Pizza Hut - Right Direction of the Human Resources Management Strategy - Case Study Example

HRM Strategy Research Paper: PIZZA HUT Name: Institution: Table of Contents Introduction 3 Pizza Hut HRM Strategy Critical Analysis 3 Recruitment and Selection 4 Training and Development 5 Performance Appraisal 6 Reward Methodology 6 Dismissal 7 Recommendations 7 Conclusion 8 References 9 Introduction Having been in existence for the past close to six decades now, Pizza Hut is an American Restaurant Chain which also doubles up as an international franchise (Pizza Hut, 2017). While it deals in other meals such as sandwiches and beverages, Pizza Hut is mainly known for its variety of Pizzas which is its main product. There are at least 18,000 Pizza Hut outlets around the globe with at least 6,000 of them being in the US. This restaurant chain employs over 350,000 employees in its outlets globally. Pizza Hut’s vision mainly focuses on excellent service for customer satisfaction (Pizza Hut, 2017). Their HR vision, however, seems to focus more on employee development and motivation which is a fundamental precursor to its customer satisfaction (Pizza HUT, 2017). In its resolve to foster the HR Vision, Pizza Hut has adopted a Human Resource Management (HRM) Strategy that focuses on just that. While this has been instrumental in reducing the overall staff turnover in the restaurant chain, the strategy has not achieved much in attracting and retaining Gen Y staff. It is currently losing a lot of valuable talent to its competitors. This research paper, therefore, critically evaluates Pizza Hut’s HRM Strategy, system & process in light of contemporary HRM practice and associated ethical issues. Based on the analysis presented, recommendations are then proposed accordingly. Pizza Hut HRM Strategy Critical Analysis Pizza Hut’s HRM Strategy is discussed and critiqued under five main sub-sections i.e. Recruitment & Selection, Training & Development, Performance Appraisal, Reward Methodology, and Dismissal. Recruitment and Selection Pizza Hut’s recruitment and selection process is founded on its HR Vision which is in turn founded on the organization’s overall Vision. According to Pizza Hut (2017), Pizza Hut’s Vision is “To improve the well-being of our customers, community, and people connected to our enterprise.” It’s HR Vision, however, is “To foster a work environment which attracts and inspires excellence in people so that together we realize the plan to win” (2017). In addition to the general traits that employers look for during recruitment, Pizza Hut also recruits people who are creative, knowledgeable, excellent learners and teachers, and clear communicators. They should also have the burning desire to grow and develop since it is through their individual growth that the organization also grows. Its selection process is purely based on merit followed by thorough in-house trainings for the new recruits especially for the in-experienced employees (Pizza Hut, 2017). Pizza Hut does both internal and external recruitment in which it posts jobs internally for internal recruitment and use print media, website, and internship programs for external recruitment (Pizza Hut, 2017). While these information sources are formal enough, they may not be quite appealing to the Gen Y candidates to whom the Social Media is more effective (Sawyer, Evans, & Bosua, 2014; Lefter, Marincas & Puia, 2007). Pizza Hut HR’s selection process entails six main steps i.e. Shortlisting, Written Test, First Oral Interview, Practical On-Job Trial, Referee Confirmations, and Final Oral Interview (Pizza Hut, 2017). During shortlisting, the HR Manager selects from a pool of applicants those candidates that meet the specified qualifications as advertised. The successful candidates at this stage are provided with a written test to assess their general writing and thinking skills. They are then invited for the initial oral interview with the Restaurant Manager who assesses their ability to communicate effectively. The fourth step involves a hands-on experience by the applicant in a Pizza Hut restaurant so as for the organization to assess the candidate’s capability. The validation of referees is then done for each applicant and call-backs done. The selection process ends with a final oral interview in which each applicant faces a panel of three or four interviewers after which the successful candidates are taken in. Orientation is then done for these successful to acquaint themselves with the work environment, rules, and regulations through a Pizza Hut Orientation handbook (Pizza Hut, 2017). While this six-step selection process is thorough and suitable for the successful selection of the right candidates, most Gen Y employees may consider it to be a too procedural and only appealing to Gen X staff who are believed to be too formal (Kumar, 2011; Massy & Harrison, 2014). Training and Development According to Pizza Hut (2017), training is an ongoing practice that happens almost all the time at Pizza Hut right from the time an employee becomes part of the organization’s team. From the Pizza Hut HR Vision, it is clear that the restaurant chain is dedicated towards improving its employees for better returns on customer service and satisfaction. For both new and existing employees, Pizza Hut HR team has traditionally employed two main types of trainings i.e. On-The-Job Training and Classroom Training. While the former involves the normal day-to-day skills and ideas an employee gains through their work, the latter involves formal trainings primarily done by experts invited by Pizza Hut. In a move that seemed to have been propelled by the organisation’s desire to attract and retain Gen Y employees, Pizza Hut has in the recent years embraced digital trainings by introducing Online Trainings where employees can access trainings through the computer (Pizza Hut, 2017). This is a contemporary HRM practice that Pizza Hut has adopted as a HRM revolutionary tactic. Performance Appraisal At Pizza Hut, every employee is evaluated in terms of their performance before recommendations are made on whether or not to appraise them (Pizza Hut, 2017). This is done typically bi-annually where the performance of an employee is evaluated on the basis of the set Pizza Hut global standards and feedback given. Important to note is the fact that this assessment is done for every task that contributes to the overall role of the employee. Thereafter, the appraiser compiles the total score for the employee and then makes the relevant recommendations based on the score. Ideally, Pizza Hut HRM has four levels of performance appraisal scores i.e. Outstanding, Excellent, Good, and Needs Improvement (Pizza Hut, 2017). This, however, may not necessarily be appealing to Gen Y employees as they would want a simple and straight-forward technique to quantify their performance (Anis, Lala-Popa, Cican, Tarta, 2012). Reward Methodology Like in many other organizations, Pizza Hut’s reward system is categorised into two classes i.e. Cash-based and Non-cash-based rewards. Some of the Cash-based rewards at Pizza Hut include allowances Attendance Allowance, Leave Allowance, and Medical Allowance. Non-Cash-based rewards are also quite common at Pizza Hut. They include sponsored vacations, special recognitions, and educational sponsorships. The chain’s managers, for instance, are entitled to a 10-day vacation to a destination of their choice within their country of operation once in every two years. The organisation also offers different trophies to outstanding employees such as Employee of the Month, Crew of the Year, etc (Pizza Hut, 2017). Pizza Hut’s incentive strategy may, therefore, be summed up as employing the traditional model. This model may not be much embraced by Gen Y employees who are much more attracted by cash-based incentives rather than non-cash-based incentives. While contemporary HRM incentive practices are moving away from cash-based incentives to non-cash-based, this is not necessarily what Gen Y employees are swayed by. After three years of serving as a restaurant manager at Pizza Hut, one is entitled to a company car to help them move around (Pizza Hut, 2017). This, perhaps, may be appealing to Gen Y as they are mostly moved by material things (Demyen & Lala, 2014; Cewińska, Striker & Wojtaszczyk, 2009). Dismissal While it is quite procedural to have an employee join Pizza Hut Team as its employee, dismissal can take a considerably shorter time. Owing to its Organisational Vision and HR Vision, the restaurant chain doesn’t tolerate consistently poor performance and indiscipline among its employees. According to Pizza Hut (2017), a Pizza Hut employee may be compelled to exit in the event they are found to have stolen, consistently contravened the organisation’s regulations, entered into a nasty confrontation, or performed poorly in more than two performance reviews. This harsh stance may not be tolerated by some Gen Y staff who may wish to have a more tolerant HRM practice (Kowal & Fortier, 2013). Recommendations In order to reach as many Gen Y staff as possible when advertising for its job vacancies, Pizza Hut should consider extending their advertising avenues to include the Social Media. They may advertise through Facebook, Twitter, Instagram, and LinkedIn. According to Sawyer, Evans, & Bosua (2014), the hospitality industry (and, any industry for that matter) should leverage on Social Media platforms not only to market its products, but also to reach out to valuable talent especially from Gen Y. While the selection process at Pizza Hut is aimed at ensuring it employs only the crème of the industry, the restaurant chain should shorten the steps further. Caldwell, Truong, Linh, & Tuan (2011) posit that traditionally bureaucratic HRM systems tend to discourage Gen Y staff from following all through. The new millenials tend to give up so easily despite their invaluable capabilities (Najafi, 2012; Pasher & Ronen, 2011). Pizza Hut should also aim at channelling most of their training materials online or via computer systems. This is one of the contemporary issues in HRM internationally and an important one for that matter in attracting and retaining Gen Y staff (Holt & Seki, 2012). Pizza Hut should also consider simplifying their performance appraisal strategy into a more understandable and quantifiable technique without compromising their set standards for the right candidate. According to Cewińska, Striker & Wojtaszczyk (2009), Gen Y staffs get discouraged by a complicated system particularly in assessing their performance. Finally, the restaurant chain should leverage more on cash-based incentives for its employees than on non-cash-based rewards. Gen Y staff are known to be more materialistic and mere recognitions may not be attractive to them (Hall, Pilbeam, & Corbridge, 2013). Pizza Hut should not, however, completely do away with the non-cash-based rewards as they help identify the most loyal employee for the organisation (Kaplan & Norton, 2011). Conclusion In conclusion, therefore, Pizza Hut is headed in the right direction in its HRM strategy, processes, and systems but for a few considerations in line with the contemporary issues in global Human Resource Management as discussed. While Gen Y staff may not necessarily be the ultimate solution, they are key in helping entrenching the contemporary issues in HRM in the organisation. References Anis C., Lala-Popa I., Cican S., Tarta (Blaga) E.A. (2012). Performance Measurement through Non-financial Indicators. Annals of Faculty of Economics, Vol. 1, No. 1, pp. 468-473. Caldwell C., Truong D., Linh P., Tuan A. (2011). Strategic Human Resource Management as Ethical Stewardship. Journal of Business Ethics, 98, pp. 171-182. Cewińska J., Striker M., Wojtaszczyk K. (2009). 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