BY- AMAN VATS

INTRODUCTION

 Subway was founded in 1965 by Fred DeLuca together with his

partner, Dr. Peter Buck. The first store of Subway was located
in Bridgeport, US. The foundation of Subway was built on serving
well-made and high quality product, providing excellent customer
service, keeping operating costs low and finding great locations.
 
 The two partners started their franchise business policy in 1974 when
they realized their goal, which to open 32 stores was unable to reach
in time. 

 Today, Subway has been ranked as the world's largest submarine

sandwich chain with more than 37,000 locations around the world. 
HR ACTIVITIES
 In Subway, an outstanding strategic human resources management has been
provided. Payroll, talent and performance solutions have been in the company’s top
priority. Thus, there are strong evidences that Subway’s human resource
management has efficient incentives on its employees, and also serves as a great
power of its success.
 In Subway, salary is fully given to the employees, without any form of deduction.
Apart from salary, there are many kinds of compensation plan which is dependent
on the employees’ performance. Even part-time Subway employees are given
bonuses for making great sandwiches. Managers do performance appraisals every
day, which gives them high incentives to work hard.
 As reported in a study of human resource management practices in the fast food
business, employees in Subway were working for 9.5 hours in day while the number
is 9 hours in Pizza Hut and 8.5 hours in McDonald’s (Goyal & Bala 2012). Why does
Subway have all these performance?  According to the expectancy theory, Subway’s
secret of extinguished and high quality sandwiches is its great human resources
management.
 The managers of Subway successfully applies the expectancy theory in
setting up specific targets on employees and designing corresponding
monitoring measures and compensation plan. Under such system,
Subway’s employees could have passion to work and make great
sandwiches. Moreover, because of the high frequency practices of
performance appraisals and clear criterions for them, the employees of
Subway is not only fully attracted by their expectancy, but is also
stimulated by the free, equal and challenging environment.
PRACTICES OF SUBWAY
 Food safety and food quality are the top priorities. Their goal is to serve food
that consistently meets the highest quality and safety standards – from the time
it is grown, harvested or caught to when it is put into a sandwich or salad in the
restaurants.
 Their high standards for food safety ensure that their customers are getting the
quality that they expect. It begins with setting detailed product specifications
followed by inspection of samples pulled from distribution to ensure that
specifications are being met. All approved facilities that supply food to SUBWAY
restaurants, undergo a rigorous third-party audit for food safety, HAACP
(Hazard Analysis and Critical Control Point) and GMPs (Good Manufacturing
Practices).
 The SUBWAY brand’s Office of Food Safety and Quality Enhancement team
reviews all food safety and quality programs and recommends improvements as
needed. This team works together with their vendors to achieve the food safety
and quality improvement goals. For instance, they identified high pressure
pasteurization (HPP) as a way to improve freshness and food safety while
eliminating the dependence on other preservatives.