INTRODUCTION

The popularity of fast food establishments came in the 1980’s, and over the The popularity of fast food establishments came in the 1980’s, and over the last years, the industry has consistently posted double-digit growth rates last years, the industry has consistently posted double-digit growth rates throughout the world. throughout the world.

KFC and McDonald’s are the top brands of the fast food business.KFC and McDonald’s are the top brands of the fast food business.

The fast food chains like KFC and McDonald’s are playing an essential role in The fast food chains like KFC and McDonald’s are playing an essential role in the economic development of the world and are giving back to society in the the economic development of the world and are giving back to society in the shape of socially responsible projects.shape of socially responsible projects.

COMPANY PROFILE

Louisville based Chain of fast food restaurants.Founded as Kentucky Fried chicken by Colonel Harland Sanders in 1952.Magic recipe Blend of 11 herbs and spices. KFC in Pakistan is owned by Cupola group of companies. More than sixty branches nation wide.

KFC

Ray Kroc founded Ray Kroc founded McDonald’s Corporation.McDonald’s Corporation.

McDonald’s Pakistan McDonald’s Pakistan launched in September launched in September 1998 .1998 .

Lakson Group owns Mc Lakson Group owns Mc Donald’s.Donald’s.

More than twenty More than twenty branches country wide.branches country wide.

McDonald’s

VISIONVISION

As a restaurant company, is to put a YUM on people's faces around the world, satisfying customers every time they eat our food and doing it better than any other restaurant company

KFC

To be the world's best To be the world's best quick service restaurant quick service restaurant experience. Being the experience. Being the best means providing best means providing outstanding quality, outstanding quality, service, cleanliness, and service, cleanliness, and value, so that we make value, so that we make every customer in every every customer in every restaurant smile.restaurant smile.

McDonalds

MISSIONMISSION

“To capture the fast food market through high quality food and enhancement of profit by giving maximum satisfaction & better facilities to people that they want through innovation and maximize the brand equity”.

KFC

““To deliver operational To deliver operational excellence to our customers excellence to our customers in each of our restaurants; in each of our restaurants; and achieve enduring and achieve enduring profitable growth by profitable growth by expanding the brand and expanding the brand and leveraging the strengths of leveraging the strengths of the McDonald's system the McDonald's system through innovation and through innovation and technology".technology".

McDonalds

VALUESVALUES

Customer Mania

Belief in People

Teamwork

KFC

ServiceService

CleanlinessCleanliness

Open CultureOpen Culture

McDonalds

KFC STRUCTUREKFC STRUCTURE

MC DONALD’S STRUCTUREMC DONALD’S STRUCTURE

DIVERSITYDIVERSITY

Diverse workforce.

Employment opportunities to special & handicapped.

Female staff is 30% of total workforce.

Grapevine talk strongly condemned.

KFC

Multi-Cultural workforce.Multi-Cultural workforce.

No cultural or ethnic clash.No cultural or ethnic clash.

Female staff is 23% of total Female staff is 23% of total workforce.workforce.

Warning is issued against Warning is issued against grapevine talk.grapevine talk.

McDonalds

LABOUR ISSUESLABOUR ISSUES

Employee focused policies.

Standard compensation packages.

No shortage of skill labor.

Leadership style is democratic.

KFC

Attention towards Attention towards employees.employees.Industry based remunerationIndustry based remuneration Easy access to skill labor.Easy access to skill labor.

Participative style of Participative style of leadershipleadership

McDonalds

HUMAN RESOURCE POLICESHUMAN RESOURCE POLICES

Focus on individual’s qualification & capabilities.

Transparent appraisal system.

Exit interviews are conducted.

Job rotation is not present.

Effective communication channels.

KFC

Focus on professional skills Focus on professional skills and computer literacy.and computer literacy. Appraisal through graphic Appraisal through graphic rating scale method.rating scale method.

No exit interviews.No exit interviews.

Job rotation is present.Job rotation is present.

Top-bottom communication Top-bottom communication process.process.

McDonalds

BEST PRACTICESBEST PRACTICES

Keen about ethical behavior and expect employees and

vendors to express same.Grooming employees through training.Standard recruitment practices. Conflict Management: Low level dealt by managers, critical by HR.Employee Counseling.Stress Management Programs.

KFC

Uniform standard of conduct Uniform standard of conduct for all employees.for all employees.

MDP1,2,3 and CLDC programs.MDP1,2,3 and CLDC programs.

Transparent recruitment Transparent recruitment process.process.Conflict Management: Low Conflict Management: Low level dealt by managers, critical level dealt by managers, critical by HR.by HR.Management Counseling for Management Counseling for employees.employees.Stress Management Programs.Stress Management Programs.

McDonalds

EMPLOYEE ENGAGEMENTEMPLOYEE ENGAGEMENT

Involvement in decision making policies.

Training for employees.

Highly motivated employees.

Employees as a part of family.

Innovations are encouraged

KFC

Involvement in decision Involvement in decision making policies.making policies.

Training opportunities for Training opportunities for career development.career development.

Strong employee Strong employee commitment.commitment.

Employee + Organization= Employee + Organization= FamilyFamily

Innovations are recognized.Innovations are recognized.

McDonalds

ORGANIZATION ORGANIZATION MANAGEMENTMANAGEMENT

Quality management.

Focus on team work.

Employee counseling.

Strongly intra-organizational networking.

KFC

Smooth running of affairs.Smooth running of affairs.

Group commitmentGroup commitment

Employee focus.Employee focus.

Alignment of individual and Alignment of individual and organizational goals organizational goals

McDonalds

CHANGE MANAGEMENTCHANGE MANAGEMENT

Top management drives Top management drives the the change by engaging and change by engaging and training employeetraining employee

Manual attendance to Manual attendance to biometric system for biometric system for attendance.attendance.

Compliance with the Compliance with the governmental rules & governmental rules & regulations.regulations. Use of HALAL ingredients.Use of HALAL ingredients.

KFC

Top management accord Top management accord changes with employee changes with employee involvementinvolvement

Installation of automated Installation of automated attendance system attendance system

“Optimum. “Optimum. Conformity to standard Conformity to standard rules & regulations.rules & regulations. Use of HALAL ingredients.Use of HALAL ingredients.

McDonalds

GAUGING BEHAVIORSGAUGING BEHAVIORS

“My buddy portal.”

Disclosure of salary not appreciated.

Low turnover & absenteeism.

No political influence.

Coaching new comers.

Self-control emotions.

Cut corner is practiced but not at stake of quality.

KFC

Weekly meetings for Weekly meetings for measuring employee measuring employee attitude.attitude.

Disclosure of salary not Disclosure of salary not liked.liked. Few absenteeism & but Few absenteeism & but

turnovers are there.turnovers are there. Minimal political influenceMinimal political influence

Helping new comersHelping new comers.. Organization desired Organization desired

emotions specially when emotions specially when dealing with customers.dealing with customers.

No cut corner strategy at all.No cut corner strategy at all.

McDonalds

GAUGING BEHAVIORSGAUGING BEHAVIORS

Does not rely on temporariness.

Outsourcing of services.

Respect among peers.

Strong Employee –Organization fit.

KFC

Does not rely on Does not rely on temporarinesstemporariness

Outsourcing of services.Outsourcing of services.

Employee commitment.Employee commitment.

Less focus on problem Less focus on problem solving.solving.

McDonalds

ASSESSMENTASSESSMENT

KFC provides equal opportunity to its employees

KFC takes exit interviews and feedback from their employees.

Turnover at KFC is much less.

KFC

Whereas, Mc Donald’s does Whereas, Mc Donald’s does not. not.

Mc Donald’s does not take Mc Donald’s does not take exit interviews.exit interviews.

Mc Donald’s is not concerned Mc Donald’s is not concerned about turnover. about turnover.

McDonalds

ASSESSMENTASSESSMENT

KFC has automated process for feedback.

KFC has a healthy branch network of more than 60 branches nation-wide.

Female staff at senior management level

KFC

Mc Donald’s take manual Mc Donald’s take manual feedback. feedback.

Mc Donald’s branch network Mc Donald’s branch network is limited to 23 branches is limited to 23 branches nation wide. nation wide.

No female staff at senior No female staff at senior management level.management level.

McDonalds

RECOMMENDATIONSRECOMMENDATIONS

Job rotation must be exercised.

Target new customers.

Opening of branches in rural areas.

Aggressive marketing policy.

KFC

Trace the reasons behind Trace the reasons behind employee turnover. employee turnover.

Increase branch network.Increase branch network.

Hiring female staff at senior Hiring female staff at senior management level.management level.

More automation required.More automation required.

Astute Marketing Policy.Astute Marketing Policy.

McDonalds

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