Comparative Analysis
Comparative Analysis
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ABSTRACT
Human resource is the core asset of any organization and its training and development will mutually benefits to
organization and individual to achieve its mutual goals. So every modern management has to develop the
organization through human resource development. Employee training and development is important sub-
system of human resource development. Employee training and development is important function for human
resource management. The objective of this research paper is to study the theoretical aspects of training and
development process as well as to understand the practical aspects with the help of case study on training
process within McDonalds and KFC. The McDonalds and KFC both are the leading organizations in the fast
food segment. The process of training and Development at McDonalds and KFC has been studied in the report.
Food segment is one of the growing segments in India. Technology keeps on changing and therefore the
investment in training and the training methods is expected to increase and change at a very rapid rate in this
segment to meet the international standards. Considering all these factors, it was interesting to understand how
the leading companies in the fast food segment views training and how they design their training programs.
After studying the training and development process of KFC and McDonalds, analysis is made on the basis of
certain parameters as to which company’s training and development practices is better than the other on those
same parameters. Also a few recommendations have been made for the other to become competitive like the
first one.
Keywords: Training, Development, Fast-Food
INTRODUCTION
Training and development in business parlance is perceived as learning and Development opportunities that are
provided in order to provide performance at work. Training implies to do something on a more productive and
professional way. Training and Development is the framework which helps employees to develop their
knowledge, skills, and competency. Human Resource Development main focus is to develop the multi skilled
competent workforce, so that the organization and employee can accomplish their mutual goals. All employees
want to be valuable and remain competitive in the labor market at all times. This can only be achieved
through employee training and development. Employees will always want to develop career-enhancing skills,
which will always lead to employee motivation and retention. There is no doubt that a well trained and
developed staff will be a valuable asset to the company and thereby increasing the chances of his efficiency in
discharging his or her duties.
Hence, we can say that the concept of training refers to process, which is planned to facilitate training so that
people can become more effective in carrying out various aspects of their work. This definition is broad enough
to include activities such as on the job learning, team development, action learning and performance
management, etc. a person’s performance is improved by showing him/her how to master new or established
technology. The technology may be a piece of heavy machinery, a computer, a procedure for creating a product
or method of providing a service. This includes training new person to perform their job, introducing a new
technology or bringing an employee up to standards. Development is a broad term which defines a set of
activities to bring someone or an organization up to another level of performance, often to perform some job or
new role in the future.
LITERATURE REVIEW
Training and Development
As the study of Raza (2014) stipulates, together with mission and vision of an organization, the human resource
management also constitutes the major prospective that influences its overall performance. This research further
concluded that training and development were the foremost aspect that improved the employee behavior and
growth of an organization. Again, the empirical findings of Jehanzeb and Bashir (2013) identified that, the
employees in MUMBAI related training and development programs to improve their technical and professional
skills and promotions and therefore, management training were irrelevant to the MUMBAI industries.
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Moreover, Galanou and Priporas (2009) had also pointed out that training and development programs had
foreseeable role in increasing employee loyalty and reducing employee turnovers. The importance of career
development from the perspective of employee’s is that it offers job security to them and also they are able to
improve their earning potential through career development, notes Saks and Haccoun (2010).
Due to this career development programs along with training programs have become an integral aspect of
human resource management in organizations. Hence, the present research finds that training and development
programs are the effective methods through which an organization improves the weak skills and knowledge of
employees and induce them to work together to achieve the organizational goals.
Kirkpatrick's Four-Level Training Evaluation Model
Kirkpatrick's Four-Level Training Evaluation Model can be used to understand the link between training and
organizational performance. As per this model, the effectiveness of a training program can assessed using four
levels (Tan and Newman, 2013). The effectiveness of training improves as the training passes evaluations of
each level.
Reaction: This criterion looks at how employees reacted to the training program. If the program created
positive reaction from employees, then it is considered effective (Tan and Newman, 2013).
Learning: This looks at the actual learning received by employees from the training. If employees have
improved their skills then the training is successful (Tan and Newman, 2013).
Behavior: This looks at how the behavior of employees has changed through training. If the training program
effected positive change in employee behavior then it is deemed as successful (Tan and Newman, 2013).
Results: This looks at how training program has impacted the bottom line performance of the organization. If
the training program has positive impact on performance then it is deemed successful (Tan and Newman, 2013).
The review of this model indicates that the effectiveness of training programs can be linked to improvement in
organizational performance.
Dimensions of Training and Development Programs
As per Obi-Anike and Ekwe (2014), training and development programs are a mixture of different practices that
impart job specific knowledge to employees, establish career development strategies, develop training goals and
make employees familiar with organizational practices. Some of the tools used for training and development
include information system, learning management systems and teaching and conferencing tools. As identified
by Nda and Fard (2013), training and development programs include the following dimensions:
Foundation: This program includes training provided to newly recruited staffs on rules and regulations related
to administration, financial transactions, report making, communication skills etc (Nda and Fard, 2013).
Induction: This program is provided by the organization in order to make its employees understand the goals,
targets, objectives, mission, vision etc of the organization (Nda and Fard, 2013).
Job instruction: This program is otherwise termed as ‘on-the-job’ training where the higher management staffs
provide instructions to the employees about how to carry out their current jobs (Obi-Anike and Ekwe, 2014).
Career development: It is imperative that employees refine their skills and knowledge timely so that
improvement in job mastery and professional positions could be attained and Career development programs
aims this necessity (Obi-Anike and Ekwe, 2014).
Job shadow: This training and development programs is specifically related to the MUMBAI fast food industry
where new employees are teamed up with an existing employee. The new employees put on higher efficiency
by observing and learning how existing employees carry out their work in the restaurant (Khan,Khan andKhan,
2011).
This indicates that the different dimensions of training and development influence organizational performance
significantly by improving the skills and knowledge of employees.
Understanding Organizational Performance
Even though many management books, researches, business case analysis etc have considered studying
organizational performances, it is significant to understand what means by performance of an organization. A
concrete and clear definition to organizational performance has been given by Khan,Khan andKhan (2011) who
mention it as the evaluation of how productively the personnel groups with particular functions in a firm have
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achieved the targeted objectives and missions. In simpler terms, the researcher mentions that organizational
performance is nothing but the successful achievement of organizational goals and objectives.
Training and Development, Employee Performance
Training and development programs in organizations are primarily aimed at improving employee performance
(Bapna et al., 2013). So it can be inferred that the main beneficiaries of training and development programs are
the employees of an organization. Training programs are conducted to cover the skill gap of employees and
thereby help employees achieve desired performance levels, notes Asfaw, Argaw and Bayissa (2015). This
shows that proper training and development can enhance employee performance.
One of the main benefits received by employees from training and development programs in the improvement
in job-related knowledge argues Srivastava and Agarwal (2014). Training programs provide employees with
study materials that enhance their knowledge about their job requirements. Apart from this employees also
receive knowledge about techniques, skills and abilities that will enable employees in performing effectively in
their jobs, observes Hameed and Waheed (2011). Training and development programs also increase the overall
competency of employees as both their knowledge and skills improve through training.
Another obvious positive impact of training and development on employees is the enhancement in morale and
motivation levels of employees, asserts Helmy (2015). When given proper training and development employees
feel valued by the company and thus they develop strong emotional connection with the firm. This also helps in
retaining employees.
Training and development is also found to have positive impact on leadership skills of employees as employees
are given more responsibility through training and development (Ji et al., 2012). From the above discussion, it
can be inferred that employees receive many benefits ranging from improved skills and knowledge to
motivation from training and development. It can also be understood that effective training and development
has positive correlation with employee performance.
The Link between Previous Researches and the Present Research
As discussed above, the positive relationship between training and development programs and employee
performance has been established theoretically in the studies of Wurim (2012), Schmidt (2009) and Quartey
(2012). However, Khan, Khan and Khan (2011) argue that there is a gap between theoretical and practical
knowledge about training and development. For example, Raza (2014) dictates that effective training and
development programs do not guarantee improvement in organization performance.
The present research will focus on covering this gap by reviewing the link between training and development
programs and organizational performance in KFC and McDonalds, MUMBAI.
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
The objective of this research paper is to understand the practical aspects of Training and Development
practices which is being carried out in the fast food segment. Also this study is carried out to understand how
the theoretical excellence can be combined with practical - on the job knowledge by taking comparative study
of McDonalds and KFC.
OBJECTIVES OF THE RESEARCH ARE
To study the theoretical aspects of training and development process.
To understand the practical aspects of training process of the frontline employees in the fast food segment
with the help of 2 companies namely –
McDonalds
KFC
To critically analyze the training practices at both the above mentioned companies.
To analyze how training and development programs could improve the performance of an organization
To recognize the training and development programs in KFC & MCDONALDS, Mumbai and its impact on
its employee performance
To critically evaluate the issues associated with training and development programs in KFC &
MCDONALDS and its impact on the overall performance of the organization
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To suggest recommendation to improve training and development programs in KFC & MCDONALDS and
thereby attain competitive advantage in the Indian fast food industry .
RESEARCH QUESTIONS
1. What is the significance of training and development programs in an organization?
2. Do training and development programs improve the performance of an organization?
3. How has training and development programs improved the performance of KFC and McDonald in Mumbai?
4. What are the current issues that KFC and McDonald faces with respect to training and development in
Mumbai outlets and stores?
5. What remedial actions need to be taken by KFC in order to overcome the identified issues?
RATIONALE
What is the research issue?
In the technological era, training and development has a crucial role to satisfy the skill and knowledge need of
every organization. Training and development is an important function of Human resource management within
organization. It has been identified that training & development is align with organizational business strategy
will play the important role in the performance of employee. Hence this research report will analyze the
importance of training & development in organizational success.
Why is it an issue for the fast food industry?
Food industry is one of the major sector in India which plays the major role in Indian economy .Currently
Indian food industry has been values of 39.71 billion USD with 11% annual growth rate
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Crew Members
On the day of joining training begins immediately with one-hour induction training. Each restaurant has its
training room with own video player. Step by step manuals and video tapes cover every detail of the operations,
everything from how to make a burger to a shake. Each restaurant has 25 stations from the grill area to the front
counter. Trainers use a series of checklists as new crew members move through the restaurant. A level of
competency is demonstrated and the activity is checked off on the Station Observation Checklist (SOC). There
is a follow-up SOC to get certified on the station. He or she becomes a certified crew trainer. Once a crew
member performs successfully he becomes the training person for the new staff and then he or she is eligible for
the Management Development Program (MDP).
Certificate II in Retail, is offered to crew members who show potential in their work performance. McDonald’s
‘crews’ are, in general, young people who are balancing study with part-time work. We see being offered a
traineeship as a reward to a crew person for a job well done. There is no cost to crew to complete a traineeship
at McDonald’s – in fact, crew are paid for their training time.
Management Development Programme (MDP)
Promising recruits enter the McDonald's system as Restaurant Management Trainees; they typically go through
operational basic level training which is of three to six months. Once they master the workings of key
positions in the restaurant, the four-step accredited Management Development Programme (MDP) is officially
underway. Under this programme, management recruits are given increasing levels of management
responsibility and training in preparation for a series of successive promotions. Each level of learning involves
a rigorous training sequence conducted both in the indoor and on-the-job.
The 4 stages of MDP are as follows
TRAINEE MANAGER
Each person's suitability to be considered for a Trainee Manager's position will be assessed on their ability to
supervise people, product and equipment to deliver outstanding Quality, Service, Cleanliness & Value
(QSC&V) on assigned shifts and their motivational desire to perform. The person should be able to demonstrate
and reinforce the leadership behaviors and basic people skills necessary to gain commitment from Crew and
other shift managers. At this stage the employee is expected to develop a thorough understanding of
McDonald's people, policies and security and safety procedures. And after this, the first level of MDP gets over.
After this they can undergo the first management course as decided by them at the Head Office. On completion
of this course and the required restaurant experience the person now becomes eligible to apply for a Certificate
III in Retail.
Certificate III in Retail, is offered to select senior crew (Staff training crew) and crew trainers. It is designed to
develop more advanced skills in the operations of the business and is the next step towards a management
career.
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On clearing the exam that particular employee becomes certified team member in that particular tracker. Incase
if the employee does not pass he or she is given 7 days to study again to pass once again. Within 30 days the
employee has to become a certified team member in a particular section. They get 1 STAR which proves they
are a team member in one particular tracker. In order to become certified master he or she needs to undergo 2
months more training. Once they become master they can become buddy trainers and train other employees in
that particular tracker. On becoming the buddy trainer they get a different badge which shows that the person is
a master and now a buddy trainer.
To become 3 star an employee has to undergo 9 months training and to become a 4 star he or she has to undergo
12 months training. Once the training of 12 months is completed he or she is called as “Product Champion” or
“Sheaf of the day”. To earn 3 stars the employee goes under intense training for 9 months on all the 3 trackers
and to earn 4 stars that employee has to undergo training all the 3 trackers as mentioned earlier also another
tracker which is known as “delivery”. In this tracker intense training is given on home delivery front which
requires to get trained on communication skills, and many more.
After earning 4 stars there a Readiness Checklist (RC) is done by the Restaurant General Manager. The reason
why it is done is the RGM wants to have a check that whether that person is ready to be a Manager or not. If the
RGM gives a green signal then that employee goes to the next level i.e. “Internal Development Program” (IDP).
And incase if he gets a yellow signal then the RGM advises that employee a development plan for him so that
he can improve himself and within a month again an RC i.e. readiness checklist is done to see whether he is not
also ready or not to become a manager.
Incase if the employee does not pass the RGM gives 11 modules (1 – 11) so that on clearing that within 7 days
he is eligible to become a Shift Manager (SM). On the 7th day again the module review is done to see whether
that employee is now ready to become SM or not. On successfully passing this module he has to pass through
the Board of Review (BOR) round which is taken by the RGM, the AM and the HR (training Manager) to
become a Certified Shift Manager (SM). Then to attain mastery he has to undergo 3 months training.
The next level designation is of the Assistant Manager (AM) for which he gets modules to clear from 12 – 20.
Again the same procedure after clearing the exam he becomes the AM and then to become master he needs to
undergo 3 months training.
Same way to become a Restaurant General Manager he has to clear modules 21 – 30 which make him a
Certifies RGM but to gain mastery he has to undergo 3 months rigorous training. Also to be a RGM he has to
undergo training for 3 months for the “delivery” parameter. In all it becomes 6 months training. After clearing
the training modules he has to clear the BOR again which is conducted at New Delhi office. And after that the
employee is at the highest designation of KFC i.e. the Restaurant General Manager. In all there are 33 modules
to be completed to reach the level of RGM and it is to be completed in 12months.This is how the training
program is carried out at KFC.
Other training programs conducts if the need be are as follows
Practical skills: delivering exceptional customer service, handling money, using equipment and product
quality control to name just a few.
Team skills: learning to work along other Crew Members and contributing to the team.
Communication: interacting with colleagues, the management team and our customers.
Evaluation of the Training and Development program
The evaluation of the trainings carried out is done by the RGM, AM and the HR (Training Manager). But it is a
collective effort to help employees gain more knowledge from the training they undergo. So everyone has their
own set of responsibilities such as the RGM, AM, Shift Manager, Buddy trainer, Team Member etc.
ANALYSIS AND INTERPRETATION OF DATA OF THE STUDY
Gender
KFC McDonalds
Male 60 57
Female 40 43
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Gender of Respondent
Age
Age 18-25 26-35 36-45 46-45 Above 55 Years
KFC 35 30 5 10 20
McDonalds 52 28 3 7 10
Age of Respondent
Objective 1: To analyze how training and development programs could improve the performance of an
organization.
3. How long have you been a customer of KFC?
Loyalty Less than 1 Year 1-5 Years 5-9 Years More than 9 Years
KFC 20 40 30 10
McDonalds 25 35 25 15
Customer loyalty
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4. Which of the following factors has most impact on your selection of fast food restaurants?
Price Employee Behavior Service Quality Convenience Brand Image Other
KFC 20 20 30 10 10 10
McDonalds 25 25 30 5 10 5
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7. Do you believe that the performance of employee’s of KFC can be improved through training and
development programs?
To High Extent Considerably Less Significantly Not at all
KFC 60 20 10 10
McDonalds 50 15 20 15
10. Which is the main area of KFC that needs to most improvement in performance?
Sevice Employee Product Hygiene and safety
Quality Behaviour Quality of restaurant Other
KFC 40 20 20 10 10
McDonalds 20 30 15 30 5
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QUALITATIVE ANALYSIS
The information about the training and development practices at McDonalds and KFC was taken in his form of
personal interview with the respective designated person as mentioned in acknowledgement. Also as the
objective of the study is to understand how the frontline employees at both the organizations view their training
and development practices so in order to understand that questionnaires have been filled by 5 frontline
employees from each organization and the analysis of the same is as under.
The training and development practices is being analysis on 4 parameters which are –
Training methods
Frequency of training methods
Satisfaction level of frontline employees
Feedback – post training.
Who identifies the training needs?
As per the responses received from the employees at KFC the training needs of the employees are identified by
themselves only once they enter the organization. They know where they stand at the entry point and where
they need to head. So in a way its good they themselves know what is the next thing they need to learn as they
know where they lack.
At McDonalds, the training needs are identified by the superior person first. After entering the flow of training
for each employee is decided by the superior and not by the employee himself or herself. They are guided at
every stage as to which training they need to undergo at what time.
As per my analysis the method followed at KFC is better because the employees do not have to wait for anyone
to come and dictate the training procedure. They themselves know they where they lack and need training first.
Also a fixed pattern of training along with side courses allows them to identify their training needs in a better
way.
How many training programs do you attend in a year?
At KFC, due to the structured pattern of training programs the employees undergo more than 20 training
programs in a years time whereas at McDonalds, there are less than 20 training programs that an employee
undergoes in which it includes few compulsory training programs and few side courses.
As per my analysis, frequency wise KFC conducts good number of training programs than McDonalds in a
years time.
What is the frequency of training programs given to you?
Training at KFC takes place on everyday basis whereas in McDonalds it takes place either weekly or on
monthly basis depending upon the training program.
Training and learning everyday is a much better experience than weekly or monthly learning’s. Also KFC’s
policy says that if there is no rush the employee can do his training at the back of the restaurant anytime he is
free whereas in McDonalds though there is training off the job but not everyday. So therefore, I feel the
frequency of the training programs at KFC is better than McDonalds’.
What mode of training method is normally used in your organization?
KFC and McDonalds more or less use both the mode of training i.e. on the job as well as off the job. The only
difference is KFC concentrate more on, on the job training whereas McDonalds concentrates on both as a
mixture. The idea at KFC is if their employees are good at other trainings and weak at on the job training they
are given intense coaching for that to become a master in that area and does not spend much time on repeating
the training in that area where the employee is already good at.
What are all the important barriers to training and development in your organization?
Employees at KFC feel there are no such barriers relating to training and development in their organization.
Whatever training they require they do get it whereas at McDonalds few employees feel there is no such
barriers while others feel time is only barrier because the self paced programs are to be completed with the core
training program going on at the same time. Also the duration for completing the training programs is too small.
How would you rate the training program so conducted?
Employees at KFC and McDonalds both have rated the training programs more or less an s very good a d very
few have said as good. The reason for saying just good and not very good is that they are right now at the
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middle position of the ladder so at present they feel it is good once they experience the above designated
positions as and when the time comes it might be a different case. Also it is their learning process so they prefer
to learn maximum on daily basis.
What type of training is being imparted for new recruitments in your organization?
As already mentioned earlier training at McDonalds and KFC comprises of both off the job and on the job
training. So more or less they both provide behavioral and technical based trainings to their employees. But at
KFC, special care is taken for employees to give them extra training for improving the aspect in which they feel they
are not up to the standards of KFC, like communication skills, product quality, team skills and practical skills.
Are you able to implement the learning’s of the training in your work day to day?
All the employees at KFC as well as <McDonalds agree that they all are able to implement their learning’s of
the training in their day to day work. And also they are happy to work hard and achieve their goal of becoming
a Restaurant Manager one day and constantly in steps trying to achieve their dream.
To what extent are your training objectives fulfilled?
Employee objective is to become a Restaurant General Manager at KFC one day and also believe that along
with them their organization is equally contributing in helping them to achieve their objective whereas at
McDonalds though the organization is contributing to help employees some employees are not able to
overcome their weak points easily which obstructs their way to achieve their objectives. Few lack in proper
practical training without which there is no chance at McDonalds one can move on the next designation without
attaining mastery at that point.
Does the superior support the subordinate to successfully complete the training program?
Yes, the superior and the management always support the employees to perform better by completing their
training programs successfully. They encourage them to perform better and upgrade themselves. Also the
management believes in training those employees more properly who have the potential of performing but
because of some problem they are not able to so they try to remove these obstacles by giving them the required
trainings separately.
Are you satisfied with the training facilities provided by the organization?
The facilities for training provided at KFC include on the floor experience, back office and sometimes
theoretical module studying is also provided whereas at McDonalds the facilities for training include on floor
experience, head office classrooms, e learning etc.
There is lot many facilities provided as per the training requirement provided to employees who make them
comfortably go through the training and satisfied with the facilities.
Who conducts the training program?
At KFC, the buddy trainers are the internal trainers who provide training to the team members on an ongoing
basis every day. They are available at any point in the restaurant only whenever the need be. External trainer
comes only for training when there is a need from different KFC restaurants and then a session is conducted but
the frequency is very less.
At McDonalds, there are trainers internally who have undergone training and have become trainers to train the
new staff. They are from the training and development head offices who come and train people and they are
assigned few restaurants where they are suppose to carry out training.
CONCLUSION
The wave of the future of training is breaking on the shore. It's dissolving old ways of thinking and asking
organizations to look at training in a whole new way. Why? Because much of what organizations did for
years in training failed to produce the desired results, if expected outcomes were defined at all. Yes,
results. It's no longer acceptable to hope an employee learns something - or maybe gets entertained - at a
training session. The agile, changing organizations that will succeed in the future are thoughtfully developing
their most important resource: the people they employee.
The above analysis is done keeping in mind the following parameters
Training methods
Frequency of training methods
Satisfaction level of employees
Feedback – post training
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On the basis of above parameters and the complete case study and survey of the training and development
practices carried out at each organization I would like to conclude that the training and development
practices practiced at KFC is better than McDonalds. The following are the reasons for the same –
KFC has a policy of training on everyday basis which is not the case in McDonalds
The number of training programs provided by KFC is more than McDonalds.
The frequency of trainings conducted is daily basis and sometimes monthly also due to the nature of
the training program.
The employees are more contended with the training facilities and career opportunities provided at
KFC
The satisfaction level of employees at KFC is very high as compared to McDonalds
The training programs are structured and fixed in KFC which helps the employee to climb up to the
level of the Restaurant General Manager.
RECOMMANDATIONS
The following suggestions can be useful for McDonalds in order to improve their training and development
practices:
1. Keeping the training programs as a part of everyday working would be the best in order to improve
efficiency
2. Involving employees to give their feedback or any valuable suggestions to improve the training related
matters should be welcomed
3. Having any structured pattern of training and making some of the training courses compulsory rather than
associated courses will prove to give best results.
4. By working on the time limit given to employees to finish the training program needs a careful attention.
5. New training programs can be introduced
6. Also more use of e learning will help to reduce time taken for classroom training and employees will be
more comfortable learning at their own speed.
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