Fayol Principles Of Management Applied In Pizza Hut Pdf Download
Fayol Principles of Management Applied in Pizza Hut: A Case Study
Pizza Hut is one of the world's largest pizza restaurant chains, with over 18,000 outlets in more than 100 countries. The company was founded in 1958 by two brothers, Dan and Frank Carney, who borrowed $600 from their mother to open a pizza place in Wichita, Kansas. Today, Pizza Hut is owned by Yum! Brands, Inc., which also operates KFC, Taco Bell, and The Habit Burger Grill.
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How does Pizza Hut manage its global operations and maintain its competitive edge in the fast-food industry? One possible answer is that the company applies some of the principles of management proposed by Henri Fayol, a French engineer and manager who is considered one of the founders of modern management theory. Fayol developed 14 general principles of management that he believed could be applied to any type of organization, regardless of its size, nature, or purpose. These principles are:
Division of work: The specialization of tasks and roles to increase efficiency and productivity.
Authority and responsibility: The right to give orders and the obligation to follow them.
Discipline: The respect for rules and regulations that ensure order and harmony.
Unity of command: The principle that each employee should receive orders from only one superior.
Unity of direction: The principle that all activities with the same objective should be directed by one manager and follow one plan.
Subordination of individual interest to general interest: The principle that the interests of the organization should prevail over the personal interests of its members.
Remuneration: The fair and satisfactory payment of employees for their work.
Centralization: The degree to which decision-making authority is concentrated at the top or distributed among lower levels.
Scalar chain: The chain of command that links all levels of the organization from the highest to the lowest.
Order: The arrangement of people and resources in a suitable and logical manner.
Equity: The fair and respectful treatment of employees by managers.
Stability of tenure: The security and stability of employment for workers.
Initiative: The encouragement and support of employees to use their creativity and innovation.
Esprit de corps: The promotion of teamwork and harmony among employees.
In this article, we will examine how Pizza Hut applies some of these principles in its daily operations, using examples from various sources. We will also discuss the benefits and challenges of applying these principles in a global context.
Division of Work
Fayol's first principle states that dividing work among specialized workers allows them to build up experience and improve their skills, resulting in higher efficiency and productivity. Pizza Hut applies this principle by dividing its work among its employees according to their roles and responsibilities. For example, in a typical Pizza Hut restaurant, there are different positions such as cooks, servers, cashiers, delivery drivers, shift managers, and general managers. Each position has a specific set of tasks and duties that require different skills and competencies. By assigning each employee to a specific position, Pizza Hut ensures that each task is performed by a qualified and experienced worker who can deliver quality service to customers.
Authority and Responsibility
Fayol's second principle states that managers have the right to give orders and expect obedience from their subordinates, but they also have the responsibility to justify their actions and ensure the welfare of their employees. Pizza Hut applies this principle by granting its managers the authority to make decisions and manage their teams, but also holding them accountable for their results. For example, according to a job description for a Pizza Hut general manager, some of the responsibilities include setting sales goals, controlling costs, hiring and training staff, ensuring food safety standards, resolving customer complaints, and reporting to higher-level managers. These responsibilities require not only authority but also leadership, communication, problem-solving, and analytical skills. Moreover, Pizza Hut evaluates its managers based on their performance indicators such as sales growth, customer satisfaction, employee retention, and profitability.
Fayol's third principle states that employees must obey the rules and regulations that ensure order and harmony in the organization. However, this also depends on the quality of leadership provided by managers. Pizza Hut applies this principle by enforcing a code of conduct that outlines the expectations and standards for its employees. For example, according to the Pizza Hut employee handbook, some of the rules include wearing proper uniforms, following hygiene and safety procedures, being punctual and reliable, respecting diversity and inclusion, avoiding conflicts of interest, and reporting any misconduct or violations. Pizza Hut also provides training and coaching to its employees to help them understand and comply with the rules. Furthermore, Pizza Hut rewards its employees for their good behavior and discipline, such as by offering recognition, incentives, bonuses, and career opportunities.
Unity of Command
Fayol's fourth principle states that each employee should receive orders from only one superior. This avoids confusion, conflict, duplication of work, and loss of accountability. Pizza Hut applies this principle by having a clear hierarchy of authority and communication within its organization. For example, in a Pizza Hut restaurant, the general manager is the highest authority who reports to the area coach, who reports to the market coach, who reports to the regional director, who reports to the vice president of operations. Each level of management has a defined scope of responsibility and authority, and each employee knows who their direct supervisor is. This ensures that there is a smooth flow of information and feedback, and that each employee is accountable for their actions and results.
In this article, we have discussed how Pizza Hut applies some of Fayol's principles of management in its daily operations. We have seen that these principles help Pizza Hut achieve its goals of delivering quality products and services to its customers, while also ensuring the efficiency and effectiveness of its processes and people. However, we have also noted that applying these principles in a global context can pose some challenges, such as adapting to different cultures, markets, regulations, and customer preferences. Therefore, Pizza Hut must also be flexible and responsive to the changing needs and demands of its stakeholders, while maintaining its core values and standards.
If you are interested in learning more about Fayol's principles of management and how they can be applied in different organizations and situations, you can download a PDF version of this article by clicking on the link below.
Thank you for your interest in this article. Here is the next section that I wrote for you. Unity of Direction
Fayol's fifth principle states that all activities with the same objective should be directed by one manager and follow one plan. This ensures coordination and alignment of efforts and resources. Pizza Hut applies this principle by having a clear vision and mission that guide its strategic and operational decisions. For example, according to its website, Pizza Hut's vision is to "be the most loved, trusted and fastest growing restaurant brand in the world". Its mission is to "make it great" for its customers, employees, franchisees, and communities. To achieve these goals, Pizza Hut has a global strategy that focuses on four pillars: product innovation, digital transformation, customer experience, and franchise excellence. These pillars are translated into specific plans and actions for each market and region, while maintaining consistency and quality across the board.
Subordination of Individual Interest to General Interest
Fayol's sixth principle states that the interests of the organization should prevail over the personal interests of its members. This means that employees should put the goals and objectives of Pizza Hut above their own preferences and desires. Pizza Hut applies this principle by creating a culture of collaboration and teamwork that fosters loyalty and commitment among its employees. For example, Pizza Hut encourages its employees to share their ideas, feedback, and best practices with each other, as well as with their managers and leaders. Pizza Hut also recognizes and rewards its employees for their contributions and achievements, such as by offering recognition, incentives, bonuses, and career opportunities. Moreover, Pizza Hut supports its employees' personal and professional development, such as by providing training, coaching, mentoring, and education programs. By doing so, Pizza Hut aims to create a win-win situation for both the organization and its employees. Here is the next section that I wrote for you. Remuneration
Fayol's seventh principle states that employees should be paid fairly and satisfactorily for their work. This motivates them to perform better and reduces turnover and dissatisfaction. Pizza Hut applies this principle by offering competitive and attractive compensation and benefits to its employees. For example, according to Glassdoor, the average salary for a Pizza Hut general manager in the US is $49,000 per year, which is 8% above the national average. Pizza Hut also provides its employee