E.O.
(Main Reporting Authority)

Operations

Deputy Area Manager

(Restaurant Manager Report him)

Marketing => Assistant Manager

(Institution Sales Coordinator Report him)

Quality Assurance Department

Finance and Account Department

(Senior Accountant)
(Assistant Accountant Reports him

Project Department
(Store Officer Reports)
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Human Resource & Admin. Dept.

(Miss Ambreen) (Reports Driver, Peon Etc.)

Training Department
(Assistant Manager) }

Area Managers
Area Managers are accountable for providing coaching, leadership and
operational support to 8-10 KFC Restaurants within a defined Area.

Restaurant General Managers

The Restaurant General Manager is accountable for creating and running an
energetic and valuable work environment, which is committed to serving the best
chicken at the fastest speed and with a smile.

The Restaurant General Manager reports directly to an Area Manager and is

accountable for successfully implementing and maintaining all Company policies
and procedures in relation to operations, customer service, cash handling,
marketing, purchasing, human resources, health & safety, administration, training
and development

Assistant Managers
The Assistant Manager is responsible for assisting the Restaurant General
Manager (RGM) in creating an energetic and valuable work environment, which
is committed to serving the best chicken at the fastest speed and with a smile.

Trainee Managers
Responsible for assisting the Restaurant General Manager and Assistant
Managers in creating an energetic and valuable work environment, which is
committed to serving the best chicken at the fastest speed and with a smile.
Trainee Managers help with day-to-day running of the restaurant, and need to
ensure that all operations, customer service, cash handling, marketing,
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purchasing, human resources, administration and training & development

policies are followed.

Customer Service Team Members

Responsible for working the service areas and ensuring quality product, service
and cleanliness is delivered to all customers at top speed and with a smile!

Food Service Team Members

Responsible for putting the crunch in the coating and the zing in the Zinger…the
cook’s main task is to prepare and cook the irresistible KFC products! The cook
must also maintain the cleanliness of the cooking area as well as the quality of
product and speed of preparation.

The KFC is using decentralized decision making style. The restaurant managers
are free in making decision related to the restaurant. Its main cooperate office is
in Karachi and all main decisions formally done by CEO of that office.

Organizational structure of KFC is based on some important facts.

 The organizational structure of KFC is different in different countries but

the core success factor is belief in people, team work and encouragement
of innovation. The above given structure is for Pakistan.

 They work with principles of job specialization. Every employee assigned

a specific job to increase productivity.

 KFC has proper departmentalization on that basis work is done in a

coordinated and integrated way i.e. when they launch some new deals
they analyze the product life cycle and demands of that product in market
etc.

 Authority extending from upper level to lower level in a smooth way which
clarify who should report to whom, all problems of lower employees solved
by restaurant manager or shift manager as proper meetings are held with
the employees after regular intervals.

 Employees are hired on the basis of education, body language,

communication skills and feasibility of employee that at what extinct they
can easily adjust in KFC’s environment.
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 KFC has decentralized decision making which increased employee

empowerment. Employees have freedom for innovation and KFC
supported them at every level and in every respect.

 It is organic organization which is highly adaptive and flexible. Employees

are less formal and highly cooperative with customers and with other team
constituents.

 KFC always maintain its contemporary organizational designs. Manager

always find creative way to organize work and to make organization more
responsive to the needs of customers.

 The organization prefers its employees whenever they have any seat
vacant to help motivate its employees. The organization has many
examples that employees join the organization at a lower rank and now
are at managerial levels.

 They provide all types of incentives to employees to motivate them for

better performance.

 The customer focus has made the organization successful to the present
situation. The organization has strived to avoid the customer complaints.
The suggestions of the customers are tried to be implemented after
analysis.

 The KFC has 67 restaurants in Pakistan at present and there is no fast

food organization which can compete KFC to the date.
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The Major Deparments of KFC

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Employees System Wide

Worldwide 290,779

International 167,850

USA 122,929

Some Useful Facts That Make’s KFC Successful

 Customer Focus
 Belief in People
 Recognition
 Coaching and Support
 Accountability
 Excellence
 Positive Energy
 Teamwork

Conclusion:
The KFC is organic, contemporary and career oriented organization. The
managers are symbolic heads of organization and the powers are evenly
distributed among the employees. The KFC is working in team style which makes
KFC a successful organization. The organization is working on the principle of
work specialization and rotation of labor force which helps to keep the employees
motivated. The employees are always encouraged for innovation. The customer
focus, team work, innovation, recognition, positive energy and accountability all
makes KFC a successful organization.
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Sources Of Information

The main sources of information of this report are:

Mr. Rafiq
Chief Executive Officer
Kentucky Fried chicken Ltd. (Islamabad)

Asim Hussain
Operation Manager
Kentucky Fried chicken Ltd. (Islamabad)

Omer Khokhar
Area Manager
Kentucky Fried chicken Ltd. (Islamabad)

Mr. Sohail Shiekh

Salesman
Kentucky Fried chicken Ltd. (Islamabad)

Mr. Wasim Jan

Sales Manager
Kentucky Fried chicken Ltd. (Islamabad)

Mr. Fareed
Sales Manager
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Kentucky Fried chicken Ltd. (Rawalpindi)

Web Sites:

http://www.KFC.com
http://www.KentuckyFriedChicken.com
http://www.KFC.co.uk
http://www.bodyjam.com
http://www.yahoo.business.com