Contents

Mission ................................................................................................................................. 1

Goals................................................................................................................................. 1

Values for KFC ................................................................................................................ 1

History .................................................................................................................................. 2

KFC Today ........................................................................................................................... 4

KFC in Romania............................................................................................................... 5

Management ......................................................................................................................... 6

What is the existing performance management system of KFC? .................................... 7

What is 360 degree feedback? .......................................................................................... 7

How is 360 Degree Feedback Used? ................................................................................ 8

“My Growth Body” .......................................................................................................... 9

The flow of activities involved in the existing system ......................................................... 9

Communicating employee performance expectations ..................................................... 9

Maintaining ongoing performance dialogue .................................................................. 10

Conducting performance appraisals ............................................................................... 10

Rewarding good Performance ........................................................................................ 11

Addressing Poor Performance ........................................................................................ 11

Transitions ...................................................................................................................... 12

Access and Use of Performance Information ................................................................. 12

How the appraiser and apprises are linked together? ......................................................... 13

How goals and objectives are linked with performance management system? ................. 14

What Appraisal system is used? ......................................................................................... 15

How the existing Appraisal system is implemented. ......................................................... 16

What is the formal reward system? .................................................................................... 17

How the existing system of KFC is linked with its performance management system? ... 18

Proposed performance management system for KFC ........................................................ 19

Organizational and employee objectives ............................................................................ 20

Training .............................................................................................................................. 21

Frequency of appraisal ....................................................................................................... 22

“Launch Proper Measurement system” .............................................................................. 23

Use Multiplier rating while conducting the performance appraisal ............................... 24

Some suggestions for developing an appraisal .............................................................. 25

Reward system based on Performance ............................................................................... 25

Linkage of current system with the performance management system of KFC ................ 27
 Mission

To establish in Romania our position as leading WQSR (Western Quick Service

Restaurant) chain, serving good value innovative chicken-based products, consistently providing
a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all
times, we must be dedicated to providing excellent service and delighting customers.

Goals
 Build an organization dedicated to excellence.
 Consistently deliver superior quality, and value in our product and service.
 Maintain a commitment to innovation for continuous improvement and growth, striving
always to be the leader in market place challenges.
 Generate consistently superior financial returns and benefit our owners and employees.

Values for KFC

 Focus all our resources to our restaurant operations because that is where we serve our
customers.
 Reward and respect the contributions of each individual at KFC.
 Expand and update training with time and be the best we can be and more.
 Be open, honest and direct in our dealing with one another.
 Encourage new and innovative ideas because they are the key to our competitive growth.
 Reward result and not simple efforts.
 Dedicate ourselves to continuous growth in sales, profit and size of organization.
Work as a team.

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 History

9/9/1890-Harland Sanders, the founder of KFC was born just outside Henryville, Indiana.
1900-1924-Harland Sanders holds a variety of jobs including: farm hand, streetcar
conductor, and army private in Cuba, blacksmith's helper, railyard fireman, insurance salesman,
tire salesman and service station operator for Standard Oil.
1930-In the midst of the depression, Harland Sanders opens his first restaurant in the
small front room of a gas station in Corbin, Kentucky. Sanders serve as station operator, chief
cook and cashier and name the dining area "Sanders Court & Café."
1936-Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky
Colonel in recognition of his contributions to the state's cuisine.
1937-The Sanders Court & Café adds a motel and expands the restaurant to 142 seats.
1939-The Sanders Court & Café is first listed in Duncan Hines' "Adventures in Good
Eating."
Fire destroys The Sanders Court & Café, but it is rebuilt and reopened.
The pressure cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry
his chicken to give customers fresh chicken, faster.
1940-Birth date of the Original Recipe
1949-Sanders marry Claudia Price.
1952-The Colonel begins actively franchising his chicken business by traveling from
town to town and cooking batches of chicken for restaurant owners and employees.
The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A
handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold.
1955-An interstate highway is built to bypass Corbin, Kentucky. Sanders sells the service
station on the same day that he receives his first social security check for $105. After paying
debts owed, he is virtually broke. He decides to go on the road to sell his Secret Recipe to
restaurants.
1957-Kentucky Fried Chicken first sold in buckets
1960-The Colonel's hard work on the road begins to pay off and there are 190 KFC
franchisees and 400 franchise units in the U.S. and Canada.

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 1964-Kentucky Fried Chicken has more than 600 franchised outlets in the United States,
Canada and the first overseas outlet, in England.
Sanders sell his interest in the U.S. Company for $2 million to a group of investors
headed by John Y. Brown Jr., future governor of Kentucky. The Colonel remains a public
spokesman for the company.
1965-Colonel Sanders receives the Horatio Alger Award from the American Schools and
Colleges Association.
1966-The Kentucky Fried Chicken Corporation goes public.
1969-The Kentucky Fried Chicken Corporation is listed on the New York Stock
Exchange.
1971-More than 3,500 franchised and company-owned restaurants are in worldwide
operation when Heublein Inc. acquires KFC Corporation.
1976-An independent survey ranks the Colonel as the world's second most recognizable
celebrity.
1977-Colonel Sanders speaks before a U.S. Congressional Committee on Aging.
1979-KFC cooks up 2.7 billion pieces of chicken. There are approximately 6,000 KFC
restaurants worldwide with sales of more than $2 billion.
12/16/1980-Colonel Harland Sanders, who came to symbolize quality in the food
industry, dies after being stricken with leukemia. Flags on all Kentucky state buildings fly at half-
staff for four days.
1982-Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc.
(now RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.
1986-PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc.
1997-PepsiCo, Inc. announces the spin-off of its quick service restaurants - KFC, Taco
Bell and Pizza Hut - into Tricon Global Restaurants, Inc.
2003-Tricon Global Restaurants, Inc., the world's largest restaurant company, changes its
corporate name to YUM! Brands, Inc. In addition to KFC, the company owns A&W® All-
American Food® Restaurants, Long John Silvers®, Pizza Hut® and Taco Bell® restaurants.
2006-More than a billion of the Colonel's "finger lickin' good" chicken dinners are served
annually in more than 80 countries and territories around the world.

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 2007-KFC proudly introduces a new recipe that keeps the Colonel's 11 herbs and spices
and finger-lickin' flavor, but contains Zero Grams of Trans Fat per serving thanks to new cooking
oil.

KFC Today

 Today, KFC is the world’s largest and most well known chicken restaurant chain, with
more than 10,000 locations worldwide, in 78 countries. KFC and its franchises employ
more than 20,000 people worldwide.
 KFC serves more than 4.5 billion kilo grams of chicken annually, to approximately 7
million customers a day, worldwide.
The Cupola Family
Found in 1994, headquartered in Dubai and offices in Middle East, London, Washington
and Karachi.
Turnover of $200 million with operating staff of 1660.

Activities Focus on 4 Sectors:

Retail: spinney’s (ME and Lebanon), Max (SA)
Consumer: Oman United Agencies (Oman & Jordan)
Engineering: Cupola Engineering Group (Oil, gas & water industry)
Information: Cupola plastic Cards LTD (Jable Ali), Cupola Teleservices (USE)

THE Yum Family

Yum! Brands, Inc., based in Louisville, Ky., is the world's largest restaurant company in
terms of system restaurants with more than 36,000 restaurants in over 110 countries and
territories and more than 1 million associates. Yum! is ranked # 239 on the Fortune 500 List, with
revenues in excess of $11 billion in 2008. Four of our restaurant brands – KFC, Pizza Hut, Taco
Bell and Long John Silver's – are the global leaders of the chicken, pizza, and Mexican-style food
and quick-service seafood categories.

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 KFC in Romania
KFC restaurants have been present in Romania since 1996, total investments in network
expansion amounting to eight million euros by 2008 . KFC is brought to Romania in a franchise
system by the US Food Network, owned by the Altrom Group, controlled by businessman
Gabriel Popoviciu. In 2008, the KFC network had 30 restaurants on the Romanian market,
employing over 1,200 employees. In January 2012, KFC opened 42 restaurants in Romania,
including 18 in Bucharest. Turnover in 2009: 146.7 million lei

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 Management

Hierarchy
(Operational
Level)
Area
Manager

Territory
Manager
Restaurant
manager

Assistant
Manager

Trainee
Manager

Shift Supervisor/Customer Relation

Officer

A
ll Stars

Tw

Star
Staff

Customer Service Team Food Service Team

Member Member

Trainee Team
Member
 What is the existing performance management system of KFC?
Performance management – A management process for ensuring employees are focusing
their work efforts in ways that contribute to achieving the company’s mission. It consists of three
phases:
(a) Setting expectations for employee performance
(b) Maintaining a dialogue between supervisor and employee to keep performance on
track,
(c) Measuring actual performance relative to performance expectations.
The purpose of the performance management system is to ensure
 The work performed by employees accomplishes KFC’s goals
 Employees have a clear understanding of the quality and quantity of work expected from
them
 Employees receive ongoing information about how effectively they are performing
relative to expectations
 Awards and salary increases based on employee performance are distributed accordingly
 Opportunities for employee development are identified.
 Employee performance that does not meet expectations is addressed.

KFC started its operations in 1996 and till 4 to 5 years there was no human resource
department in KFC and then in the 5th year of its operation in pakistan it developed its human
resource department. When KFC started its performance management system so at that it used
360 degree feedback to evaluate its employees in which every employee was evaluated by his
supervisor and his peers. The also launched their own ranking scale named by “My Growth
Body” and details of their feedback system and “My Growth Body” are given below ;

What is 360 degree feedback?

360 Degree Feedback is a system or process in which employees receive confidential,
anonymous feedback from the people who work around them. This typically includes the
employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out
an anonymous online feedback form that asks questions covering a broad range of workplace

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competencies. The feedback forms include questions that are measured on a rating scale and also
ask raters to provide written comments. The person receiving feedback also fills out a self-rating
survey that includes the same survey questions that others receive in their forms.

Managers and leaders within organizations use 360 feedback surveys to get a better
understanding of their strengths and weaknesses. The 360 feedback system automatically
tabulates the results and presents them in a format that helps the feedback recipient create a
development plan. Individual responses are always combined with responses from other people in
the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the
employee a clear picture of his/her greatest overall strengths and weaknesses.

How is 360 Degree Feedback Used?

KFC uses 360 feedback systems in two ways which are given below:

1. 360 Feedback as a Development Tool to help employees recognize strengths and

weaknesses and become more effective

When done properly, 360 is highly effective as a development tool. The feedback process
gives people an opportunity to provide anonymous feedback to a coworker that they might
otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive
them and have an opportunity to adjust behaviors and develop skills that will enable them to
excel at their jobs.

2. 360 Feedback as a Performance Appraisal Tool to measure employee performance

These things are most appropriately addressed by an employee and his/her manager as
part of an annual review and performance appraisal process. It is certainly possible and can be
beneficial to incorporate 360 degree feedback into a larger performance management process, but
only with clear communication on how the 360 feedback will be used.

What a 360 Feedback Survey Measures?

 360 feedback measures behaviors and competencies

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  360 assessments provide feedback on how others perceive an employee

 360 feedback addresses skills such as listening, planning, and goal-setting

 A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership
effectiveness

“My Growth Body”

This was the rating scale introduced by the HR department of KFC in 2000-01 which
they used to measure the performance of their employee. The information which they
collected from 360 degree feedback it provided them a base on which they can rank their
employee as a good performer or a bad performer. So basically in MGB there were 5 five
points, the employee who was a low performer is ranked on 3 and the good performer who
achieved his targets was ranked on 5.

• Performance documentation – A letter, memo, completed form, or note on which the

supervisor indicates the extent to which the employee is currently meeting expectations and
provides evidence to support that conclusion.

The flow of activities involved in the existing system

Supervisors and managers are responsible for managing the performance of their
employees. As 90% to 95 % of the staff working in KFC is of operations and only 4 to 5%
people are working on the managerial positions .Operational staff require regular check and
balance on their performance so their performance is measured quaterly means 4 times in a year
and performance of managerial staff is measured annually.

Communicating employee performance expectations

Since KFC has two main cycles on which it assesses its employees the three months cycle
for operational staff and the twelve month cycle for managerial staff, so at the start of each cycle
the supervisors meet with their employees, establish expectations regarding their employees’

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performance, specify how employees’ actual performance will be measured and their success
determined, and impart to them an understanding of how meeting these expectations will
contribute to the achievement of the KFC’s mission.
b. Performance expectations shall be written at the “meets expectations” level and shall be
documented on a form defined by the KFC – the “work plan
c. Work plans are signed and dated by both the supervisor and the employee.

Maintaining ongoing performance dialogue

a. Employees shall be responsible for meeting their performance expectations.
b. Progress toward meeting expectations shall be measured, reported, discussed, and
documented throughout the work cycle.
c. Supervisors are expected to use appropriate supervisory techniques to support
employee efforts to meet or exceed their performance expectations.
d. When expectations change during the course of the work cycle, supervisors
communicate these changes and modify work plans as necessary. Modifications are signed and
dated by both the supervisor and the employee.

Conducting performance appraisals

a. Appraisal of operational staff after every 3 months and of managerial staff after every
twelve months.
b. At the end of the work cycle, supervisors shall evaluate employees’ performance during
the past work cycle compared to their performance expectations. They use verifiable information
collected and documented throughout the cycle to determine the extent to which actual
performance has met the expectations defined in the work plan.
c. The evaluation shall be documented on a standard form defined by the KFC – the
“appraisal.” which is “My Growth Body” which is a form of questionnaire.
d. The performance appraisal shall use a 5-level rating scale for reporting overall
performance. A rating at the midpoint of the scale shall indicate that an employee’s performance
has met expectations.

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 e. Prior to discussing a completed performance appraisal (that is, an appraisal containing
ratings and descriptions of actual performance) with an employee, a supervisor reviews the
appraisal with the next-level manager to ensure that ratings are appropriate and consistent.
f.Supervisors discuss the appraisals with their employees. Both supervisor and employee
sign and date the completed performance appraisal indicating that the discussion has taken place.

Rewarding good Performance

Most employees love recognition for a job well done. Consistently good performance and
a willingness to take on more responsibility might make you consider an employee for
promotion. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the
reward system must recognize both sources of motivation. So reward system of KFC is based on
the assumptions of attracting, retaining and motivating its people. HR manager told us that they
know the the fact that financial rewards are an important component of the reward system, but
there are other factors that motivate employees and influence the level of performance so they
keep on identifying those other factors that can motivate their employees.

. The competitive reasons for the growing emphasis on performance-based compensation

are companies cutting costs, restructuring, and boosting performance. To ensure the reward
system is effective and motivates the desired behaviors, KFC carefully considers the rewards and
strategies utilized and ensure that rewards are linked to or based on performance. To make it
more effective, KFC’s performance measurement system is tied to compensation or some sort of
reward.

Addressing Poor Performance

When an employee’s performance falls below expectations at any time during the
performance cycle, the supervisor shall document the performance deficiency and take actions,
including (if appropriate) disciplinary action, to assure that performance expectations will be met
within a reasonable period of time.
1. The supervisor documents the performance that falls short of expectations by preparing
a corrective action plan or other documentation. The documentation will specify (a) the

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performance problem, (b) the steps to be taken to improve performance, including the timeframe
for improvement, (c) the consequences of failure to improve, and (d) a follow-up date.
2. A corrective action plan is considered successfully completed only when the
employee’s actual performance has improved to the point where expectations are being met.

Transitions
When employees move into or out of their positions, relevant performance information
shall be communicated in a timely way.
1. Probationary employees have work plans within a certain number of days of their date
of employment. To remove an employee from probationary status, the supervisor provides
performance documentation.
2. Employees in training progressions also have work plans, or an equivalent document
that describes performance expectations, within a certain number of days of the date of
employment. The supervisor provide performance documentation before each salary increase is
granted within the progression.
3. Employees whose responsibilities are changed substantially, either within their current
position or by transfer (promotion, lateral transfer, or demotion), shall have work plans
established within a certain number of days following the new assignment.

Access and Use of Performance Information

Properly informed personnel decisions – KFC takes measures to ensure performance
information is appropriately and consistently used and that personnel decisions are based on
appropriate performance information. Decisions involving promotions, performance-based
disciplinary actions, performance-based salary increases, and reductions in force are supported by
a current appraisal on file.
Confidentiality of Appraisal - agencies shall clarify which of the documents used for
performance management purposes are confidential and which are not, as well as define what
“confidential” means. Completed performance appraisals (with ratings, supporting information,
and signatures and dates) shall be treated as confidential.

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 How the appraiser and apprises are linked together?

Kfc uses the 360 degree which is also knows as “multi-rater feedback” appraisal
system to evaluate the performance of its employees and this is the basic method which links
the appraiser and appraises. In this system the human resource department of the
organization reviews the appraisee’s job and job satisfaction. The important thing is that
explore the problems the appraisee might have or factors which might prevent the appraisee
from improving his/her job performance. This system gives the appraisee an opportunity to
set and work towards achieving agreed objectives and also identify the appraisee’s personal
development needs. This system involves all the employees at KFC and the feed back is
provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in
some cases, feedback from external sources such as customers and suppliers or other
interested stakeholders.The results from 360-degree feedback are often used by the person
receiving the feedback to plan training and development. Results are also used by some
organizations in making administrative decisions, such as pay or promotion. When this is the
case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree
review.

Appraisal is concerned with the performance and development of individual members

of staff. Human resource department at KFC evaluate the performance of is employees when
the performance is evaluated then the department identify the development needs of
employees and then provide the training and coaching according to it. During all this, the
appraiser that is the members of human resource department and the appraises, who are the
employees are linked with each other.

KFC gives value to its employees. The senior manager always linked with the
subordinates and identifies the needs of improvement and then directs them through the right
path. If the operational staff is lacking in something or their efficiency is going down then
they are warned at the spot but managerial staff is evaluated and assessed by using some
proper evaluation method. If some operational staff member is working well then reward is

13
giving to him or her at the spot in the form of employee of the day. The appraisal process is
separate from the disciplinary process and has a different purpose. The emphasis of the
appraisal process is on finding ways to improve performance and resolve problems through
joint discussion. KFC uses the 360 degree evaluation method because it provides the
following advantages:

 It provides the opportunity for regular communication between managers and their
staff, mutual feedback and a clearer view of the responsibilities of their staff, possible
areas for development and how these relate to departmental plans and the
Organization's Strategic Plan.
 Staff member are encouraged to become directly involved in setting their own job
related objectives and finding out when they need support in order to achieve them.

 Appraisal provides the opportunity for the work, abilities and achievements of staff to
be recognised and recorded.

 All staff (appraisers and appraisees) has the opportunity to give and receive feedback
on their role, performance and contribution.

 Staffs are able to express their opinions, feelings and suggestions in a confidential
atmosphere.

 All staff has the opportunity to discuss any problems and agree solutions.

How goals and objectives are linked with performance

management system?

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 Both the two terms goals and objectives are often used interchangeably, confusion
sometimes arises. Although both goals and objectives use the language of outcomes, the
characteristic that distinguishes goals from objectives is the level of specificity. Goals express
intended outcomes in general terms and objectives express them in specific terms. Goals are
written in broad, global, and sometimes vague, language. Objectives are statements that describe
the intended results of instruction in terms of specific student behaviors.
KFC links its goals and objectives with performance management. The HR manager of
KFC explains this with an example. He said, assume we have three employees and we assign
them a target of 6 million sales. Two workers achieved above the target means 10 million that is
very good but third one achieved only 6 million that is exact target. Then we will give reward
which may be in any form to first two employees although the third one also achieved the target
but his performance is not at the same level. In the end He said “performance speaks for itself”.
This is the only criteria on which they are measuring the performance of the employees that’s
why the performance of the employees are not very clear. This thing creates biasness because
there are some employees who are very introvert and there performance is not so much clear.
At KFC the goals and objectives are linked with the performance management system, it
provides the following advantages to the company:

What Appraisal system is used?

Performance appraisal systems are designed to serve the company's and employee's
interests. They are used to inventory the abilities and resources of employees and to let an
employee know where he stands so that he will be stimulated to improve his performance.
Companies implement appraisal system to determine whether the employee is doing
according to the requirement of the organization or not. Companies can determine the behavior of
employee towards the related objective.
There are different types of appraisal system used by different companies; KFC use 360
degree feedback (“refers to the 360 degrees in a circle, with an individual figuratively in the
center of the circle. Feedback is provided by subordinates, peers, and supervisors. It also includes
a self-assessment and, in some cases, feedback from external sources such as customers and
suppliers or other interested stakeholders. It may be contrasted with "upward feedback,”) they
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were also using the online feedback, they place questionnaires on a log in of an each employee
and communicate them to fill that and reply over their results. Through this process they keep the
documentation and can give the proof of their out put at the time of review of their performance.
Then on the basis of that feedback they give numbers to those employees and rank them
between 3 to 5 and assess whether he or she is a good employee or not and then take a decisions
related to his or her objective setting and any bonuses if he or she deserve.

How the existing Appraisal system is implemented.

Appraisal of employee performance is one of the most important responsibilities of

managers. Existing performance management system is implemented approximately in 2001 to
2002, but KFC started its operations in 1996, so there was the gap of about 5 to 6 years between
KFC operations and introduction of its performance management system. According to Mr. Rana
Naveed, HR manager of KFC barkat market, north region Pakistan, HR department, (which
consist of THREE people) of north region is controlling and evaluating about 2200 employees of
KFC in this region. These north regions consist of Punjab and NWFP. As they are using 360
degree feedback system to get the feedback from each and every employee as every employee
has an access to these three people any time and can communicate his or her problem to them.
Most often they control and solve matters through telephonic discussion and sometimes they visit
to particular area to solve their problems.
Implementation of online appraisal system is going through questionnaires and gets feed
back very soon through their online feed back.
Appraisal reviews of manager’s takes place once in a year and on another sides
performance appraisal of operational staff takes place quarterly.
Objectives which are assigning to them are review at the time of appraisal. If these
objectives are SMART then HR department reinforce to do that objectives and if there is a gap
between their performance and actual expectations of the company then they find out whats the
problem with the employee. KFC do not review its Objective as they say that we have set these
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objectives according to the past achievements and if any one can achieve that objective then
every one have capabilities to achieve those objectives.

What is the formal reward system?

Employees are motivated by both intrinsic and extrinsic rewards. All rewards systems are
based on the assumption of attracting, retraining and motivating the employees of the
organization. Financial rewards are important components of the reward system on the bases of
the employee’s performance. But there are other factors that motivate employees like to organize
the training program for them giving them the certification on the bases of these training, because
for some employees money is not the most important motivator. KFC also reward there
employees in terms of promotion, incentive, payoff free meals depending on the level of the
employee and how much they perform there job good. At management level they award them in
the form of promotion, performance sheets. For example if the employee have a target to increase
the sale with in the given time period. And if he achieves this target, the some percentage of
his/her salary will increase in the form of reward from the company on his/her performance.
Operation level activities play a big role the growth of the KFC. So at operation level motivation
factor have importance for the employees, at operation level they have prizes you can win for
being best employee that month, like a free meal or a day off with pay.
Bounces are given to the employees on the basis of “My growth body” points. If the
person has 5 points he or she can get benefits in term of financial bonuses, they also consider
those persons has lass then 5 but more then 3 points and give them incentives by offering free
meals with in a month in term of coupons.

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 How the existing system of KFC is linked with its performance
management system?
As we discussed above, about the performance management system, as it is a
management process for ensuring employees are focusing their work efforts in ways that
contribute to achieving the company’s mission. It consists of three phases:
(a) Setting expectations for employee performance
(b) Maintaining a dialogue between supervisor and employee to keep performance on
track.
(c) Measuring actual performance relative to performance expectations.

So if we talk about the appraisal system of KFC in term of linkage with its performance
management system we determine that at first step they set objectives of a employees, at the time
of start of each performance management cycle. These objectives are SMART and communicated
to each employee before he or she has to start work then they also maintain a dialogue between
employee and supervisor in case of any problem. As we discussed above that appraisal of each
employee starts after 3 months and review their performance whether they are doing according
their requirement or not. They measure actual performance relative to expected performance. For
the measurement of performance they get feed back by different appraisal systems. Like 360
degree feedback system and “MY GROWT BODY”. So these processes help them to find out
those people with good performance.
According to Mr. Rana Naveed, HR manager of KFC north region, we are running our
whole system with these two appraisal systems and assign them weight of good and bad on the
basis of “My growth body”. He says that this system is really supporting and leading us towards a
good performance organization but it is not a system which is a perfect. We can make this better
and more effective to get an excellent performance and cost effectiveness.

18
 Proposed performance management system for KFC

Currently their Human Resource Management system is not that much strong and it is
obvious because when we asked from the HR manager of KFC that rate your company’s HR then
he said that I will give 3 points out of 5 to my company.If we take the example of north region
which includes Punjab and NWFP ,only three people are managing the performance of 2200
employees so it is not possible for them to efficiently manage people. Because there are so many
issues that arise when people are working together.
Using a 360 degree feedback system for Performance Appraisal is a common practice, but
not always a good idea. It is difficult to properly structure a 360 feedback process that creates an
atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360
feedbacks focus on behaviors and competencies more, than on basic skills, job requirements, and
performance objectives.

Currently they are using 360 feedback which has following drawbacks

What 360 Feedback Surveys do not assess:

 360 feedback is not a way to measure employee performance by objectives (MBOs)

 360 feedback is not a way to determine whether an employee is meeting basic job
requirements

 360 feedback is not focused on basic technical or job-specific skills

 360 feedback should not be used to measure strictly objective things such as attendance,
sales quotas, etc.

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 Organizational and employee objectives
One of the first steps in developing an effective performance evaluation system is to
determine the organization’s objectives. These are then translated into departmental and then
individual position objectives –working with employees to agree their personal performance
targets. This allows the employee to know “up front” the standards by which his/her performance
will be evaluated.
Currently their performance management system has no proper method to evaluate the
performance because we asked several times the HR manager about their evaluation method he
told us that “performance speaks for itself”, so on the basis of this conception they reward and
penalize their employees, no certain ranking criteria they are using so their employees are
unaware of the criteria on which their performance is evaluated. If employees are unclear about
these criteria how can they perform well?
This process involves clarifying the job role, job description and responsibilities –
explaining how the role and responsibilities contribute to wider goals, why individual and team
performance is important and just what is expected within the current planning period. Objectives
developed in this way should be reflective of the organizational goals and provide linkages
between employee and organizational performance. Within a given department some objectives
will be shared within a team or standardized across a number of similar employees. However, it
is important to ensure that, where necessary, an individual focus is maintained: within any group
of employees performing the same job function there may be wide gaps in experience and
technical knowledge. In order to keep each individual employee motivated and committed to
performing at his/her best, some objectives need to be customized to allow for continued growth.
A significant portion of an employee’s performance should be based on these jointly developed
objectives.It is important that the process ensures that employees understand how their personal
job performance contributes to the overall performance of the company. This direct linkage helps
to create team working and shared responsibility. Team effort stems from shared objectives
reflecting organizational goals and clarification and understanding of the roles and
responsibilities of each member Within such a framework, performance appraisal has higher
acceptability. Although performance objectives should be individual and agreed between

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employee and supervisor, this does not mean that they should be easy to attain. All objectives,
while being attainable, should challenge the employee to extend him/herself to exceptional levels.

Training
A major aspect of developing an effective performance system is training for those
individuals involved as raters. Currently KFC is not focusing on the training of its people and it
can suffer from some problem in future. This training should start with a focus on providing the
manager with a systematic approach to the practice of effective people management. This
training needs to focus on the process of managing, motivating and evaluating employee
performance because if the people who are going to assist others and they are accountable for the
management of people working in the organization are not properly trained then how can they
carry out good management? Performance appraisal is only a part of this overall process and it is
important that managers see it within its wider context and not as a simple “quick fix” solution.
Thus training should begin those levels of management that will be involved in administering the
programme and providing training for lower levels of supervision. Once the senior managers
have “bought into” the system, skills training are needed for junior managers and supervisors.
This specific training should include at least the following:
 supervision skills;
 coaching and counseling;
 conflict resolution;
 setting performance standards;
 linking the system to pay providing employee feedback
Once an individual rater has been through the necessary training, periodic refresher
courses will be required to help the rater maintain necessary skills in performance assessment.
Raters involved in the appraisal process should also be evaluated on how they conduct
performance appraisals. This will help to make sure that evaluations are performed in a similar
and consistent manner throughout the organization. Since we are asking employees to contribute
to the process (by being involved in the setting of personal objectives – and obviously in the
review process), some training is required for all employees. This training should include how to
set objectives, how to keep accurate records, and how to communicate all aspects of performance.

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 Frequency of appraisal
Employee reviews should be performed on a frequent and ongoing basis. The actual time
period may vary in different organizations and with different aims but a typical frequency would
be bi-monthly or quarterly.
Eliminating surprises in the appraisal process is also important. Both the supervisor and
employee need to know that there is a performance problem prior to any major annual review.
Currently they review the performance of operational staff after every three months and that of
managerial staff after one year and this is not right they should at least review the performance of
managerial staff twice in a year means after every six months. The longer a problem is allowed to
continue, the more difficult it is to take corrective action and not always problem is with the
operational staff and they should regularly evaluate the performance of managerial staff. Frequent
performance appraisals should eliminate the surprise element and help to modify performance
prior to any annual review. Of course, if there is a good relationship between supervisor and
employee, informal reviews of an employee’s performance may be undertaken almost
continually. Poor performance should not go unchallenged just because the quarterly review is
not due for two months. Frequent reviews also allow for clarification and revision of objectives.
This leads to better informed employees who are better equipped to perform their job
satisfactorily. In addition frequent reviews give supervisors more opportunity to assure that
progress is being made in developmental objectives. Job demands can frequently prevent
employees from achieving specified objectives. In this case the supervisor must either re-assign
work to allow the completion of this objective or modify the objective to reflect the changing
conditions of the job.

Maintaining records is another key to ensuring the effective use of a performance

appraisal scheme is keeping and maintaining accurate records of employee’s. Carefully
maintained, they establish patterns in an employee’s behavior that may be difficult to spot by
typical incident- by-incident supervision .Careful review of the records helps avoid the selective
memory mentioned earlier and helps plot appropriate actions. Of course, well maintained
Records are essential if the need arises to discipline, demote or dismiss an employee.

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 It is particularly helpful if employees are themselves responsible for part of the process of
record-keeping: this helps reinforce the fact that a major part of the process is devoted to
employee development – and that employees have a responsibility for their own development.
Such an approach to dual documentation also helps in the elimination of surprises.
“Launch a 540 degree feedback”
To ensure the proper assessment of the employees we launch a new system so that the
draw backs which current system has can be removed.
The range of feedback on the performance of an employee is generated from the stakeholders -
Superiors, Subordinates. Peers, Internal and External Customers, Clients or Suppliers are known
as 540 Degree feedback or appraisal.
In this, the customers and suppliers also evaluate the performance which helps us to differentiate
from the 360 degree performance appraisal. General Electric Company, USA, was the first to
tryout this concept in early 1990s.This is an emerging technique and since customer plays a
major role in the success or failure of business and for KFC customer satisfaction is the key so
their feedback will play a major role in assessing employees. Since 90 to 95% of their staff is
relate with operations so suppliers feedback is also very important.

“Launch Proper Measurement system”

Currently their managers are using own criteria “My Growth Body” to evaluate
employees in which there are 5 points and on the basis of performance they allocate points. The
actual measurement or grading system used to rate employee’s performance needs to be designed
carefully. A performance appraisal system which ranks employees according to a numerical
rating tends to lead to a great deal of average performers. For example, if a 1-5 scale is used, five
being best, a majority of employees will be rated a three. While this may be reflective of their
actual performance, few people take gratification in being called average. Another problem arises
when it is made extremely difficult to perform at a level greater that a three or average. A
company in this situation tends to breed mediocre performance even from its outstanding
performers. A possible solution to the average rating problem is to have an even scale, for
example or not to have numeric ratings at all.
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 In developing a rating system, a clear definition of each level of performance must be
provided and disseminated to all employees. Employees and all supervisors must clearly believe
that a rating higher than average is achievable and attainable. Of course, they should also clearly
believe that ratings lower than average is achievable and will be given if appropriate. This again
will help the employees to clearly understand that the measurement system is accurately
reflecting the true level of performance for every employee.

Use Multiplier rating while conducting the performance appraisal

In many systems, the front-line supervisor is responsible for conducting the performance
review. However, a multiple rater system should be considered. So here we suggest that KFC
should use “Multiple rater systems” because they provide a form of “triangulation’ that results in
ratings in which employees and managers have greater confidence. It may also be necessary to
restrict the number of employees rated by any one individual – especially in todays new, flatter
organization in which spans of supervision may be 60 people or more. With large spans of
control, several supervisors may work with an individual employee. The input from all
supervisors about the employee’s performance is required to complete a thorough performance
review. Currently
Multiple rater systems can be computerized to allow statistical analysis to identify bias
– this can be particularly important where an organization is keen to avoid real or
perceived bias with respect to race, gender or age. Another advantage of multiple rating systems
is that they can shift the supervisor’s role from that of judge to performance coach. An individual
supervisor will no longer be responsible for a single employee’s review. This in turn lifts the
burden of “policing” from the supervisor and allows him/her to focus on coaching and
developing the employee. Some multiple rater systems go as far as involving the use of
subordinates in the evaluation process. This is especially effective in a work environment which
is self-governing. General Foods Corporation has used this
approach in some of its plants utilizing self governing work groups. Subordinate
evaluations have generally shown to be more accurate than supervisors in truly reflecting
employee performance. This system of evaluation allows employees to participate in the
decisions that affect them directly. This helps the employee to be less defensive and
passive in the appraisal review. Self-appraisals can lead to self-improvement. The employee’s

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self appraisal can also be helpful for the supervisor in opening a communication link and
allowing for comparison of performance results. Self-appraisals give the supervisor helpful
insight as to how the employee views his/her performance. Generally speaking people will be at
least as tough on themselves as the formal rater. A proper process of employee and supervisor (or
multiple rater) review can help employees agree on areas for development and how the
organization can help.

Some suggestions for developing an appraisal

Developing an appraisal system that accurately reflects employee performance is a
difficult task. Performance appraisal systems are not generic or easily passed from one company
to another; their design and administration must be tailor-made to match employee and
organizational characteristics and qualities. Performance appraisals are most commonly
undertaken to let an employee know how his/her performance compares with the supervisor’s
expectations and to identify areas that require training or development. Employees have a
legitimate need to know how their performance is viewed. At a basic level, without adequate
communication between the employee and the supervisor, undesirable work habits may be
formed or good work habits may be modified. Lack of such communication may be viewed by
the employee as approval of their current work habits and performance.The supervisor also has a
legitimate reason
to conduct performance appraisals. Unsatisfactory performance needs to be conveyed in
order to arrange for improvement. Indeed, if performance is satisfactory the supervisor
wants to promote continued satisfactory performance. In either case, it helps to have a
systematic framework to ensure that performance appraisal is “fair” and consistent.

Reward system based on Performance

In the system which we proposed for the KFC the reward system is based on
performance. Not only the pay but other benefits and allowances also relate with the performance
of the employees of the organization. In the proposed new system that is 540 degree the
performance of the employees is strongly linked with the rewards system. Although the existing

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system also linked the performance with the rewards system but in the existing there is no
accurate method for measuring the performance of the workers that’s why rewards are not
accurately linked with performance workers are not getting what exactly they are doing. But 540
degree evaluation system has a proper method for measuring the performance and employees are
rated according to their performance. They get point if they perform well. This thing will increase
the competitiveness among the workers and increase the productivity and help the organization to
achieve its objectives in the specific time frame. This thing also motivates the employees to work
hard because it is the natural thing that every one worked for some reward which may be in any
form and it varies form person to person. If at KFC the new system is launched then it will
provide the following advantages.

 It motivates the workers of the organization. Because they know that when they perform
well only then they are given benefits and allowances.
 It builds a good image of the organization in the industry.
 It helps to achieve the goals of the organization in the time frame.
 Improves employee engagement because everyone understands how they are directly
contributing to the organizations high level goals.
 At KFC the goals and objectives are linked with the performance management system, it
provides the following advantages to the company:

 It motivates the workers of the organization. Because they know that when they perform
well only then they are given benefits and allowances.
 It builds a good image of the organization in the industry.
 It helps to achieve the goals of the organization in the time frame.
 Improves employee engagement because everyone understands how they are directly
contributing to the organizations high level goals.

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 Linkage of current system with the performance management
system of KFC
Developing an appraisal system that accurately reflects employee performance is a
difficult task. As we have looked at the appraisal system of KFC and it’s linkage, with the
performance management system of KFC. Now we will look at the new appraisal system or the
system which will also help the organizations to increase the performance and efficiency of
employees and its linkage with the performance management system of KFC.
First of all if we set the objective of an individual and departments and then take the
acceptance from them or ownership from them, it mean to find out whether they are willingly
ready to do these task or not. If they take ownership then allow them to start work. Now
supervisors are going to monitor their performance frequently through observations and
feedbacks from them. On the other hand frequency of appraisal of managerial staff with in 6
month will help to determine the competencies of manager himself. If managers find out that
there is any weakness in term of skills, capabilities and competencies then they can arrange
coaching and counseling for them and training session for them to make competent. This will
bring the employee on the right path and he or she can achieve the expected task.
A different criterion’s of measuring performance, like 540 degree feedback wiil help to
respond from stakeholders-Superiors, Subordinates. Peers, Internal and External Customers,
Clients and Suppliers. Everybody that is related to the organization is giving feedback about the
employee and after getting a feedback from all the people, managers will give them weight and
the input from all the supervisors about the employee’s performance is required to complete a
thorough performance review. Rewrd will be given to them according to their achievement, these
can be great motivational factors for the emplyees to perfrom task honestly and properly.

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