Effectiveness and Theory: Pizza Hut's Organizational Analysis

This essay examines the effectiveness of Pizza Hut, focusing on the application of leadership theories within the organization. The student reflects on their experience working at Pizza Hut (Eagle Boys) and analyzes the company's current challenges, including declining sales and lack of innovation. The essay discusses the importance of effective leadership and proposes three leadership styles – strategic, transformational, and democratic – as potential solutions to improve the company's performance. It explores how these styles can address issues such as menu innovation, employee engagement, and overall organizational strategy. The analysis considers the perspectives of both employees and owners, emphasizing the need for a comprehensive approach to address the needs of different stakeholders and improve Pizza Hut's market position.

Running head: EFFECTIVENESS AND THEORY
EFFECTIVENESS AND THEORY
Name of the Student
Name of the University
Authors note

1EFFECTIVENESS AND THEORY
This essay will show the meaning of effectiveness and will also give a reflective point of
view on the organization that I have worked with, i.e. Eagle Boys, which is Pizza Hut. To
understand any organization it is important to understand its growth. This whole essay talks
about the importance of effectiveness in an organization. The effectiveness of any organization is
understood by its positive outcomes. Despite of the fundamental value of the ideas and advice
that present in the concept of the organization, it has to have a rational structure and a reasonable
flow (Lewis, 2015). ‘Effectiveness’ shows the credibility of that particular organization
(Razumovskaya, 2014).
Pizza Hut is one of the most famous restaurants all over the world now. It is an American
restaurant which was founded in 1958 and has its franchise all over the world. Working in a
renowned company like this I understood there are a lot of factors that has brought the company
in a position where it is now. To understand further, I need to state the present state of the
company, it is being said that the reign of pizza hut might come to an end by 2018 as it is going
through loss and the sale rate has gone down from 25 percent to 14.3 percent in just about 10
years. While working there that it is not being able to cope up or compete with the upcoming
pizza houses. The basic place where it lacks is innovation. There is no innovativeness in the
menu. I believe it is just going on because of its brand name. Even I am a pizza lover and I have
tastes pizza’s in various different places, the pizza that Pizza Hut sells lacks the cheesy effect and
the crunchy crust. However the company still hopes to see improvement in the brand, and
therefore for that they need to go through immediate effective leadership policies. They have
introduced various strategies in the past years which have proven to be effective, for example
globalizing their company. I believe from my perspective that the purpose of a pizza making
company should be satisfying people’s need and the menu is very important, it is very important

2EFFECTIVENESS AND THEORY
to experiment as per people’s taste. According to me it can happen according to the regional
flavors which might influence the flavor and the ingredient of the pizza, they can come up with
innovative ideas and more offers, and to make sure these plans are effective they have to start
with leadership policies.
In order to evaluate further lets discuss the leadership policies which can be applied and can
prove to be beneficial for that particular company. Generally these policies are used when it is
seen that the company is going through a huge loss or it needs a radical change in the
environment of the organization. Three leadership styles which I believe will be beneficial at the
current state of Pizza Hut are Strategic leadership style, transformational leadership style and
democratic leadership style. Each of them has unique path and if is clearly followed that it can
improve the current state of the company. The strategic leadership will help the company to get a
better strategy and will bridge the gap between the need of new possibility and the need for
practicality which will help them provide a set of behavior (Barnett, 2014). The transformational
leadership helps to motivate the company to bring a change and helps to set a more demanding
expectations and according to me this leadership has proved to be very effective and therefore I
believe pizza hut needs a complete transformation which will help them compete with the
present companies. Another great strategy which might be effective is democratic strategy,
working in pizza hut made me think that democratic leadership is very important, as in this
leadership, employees and subordinates are involved in giving their ideas and making the
decision (Giltinane, 2013). According to my perspective this is an important feature of this
leadership helps in the improvement of the communication and will be effective in terms of
capability, justice, creativity, intellect, courage and honesty.

3EFFECTIVENESS AND THEORY
As per owners and employees of Pizza Hut, the above mentioned leadership strategies
can be turned out to be very effective. The employees will definitely go for democratic
leadership as that will give them an opportunity to give their own ideas and point of view, and in
order to understand the owners perspective in a company, I believe they would prefer
transformational leadership as it concerns the owners and the people with higher authority who
has to motivate their employees and stakeholders in order to change the custom and the
environment of the company. Pizza Hut has its franchisee all over the world, hence a company
like that will have multiple shareholders, employees and suppliers, therefore the effectiveness of
leadership strategies are very important for them (Pandey, 2014).
To conclude it is but obvious that different stakeholders will have different requirement
for the company, but according to me all the above mentioned strategies have to be taken into
account in order to improve the condition of the company (He, Zha & Li, 2013). The evaluation
should be on the basis of the improvement of sales and the satisfaction of both the employees
and the customers. While working there I noticed that they have very orthodox set of mind and
they did not have the motivation or courage to create anything new. Therefore thee leadership
strategies will help the company to build up new environment and get ideas from others as well.
Earlier before joining the company I was very excited about the entire thing that how exciting it
going to be and I will be getting to learn new things, as I joined as an marketing executive,
however after working their ii realized that it is more like a monotonous work, without any
creativity, that will improve their sales growth. However a renowned company like Pizza Hut has
much scope, it just needs to strive for the better innovative future, and have to have an effective
outcome.

4EFFECTIVENESS AND THEORY
References:
Barnett, M. L. (2014). Why stakeholders ignore firm misconduct: A cognitive view. Journal of
Management, 40(3), 676-702.
Braun, S., Peus, C., Weisweiler, S., & Frey, D. (2013). Transformational leadership, job
satisfaction, and team performance: A multilevel mediation model of trust. The
Leadership Quarterly, 24(1), 270-283.
Giltinane, C. L. (2013). Leadership styles and theories. Nursing Standard, 27(41), 35-39.
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case
study in the pizza industry. International Journal of Information Management, 33(3), 464-
472.
Lewis, R. A., Williams, N. H., Sutton, A. J., Burton, K., Din, N. U., Matar, H. E., ... & Rickard,
I. (2015). Comparative clinical effectiveness of management strategies for sciatica:
systematic review and network meta-analyses. The Spine Journal, 15(6), 1461-1477.
Pandey, P. (2014). Organisational culture-a root to prosperity. Management Insight, 10(1).
Razumovskaya, E. M., Kutsevol, N., Popov, M., Mishakin, T., Leto, L., & Tsalikova, V. (2014).
The effectiveness of management practice in the market of socially important
services. Asian Social Science, 10(20), 118.

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Stroeva, O., Lyapina, I. R., Konobeeva, E. E., & Konobeeva, O. E. (2015). Effectiveness of
Management of Innovative Activities in Regional Socio-Economic Systems. European
Research Studies, 18(3), 63.

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