Training And Development At Pizza Hut Management Essay

This report is based on Pizza Hut restaurant located in West London, and will focus on the front line employees, ‘front of house staff’ i.e. waiters and waitresses. This choice was particularly based on our employment experience since July 2007, and substantial internal information based on training, policies and so on. In order to determine, which extent the organisation follows good practice, learning and development i.e. strategic or business led.

Company background

Pizza Hut is owned by the American Group Yums Inc, which is one of the largest pizza restaurant companies in the world in terms of both the number of outlets and the percentage of market share that it holds. The company oversees more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide. (Digica 08)

Britain’s first Pizza Hut started taking orders 30 years ago in Islington, north London, and is now the leading pizza restaurant and delivery chain in the UK. The company has over 600 outlets, including over 370 dine-in restaurants and over 170 home delivery units, and it employs almost 20,000 people in the UK. (Digica 08)

Company Vision and Business strategy

According to the Pizza hut student information pack (06), the vision of the company is the following;

‘To be the most loved and trusted restaurant brand in the UK’

Whereas the passion is, ‘Great People, Great Pizza, Great Times’

Pizza Hut’s vision is the desired future state and aspiration, in which the head office of the firm is seeking to focus the attention and awareness on the whole aspect of the organisation (Johnson: 09:09). So that Pizza hut to have a respected and trusted restaurant brand, such as efficient operations, good quality food and provide great value for their external customers i.e. hospitality service. The company recognises that in order to achieve their long term vision, their employees should be well managed and developed, seeing that the service levels i.e. hospitality is delivered from front line staff, in which will have overall impact on the goals of the organisation and its ability to retain customers for continuous repeat business.

Pizza Hut have developed an operational strategy, which is directly linked to how component parts of the firm help deliver effectively the corporate level strategies in terms of resources, processes and people (Johnson: 09:09). For example, Pizza hut have implemented the following strategy step to achieve their overall goals:

”Build people capability in order to

Provide come back again service with

A passion for product that will

Drive sales and

Maximise profit”

Moreover, Pizza Hut recognizes that in order to reach their business aims, the following principles are important to the organization:

Customer Mania

Belief in People

Recognition

Coaching and Support

Accountability

Executional Excellence

Positive Energy

Teamwork

This increased emphasis on the restaurant employees is due to the fact the company had issues with a high number of staff turnover according to Management today (1998). In which the percentage was high as 160% and resulted in extremely low employee moral. So as a result, Pizza Hut became determined to transform their staffing policy in order to,

Reach sales of £600 million

Satisfy 2.6 million customers a week

Reduce staff turnover to 50% (Pizza hut student information 06)

Compared to other recognised competitive fast food restaurants such as McDonalds, who are using a similar strategy to Pizza Hut. For example providing career opportunities that allow their employees to develop their full potential i.e. comprehensive training programmes enables a ‘first job’ employee to progress through to a senior management position through merit-based promotions. Since traditionally, it has been difficult for fast food restaurants to retain staff for long term commitment (management article 1998). Hence Pizza Hut has followed McDonald’s strategy, in order to motivate staff and increase productivity so that profits are maximised.

(Times 100 case study)

Strategic and Business led

Barham (et al: 1988) states they are two terms;

”Strategic Human resource Development’ (HRD), in which ‘arises from the organisation’s vision about what its business should be; the abilities and potential of its people; and the options available within a given time period to help it grow and prosper”

”Business-Led HRD is a response to the changing business needs of the organisation, thereby improving its capability to achieve its business goals”

Therefore, it can be established that the vision and strategy of Pizza Hut, according to Barham et al is (1988), is strategic and business led. For example the organisations vision statement indicates how they wish to be perceived by the members of the public, plus the potential and abilities of its employees and giving them opportunities to develop.

Moreover the business is responding to the changing needs i.e. reducing staff turnover. Staff turnover is a business risk, Pizza Hut have identified the problem and minimized the ways in which it affects their restaurants through a structured staff management programme, in which this report will further investigate.

Taking into account, that staff turnover has a negative impact on businesses in competitive market which Pizza Hut operates in. Especially when team members are key to its success and continuity because the level of hospitality service will determine the rate of repeat business, employee may leave if they are demotivated, by not being treated right by line managers for not being trained to cope with rush hour periods and may lose self confidence and ability.

Consequently, retaining staff and treating them fairly has benefits for the business. Continuity and stability become part of Pizza Huts culture, and staff feel they belong to the organisation and take pride in their work. Skills and competencies are maintained in key business areas and productivity is often increased.

On the whole Pizza Hut approach to learning and development is in line with CIPD (09) survey which, states 50% of organisations are integrating a leaning and development culture across organisation, i.e. Beliefs in people, coaching and support have become important principles to Pizza Hut.

Training and development approaches

Barham (et al 1988) identified three different training and development approaches which are the following:

Fragmented approach – where training is not linked to organisation goals, and also be perceived as a luxury or a waste of time

Formalised approach -training is gradually being linked human resource needs

Focused approach – training is regarded as ‘competitive weapon’ and is linked to organisation strategy and goals.

In Pizza Hut, all new recruits joining the restaurant are sent on a initial induction programme, in which the company introduce new recruits to their job position, their team and the workplace and the organisational background i.e. business values. Secondly, it helps them establish positive relationships between the employees by building their commitment to its visions and goals i.e., ‘Being the most loved restaurant brand’ and providing great service for customers. (Harrison 09:163).

Furthermore, Pizza Hut emphasises the importance restaurant quality assurance system known as ‘CHAMPS’ which is based on customer expectations of cleanliness, hospitality, accuracy, maintenance, product quality and speed of service. For instance McDonalds (times100 09) success is also built on the highest standards of quality, service and cleanliness delivered to customers in each of its restaurants. Therefore well trained employees at Pizza Hut are the first steps to achieving these standards in every single restaurant.

In addition to, CHAMPS philosophy, the company will issue ‘Full service restaurant team member workbook’ to record on going progress and achievement during on going training at Pizza Hut by using specifically designed questions aimed at testing the following areas.

Menu knowledge -i.e. listing the toppings on BBQ deluxe pizza

Salad station – setting temperature, shelf life of certain goods when opened, how often certain items needs replenishing etc

System & cash handling – how to cater for customer needs i.e. changing toppings on the server till. Procedures for processing credit card and cash transactions especially since each members are responsible for cash shortages.

Health and Safety – handling hazardous substances, sharp objects, eliminating obstruction in the restaurant floor. Operating machinery i.e. oven in a safe manner and so on.

Other fast food restaurants, McDonalds are also using similar approach to Pizza Hut, all their new employees have an initial training period in which they are shown the basics and allowed to develop their skills to a level where they are competent in each area within the restaurant. Also similar to Pizza Hut strategy they will also attend classroom-based training sessions where they will complete workbooks for quality, service and cleanliness. (Times100)

Following the induction, mentoring is carried out. In Pizza Hut employees go through a three hour on the job training and are partnered with a recognised expert trainer. Mentoring has been defined by Garvey (2008:8) as a process in which a person carries out a councillor and a ‘friend’ to help support them in the workplace by familiarising with its customs and processes. The focus is centred on the individuals and raises business awareness like hospitality service, reducing speed etc.

Harrison: 09:170

In addition to being assigned to a mentor, on the job training helps new employees gain experience and retain more knowledge and experience regarding the companies key competence areas i.e. storing order details on the server till. Also the initial on the job training partner is flexible and more informal based to reduce pressure and help encourage confidence in the new employee’s ability to perform. For the reason being 56% of learning training development professionals consider on the job training of front line employees as an effective way to become accustomed to the workplace. (People management 06:10 article)

Lastly when the restaurant manager is satisfied with the progress, the employee will be assigned to an ongoing personal Host Training Workbook’ which is an educational material aimed to enhanced level of professional knowledge and broadening the restaurants awareness i.e. hospitality service in a fast moving environment. The training workbook introduces the following vital aspects of key competences:

Communication skills – importance of excellent communications skills for customer interaction as well with management and team members

Interacting with all types of customers, generating a personal conversation with customers at the door

Communications with other team members and management to ensure accurate wait times are quoted and ensure effective table turnover

Keeping up to date with team room communications, awareness of CHAMPS and ‘Customer Mania’

Knowledge –

informing customers of deals that are appropriate i.e. family deals and also being able to describe whole menu

be able to manage queues using the restaurant utilisation tools

using service recovery to customer issues at the door are effectively resolved or communicated to the deputy manage

Attitudes/Behaviour –

Building rapport with customers

Communicating effectively to establish customer needs

Demonstration passion when explaining meal deals

Prioritising effectively, getting most important task done first

Being proactive when problems on shifts are identified

(Harrison 09:163). (Internal Host training workbook 09)

These are the key attributes restaurant managers look for in their employees, according to CIPD(09) survey indicate 79% employers value interpersonal and 74% regard communications skills as most important for recruitment. For that reason on going host training programme allows employees to acquire and develop these skills further i.e. product knowledge, experience in dealing with difficult customer etc. Especially since this is vital for the hospitality environment.

In addition, all front line employees are not limited in scope since everyone gets the opportunity to progress further to management level, since 75% trainee managers start out as team members indicating a successful transition. Employees are selected by demonstrating great potential such as outstanding selling skills, commitment to CHAMPS plus recognition from other support managers, in order to be recommended for them to be selected management trainee programme. The management trainee program involves dedicated management training centers; this involves taking part in various workshops on subjects ranging from business management to leadership. (Pizza Hut 09 website)

From the information given we can see that Pizza Hut have adopted a focused approach to training and development, as training is an ongoing process in the organisation and is a requirement for the organisations survival in a competitive and ever changing environment. The focused approach is also linked to individual needs as well as the organisations. Pizza Huts approach to training and development is also competitive as it operates in a demanding market and needs to provide a service to its customers which equals or surpasses its competitor’s level of service. This could help the organisation to gain the upper-hand in its market, by providing outstanding customer service and high quality products.

Pizza Huts: organisation structure and culture

Structure and culture of Pizza Hut restaurant will have implications for Human resource development, since they are closely linked. HRD determines the effective ‘fits in’ provision in the organisation. According to Handy (1985) recognised four following, organisational structure – culture models:

The Pyramid – often viewed as a stereotypical large bureaucracy organisation, in which the overall decisions are managed from the top layer. Secondly, the layers consist of a defined hierarchy of functions where the communication is based upon rules and procedures i.e. banking and insurance, hospitals etc.

The net matrix – involves individuals and resources bought together simultaneously due to a project to certain standards and time constraints. Individuals are flexible skilled and expert in their field. However teams are disbanded when the project is completed. I.e. construction firms, large consultancies etc.

The galaxy – consists of independent, highly qualified who pursue their own professional and career interest within a supporting infrastructure of resources and administration. Plus there is limited control of mechanism and management hierarchy i.e. lawyers, GP practices etc.

The web and power – these are known to exist in small entrepreneurial organisations and family businesses. Activities are relied on trust, empathy and personal communication. A group of people or senior individuals exercise power and influence. These organisations are highly competitive and survival is difficult due to economic influence in which employee who handle pressure thrive.

Pizza Hut structure and culture fits in with Handy C (1985) ‘The web structure and power culture’. As pizza huts decisions are mainly undertaken at the top of the organization i.e. the head office instructs and gives feedback on the ‘CHAMPS’ standard in the restaurant which directly reflects the front line employees service level, indicating the head office balance of power according to restaurant general manager (RGM) . In addition development is also related to training objectives, which benefit the business and the individual employees, for instance areas for improvement where staff can reduce the time for delivering meals to tables, interact with customers more often so that business ‘CHAMP’ standards are satisfied and increase the customer repeat business in the process. Moreover the organisation moves very rapidly and change are dealt quickly i.e. new products in menu require employees to quickly adapt different techniques and learn promotions i.e. Christmas menus, learning to make smoothie drinks, using new coffee machine, preparing new desserts etc as soon as they are introduced. Secondly, the environment Pizza Hut operates is highly competitive i.e. Nandos, McDonalds etc as well being very sales based, because the head office sets weekly sales target, and if sales target are not met, this results reduction in working hours for front line employees (RGM 09). Therefore to ensure survival in the demanding market, employees rely on each other by working together to balance the workload i.e. communicating personally, building trust and delivering a service which will help increases customer satisfaction and reduce complaints, especially since the nature of the environment is fast driven. So that Pizza Hut Hayes can retain customers to increase their revenue in long term and ensure survival in difficult economic times.

Handy, C (1985)

Added Value and Horizontal integration

Added value is ”to add to the organisation’s capability to achieve its goals’ for example producing results that enable Pizza Hut Hayes to react well to challenges and threats i.e. competitors , it is also over and above the cost of the initial investment of Leaning and development (L&D) (Harrison, 2009:359)

In Pizza Hut Hayes, the ‘CHAMPS’ quality assurance systems is the driving tools towards the operations standards into the restaurant and help deliver the business ‘added value’. This is because the head office implemented policies are centered to meet customers’ requirements hence the long term vision ‘to be the most loved and trusted restaurant brand in the UK’, This is achieved by employees being trained to maintain salad bar products to quality standards, contributing to restaurant maintenance, consistently delivering and correct orders. Whereas, ‘Customer Mania’ and ‘How we win together’ (HWWT) philosophy coexist with the CHAMPS system. These are the attitude and behaviors used for delivering basic standards by employees, in order to deliver, a positive attitude in a fast moving fast food environment. For example by demonstrating commitment and taking accountability for understanding customer needs, collaborating with other colleagues to deliver the smooth running of the restaurant. Otherwise service will lack consistency and business will not reach their strategic goals (Appendices 1 -USE PPD PRINTS)

To measure the consistency and effectiveness Pizza Hayes employees’ competences and overall restaurant service, head office will use a mystery shopping programme that collects information against customer expectations using the CHAMPS criteria. In which the results of the survey are fed back to restaurant. So that RGM can use the feedback and compare Hayes against other West London Pizza Hut branches and take necessary actions to meet CHAMPS targets and ‘add value’ by achieving its goals set by the……….. (Management today article)

Horizontally integrated – Performance Management

In addition, value added is also linked to HR practices of Performance management of Pizza Hut Hayes, the business is horizontally integrated .For example CHAMPS, Customer Mania and HWWT criterions are integrated in all aspect of employee management and also identify what members of the restaurants are doing well and how they can improve to make sure the business succeeds. (Appendices) (Harrison 09:323)

Ways in which this is done by:

Induction – all employees are made aware of performance requirements established in the framework i.e. Speed, Hospitality, Product quality etc

Job related training – the RGM will agree on the support required for the individual to achieve performance levels i.e. improve interaction with customers so they feel welcomed, taking additional responsibilities i.e. handling telephone orders for multi tasking, improving selling skills by up selling desserts and so on.

Appraisal- feedback is given by the RGM on how employees perform to Pizza Hut ‘CHAMPS’ and ‘Customer Mania’ standards. Secondly both the RGM and employee agree on key targets to help improve development areas i.e. further opportunities for improvement.

Personal development – employees are consistently working towards the core competence framework, this helps employees expand performance i.e. speed of service, product quality, good hospitality service and creating good relations with customers and employee members. This helps the business and keeps employees committed and motivated.

Recognition and rewards- all employees are recognised for their efforts for achieving CHAMPS standards, this because with mystery shopping programme individual employees are scored against the CHAMPS criterion and moreover RGM will use feedback from other senior members, and reward employees by giving them certificates, vouchers etc.

Whereas customers have also traditionally rewarded employees by giving them tips for delivering excellent service in which the restaurant does not profit from. This is used as a personal motivation and incentive to follow the CHAMPS standards. This satisfies restaurant because customers will repeat business and employees will remain committed to the core competence framework.

(Harrison 09:162) (Appendices)

Overall, the policies adapted for performance management in the restaurant are identical to Rebecca Johnson (99) report where front line employees based in a hospitality industry i.e. hotels were given performance initiatives, such as being equipped take greater responsibilities similar to Customer Mania and CHAMPS competence and that feedback was measured through a tracking system, in order to determine whether employee’s performance is adding value to company and customers. This is because adding value helps Pizza Hut Hayes to be competitive and create loyal customer base and therefore performance management is carried out for individuals every six months. (RGM)

Vertical integration

Vertical integration involves integration L&D strategy with business strategy at corporate and business unit levels and aiding performance managements, L&D at operational and individual levels (Harrison 09:323). Since the focus of report is based on the operational level i.e. front line employees who are all provided with an expert workbook to record their progress and have individual targets. In which the head office, corporate level have adapted the policy of developing ‘people capability’. Moreover career planning for individual has been quite significant since 1998, 75% employees are internally promoted to management level. For example employees are supported and developed to their full potential by using programmes such as the ‘Expert training programme’, as well as the ‘Developing Champions’ training programme for all levels of restaurant. This also highlights the successful nature training and development being continuous in the operation site

Pizza Hut PDF (07)

Recommendations:

There are a number of recommendations which we have thought of that may benefit Pizza Hut. Firstly we considered most important was to offer internal promotions to staff, as this may help to reduce staff turnover on a whole. They should also have a more formal training program for their waiters to deal with the fast moving environment and they should also have team training exercises as it will help them perform better with a heavy workload. In addition they can improve further by asking customers what they want and what is important to them. We also recommend that there should be continuous development for the organisation’s strategic capabilities and the specific, personal capabilities of individuals and teams in order to add value.