人力与组织管理8Outcome4

Managing People and Organization

F84T 34

Outcome4

Yum!

Candidate Name:

SCN

Contents

1.0 Introduction ..................................................................................................... 3

2.0 The current situation about Yum................................................................... 4

2.1 Organic system ................................................................................................ 4

2.2 Organization chart .......................................................................................... 4

2.3 The method of management ........................................................................... 5

2.4 The problems in the current Yum .................................................................. 5

3.0 The solution ..................................................................................................... 6

3.1 Shamrock organization .................................................................................. 6

3.2 Matrix structure .............................................................................................. 7

3.3 The impacts of technology, size and task on Organization structure in

Yum ........................................................................................................................ 8

3.5 The relationship between authority, responsibility and delegation .......... 10

Conclusion ........................................................................................................... 11

Reference ............................................................................................................. 12

1.0 Introduction

Yum! Based in Louisville, Ky, is the world's largest restaurant company in terms of system units with nearly 38,000 restaurants in over 120 countries and territories and more than 1 million associates. Yum! is ranked 213 on the Fortune 500 List and generated more than $12 billion in revenue in 2011. The brands include - KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. Five brands in the global system of total turnover exceeded 22 billion U.S. dollars, ranking first in the world's food and beverage industry, the restaurant industry is a global leader in muti-brand collections.

Although Yum has created great achievement, it also has some problems in organization structure. Such as a large span of control means that one manager need to direct control many staffs. It does not have benefit to improve production efficiency. At present, it is the best time for Yum to re-structure.

2.0 The current situation about Yum

2.1 Organic system

An organic system, also known as adaptive organization, is a low complexity, low formalization and decentralization. Organic organization is a loose, highly adaptable and flexible form. Because they do not have standardized work and rules and regulations, it is a loose structure, can quickly make adjustments as needed.

Yum is generally an organic organization. In the company, employees are free to communicate with leaders. Departments use specialized knowledge and experience to collaborate to address common tasks. Adjustment of individual tasks as well as members of the organization is completely redefine personal affairs through the interaction between colleagues to achieve. The communication between them based more on information and advice than instructions and command. At the same time, staffs also enjoy a large degree of autonomy.

2.2 Organization chart Organization structure mainly can be divided into three parts: top, middle and bottom. The top is the most important, because they had the largest authority and responsibilities, they are the core of a company's. The middle part is responsible for the communication of upper and lower order, and management staff. The bottom is a large labor force, is the main force of production. The level of command is stepwise diminishing from top to bottom.

The organizational structure of Yum is flat structure. Flat structure is base on tall structure and function structure. Flat organization refers to an organizational structure with few or no levels of intervening management between staff and managers. The

idea is that well-trained workers will be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.

2.3 The method of management

Yum's management mode is Decentralized Management. Decentralization it s mean the modern enterprise organization to play the low layer organization's initiative and creativity, give the production management and decision-making authority to the subordinate organization, the highest leadership only focus on a few relations overall interests and major problems of decision-making power.

Yum always follows the decentralized management methods. Company delegate power to each subsidiary company, each company can make some rules and regulations, including the development of new products and sales. It s can improve their initiative and creativity in the meantime.

2.4 The problems in the current Yum

There are several structure problems that are existed in the current Yum. The span of control is a flat hierarchy. There are too many staff in the same department, the treatment of employees decreased, and less chance of promotion. The managers are difficult to manage a large number of employees. Requirements management must have a high ability. With the continuous growth of the company, the structure of the company become increasingly sophisticated. Managers and employees cannot adapt to the new changes, low work efficiency, company's profit fell. So, it is really important for Yum to restructure in the now time.

3.0 The solution

3.1 Shamrock organization

An organizational structure in particular to consist of three or three leaves. The shape of the symbolic enterprise three is composed of three groups of be totally different person, its definition is "the basic management and staff as the core, the external contract workers and part-time workers as a form of organization supplement". This organization mode is often used to explain why the non core business

The functions of the subcontracted to other social enterprises, three groups of people with different expectations, receiving three different management, bring different wages, and are organized in a different way.

The first leaf: For the core of expert system, the core staff composed of senior experts, technical staff and management personnel. Professional training of these employees are generally good, is power enterprises senior management.

The second leaf is made up of self-employed professionals, technicians and smaller organizations that are hired on contract. They are paid in fees for results rather than

in salary for time. No benefits are paid by the core organization and the worker carries the risk of insecurity. They also enjoy considerable autonomy.

The third leaves: Representative is a very flexible labor, such as part-time and temporary workers. In handy mode, this part is not only hire helper, enterprises should fully close to them, let them feel a part of the organization, and high standard work. This part of the decision making power of workers usually limited within the scope of their work.

3.2 Matrix structure

Matrix organization structure is based on linear function type vertical form of organization system, to add a horizontal leadership system, composed of functional departments and the completion of a temporary task and the formation of project teams, organizational structure to realize the divisional and functional organization structure. Matrix organization structure can also be referred to as the non fixed long-term organizational structure.

Advantages:

Mobile, flexible, with the project development and the end of organized or dissolution.

Because the structure is based on the project organization, task clarity, clarity of purpose, the various aspects of expertise who are prepared. So in the new working group, communication, fusion, to their work with the whole working together, to overcome the difficulties, problems and suggestions, because from the aspects of deployed personnel have a sense of trust, sense of honor, so they increase the sense of responsibility, to stimulate the work enthusiasm, promote the the project implementation.

It has also strengthened cooperation between different departments and information exchange, overcomes the linear functional structure in various departments disjointed phenomenon.

3.3 The impacts of technology, size and task on Organization structure in Yum

The contingency approach proposes that businesslike organization must conform its structure in a sense that is compatible to the type of surroundings in which it operates as well as the technology it uses and any other context related element such as business circumstances.

Task: The structure that an organization selects to achieve its objectives is based on strategy. Yum providing a clear direction and strategies is build leading brands across China in every significant category.Then Yum established China's business division. Size: While the size of an organization significantly influences its structure, the relationship is non-linear. Yum Brands predecessor was Tricorn Global Restaurant, was the United States Pepsi group company of a sales department, on October 7, 1997 from Pepsi Co separation, become an independent public company.When the company expand team size, the group's operating profit margins by three years ago 11% increase to 16%, and in the whole year of 1998 and the first half of 1999, all three brand chain sales are increasing, the group appeared thriving new scene.

Technology: Organizations use technology to transform inputs into outputs. 2005, Yum brands group and IBM announced formally signed the 《Restaurant IT System Installation and Support Agreement》, in China install 7000 sets of IBM POS machine.After Yum! restaurant improve IT system , customer satisfaction rose by 23%.

3.4 The line, staff, functional and lateral relationships in new

str

The human resources department, financial department, legal department, operations department and three division have different functions, such as: the human resources department is responsible for recruiting and training the employees; financial department is responsible for accounting, and so on. Black fine line represents Yum's functional structure.

Yum line relationships have four layer, the blue line represents linear function, the first layer is the board of directors, the second is the CEO, the third floor is all headquarters, the fourth floor is three division.

Yum s lateral relationships includes five headquarters, with green line shows that; And three division, black thick line shows that， the five headquarters and three division is lateral relationship.

The staff relationships of Yum is the authority of the board of directors of the range is CEO, the scope of duties and powers of the CEO is all employees of five headquarters and three division.

3.5 The relationship between authority, responsibility and delegation

Authority:Authority is the right to direct or guide the actions of others and extract from them responses that are appropriate to achieving the goals of the organization.The authority of the board of directors is guide to CEO's decision.

Responsibility:Responsibility is the obligation placed on a person who has a certain position in an organization to perform a task, assignment or function.Three business divisions responsibility is obtain profit for Yum.

Delegation:Delegation is the act of passing the responsibility to complete a task to another person.CEO empower three business division relatively independent autonomy and management.

Conclusion

According to the report, discovered the Yum in the management of human resources have advantages and disadvantages. According to its deficiencies, in the following suggestions, The leader should use Shamrock Organization theory to strengthen leadership and Yum s organizational structure d better chose multidivisional structure. Yum s management of human resources,the most successful is staff training, due to Yum s excellent staff training, let the staff wastage rate of Yum was zero, this is wonderful. Now this is the best time to re-structure the organizations in order to get the most effective transmission of information; regarding the organization is a big surprise, so that the organization can develop more accelerate to achieve better results.

Reference

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2.Bryman, A. and Bell, E. (2007), Business research methods, 2nd Edition, Oxford University express.

3.Bryman, A. (1988a), Quantitative and Qualitative in Social Research, Routledge, London.

4.Garavan, T. N. (1991), Strategic human resource development , Journal of European Industrial Training, Vol. 15, No.1, pp. 17-31.

5.Harrison, R. and Kessells, J. (2004), human resource development in a knowledge economy, Palgrave Macmillan.

6.Harrison, R. (2005), Learning and Development, CIPD.

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