MGT600 - Analyzing Management Practices at Pizza Hut, 2018

This report provides an overview of people management and organizational practices at Pizza Hut. It begins with an executive summary and introduction, followed by a literature review discussing contemporary management challenges such as employee engagement and the impact of social media. The report then delves into Pizza Hut's operations, highlighting the responsibilities of managers in maintaining customer service standards, managing food quality and inventory, ensuring compliance with local laws, and overseeing employee training and recruitment. Key findings include the importance of addressing customer complaints, managing food and beverage inventories effectively, and adapting to changing consumer preferences. The report concludes with recommendations for managers to cope with challenges such as maintaining superior customer experience and retaining employees. The report also touches upon the importance of maintaining cleanliness both inside and outside the store, and the use of technology such as security cameras and antivirus software to maintain safety and security.

Running Head: MANAGING PEOPLE AND ORGANIZATION 0
MANAGING PEOPLE AND ORGANIZATION

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Executive Summary
In this competitive business environment, manager roles have been diversified in
various areas which also increased their overall responsibilities. This report is based on the
company Pizza Hut which is one of the leading fast food chain having operations in many
countries. This research depicts the role and responsibilities of manager in Pizza Hut and also
include the major challenged faced by them. Various related articles and journals are also
reviewed so that to get deep understanding of the necessary manager implications.
In the last, several recommendations are also presented so as to help the manager in
coping up with various challenges in the dynamic business environment. These include
inventory management, employee retention and customer satisfaction.

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Table of Contents
Introduction................................................................................................................................3
Literature Review.......................................................................................................................3
Pizza Hut....................................................................................................................................5
Operations and Findings............................................................................................................5
Conclusion and Recommendations............................................................................................9
References................................................................................................................................10

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Introduction
From the past century, there are various remarkable transformations takes place in the
work including changes in the economy, employees, society and most significantly in the
technology. However, in spite of these changes and revolutions, several features remain
unchanged, which includes the organization-operating environment (Ramaswamy, 2009).
The report outline starts with the background and history of Pizza Hut which is a fast
food chain industry operating all over the globe. With the help of this report, one can gain
various detailed insights about the company, managerial role, and employee behaviour. For
gaining diversified insights about the company and its management, many journals, as well as
articles, are also be critically reviewed so that it will be helpful for various stakeholders and
the public for taking of necessary actions or decisions. The company key business objectives,
competitors and its size will also be discussed.
In context to most of the organization, leading team and people are related to the
developing and managing the organizational resources in an effective way. From the past few
decades, managers have realized that to get the most out of the organization, they need to
integrate all aspects of the effective managerial problem solving skills so that teams and
employees can be managed in an effective manner (Binda & Iversen, 2007).
Literature Review
This literature report is the first part of the larger research report, which addresses
various issues relating to the management practices in an organization, the challenges they
are facing, responsibilities connected with the role and perceptive organization change plan
by these managers. Fast food organizations like Pizza hut have identified a number of
strategic priorities and the managers in Pizza Hut are addressing this issue with an increased
frequency.
According to Tarique & Schuler (2010), managing employees and organizations in
the changing context includes the various contemporary problems faced by the managers
when they addressee people and various other aspects of organization. They also stated that
understanding the approaches to human resource management and organization behaviour is

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necessary as they give valuable alternatives which are necessary for the manager's
perspectives. It includes employee engagement, de-professionalization and the growing
challenge of social media. They also stated that for achieving the organization objectives
effectively, the manager's actions need to connect with wide range of practices including
managing group as well as individual, managing creativity and innovation, and deal with
corporate governance and CSR. Therefore, as an international organization, the managers at
Pizza Hut need to follow wide range of management practices to achieve the organization
goal in an effective manner.
In addition, it is also necessary for an organization to understand the interconnection
between managing and leading people in aligning with the organization change (Jalagat,
2017). The author also stated that if an organization want to achieve well-informed economic
decisions, the necessary management practices need to be incorporated not only to the
organization strategic business plan but also with every employee working in the employee.
For employees and staff, incorporating these practices will hone their skills, knowledge,
abilities and attitudes, and these all help them in making them productive in their respective
field. According to the author, if the manager helps their employees in finding out their
responsibilities connected with their position, there will be promotion of the organization
productivity and profitability.
According to Morgeson, DeRue & Karam (2010), with the help of effective
leadership and HR management, the managers can realize the better understanding relating to
managing the people effectively. In addition, with these common goals, it will also help in the
motivation of the employees and increases their performance. The literature state is
deplorable as Leadership and HRM have the potential to counterbalance each other in theory
as well as in research design. The author also sees a holistic view with effective decision-
making by mapping the key approached of management with the HRM and leadership.
As per the statement of Leonard (2011), management is the integrating force of the
activities evolved in business enterprises and managers play a decisive role in all the
management process. They make all plans, set necessary goals, motivate employees and also
monitor all the activities. The author also did a survey in order to find out the roles of
managers and related psychology aspect connected with the management process.
In the last, it can be said that managing people is very important for the organization
as it forms part of organization existence. Relating to the company, the managers can face

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many problems relating to managing the store's employees, deals with dynamic organization
changes, and planning the business for the next 2-5 years in according with the business
environment.
Pizza Hut
Pizza Hut is a restaurant chain, which is known for its Italian-American cuisine menu.
The company was founded 60 years ago in 1958 by Dan and Frank Carney. This restaurant
chain has 16,976 restaurants worldwide and it's headquartered is situated in Texas, US. The
company always experiments with the new products by disposing of less successful products
(He, Zha & Li, 2013).
The company mission statement is also based on the PEARL concept, which stands
for Passion, execute, accountability, recognition, and listen. The company also wants to be
the first choice among restaurants and they want to provide their customers 100% satisfaction
so that their stakeholders can get attractive returns.
Operations and Findings
Pizza Hut has built an integrated executive-level structure and process through which
the company can assess, guide and oversee the worldwide activities. The company is also
continuously refining its structure as needed and setup various measures progress against the
objectives so that to enhance the capabilities and effectiveness (Macdonald, Cummins &
Macintyre, 2007).
In Pizza Hut, the managers’ career path is defined by the established career in
leadership under the hospitality industry. The major responsibility of the manager is to meet
customer service guidelines formed by the organization in respective to achieve their vision.
The managers are also responsible for directing the operations of the restaurants so that to
attain the sales and profit objectives of the company. They are responsible for ensuring
highest standards of food quality, service, cleanliness and sanitation including supervising the
management and hourly employees.
The primary responsibilities and the manager’s roles include providing friendly
services according to the guidelines of the companies. For achieving this objective, they need

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to direct all overall activities and performance of the overall staff (Karnani, 2010). In Pizza
Hut, The managers also need to handle guest complaints on an immediate basis so that to
make the customer satisfy and this will also create more loyal customer base. The manager is
also responsible for maintaining and monitoring adequate food and beverage inventories so
that the cooked food serves to the customer will be healthy. In addition, the numbers of
customers are increasing towards health conscious and so ignoring fast food (Hwang &
Cranage, 2010). This makes the management to formulate various strategies for the safety of
foods and inventories. The manager at Pizza Hut also enforces awareness towards drinking
alcohol at workplace so that to build positive relationship with the local authorities. They also
take assistance from their staff relating to alcohol issues so that they can also be aware of the
necessary consequences. The managers in Pizza Hut are also responsible for the compliance
of various laws relating to local and state guidelines. They need follow the government law
connected with environment safety, workplace environment, and employee wage act (Clark,
Hawkes, Murphy, Hansen-Kuhn & Wallinga, (2012). For example, the management uses
paper bag instead of polythene when the customer is taking Pizza box at home. The manager
also needs to ensure that the store has maintained cleanliness by putting wastebasket both
inside and outside the store.
In addition, the manager in Pizza Hut ensures that the production is smoothly going as
per the daily line check with meeting up of the sales volume. This is very important aspect of
the managerial role as monthly target can only be achieved if the store management follows
daily line check-up. For this purpose, the managers constantly inspect the employees in the
stores and also maintained daily work report which also used later for the purpose of
remuneration and promotion.
Another role of manager in the Pizza Hut includes direct hiring, recruiting, assigning
and training of the employees so that no seat will be empty due to the leave of the other
employee. The managers recruit individuals from various sources like employee reference,
educational institution leading course of hotel management and MBA and online agencies
(Jaidi, Van & Arends, 2011). The store also has maintained a local area social media page on
Instagram and Facebook so that they can post requirement of employee on this website and
due to popularity of the social media among public, they can easily get the respective
individuals for their vacant seat.

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The manager in Pizza Hut also confirms the adherence of all cash handling
procedures on a daily basis so that no errors can be recorded or committed by anyone. In
addition, this area is not a much problem for manager as all processes are automated and the
transactions are done in the system only (Mahalik & Nambiar, 2010). Moreover, in
accordance with company and government policy, the manager maintain effective safety and
security programs such as putting of 360 degree security camera in the stores, subscribing of
the antivirus software in all their systems running Microsoft OS for getting safety from
various ransomware, malwares and other viruses. The manager also ensures that a regular
maintenance of all the systems is done on a continuous basis so as to smooth flow of the
working and also increases the efficiency in all areas (Van, De, Vanhaverbeke, &
Rochemont, 2009).
Therefore, these all are the major and primary responsibilities of the manger in Pizza
Hut which need to be dully fulfilled as per the company policies and guideline. Their other
role includes holding effective communication with the staff to gain real insights about the
customer experience, and complete all the assigned duties and responsibilities given by the
top management.
In addition, there are various marketing and operational challenges faced by the
manager in Pizza Hut. One of the most significant challenges for managers is to maintain a
superior customer experience. The restaurant industry is a service-first industry and so first
impressions are important. Getting of positive reviews is necessary and really nice, however,
if Pizza Hut reviews the publishing of bad reviews, it can be hard for the manager to break
deal for current and potential guests (Akkerman, Farahani & Grunow, 2010). After the
completion of the order, Pizza Hut gave their customer a chance to reviews the food quality
and staff by replying to a message or on social media sites. This makes the manger need to
handle every customer with full care so that no complaint should reach to the senior manager.
To achieving this objective, manager and each staff make each and every customer feel
values and welcomed. This strategy is directly related to the dining experience and customer
retention rates.
Other challenges of the manager include the employee retention, as many of the
employees working there are a part time student stepping stone in their career. Most of the
employees working in Pizza Hut are serving as a part time employee and full time student as
per their thinking (Wu & Pagell, 2011). In addition, most of the employees come in the

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company after completing of bachelor degree and with the work; they want to go for master’s
programme so as to shape their career and life. This makes the employee work for a short
period of time and also creates a problem for the manager as he has to again promote the
vacant seats at many sources so as to fulfil it. This is why the manager constantly looks at
ways they can retain their staff.
The last important challenge faced by the manager is related to the inventory
management. The manager need to constantly focus on the inventory and menu pricing so
that to limit waste in the process of ordering. This will have a direct impact not only on the
environment but also on the fluctuating ingredients costs, which impact gross profit on items.
Manager always needs to ensure that menu pricing should be organic and have fluidity as
frequent. In addition, the managers also face various challenges in managing the order
management system, which is also called as inventory system. The imposition of unexpected
policy from the top management can make the need to necessary changes in the inventory
system. In addition, the changes in government policy such as taxation policy and import
policy also have a significant impact on these systems which also need to be considered by
the employee on a continuous basis.

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Conclusion and Recommendations
The dynamic and competitive business environment also makes the manager's role
and responsibilities diversified. They need to carry out various responsibilities and duties all
together and in compliance with the necessary guidelines framed by the government and
company.
In Pizza Hut, the managerial role is divided into various segments starting from the
administrative work to the respective communications in operations, recruitment and
customer handling. In addition, managers also face several challenges while taking out their
responsibilities. The challenges are related to inventory management, customer satisfaction
and employee retention.
For making a smooth flow of operations in the organization, the manager can focus on
eliminating these challenges by making them convert into opportunities. For raising
customer experience, the manager needs to tackle customer service from all aspects. They
need to capture vital customer information so as to make the process efficient. They need to
also engage with social media and online reviews. To solve the problem of employee
retention, the manager can rotate the job position to one another, as it will develop their
skills. He can also customize the shifts as per their needs, which gives them flexibility to
work. The manager can also plan for the latest technology and software that will aid in
effective inventory management and optimization of resources.
Therefore, with these methods, the brand can strengthen its goodwill, which will build
on customer satisfaction and make more and more customers brand loyal.

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References
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distribution: a review of quantitative operations management approaches and
challenges. Or Spectrum, 32(4), 863-904.
Binda, V., & Iversen, M. J. (2007). Towards a ‘managerial revolution’in European business?
The transformation of Danish and Spanish big business, 1973–2003. Business
History, 49(4), 506-530.
Clark, S. E., Hawkes, C., Murphy, S. M., Hansen-Kuhn, K. A., & Wallinga, D. (2012).
Exporting obesity: US farm and trade policy and the transformation of the Mexican
consumer food environment. International journal of occupational and
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He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case
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Hwang, J., & Cranage, D. (2010). Customer health perceptions of selected fast-food
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Macdonald, L., Cummins, S., & Macintyre, S. (2007). Neighbourhood fast food environment
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