Pizza hut hrm

July-12-2005

Human Resource Management

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Presented To:
Prof. Ossama Fazal
Presented By:
Najeeb Ullah

(2057)

Madah Hussain

(0050)

Arslan Asghar

(2069)

Mubeen Ahmad

(2071)

Rashid Hassan

(2053)

Khuram Baloch

(0106)

Principles of Management

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HRM of Pizza Hut and how it
ef fects all Manager s


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Introduction
Pizza Hut was initiated in the year June 13 ,1958 by 2
brothers Dan and Frank Carney in their hometown of Wichita,
Kansas.
 It is an American restaurant chain and an international
franchise.
 Pizza Hut offers different styles of Pizza along with side
dishes including Starters, Soups & Salads, Pastas,
Sandwiches, Desserts and Beverages.
 Pizza Hut is a subsidiary of Yum! Brands,-Inc. the world’s
largest restaurant company.
 More than 6000 Pizza Hut restaurant in USA.

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Introduction
 More than 12,000 restaurants across 100 countries.
 Serving 1.7 million pizzas everyday to more than
seven million customers.
 Employing more than 300,000people.


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Welcome to Pizza Hut Pakistan
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Pizza Hut initiated its operations in Pakistan with its
first restaurant way back in 1993 in Karachi.
Chain consists of over 40 outlets spread all across
Pakistan.
The largest restaurant chain in Pakistan.
It has its 40 outlets in 9 different cities of Pakistan that
include:
•Rawalpindi
•Islamabad

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Peshawar
Lahore
Faisalabad
Sialkot
Multan
Hyderabad
Karachi
As of 2009, Pizza sales in Pakistan generate over $2
billion annually, which is the second largest pizza sales
revenue in the world after the US.
• Pakistan has the world's largest Pizza Hut store in
Karachi with a seating capacity of over 5,000 people.

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Vision.
“To improve the well being of our customers, community and
people connected to our enterprise. Run-GreatRestaurants.’’
To achieve their vision they are focused on three world
wide strategies:

1. Be the best employer for people in each
community around the world.
2. Deliver optional excellence to customers in
each restaurant.
3. Achieve enduring profitable growth by
expanding the brand and leveraging the
strengths of Pizza Hut’s system through
innovation and technology.

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Pizza Hut’s HR Vision

“HR team, fully committed with Pizza Hut members,
strives to foster a work environment that attract and
inspires excellence in people, so that together we realize
the Plan to Win”.


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Pizza Hut Objectives
• Pizza Hut objectives is to attain QSCV at all of its
restaurants, where:
• · Q is Quality
• · S is Service
• · C is Cleanliness
• · V is Value


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Human Resource management
Country HR Manager says:
“HR means keeping a balance between
employer & employees because it is our
strong belief that it is people, not machines,
which make the difference.”

Objective
“To satisfy the internal customers because
they are the window to the external
customers.”

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Designing of Job
Mission Statement:
"We take pride in making a perfect pizza and
providing courteous and helpful service on
time all the time. Every customer says, "I'll
be back!"

Country HR Manger says:
“We actually blended the business needs of
our local business with the international
guidelines, then create the job and
accountability profile and define the scope of
the work and responsibilities.”

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Job profile of a Restaurant
Manager
• A Restaurant Manager is responsible for
running an independent restaurant.
• Training, motivating and leading a team of
50-100 employees.
• Independently managing the restaurant's
operations in terms of sales, profitability and
community relations.
• Delivering 100% Total Customer
Satisfaction to every customer.

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HR Department Activities
• Recruitment

and Derecruitment

• Training and Development
• Performance Appraisal
• Employee Benefits
• Incentives
• Medical Cover
• Welfare amenities
• Health & Safety

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Recruitment & Selection
Mission Statement:
“Some people wait for the future. Some push
it along. We don't have waiters.”

Core Values
At Pizza Hut, people are the most important
factor. They seek only those people, who
can think, feel, express themselves, learn,
teach and hence grow. Their growth is the
company’s growth.

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Core Values
Fresh People:
Pizza Hut provides thorough In-house training to fresh
people relatively inexperience people. Hiring people
having no previous work experience also helps them
greatly in adjusting to the distinct culture of the
organization.

Justified Selection:
The selection is entirely based on merit which
conforms the selection criteria without any bias
towards gender, religion, race, color, nationality, age.

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Role of HR Department
• Develop guidelines and procedures.
• Provide recruiting services and staff support.
• Council Restaurant Manager to make final
employments decision.
• Provide basic training to newly hired
employees.


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Types of Recruitment
• Internal

• External

Sources in Internal
Recruitment
• Job

Posting


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Sources in External Recruitment
• Advertisements

in Print Media

• Advertisements on website
• Internship Programs

Pizza Hut advertisement depending on the
vacancies as the need arises.


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Selection Procedure
1. Screening of Applicants
After building a pool of candidate’s applications, short
listing of selective applications is done by the HR
manager.
2. Written Test
This is the written test. The reason for the written test
is to assess that whether the recruits are able enough
to fulfill the general practical requirements of the job.
The HRM department designs and conducts the tests
as and when hiring needs arises.
3. Initial Interview
The ONE to ONE interviews conducted by
Restaurant Manager.

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4. O-J-E
Short listed candidates undergo 3 to 10 day OJE at a
Pizza Hut restaurant which provides the candidate
with an opportunity to look at as a potential
employer. It also gives Pizza Hut a chance to
observe and assess the candidate's performance.
5. Reference Checks
They look at the references that have been
provided by the candidate, they check if the
references are valid or not.
6. Final Interview
Candidates who have passed their OJE are
called for the final interview. Interview is done
by a panel of three or four interviewers.

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Orientation
• Provides new employees with basic background
information they need to perform their job
satisfactorily.
• New employees get a handbook:- Working hours
- Performance reviews
- Vacations
- Employee benefits
- Personnel policies
- Safety measures and regulations
The orientation is performed by the HRD Manager
and the employees are introduced to their
supervisors.

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Training & Development
According to training coordinator
Awais Skeikh:
“Training is an important part for our
employee’s work experience and starts as soon
as he joins the Pizza Hut team. Crew Trainers,
Managers and other employees will work
shoulder to shoulder with him. Training
programs are ongoing with new things to learn
all the time.”


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Types of Training
1) On the Job Training:
Every day, around the world, restaurant members
receive on-the-job training and coaching in skills and
procedures essential to their work.

2) Classroom Training:
Classroom courses, developed and led by training
experts, prepare outstanding restaurant employees
for advancement.


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Types of Training
3) Computer-Based Training:
New computer-based training system is
bringing interactive learning experiences to
crew members and managers right in the
restaurants.


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Levels of Training
1) Crew Member’s Training:
At Pizza Hut, training never stops. Crew members
are trained extensively on all food safety and food
handling processes. Trainees work while they learn
the operational skills necessary for running each of
the 23 positions in restaurant - from front counter to
the grill area.


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Levels of Training
2) Manager’s Training:
Pizza Hut is dedicated to professional training and
development. The average Pizza Hut restaurant
manager spends more than 2,000 hours over four
years in training of one kind or another. This is about
the same amount of time that a typical four-year
college student spends in the classroom.


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Conclusion about the Training
"Part of training focus ensures that every
one of our employees, from regional
managers to crew members, understands
Q, S, C and V - quality, service,
cleanliness and value.
Mr. Awais Shiekh says "That's what brings
people into our restaurants day-in and dayout. Our training also shows them how to
serve one pizza to one person at a time,
hundreds of times a day."

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Specific Training Courses
1. Floor Management Course (FMC):
The FMC is geared towards improving the trainee's ability to deliver
Q,S,C & V as a Floor Manager.

2. Management Development Program (MDP):
The MDP series is designed to help you become the most effective c
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manager that you can be.

3. Operations Consultant Course (OCC)
4. Training Consultant Course (TCC)


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Performance Appraisal
"None of us is as good as all of us."

According to Country HR
Manager:
“To embed our values, we give our people
360-degree evaluation, with inputs from
superiors, peers, and subordinates. These
are the roughest evaluation we get,
because people hear things about
themselves they’ve never heard before.”

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Performance Appraisal Process
Performance Review is a formal process in
Pizza Hut twice a year where each employee
is evaluated in order to determine how he or
she is performing. The appraisal process in
Pizza Hut includes PA forms for every
particular job which involves:
-International Pizza Hut standards.
- Assessing the employees’ actual
performance relative to these standards.
- Providing feedback to the employees.

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Levels of
Performance Appraisal
Out Standing
Excellent
Good
Need Improvement
After giving the total grade to the employee the
appraiser writes down about the strength and the
areas needing improvement of the employee.

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Incentives
“The best results come when we combine
profit sharing with greater worker
involvement and give employees information
about the Company’s financial performance.”

Types of Incentives
1. Cash Based
2. Non Cash Based

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Cash Based Incentives
• Attendance

Allowance

• Annual Allowance
• Medical Allowance
• Leave Fair Assistance [LFA]:
Once in two year managerial level employees
are allowed to choose any area for tourism in
Pakistan with family for 10 days.


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Non Cash Base Incentives
• Crew of the Year
• Crew of the Month
• Branch of the Year
• Employee of the Month
• Merchandise


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Benefits
“We know we can’t afford everything for every
one but neither do we deny to any one.”
When employee joins the Pizza Hut management
team, he will receive the following:
Profit Sharing:
Profit will be share as according to company policy.
Vacation:
Increased vacation time per years of service.


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Leaves:
Pizza Hut employees can also apply and
obtain a leave of up to two months for
personal reasons or to study for examinations
or school projects.
Company Car:
Restaurant managers are eligible for a
company vehicle after only three years of
service.
Educational Assistance:
Pizza hut offers an educational assistance
program for its employees.

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Social Activities:
Enjoy a variety of activities with his team which
could include an annual Convention, summer
picnic or outing, Eid Party etc.
Uniform:
All the employees accept those working in the
offices are given uniforms.
Flexible hours:
The restaurant opens for business 18 hours a
day and that means work at Pizza Hut can fit
into anyone's schedule. Schoolwork, family or
personal activities can be scheduled around
working hours.

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Workplace Safety
“Pizza Hut restaurants have workplace safety
programs in place to ensure that Pizza Hut high
safety standards and procedures are clearly
communicated and reinforced day-to-day. As an
important member of Pizza Hut team, Employee
will be taught to identify and report any potential
hazards and encouraged to suggest ways that
health and safety can be continually improved.”


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Separation/Firing:
Reasons:
1)Disciplinary:
 Violation
 Stealing
 Confrontation
2) Performance:
 Poor Performance


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Country HR Manager
Awais Sheikh
Message
“People are hired on the basis of their
personality traits (i.e. education, family,
social class, style, experience, etc), but
are fired due to character traits (i.e.
dishonest, cheater, untruthful, corrupt,
etc.)”


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Recommendations
• As we know there is increasing trend in fast food
industry and people are more conscious about their
health. Similarly Pizza Hut should open as many
branches in other cities of Pakistan like Gujranwala,
Sargodha, and other cities like these. So it should
develop the market for its products, only in this way it
can maintain its competitive advantage over its
competitors like domino’s.
• Pizza Hut in Pakistan has not using computer
technology to a large extent. They should focus on this
factor to improve there overall performance.

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• Similarly Pizza Hut should go for its own
cattle/vegetable farm in Pakistan so it will reduce its
input cost and it will lead to lower market price of its
products as compared to its competitors. By this type of
diversification Pizza Hut can also save its time And can
improve the quality because if the inputs are fresh, they
can have more quality products.
• They even not make their website. They should make
their website so that people should be keeping in touch
with new changes occurring in the Pizza Hut.
• There is need to change in the culture of the Pizza Hut
its culture is bureaucratic it should be clan culture
because it realizes the creativity of employee to
respond to changing taste.

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Conclusion:
• Pizza Hut is doing a good job internationally and
nationally. They introduce new taste in pizzas according
to their locations i.e. where they are situated. They
are basically concern with successful production and
service and profit. They want to take advantage of their
customer. In Pakistan the performance of Pizza Hut
is very well. In Lahore, three outlets of Pizza Hut
are working. They maintain their international standard
by giving good service to their customers. Over all
performance of Pizza Hut is superior.


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Thank
You

Pizza hut hrm

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