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KFC Background

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K.F.C is an American based company. It was established in mid fifty when Herland Sanders conducted business in United States with a prospective Franchises about his colonel Sanders recipe K.F.C. He has also succeeded in establishing a number franchises in all over the world. The minority of KFC’s restaurant in Mexico & Poverto Rico were company owned. However, KFC had established 21 new Franchises in Mexico by the end of 1993. Now it has nearly 13000 outlet all around the world. KFC is a fast food industry. It is introduced in Pakistan round about 2 years ago. Firstly, KFC opened in Karachi and then after in Lahore. KFC has two branches in Lahore, one is Garden Town and other is Cavalry Road.

KFC Corporation based in Louisville, Kentucky is the world’s most popular chicken restaurant chain, specializing in original recipe, extra crispy and colonel’s crispy strips with home styles slides. Everyday 8 million customers are served around the world KFC Menu Everywhere includes original recipe chicken made with the same great taste Harland Created more than a half century ago. KFC is part of Tricon Global restaurants, which is the world largest restaurant system with nearly 30,000 KFC. Harland started LFC back in 1952 at the ripe age of 62. His recipe for the best chicken in the world was made with a special cooking process and a secret blend of 11 herbs and special the same secret blend that is used today in KFC original recipe chicken. Today KFC has more than11,000 units in over 79 countries. Every week nearly 69 million customers come through KFC do for the chicken.

One of the major objective of KFC that they run their campaign in such away that KFC creates and image in the minds of customers that customers wants to go in KFC and will be the first choice for the customers. KFC wants to become the first choice because its they become the first choice it is excellent for the health of the KFC business because if business is expands then there is eliminate scope and the opportunity to get the maximum profit and utility.

Since it as founded, KFC has always shown a profound respect for the cultures and traditions of all the countries where the company markets its products. It accepts cultures and social diversity and rejects discrimination based on ethics, religion or on any other grounds. Employees ho work at the KFCs headquarters’ come from 70 different nations. Culture within the organization is very professional and yet flexible at the same time. Its policies, rules and regulations and inter departmental culture is very open. Attitudes, behaviors and working environment are such that it motivates and encourages other employees to feel comfortable and wanted in the organization. Its a very friendly yet 30 professional organization. KFC people call themselves a family and thus keep their working relations accordingly. The broader the responsibility of a KFC Manager, the more the following specific criteria should be considered, in addition to professional skills, practical experience and result focus:

• Personal commitment and courage. This includes the capacity and the willingness to take initiatives and risks as well as to maintain composure under pressure.

• Ability to motivate and to develop people, addressing all those issues that allow others to progress in their work and to develop their capabilities.

• Curiosity and open-mindedness as well as a high level of interest in other cultures and life-styles. This also includes a commitment to continuous learning and improving, as well as to sharing knowledge and ideas freely with others.

• A taste for initiative together with the ability to create a climate of innovation and to think outside the box. This implies the right to make a mistake but also the readiness to correct it and to learn from it.

• Willingness to accept change and the ability to manage it.

• Adaptability of thought and deed, taking into account the specificity and the complexity of the environment.

• Credibility as a result of coherent action, leadership and achievement.

• International experience and understanding of other cultures.

Organizational Structure And Design

KFC Organization structure is basically decentralized, leaving a great deal of responsibility and competencies to the managers of its operating companies. The group encourages as decentralized an organization as possible, within the limits of the basic policies and strategies defined but its international Headquarters. The operating companies implement them according to their own situation and the local conditions. this is a good application of the principle of “Global Thinking And Strategy, but local action and commitment ”KFC favor people and product over the system. The group also encourages flat organization, with few levels of hierarchy and broad scope of responsibilities, following the concept of “as much hierarchy as necessary, as little as possible”.

Organizing The Human Resources

The KFC policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. The organization have certain rules and policies that all the managers and staff have to follow while working and maintaining relationship with their colleagues. Some of the rules that the managers keep in their mind while organizing and maintaining a proper working environment are:

• A prerequisite for dealing with people is respect and trust. There can be no room for intolerance, harassment or discrimination of any kind as they are the expression of an elementary lack of respect. This principle suffers no exception and is to be applied at all levels and under all circumstances.

• Transparency and honesty in dealing with people are a sine qua non for efficient communication. Based on facts and on a sincere dialogue, such transparency is the only solid basis for boosting continuous improvement.

• This is to be complemented by open communication with the purpose of sharing competencies and boosting creativity. It is particularly relevant in a flat organization to convey systematically all information to those who need it to do their work properly. Otherwise no effective delegation or knowledge improvement is possible.

• To communicate is not only to inform. It is also to listen and to engage in dialogue. Every employee has the right to an open conversation with superiors or colleagues.

• The willingness to cooperate and to help others is a required basis for assessing potential candidates in view of a promotion.

• In case of discord between an employees and her/his superior or another employee, the possibility must be offered for a fair hearing. The HR staff will provide assistance to ensure that the disharmony is dealt with impartially and that each party has the opportunity to explain her/his viewpoint regardless of hierarchical position.

Leading Motivational Techniques Used To Increase Productivity

KFC is called a family company. For this company its employees are of vital importance. They strongly believe in maintaining a stress less, friendly and encouraging environment within the company. For keeping their employees motivated KFC has a keeps a balanced working conditions.

• All employees regardless of their backgrounds, nationality, religion and gender are given equal opportunity to work and progress.

• Other than this work life balance attitude is adapted by the company.

• Understanding the employee’s problems and dealing with them accordingly is declared mandatory.

• Employees are appreciated and encouraged. Benefits and incentives are offered to employees on performing well.

• Also gifts are given on eid and other occasion.

• Within the organization parties and celebrations are held to acknowledge the workers. Employees are taken out on picnics along with their families to give them a break from the monotonous routine and relax them.

• Different projects are assigned to the employees and they are given authority to use their creativity instead to forcing them to follow strict orders. It is basically the friendly and encouraging environment that has no discrimination and the feeling of being an important part of the organization that motivates them to work harder.

Leadership Styles Of Managers

Members of the kfc Management at all levels are more concerned with continuously adding value to the Company than exercising formal authority. This can only materialize with a high involvement of each employee and a common mindset geared to results. Contributing to results through project work and special assignments becomes more frequent, reaching beyond conventional boundaries in order to contribute to wider group performance. The broader the responsibility of a kfc Manager, the more the following specific criteria should be considered, in addition to professional skills, practical experience and result focus:

• Personal commitment and courage. This includes the capacity and the willingness to take initiatives and risks as well as to maintain composure under pressure.
• Ability to motivate and to develop people, addressing all those issues that allow others to progress in their work and to develop their capabilities.

• Curiosity and open-mindedness as well as a high level of interest in other cultures and life-styles. This also includes a commitment to continuous learning and improving, as well as to sharing knowledge and ideas freely with others.

• A taste for initiative together with the ability to create a climate of innovation and to think outside the box. This implies the right to make a mistake but also the readiness to correct it and to learn from it.

• Willingness to accept change and the ability to manage it.

• Adaptability of thought and deed, taking into account the specificity and the complexity of the environment.

• Credibility as a result of coherent action, leadership and achievement.

• International experience and understanding of other cultures. In addition, broad interests, a good general education, responsible behavior as well as fostering a balanced lifestyle are required to hold high-level management positions.


Basic Controlling Authorities

KFC has a very organized and structural system. All departments have heads that are responsible for all the activities going on there. The basic controlling authorities at different level of KFC are:

• Board of directors
• Divisional heads
• Management committee
• Executive committee

These are the major controlling people and the decision makers at various levels.

Structural Dimensions

Hierarchy Of Authority

At KFC Pakistan the highest authority goes like:

Managing Director → Manager of Departments → Managers of Different Functions → Assistant Manager → Coordinator → Officers.

Recruitment And Selection

The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. This is a primary responsibility for all managers. The KFC policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. Each new member joining KFC becomes a participant in developing a sustainable quality culture which implies a commitment to the organization, a sense for continuous improvement and leaves no place for complacency. Therefore, and in view of the importance of these KFC values, special attention is paid to the matching between a candidate’s values and the Company culture.

Moreover, for managerial positions specific leadership qualities and business acumen will be required. KFC wishes to maintain and develop its reputation as an employer of high repute. Contacts with universities, attendance at recruitment events and other contacts are to be undertaken so as to ensure good visibility of the Company vis-à-vis relevant recruitment sources. Particular care is given to the treatment of each candidacy regardless of the outcome of the selection process. Even when promoting employees intensively from within the organization, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers.

Whilst adequate recruitment tools may improve the hiring process, it is understood that the decision to hire a candidate remains in the hands of the responsible manager supported by the HR staff. Under no circumstances the decision to hire or not to hire is left in the hands of an outside consultant or expert. As mentioned in the KFC Management and Leadership Principles, only relevant skills and experience and the adherence to the above principles will be considered in employing a person. No consideration is given to a candidate’s origin, nationality, religion, race, gender or age. It is as important to hire the right personas it is to integrate newcomers in the organization so that their skills and behavior can merge smoothly with the company culture. Whereas from new employees it is expected to respect our company’s culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside.


Orientation takes place at KFC at two levels. One is for management staff hired to work at the Head Office and the other is for the non management staff.

• At the head office all the newly hired employees are given full orientation Arranged by the HR department. Managers from different departments brief the employees about their departments. Orientation can be for as long as 1 to 6 months. Employees are also sent at the factories for a month or so. This helps them in understand the function in a far better way. • Non management staff is mostly hired in cities other than Lahore so they are given orientation by the line managers. Their orientation is also done by giving them the presentation of each department recorded on a CD containing all the information about the company.

Training And Development

Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by KFC. First and fore most, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position. When formal training programs are organized they should be purpose oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs. As a consequence, attending a program is never be considered as a reward. Adequate training programs are developed at the level of each Operating company capitalizing on the availability of local, regional or global resources of the Group. It is the responsibility of HR staff to assist the management in the elaboration of training programs. Great importance is attached to programs enhancing the language skills of the employees.

Training programs organized at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practiced in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. Training programs should, as much as possible, be based on action learning and reduce ex-cathedra teaching to the strict minimum. It is necessary to make optimal use of re-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training. It is the role of each manager to assess progress achieved as a result of training programs.

Assessing and Developing. Each employee is in charge of her/his own professional development. However, the Company endeavors to offer the opportunity to progress for those having the determination and the potential to develop their capabilities. Regular counseling and guidance are the best tools for improving performance and for helping people develop their skills. It also allows to correct errors swiftly and to transform them into a positive learning experience. In an organization with flat structures this supports better delegation. Direct personal contact should always been given preference over written communication whenever possible. Each manager has the duty to act as a mentor for his employees.

Appraising And Managing Employees

Promotions will exclusively be based on competence, insight, performance and potential with the exclusion of any consideration for origin, race, nationality, gender, religion or age.

Flexibility is a requirement for ensuring a positive professional evolution. Staff may be requested to move to other positions. Managers, especially international staff, may be asked to move to other locations. International experience and participation in group development initiatives such as GLOBE, SMPT and others is acquired in all countries of the Group and are a requirement for holding high-level positions. The development of expertise in specific areas of competence is determinant for the Company’s success. Therefore job rotation should be practiced with caution. Whilst job rotation might be useful under certain circumstances, it should not result in weakening our expertise in key areas.

Efficient performance management emphasizing the achievement of agreed objectives is a prime responsibility for each manager. The necessary time is dedicated to the monitoring and the follow-up of the progressive achievement of objectives during the year. This feedback is meant to stimulate performance and should take place through an open dialogue based on mutual trust and willingness to progress. It is requested to provide written evidence of such meetings. Focus should be essentially on continuous improvement, appropriate training measures but also on shaping a stimulating working environment. In case of serious underperformance, a termination of employment should be envisaged. Such termination is handled with due respect of the person and should include, where appropriate, separation terms that take into account the employee’s personal situation. When assessing potential it is kept in mind that the best indicator of talent is achievement. Therefore responsibility is given as early as reasonable to allow people to prove themselves. Candidates for managerial positions have clearly demonstrated their willingness and ability to apply the KFC Management and Leadership Principles.

Compensation And Benefits

KFC favors competitive, stimulating and fair remuneration structures offering an overall competitive and attractive compensation package. Remuneration includes salary, any variable part of remuneration as well as social, pension and other benefits. Each operating company will establish a compensation practice taking into account relevant external compensation levels as well as the requirement of internal fairness. It is recommended to undertake regular surveys so as to gather relevant information on the remuneration levels practiced at a local or national level. KFC’s policy is to strive to position itself as an employer offering remuneration levels above the average of the relevant benchmark. KFC reviews regularly its competitive position with other companies so as to keep in line with the market trends. However, the evolution of remuneration is in the first instance determined by the capacity of the Company to improve its productivity. Wage and salary structures should be kept simple and avoid unnecessary complexity so as to provide effective compensation and reward.

Remuneration structures should specifically facilitate the implementation of flat organizational structures and be flexible so as to be able to adapt to the evolution of the market conditions. This means broad spans allowing sufficient flexibility to effectively reward high professional insight and performances as well as individual potential. It is the responsibility of each manager to propose, within the framework of the company policy, the remuneration of her/his employees, taking into account the local market, individual performance, skills and potential for development. It is also the responsibility of each manager, if needed with the support of HR management, to communicate properly, clearly and with sufficient transparency, the individual remuneration of each staff member taking into account her/his professional performance and her/his specific responsibilities.

The quality of communication in these matters is an essential part of the dialogue that each manager will have with her/his employees on remuneration matters. Specifically at management level, the variable part of the remuneration may be substantial. This part is linked to a combination of group, business and individual or team target achievements. The higher the remuneration level, the more important will become the variable part. It is realized that, however important remuneration is for each employee, it is not remuneration alone that will stimulate the motivation of the staff. The HR management sees to it that the implementation of the remuneration policy is fair throughout the organization and that its spirit is duly reflected. The benefits offered to the staff at KFC are:

Management Staff

1. Provident Fund
2. Pension Fund on employee’s request
3. Gratuity
4. Leave Fair Assistance
5. Marriage gift scheme once in a service
6. Baby feeding scheme
7. Annual leaves for 15 working days in a year
8. Casual leave 10 working days in a year
9. Casual leave encashment
10. Medical leave 10 days in a year
11. Medical allowance
12. Hospitalization from panel hospitals
13. Meal subsidy for field staff up to group 1
14. Shift allowance

15. Family day gift once in a year
16. Eid gift on both Eids
17. Company maintained car to group 3.3 managers and above
18. Vehicle Maintenance allowance for Group 2 employees having non field car loan on production of receipts
19. Relocation package: As per group entitlement
20. Life Insurance: Under group life insurance policy as per group entitlement
21. Hajj Balloting: After 5 years service through balloting
22. Pick and drop service: For factory staff where such facility is available
23. Car loan facility
24. Maternity leaves for female employees
25. 2 pair of shoes per year to only team leaders, engineers & quality assurance team
26. 2 uniforms per year to only team leaders, engineers & quality assurance team
27. Bonus as per company policy28. Incentive to sales staff as per H & O Sales Policy

29. Scholarship Award Scheme

Non- Management Staff

1. Provident Fund
2. Gratuity
3. Leave Fair Assistance
4. Marriage gift scheme once in a service
5. Baby feeding scheme
6. Annual leaves for 14 calendar days in a year
7. Casual leave 10 days in a year
8. Casual leave encashment
9. Medical leave 8 days in a year
10. Meal subsidy for field staff


History of Kentucky Fried Chicken

The Kentucky Fried Chicken® was founded by Colonel Harland Sanders (born on September 9, 1890) at the age of sixty-five. KFC® is currently one of the largest businesses of the global food service industry and is widely known around the world as the face of Colonel Sanders. Every year, over a billion KFC® chicken dinners are served featuring the Colonel’s “finger lickin’ good” special recipe. The Colonel has spread his industry currently to more than eighty countries and territories globally. At the age of forty, Colonel Sanders began cooking for travelers in his service station located in Corbin, KY. However, rather than coming in for service for their cars, hundreds of people began coming to the Colonel’s station specifically for his food. So he expanded his new up-and-coming business by moving across the street to a hotel and restaurant that seated one hundred and forty-two people. While cooking here, Colonel Sanders perfected his secret blend of eleven herbs and spices for his special recipe that is still used today. With his special cooking techniques, Sanders’ station became famous and he was recognized for his amazing cuisine by the Governor at the time, Ruby Laffoon in 1935 when he was made a Kentucky Colonel; hence the name Colonel Sanders.

In 1939, Colonel Sanders’ restaurant won the top spot on Duncan Hines’ “Adventures in Good Eating.” After his amazing start-up in 1952, the Colonel devoted himself for the rest of his life to his chicken franchising business. To spread his famous recipe, he spanned the country in his car from his small business in Kentucky to cook his chicken for restaurant owners and their employees. If his subjects loved it like his other customers had, the Colonel made a deal with the establishment, saying that they would pay him a nickel for each chicken they sold in their restaurant. So many restaurants agreed that by 1964, the Colonel had over six hundred franchised outlets in the United States and Canada for his chicken. Also in 1964, Colonel Sanders decided to sell his interest in the United States company for small change (only $2 million) to a small faction of investors, such as John Y. Brown Jr., the governor of Kentucky from 1980 to 1984. However, Colonel Sanders continued to be the public spokesman for KFC® and in 1976, he was named the world’s second-most identifiable celebrity by an independent survey. With this new group of investors undertaking the Corporation, KFC® expanded and matured quickly.

The Corporation was listed on the New York Stock Exchange on January 16, 1969, only three years after it had gone public on March 17, 1966. Then, after the KFC Corporation® was acquired by Heublein Inc. on July 8, 1971 for $285 million, the company grew to an enormous three thousand and five hundred franchised and company-owned restaurants world-wide. Subsequently, Heublein Inc. was next acquired by R.J. Reynolds Industries, Inc. (currently RJR Nabisco, Inc.) in 1982, making Kentucky Fried Chicken® a subsidiary of Reynolds. After that, in October of 1986, PepsiCo, Inc. made a purchase of $840 million from RJR Nabisco, Inc.

However, in January of 1997, PepsiCo, Inc. revealed that it would be making KFC® and its other small quick service restaurants – Taco Bell and Pizza Hut – into an independent restaurant company known as Tricon Global Restaurants, Inc. The company also stated that it would change the corporation’s name to Yum! Brands, Inc. in May of 2002. This corporation, which currently owns A&W All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world’s principal restaurant corporation in terms of system units, having a stifling thirty-two thousand and five hundred units in over one hundred countries and territories. Sadly, after traveling two hundred fifty thousand miles every year visiting his restaurants around the globe, Colonel Sanders died of leukemia at the age of ninety in 1980. Interestingly enough, this enormous, global corporation all started with simply a sixty-five-year-old gentleman and a chicken.

Information provided by www.kfc.com

According to his 1974 autobiography, before Harland Sanders became a world-famous Colonel, he was a sixth-grade dropout, a farmhand, an army mule-tender, a locomotive fireman, a railroad worker, an aspiring lawyer, an insurance salesman, a ferryboat entrepreneur, a tire salesman, an amateur obstetrician, an (unsuccessful) political candidate, a gas station operator, a motel operator and finally, a restaurateur.

At the age of 65, a new interstate highway snatched the traffic away from his Corbin, Ky., restaurant and Sanders was left with nothing but a Social Security check and a secret recipe for fried chicken. As it turned out, that was all he needed.

Sanders was born in Henryville, Ind., in 1890. Six years later, his father died, forcing his mother to enter the workforce to support the family. At the tender age of six, young Harland was responsible for taking care of his younger siblings and doing much of the family’s cooking.

A year later he was already a master of several regional dishes. Over the course of the next 30 years, Sanders held many of the jobs listed above, but throughout it all his skill as a cook remained. In 1930, the then 40-year-old Sanders was operating a service station in Corbin, Kentucky, and it was there that he began cooking for hungry travelers who stopped in for gas. He didn’t have a restaurant yet, so patrons ate from his own dining table in the station’s humble living quarters. It was then that he invented what’s called “home meal replacement” — selling complete meals to busy, time-strapped families.

He called it, “Sunday Dinner, Seven Days a Week.” As Sanders’ fame grew, Governor Ruby Laffoon made him a Kentucky Colonel in 1935 in recognition of his contributions to the state’s cuisine. Within four years, his establishment was listed in Duncan Hines’ “Adventures in Good Eating.” As more people started coming strictly for the food, he moved across the street to increase his capacity. Over the next decade, he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. In 1955, confident of the quality of his fried chicken, the Colonel devoted himself to developing his chicken franchising business. Less than 10 years later, Sanders had more than 600 KFC franchises in the U.S. and Canada, and in 1964 he sold his interest in the U.S. company for $2 million to a group of investors including John Y. Brown Jr. (who later became governor of Kentucky).

Until he was fatally stricken with leukemia in 1980 at the age of 90, the Colonel traveled 250,000 miles a year visiting KFC restaurants around the world. His likeness continues to appear on millions of buckets and on thousands of restaurants in more than 100 countries around the world. Not bad for a man who started from scratch at retirement age.

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