PIZZA HUT Organisational Analysis-Bureaucratic Style


PIZZA HUT-Organisational Analysis



Pizza Hut is a chain of restaurants and an international franchise based in America. It is specially known for the Italian-American cuisine and the menu of the restaurants include different types of pizzas, pasta and a side menu dishes as well as desserts. The restaurants are present worldwide in over 15,000 locations and this company is the subsidiary company of Yum! Brands Inc. (Galbraith, J. T., & Howard, J. ,2014) which is considered to be one of the world’s largest restaurant companies.
The chain of restaurants is divided into several different restaurants like dine-in with family type, front delivery, home delivery and various hybrid locations (Yondonperenlei, K., Scholar, M. B. A., & Song, W. Q. , 2015).). At some of the location the restaurant has an option of lunch buffet with different other options like pizza, salad and bread sticks. Pizza hut has other types of concepts of business which is different from its conventional store type business like ‘pizza Hut Bistro’ and ‘Red Roofs’ (Colvin, G., 2013)., both of these have an expanded menu than the basic menu. Apart from these, ‘Pizza Hut Express’ and ‘The Hut’ are the other fast food restaurants which serves a limited menu

Fundamentals of leadership, including leadership styles and traits

Everyone is considered to be the leader at Pizza hut as well as they are accountable for their performances and leading the duties carefully and responsibly.

The different leadership styles (Potts, M. , 2013) are used by the company in following manner:

  • Autocratic style- The leaders in the company give commands and expect the positive reaction from the employees. For this, leaders specially create a easy and approachable environment in order to ease the operations.

  • Bureaucratic style- The leaders of the stores fix the monthly duties of the employees and in return the employees get rewards for performing effectively like employee of the month, etc.

  • Democratic style- These style allows the manager of the store to give the goals to be accomplished in a specific time by the employees. The managers even involve the employees in decision making process many times whenever required.

  • Laissez-faire style- According to this style, employees and colleagues get the complete freedom to make decisions on their behalf for their own and even resolve some issues according to their understanding.

Strategic thinking

Pizza hut has been planning strategically (Kang, H. , 2016) since its inception which has always resulted in better results and growth of the company. While introducing new products in the menu management has kept several things in consideration and then only has taken the step. Introduction of the new item takes place after many surveys, one on one interviews, door to door surveys, voting manually and electronically. The company’s decisions are result of their strategic thinking.

Emotional intelligence

Understanding the emotions of the employees by the manager affects the behaviour and the effectiveness of the employees directly or indirectly sometimes. Therefore providing that security to them by the managers means a lot to them and sometimes becomes one of the reasons for joining the job. Emotional intelligence in Pizza hut (Fry, L. W. J., & Wigglesworth, C. G. , 2013) is related to realm of intelligence to a great extent because it refers to the typical behaviour of the employees rather than getting maximum performance from them sometimes.
Employees are mostly concerned about their self-esteem, a trait which concerns them to an extent that they could even leave their job if not satisfied. So when the employees see that they are worthy and valuable and still not respected then they could act negatively.

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Communication and leadership

At stores, Pizza hut has a large number of young employees who usually don’t work according to the standard office hours or if they have to work on fixed timings that becomes challenging for them. Earlier the restaurant used to take help of emails, meeting with the teammates and sending notices in the staff room of the store to convey various messages related to various changes in the organisation or any other news related to work but all these methods could work upto the level of engaging employees effectively. So the solution which they got was ‘Microsoft Yammer’ (Sharma, A., Sharma, A., Bhatnagar, J., & Bhatnagar, J. , 2016). By implementing it the way of communication improved as everyone could communicate directly.

Organizational culture and climate

Pizza hut’s beliefs and values mean its culture. The vision and mission of the restaurant is basically formed as per the suitable culture preferences. In Pizza hut, they try to make customer friendly environment so that they could make them comfortable. They believe in having an environment where best foot is put forward to bring desired things for their customers each day. The vision of the company is to become world’s leading chain of restaurants for providing the specific cuisine. Now to achieve this target, some suitable strategy s required which could give effective and efficient results. If the company adopts innovative culture, then they will always bring some new things suitable for their customers by adopting different and acceptable ideas. 
The culture of the restaurants directly affects the nature of the employees and hence their method of day to day work. From their behaviour, customer understands the specific type of culture which the organisation has imbibed.

High performing teams

According to Pizza hut management, for them it is very important that all of their team members should work together and also follow the rules and regulation of the store efficiently in order to provide the food and service of the best quality to the customers.
Here any new employee is selected on the basis of these abilities (Colvin, G. , 2013), they are: 

  • Ability of working as a team be it a small or big

  • Qualifying all the levels of test during the training program

  • After all the training sessions and tests when the new employees start working they can be part of various teams present at work which are Front counter, kitchen, dining area, Drive thru and the management team.

Managing change

The changes in the company are managed efficiently by them using the different methods which are focussed to re-direct the use of available resources to them, the suitable business process, or various other forms of or modes of operation (Etgar, M. , 2015) that helps in reshaping the company. 
Whenever a new policy or rules or offers are made which should be known to customers, the restaurants make them public by informing at the various locations of the restaurants and even by advertisements that is by the use of mass media.

Problem management and decision making

Recently Pizza hut chose and started making use of two different softwares namely: APT’s Test & Learn (Yang, X., Han, J., Pokharel, S. K., Manandhar, C., Parsons, R. L., Leshchinsky, D., & Halahmi, I. (2012) and Menu Analyzer (Bruemmer, B., Krieger, J., Saelens, B. E., & Chan, N. , 2012). These softwares will help in improving the decision making process across all the restaurants easy while taking decisions for investment issues, pricing policy, promotion of employees, marketing techniques and various other operations. By taking this step Pizza hut has joined the league of other restaurants like Costa, Subway, Starbucks, Wendy’s, and Dunkin’ Donuts. All these restaurants have used APT’s software which is cloud based (Leetaru, K. H. , 2015) for improving their guest’s experiences and their own profitability. It was observed that Pizza hut has already started using the software in order to optimise and enhance as well as improve their menu and hence remodel their programs.

Ethics and professional codes of conduct

The code of conduct of Pizza hut (He, W., Zha, S., & Li, L. , 2013) applies to the company’s Board of directors and its all the employees. Its code of conduct ha set some policies and procedures related to the standard of conduct which required by the company’s directors and employees. The code of conduct is set up to help the employees in different situations and problems whenever arise. It is also intended to make employees friendly with the ethical standards and maintain employees’ reputation. 
After opening stores worldwide, the board of directors and all the senior employees of the company have to complete complete a questionnaire which is related to conflicts of interest and also have to certify that too in writing that they have read and understood the provided code of conduct of the company.

Managing conflict

Conflicts usually occur when customers are not happy with company and not when employees disagree on something. This is because the main motive of customer satisfaction (Wu, C. T., Tsai, Y. H., & Peng, J. Y. , 2013) if is not achieved then the situation arises and reaches till their superior.
But recently an allegation was put on Pizza hut which was that its franchises are not paying their workers the required salary. It was an eye opening question for the company as HR had to work on this front now which was not at all under their supervision. Keeping in mind their history of strong HR practices the exploitation had to overcome as soon as possible.
When HR came into the matter it was observed that employees were given a little amount of $12 per hour only and were not even given the superannuation. After investigation it was observed that the allegation was made when the company was going through a legal battle in the Federal court with some of its its franchises. It was also seen that some of the franchises were not working according to the existing enterprise agreement. Therefore the legal battle had to take place and resolve the matter.

Strategic planning

Pizza hut at many times introduced new products in order to shoe its presently during the times when other brands are fighting in the race of providing various offers. So instead of giving only offers, the company launches new product and then releases promotional offers (Wu, C. T., Tsai, Y. H., & Peng, J. Y. , 2013) as well.
Like when pizza hut introduced a new product called ‘The Extreme’, a brief idea into the history of the company was given and even the analysis of the company was provided in order to engage people and attract new customers. This act bind people emotionally which eventually led to more customers and hence increase in sales. 
All these ideas are results of the SWOT analysis performed by the experts which is carried out in order to know about the strengths, weaknesses, opportunities, and threats of the company. So ‘Extreme Pizza’ was introduced by first describing it because it was to be made sure that its speciality should be focussed more which was its largest size among all the pizzas present in the market and the double amount of cheese and toppings as well.
All the age groups were targeted. It was seen that this segment had already been a success even before elaborating the meaning of ‘extreme’ which was to be explained again. So now it was time to focus on distribution channels which were using the direct channel of distribution. And the product will be available through all the mediums of their services which even included home delivery with special packaging without even charging extra for it.

Power and Politics

As all the new employees in the company are selected according to their ability to work and if they would be compatible with team, therefore teamwork accordingly to the company forms a large part of the process of training programmes and hence the result which is measured in the terms of performance appraisals.  
Whenever the power is given in a group to some of the people then an element of politics always arises or we can say that politics is attached to power in a manner. Therefore delayering sometimes could be the possible and an effective strategy when there is need to improve various power issues. Also task of giving more responsibility and less management to the staff can make busy with the work and therefore interest in politics would not build up. 


Since even after launching many new variants and items like crazy cheesy crust pizza, three cheese stuffed crust pizza, and Blake Shelton-endorsed BBQ sauce pizza, the company have failed several times while improving the results and increasing sales in order to get more customer count. This chain of restaurants is executing its plan of establishing themselves in China as an upscale restaurant for family dining rather than merely being called a delivery and takeaway store. The restaurant has 1,134 dine-in locations in the country and the sales are also growing day by day. In comparison to these dine-in restaurants there are 215 shops of delivery. In U.S., there are around 14 percent dine-in restaurants of Pizza hut which is comparatively lower than the count of restaurants in China. 
Recently Pizza hut made a partnership with a dessert brand called Hershey that resulted in a new dessert being added to their menu which was an 8-inch cookie, this addition made them to update their website as well as the app (Tung, M., Cheah, I., & Foster, B. , 2015).
As the company had taken many steps for improving and growing quickly it had resulted in failures many times but it didn’t stop rather always took risk as compared to their competitors and were rewarded for that, that’s why Pizza hut has been growing phenomenally.

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