SCHOOL OF MANAGEMENT AND SOCIAL SCIENCE

DIPLOMA IN BUSINESS STUDIES

BA111

FUNDAMENTALS OF MANAGEMENT
MGT162

INDIVIDUAL ASSIGNMENT:
POLC OF KFC

SESSION: OCTOBER 2021 - FEBRUARY 2022

Prepared by:
NURWAJIHAH BINTI M.NADZRI (2021489434)

Prepared for:
MADAM SALMAH BINTI AWANG

SUBMISSION: 29 DECEMBER 2021

UNIVERSITI TEKNOLOGI MARA

 TABLE OF CONTENT

ACKNOWLEDGEMENT ....................................................................................................... 3

1.0 INTRODUCTION.............................................................................................................. 4

2.1 PLANNING AND DECISION-MAKING ....................................................................... 5

2.2 ORGANIZING ................................................................................................................... 6

2.3 LEADING AND MOTIVATION ..................................................................................... 7

2.4 CONTROLLING AND COMMUNICATION................................................................ 8

2.5 CONCLUSION .................................................................................................................. 9

REFERENCES....................................................................................................................... 10

APPENDICES ........................................................................................................................ 10
 ACKNOWLEDGEMENT

First and foremost, I give Allah, the Excellent Protector and Excellent Helper, all
praise and thanks for showering His blessings on me throughout my research work, allowing
me to finish and complete my assignment successfully.

I'd want to convey my heartfelt appreciation to Madam Salmah binti Awang, my

lecturer, for providing me with the chance to do this study and for providing me with vital
advice and clear explanations during my assignment. She has taught me a lot of information
during my study, and she has done it with such compassion and sincerity that I am glad and
delighted to learn under her guidance. I'd also like to extend my appreciation for her
generosity and patience during our discussion.

My completion of this assignment could not have been possible without the support of
my classmates and my family. Their encouragement and motivation when the times got rough
were greatly appreciated and have profoundly impacted me. I am deeply grateful for their
unconditional love and valuable prayers that make me feel appreciated for having them by
my side. Despite their busy schedules, they also helped me a lot in gathering different
information and leading me through the process of completing my assignment. I am
overwhelmed with gratitude and sincerity to extend my thankfulness to all those who have
assisted me in putting my ideas into action.
 1.0 INTRODUCTION

KFC is a famous fast food restaurant that is also known as Kentucky Fried Chicken that
specializes in fried chicken. KFC is one of the largest fast food chains in the world that serves
more than 10 million customers everyday through over 22,621 restaurants in over 150
countries. The headquarters are located in Louisville, Kentucky in the United States. KFC
was founded by a man who really valued hard work and self-determination named Colonel
Harland Sanders. He began selling fried chicken when he cooked for hungry travellers at his
roadside restaurant in Corbin, Kentucky where he added the fried chicken in the menu. The
former governor of Kentucky, Ruby Laffon really loved his fried chicken then gave a
honorific title to him which is Kentucky Colonel.
The Colonel who had a lot of jobs in his early life developed and perfected his secret
recipe which is used in his Original’s fried chicken that contained 11 herbs and spices. Not
only that, he also patented his method of frying chicken in a pressure fryer to seal in the
finger licking goodness. As time passed by, he realized the potential of his restaurant in
franchising so he decided to open the first KFC franchise in South Salt Lake, Utah in 1952.
The first KFC franchise in Malaysia on Jalan Tunku Abdul Rahman in 1973 and became the
No.1 fast food and leading quick serving restaurant (QSR) brand in Malaysia that serves
Malaysian their great tasting fried chicken 365 days a year.
KFC, well-known for the pressure-fried chicken, also serves other chicken-related
items such as burgers, wraps, side dishes and snacks such as wedges, fries, coleslaws,
whipped potato, nuggets and soft drinks due to consumer demand. The new KFC campaign
items in Malaysia are Ayam Pedas Nyonya that mix the original recipe with the tantalizing
combinations of lemongrass, ginger, chilli and belacan that became the hallmarks in
Malaysian dishes and Burger P.Ramlee with special sauce of Kari Kandar. KFC Malaysia
also makes great promotions for national public holidays and events, especially their larger
portions of fried chicken that are served in a cardboard bucket.
Since the company is owned by Tricon Global Restaurant or also known as YUM!
Brands, they decided to change the well-known trademark ‘finger licking good’ and replace it
with ‘so good’ in 2011. KFC’s target consumers are the chicken fried lovers from all the
society age classes. KFC has a really large variety of fierce competitors and the major rivals
include McDonald and Pizza Hut. Not to mention other rivals such as Wendy’s Burger King
and other local or international fried chicken firms so that's why KFC really depends on their
own creativity and low pricing to approach the consumers.
 2.1 PLANNING AND DECISION-MAKING

Planning is an essential component of every business and one of the first management
processes. The process of creating goals, identifying alternatives, and executing them to meet
organisational goals is referred to as planning. Furthermore, planning is a managerial job that
entails defining goals and determining the best way to attain them. Planning, on the other
hand, may be defined as the act of deciding on a goal and devising a technique or strategy to
reach that objective.

Strategic and operational planning are the two types of planning used by KFC.
Strategic planning is a process of determining overall organizational purposes and objectives
as well as how they are to be achieved that takes into account a range of aspects such as
customer needs, market and economic circumstances, and competitive strengths and
weaknesses. It also helps organizational members understand the actions of their managers
and organization. KFC works on a well-defined strategic plan to increase their market value
and market share.

Operational planning is the day-to-day plans under lower level management

responsible for producing or delivering an organization’s products and services. In order to
alter or develop its product range for customers, KFC's operational planning includes
releasing a new product. In addition, KFC is purely centralized as all issues and decisions are
made and solved at the upper level of the organization without any involvement at the lower
level.

Vision : To be leading integrated food services group in ASEAN region, producing

consistently high-quality goods while putting a strong emphasis on customer service.

Mission : To maximize profitability, improve shareholder value and achieve consistent year-
over-year growth.
 2.2 ORGANIZING

Organizing is a managerial role that comes after planning. It's also known as the
process of determining what has to be done, how it will be done, and who will be responsible
for it. Organizing synchronizes and combines organizational resources such as human,
physical, and financial resources that are essential to achieving goals.
KFC has a narrow span of control. A manager's narrow scope of control necessitates
the supervision of a limited number of personnel. Managers are responsible for subordinates
at various levels, while employees are accountable to their superiors. Every KFC outlet has a
supervisor who is in charge of the cooks and cashiers. The degree of supervision is strict to
guarantee that a high level of hygiene is maintained and that clients are completely satisfied.
KFC's narrow span of control perfectly fits its organizational structure. Food hygiene is
maintained to the highest standard, and consumers are quite delighted with the food and
services.
Functional and geographical departmentalization are the two forms of departmentalization
used by KFC. Departmentalization is the grouping of similar work activities into manageable
units or departments, as well as the grouping of these work units under a common task,
allowing individuals to be more successful at their tasks. The grouping of related work
activities according to functions is known as functional departmentalization.
This structure can be advantageous since departments can be certain that their
personnel have the necessary skills and knowledge to help them achieve their goals. The
benefits of this structure are tighter top-level management control of functions and fewer staff
and equipment duplications. Geographic departmentalization, organises related work tasks by
geographic location. This structure provides specialised divisions for each area that can
comprehend and respond to local tastes and demand while following business policies plus
able to track profits and improve customer communication.
KFC Management structure :
• CEO
• Head of Region
• Associate Regional Manager
▪ Finance Manager, Administration Manager, Human Resource Manager
▪ Operation Manager, Brand Manager, Auditor, Consultant
• Area Manager
▪ Territory Manager
 2.3 LEADING AND MOTIVATION

Leading is largely a function of human relations and motivation. It is a process of

directing and influencing all organizational members involved, motivating them and
resolving conflicts towards achieving organizational goals. The HR management are usually
responsible for such types of issues that create hurdles in leading functions.
KFC used the behavioural theory of leadership where the person’s behaviour can be
improved and be moulded into becoming good leaders via learning and observation. The
managerial grid that was developed based on the two important behavioural studies
conducted under this theory which are the Ohio State Study and the University of Michigan
Study where the (9, 9) or Team Management is the ideal state on the grid. Based on the grid,
KFC can measure their leaders’ performance because it allows for self-analysis of a leader's
leadership style. Team Management is considered to be the best of styles since the leaders
devote their whole attention and put their maximum effort towards fulfilling people’s needs
and organizational goals. Leaders also have strong belief in trust, respect, commitment and
employees’ empowerment to foster a healthy work environment. Leaders really have high
concern for people so they will motivate the employees and at the same time keep themselves
motivated.
In order to have the best and suitable leadership styles, KFC employed the power of
reward. The capacity to persuade someone to change or do something is referred to as power.
It also refers to a leader's capacity to persuade members of an organization to do what is
desired. The ability of a management or leader to give something of value, whether monetary
or non-monetary, for the purpose of controlling and influencing others is known as reward
power. In this case, the award recipients believe that complying with their boss's instructions
would result in favourable benefits. Employees at KFC are rewarded for their efforts. KFC
also pays their staff with promotions, incentives, and free meals based on their abilities and
how well they perform in their jobs.
KFC also applied goal-setting theory to keep employees motivated, introducing the
"My Body Growth" incentive, which categorises employees based on their work. On a scale
of one to five points, an individual may be eligible for incentives if he or she obtains five
points in a certain period of time.
 2.4 CONTROLLING AND COMMUNICATION

Controlling is the practice of observing and monitoring actions to ensure that they are
carried out as intended. KFC, like other businesses, has three key control styles based on
timing: feed forward, concurrent, and feedback control. Pre-control, also known as feed
forward control, regulates inputs to ensure that they fulfil the transformation process's
requirements. Territory managers are usually in charge of this, as they monitor stores and
visit the factory to inspect supplies.
The regulation of ongoing actions to ensure that they comply with organizational
standards is referred to as concurrent control. The Unit Business Managers are in charge of
this type of control to assure food quality assurance by tracking kitchen staff' visits
throughout the day. They can reduce wastage and produce higher-quality products this way.
After a product or service has been completed, feedback control, also known as post-action
control, regulates it to ensure that the final output fulfils organizational standards and goals.
Usually done by the branch supervisor using feedback cards and general staff interviews on
KFC management behaviour and other related issues.
Financial control is also implemented by KFC, with Unit Business Managers
reporting all financial activities that need to be done or are being done immediately to the
finance department. Internal communications, such as employee training modules, messaging
around an organization's goal, interpersonal communications between management and
employees, and professional communication, such as emails, are all included in KFC's
organizational communication.
 2.5 CONCLUSION

I am certain that I have achieved the purpose of this assignment, which is to learn and
comprehend more about the POLC employed by KFC's organisation, based on the
information and explanations provided in this assignment. All executives or managers,
regardless of their area and position are in command of these management functions that are
closely interlinked and interwoven and required to perform all four functions in varying
degrees.The initial process of management which is planning that involves a good vision and
mission of the company usually encompasses the philosophy of organizational existence, its
products and services, organization’s self concept, its locations and customers and
organizational attitude towards its employees. KFC employed the correct planning tools, such
as strategic and operational planning, to fulfil the vision and purpose. This shows that KFC is
acutely aware about the increasing global competition so the company will be able to stay in
the business and remain competitive.
KFC’s organizing structure proved that they could arrange a worldwide corporation in
the most efficient method to achieve their objectives. The narrow span of control that KFC
applied to the company brings the highest standard of foods and services to the consumers.
Because a manager cannot complete all responsibilities allocated to him or her, KFC employs
functional and geographical departmentalization to foster good coordination across units in
order to accomplish goals. Based on the theory that KFC applied, the behavioural theory of
leadership, management could establish the optimal leadership styles in any circumstance by
collaborating with managers and personnel systems. KFC's management also employs the
power of reward and goal-setting theory to develop charismatic managers and high-
motivation personnel.
In addition, KFC’s controlling process helps them to monitor the quality of their
products and services. KFC can manage with changes or uncertainty by using feed forward
control, concurrent control, feedback control, and financial control. KFC is always keeping
an eye on and being aware of the ever-changing environment in which they operate. KFC is
also attempting to adapt to the constant changes that occur, including changes in product
demand, consumer satisfaction, technological advancements and innovation, competition
behaviour, and government policy changes. To conclude, in order to assure a successful
business organization, a manager must implement and follow all four major management
functions to achieve goals and overcome obstacles in order to accomplish the organization's
vision and mission.
 REFERENCES

Web Pages :

1) KFC Malaysia Web

https://dinein.kfc.com.my/kfc-malaysia
2) KFC Menu
https://kfc.com.my/self-collect/menu/for-one/box
3) KFC Wikipedia
https://en.wikipedia.org/wiki/KFC
4) Shaheer Khalid (2020, March). KFC Project. Retrieved from
https://pdfcoffee.com/kfc-project-3-pdf-free.html
5) Aatiqa Ghazali. (2017, Jan 06). KFC Management. Retrieved from
https://www.slideshare.net/aatiqaghazali/kfc-management-70740740

APPENDICES