Business Management

September 2021

OUMM 3203

Professional Ethnics

MATRICULATION NO : 990324135901001
IDENTITY CARD NO. : 990324-13-5901
TELEPHONE NO. : 0198179730
E-MAIL : estradaganda@gmail.com
LEARNING CENTRE : Miri, Sarawak

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Introduction

KFC (Kentucky Fried Chicken) Founded by Colonel Harland Sanders, an

entrepreneur who was a fried chicken seller at roadside of Corbin, Kentucky in 1952. His
tasty chicken soon spread. He soon open a restaurant where he perfects his “secret recipe of
11 herbs and spices” . In 1953 Kentucky Governor Rubby Laffon made Harland an honorary
“Kentucky Colonel and Colonl Sanfersn Kentucky Fried Chicken was complete. The Colonel
Drive himself from restaurant to restaurant cooking chicken and by selling franchises KFC
become one of the largest food chain in the world. The first overseas franchises was
established in the United Kingdom 1964. More than 18,000(2012) outlet. 120 countries and
territories around the world 8 million customers each day. This is a fast food restaurant chain
headquartered in Louisville, Kentucky United State, which specializes in fried chicken. An
“American icon”, it is the world’s second largest fried chicken chain and the first largest
restaurant chain is Mcdonald and the first “Kentucky Fried Chicken” franchise opened in
Utah in the early 1950s The chain primarily sells fried chicken pieces and variations such as
chicken burgers, chicken sandwiches and wraps as well as side dishes such as French fries
and coleslaw, deserts and soft drinks. It’s most famous product is original fried chicken
pieces.

Structure organization

The beginning of an organization, Kentucky Fired Chicken (KFC) has envolved

through some different company changes. In 1986, PepsiCo was acquired KFC which is
trying to expand some of its fast food service restaurant. The current structure of the
organization is two departments in the Pepsi Company. David Nowak is the president of
Kentucky Fried Chicken. John Hill is the Financial Officer leader and Collin Moore is the
director of marketing. Meanwhile, Peter Waller is the head of franchising and Olden Lee is
Human resource leader. KFC is part of PepsiCo separation which is PepsiCo and PepsiCo
Restaurants International global diet. These departments are PepsiCo based in Dallas. In
1992, Kentucky fried Chicken is continues with another restructuring in its middle
management team. They are eliminated of 250 of the 1500 business management of the
position and there is gave to the marketing manager and restaurant franchise.

Although, KFC is provided all staff of training. They bear the high cost of providing
to each organization. KFC is believe that well-trained staff, better staff. Thus, they offer each
employee a form entitled “t]training Needs Assessment” , which is completed for each

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person in the organization. This form tells what the lack of employee for human resources
department and they provide some basic training to staff. Training usually begins in July for
contract staff and staff training is regular to send. They have a contract with the TCS training
center and TCS sent out their staff training and development. Kentucky Fried Chicken is
using variety of training program for KFC. They also have a guest speaker with the CEO and
senior management meetings of different institution.

In the human resource management, there are important objective of attract, retain and
develop talented employees and find who are source of competitive advantage of
organization. Human resources management is an important part of Kentucky Fried Chicken
organization structure. Australia’s chief human resources officer directly to Managing
Director the South Pacific region and the recruitment of staff is considered essential to the
continued increase of the corporation. Analysis of the recruitment process, there are
constantly adapt to new online technologies and ensures that the most effective training and
recruitment .

Organization Market Stakeholder Analysis

Manager of KFC want the company to succeed Better chance of promotion. They
know that successful company may reward them by paying them higher salaries, giving them
a bonus, better fringe benefits and if company fails they could lose their job.

Employees of KFC want the company to succeed more likely to get better pay and
chance of promotion. They also wanted for a better facilities because they know if the KFC
fails then the company will threaten their job and possibly cut their wages

KFC has numerous supplier among which K&N supplies the major chickens are
further processed to serve into their chain of restaurant all over the countries. Proper steps
and methods are applied to evaluate the suppliers and their products are suppliers largely
affect the overall operation and business of KFC. Suppliers must want the company to
succeed to get more orders for them and more success for their business as KFC is the
supplier’s main buyer of their chickens in huge mass.

An organization can effect or be affected by its stakeholders or Stakeholder can effect

or be affected by the Organization and stakeholder can be characterized in many way.
Primary stakeholder are the group of peoples that stand to be directly affected either
positively or negatively by an effort or the actions of an agency, institution or organization..

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In some cases, primary stakeholder on both sides of the equation a regulation that benefits
one group may have a negative effect on another.

Secondary stakeholders are people or group that are not directly affected either
positively or negatively by an effort or the action of an agency institution or organization. A
program to reduce salt in chips at KFC for instance could have a positive effect on people
who have blood pressure. It might need time to get used to salt preferable customers. Both of
these groups would be secondary stakeholders.

Key stakeholder, who might belong to either or neither of the first two group are those
who can have a positive or negative effect on an effort or who are important within or to an
organization agency or institution engaged in an effort. The owner of an KFC franchise might
be an obvious key stakeholder but so might the managers those who work directly with
participants who carry out the work of the effort. If they don’t believe in what they’re doing
or don’t do it well it might as well not have begun. Other example of key stakeholders might
be some one who’s been choose by vote or from a group interview.

Main stakeholder are the owners or partners who are directly related to the business.
Those who are gaining profit and taking risk od loss. There is no real limits of partners. May
be liability be limited to as few as 1 partners group. So the main KFC brand owner Yum! Its
other titles and the franchise owner are main stakeholder here.

Non-Market Organization Stakeholder

Public are other stakeholders includes Financial public, media publics, government
publics, Citizen actions publics, Local publics, General public and internal publics. Financial
public is a person or public who invest in some project to gain or lose money until the
completion of the project. Currently KFC don’t have any investment project.

Media public can be good or can be bad. Good publicity by them can help bad
publicity can hurt. KFC has been affected by these kind of publicity so many times for
example PETA issue, unprocessed meat, unhealthy foods and so many.

Therefore, Government regulation can be good outcomes. Guidelines influence may

test the outcome. In some countries KFC doesn’t have any pork or beef contained food. They
can use halal meat only in those country. Because of some religional ritual government of
those countries made these regulations that’s why KFC is out of question and conflicts

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 Although, customer do have a say in the working of KFC are so loyal. No company
can afford to lose its customers. Thus, the customer base is huge and one single customer
does not have much bargaining power and KFC tries to listen to each every buyer via
feedback and opinion cards. Mass customization is what KFC is trying to do to whatever is
possible to eater to the needs of customers. Customer continue to return to the KFC because
of the good quality, good services and they always introduce innovative products to attract
their customers.

Suggestion on to develop and maintain relationship with identified stakeholders

In business relationship with stakeholder is important to keep a good relationship for

any business to succeed. Stakeholders must be well taken care of because these are your
clients, suppliers, partners, investors, employees and the broad community who have an
interest in your business. When a stakeholder is not taken care of the effect can be felt in
various parts of the business. Therefore, building a strong relationship with stakeholders and
maintaining them takes efforts, time and a well thought out action plan.

Firstly, actively build strong relationship from the start. You know what you would
like to achieve and you know what it will take to achieve that vision. Business owner must
share this vision with your stakeholders on more regular basis than you typically would.
Don’t wait for structured meetings, use every opportunity you have with them to get them on
the same page.

Secondly, involve your stakeholders. Yes, it may be your vision but remember its
execution and success depends on how enthusiastic your stakeholders are. Remember to ask
their advice like for example like a very powerful question you can ask is , “ How can we
best serve you…?” the answer is forward looking and guess what, you have a real chance of
doing what is asked.

Thirdly, schedule a periodic touch-base sessions. We sometimes underestimate the

importance of staying top of mind especially where clients are concerned. To support the first
tip of actively building strong relationships outside structure have a structure built in as well.
Regular meeting keep you and your stakeholders on the same page and this means you are
able to pick up on potential challenges before they even arise.

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 Fourthly, business stakeholder who are going to make relationship must always keep
their word. Do you deliver on your promises? When you say you will call back do you call
back? When you say you will have something important finished by a particular time do you
do it?. If you want to build lasting stakeholder relationship, do what you said you would do.
Remember it is about your integrity and your trustworthiness and the respect you have for
yourself an the other person.

Fifthly, all business stakeholder must have an open minded. When you are after win-
win relationship you will understand that the job of the other party is not to feed your ego.
They will say things you don’t like accept that. It is actually a good things because the last
things you want is to surround yourself with ‘ego feeders’ who don’t help you grow. Always
have the big picture in mind and listen to suggestion and thank people for their inputs and
genuinely consider what thay have to say.

Lastly, address issues and when they arise. There is nothing worse than hearing about
a ‘transgression’ months after the said event took place. Not only may you have forgotten
about it, but also the facts that the other person brings it up says a lot. In keeping with
positive relationship building with all your stakeholder, make sure you are open and
transparent. If something is bothering you talk about it an clear the air. When you approach
all your stakeholder relationship with the view to continuously improve them the other party
will know it and this will set the bar on how they respond to you. In business, you need more
allies and champions than adversaries. For your vision to be realized, you must constantly
work on your relationship.

Protect employees rights to privacy and at the same time to protect the employer

Employee privacy right are the rules that limit how you can monitor an employee in
the workplace or from a remote location. Checking the state and federal labor and privacy
law for specific compliance details, but there are a lot of grey areas when it comes to an
employee privacy rights. In practice, you need to treat all personal date about an employee
and their family as private and confidential to avoid any privacy issues. Manager these days
may be looking into workplace monitoring to boost productivity and ensure workplace safety.
For example, you may be considering performance management software to boost emplyoyee
productivity . However, the reasonable expectation of privacy by an employee must be
balance with their employers legitimate business interest for monitoring. For example, it may
be standard practice for you to view a job applicant’s social media accounts. But prospective

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employees may deem social media profiles as they see it as an invasion of privacy. There are
six way tips for smart employee monitoring.

Firstly, protect confidential employee information. Employers have an ethical

responsibility to store sensitive documents with employees personal information (such as
their social security number) securely. They should also shred old documents whenever they
are no longer needed. Here are some of things that are considered as private and confidential
employees date for example like alcohol and drug testing result. Many state laws prevent
employers from enforcing drug screening in their workplace. Thus, there are might be a few
exceptions and these include employee showing signs of drug uses at work for example
slurred speech, inability to walk in a straight line, redness of eyes. Thus, privacy rights also
apply to a prospective employee. A prospective employer will have to review what federal
laws “explicity” or “implicity” apply to the practice of background investigations

Secondly, only use date for its intended purpose. When employers start using date for
purpose not specified to employees it will increase the perception that the employer is
invasive. As an employer, you must prioritize employee date protection and use date
collected only for its intended purpose. If its used for another purpose then employees lose
trust in their employers and this can diminish morale. For example, if there are camera to
ensure employee safety but a manager uses it to track employees break times instead
employees are likely to feel their privacy is being invaded. Here’s another example your
company monitoring policy may include monitoring employee internet usage to avoid them
visiting certain websites. However, capturing individual keystrokes and webcam feeds would
be too invasive as it reveals sensitive information like passwords

Thirdly, limit electronic surveillance allows a business to track employee activities

and monitor worker engagement with work-related tasks even when working from home.
While COVID may have forced people to work from home, they still have a reasonable
expectations of workplace privacy when it comes to personal devices even if a personal
device is being used for work purpose. Here how you can limit electronic surveillance to
avoid infringing on the privacy of your employees by limit monitoring only during work with
the help of productivity management solutions. Monitor internal network traffic rather than
monitoring devices directly. Although, network traffic is the amount of date moving across
your company’s network at a given point in time. The heavier the network traffic the more
active your employees are. Employer plays the important roles to ensure your team is aware

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of employee surveillance activities. These activities should be well documented and
explained. Employees should give a written acknowledgment of these monitoring practices

Fourthly, have an employee’s monitoring policy. Whether you’re engaging in-house

or remote employee monitoring by ensure that your employees understand why you’re
monitoring them and how by developing an employee monitoring policy. In your monitoring
policy, let your employees know that their personnel file is being protected and their
employee data us used only for productivity and workplace safety purposes. Few things
should clarify in your employee monitoring policy by clearly explain when employee are
being monitored, highlight what method will be used to monitor them like camera
surveillance GPS tracking and ensure that your employees are educated on this policy.

Lastly, uses employee friendly productivity management software. Employee

productivity management software has become a popular way to keep track of remote and in
office employees. You can help employees embrace such software by promoting it as a
productivity tool rather than means of monitoring work. Therefore, when employees
understand that the performance software is there for their benefits they will be more open to
it as a tool to enhance their productivity. Here how you can do promote productivity
management software to employee by emphasize that it eliminates the need to chase down
employees to monitor production standard and deadlines. Explain that they can be more
independent and identify the times they most productive and highlight the simplicity of
installing productivity management software on employee and company computers.

Conclusion

In conclusion, ethics is definitely necessary for a business to grow successfully

become more significant and more organized. A business can highly impact on the people’s
lives and circumstances through providing jobs, life organization, creating wealth and
inspiring others to grow their own business. Furthermore, the business maybe ruined and
leave it with a bad reputation if an organization is not having a proper understanding on
business ethics. From bad to good, KFC has gone through every hard time and now moving
towards a better future when they finally overcome most of its ethical issues. People do make
mistake and learn from mistakes so as KFC. KFC will learn from their mistake and make the
mistake to the power of change. Thus, the author strongly belive that KFC will do their best
in meeting everyone’s need and KFC will become the first priority for every human when
they thinking of nice and tasty fried chicken.

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REFERENCES

1. https://www.upcounsel.com/employee-privacy-rights

2. https://www.ukessays.com/essays/general-studies/the-kfc-corporation.php

3. https://phdessay.com/business-ethics-of-kfc/

4. https://www.ukessays.com/essays/commerce/organization-structure-of-mcdonalds-

and-kfc-commerce-essay.php

5. https://phdessay.com/describe-the-different-stakeholders-who-influence-the-purpose-

of-two-contrasting-businesses/#cite

6. https://www.slideshare.net/avis5/organization-behaviour-57703001