Managing and Monitoring Financial Performance in the Hospitality Business

This article discusses the principles of managing and monitoring financial performance in the hospitality industry, with a focus on Hilton Hotel. It also explores the role of HR in the hospitality business and the importance of following laws and regulations. The article provides insights on reviewing employee performance and complying with relevant legislation.

The Hospitality Business
Toolkit

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INTRODUCTION
Business Hospitality toolkit is understood as a service industry which delivers various
kind of services to its customers. This types of industry has to provide various kind of services
to customers such as travelling, lodging, food and many more. The chosen organisation for the
assignment is Hilton Hotel which is one of the multinational hotel industry. It has been
incorporated in the year 1919 by Conrad Hilton. Here, different concepts will be discussed which
will include about principles for managing and monitoring financial performance. HR Cycle will
be discussed with its role and even several laws which will try to explore about the importance to
follow the law.
LO1
P1.
Any of the business requires the transactional record for determining the financial
position that whether it is favourable or not. For the purpose of determine there are different
ways through which management can easily find that whether company is performing well or
not. Such as P&L statements, balance sheet and many more. In terms of Hilton Hotel, for
managing every single transaction financial department has to play crucial role because they are
the one who can determine that how unnecessary expenses can be reduced. Different principles
of managing and monitoring financial performance are:
 Sales: Any of the company can make sales of two types and they are cash and credit.
Here, in cash sales, Hilton Hotel will get the opportunity to collect payment at a
particular time where transaction had taken place (Foster and Carver, 2018). But, credit
sales always takes time to collect payment where certain terms and condition are
included.
 Purchases: There are two types of purchase for any of the business and they are cash and
credit. In case of Hilton Hotel, they make any of purchase on credit where payment is
made after fix period of time.
 Receipts: It plays the crucial role for Hilton Hotel, as receipts plays the role of those
particular document where it can be easily identified whether product has been
transferred or not.
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 Payments: Here, company ca easily determine about the payment which they had made
to their suppliers and employees.
In any of the business entity, financial performance will allow the company to identify
about the inflow and outflow of the cash. All of the records can be maintained in it. Some of the
tools which can allow to know about the performance are:
 Key performance indicators: Here, every single activity within the business can be
evaluated which are essential to give competition to rivalry firms.
 Cost-to-profit ratios: This is connected with investment and the result which is being
obtained (Bagdasaryan, 2019). In context of Hilton Hotel, they will be needed to evaluate
the profit of a particular financial performance.
 Return on investments: It can give the way to management of Hilton to find that how
much return they will get after performing the task.
P2
Double entry book keeping system is a accounting system which plays the vital role in
managing the accounting standard in a specific manner. The rule of double entry system states
that balance of debit as well as credit side should be equal to eusre that there has been no errors
in the file. In context of Hilton Hotel, they takes the help of double entry system for the purpsoe
of managing the every accounting system. It also allow to find about profit and loss which incurs
within the company during the financial year (Richardson and Smiseth, 2019). The statement of
every single data has been presented below:
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Beverage A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 11203 28th Feb By balance c/d 42493
10th Feb To sale 8966
22nd Feb To sale 10614
17th Feb To sale 11710
Total 42493 Total 42493
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Sales A/C
Date Particular Amount Date Particular Amount
3rd Feb By Beverage 11203
3rd Feb By Food 1824
10th Feb By Beverage 8996
10th Feb By Food 1687
17th Feb By Food 1611
17th Feb By Beverage 11710
28th Feb To balance b/d 49360 22nd Feb By Beverage 10614
22nd Feb By Food 1715
Total 49360 Total 49360
Food A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 1824
10th Feb To sale 1687 28th Feb By balance c/d 6837
22nd Feb To sale 1715
17th Feb To sale 1611
Total 6837 Total 6837
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P3).
Trial Balance: It is necessary to understand that trial balance is the accounting statement
that gives the company to have detail overview about the ledgers which has been prepared. The
main benefit of any of the trail balance is its flexibility which provides the chances to ratify the
errors which occurs while preparing the accounting systems. In case of Hilton, there
management is required to identify and check the ledger on regular interval for identifying the
errors. The different aspects of trail balance which should be complied are:
 The closing balance of both Dr. and Cr. should be equal (Jarratt and et. al., 2019).
 It is mandatory to make two separate columns.
 With the reference of Trail Balance different accounting statements can be prepared.
Budget: It is explained as the estimate statement which plays the crucial role within the
business organisation. It gives guidance that how any of the decision is required to be taken and
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what are the essential steps which can allow the company to achieve the target. It context of
Hilton Hotel, it will be important for them to prepare budget as it will directly allow them to
reduce unnecessary expenses. Also, financial stability can be easily planned with it and they are:
Income streams: It will give idea about all of the incomes which company can earn
during the financial year.
Fixed cost and variable cost: Talking about the fixed cost, it can be easily determined
that cost will not never change. When it comes to variable cost, it changes on changes in unit
(Benson and et. al., 2020).
Margin target: It is crucial for the business organisation because it allows to identify
about the requirement which is needed at the time of conducting business. Business profit ca be
easily determined in it. There are number of activity in it which can easily manage budget. List
of additional activity are:
 Inventory costing: Here, stock required within Hilton can be easily managed so problem
will not occur.
 System of waste management: It is necessary to for Hotel Hilton because it reduces the
quantity of waste product.
LO2
P4).
Business requires the HR team who can perform the daily basis work through which
performance of an individual can be improved. There are number of roles and responsibility
which is needed to be managed by HR team of Hilton Hotel so that they will not have to suffer in
any of the situation. There are different stage of HR life cycle and they are:
Recruitment and selection: The main role of HR team of Hilton Hotel is to select the
candidate who has the ability to perform task as per the required style. Here, it will be necessary
for candidate to clear different stage for being selected (Nelson, 2018).
On boarding and orientation: It is the duty of HR manager that they must provide
duties and responsibilities to their employees. The HR team of Hilton should be able to give
work on the basis of there past experience.
Exit and transaction: For the purpose of removal of employees, HR team has the option
to take the help of retirement, transfer etc.
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Any of the company gets several ways through which they can hire the employees for
vacant post and those process of hiring are:
Internal recruitment: The employees who has been already working within the
company gets the right to perform different work from different post.
Promotion: Here, job profile of the employee get improved as they are provided the
opportunity to work for hire post (Kim and et. al., 2018).
Employee referrals: In this respective process, company hire the new employee where
existing employees of company suggest the candidate who can give there best for the
organisation.
Any of the company should understand that they must be able to retain the employees
who can give there best for the organisation. Some of the ways through which HR team of Hilton
can retain are:
Performance management: After having the detail analysis of employees, it is will be
necessary for them to understand that they must retain their employees. It is necessary for Hilton
Hotel to retain their existing employees because they are used to the situation and that can easily
allow the organisation to give competition to rivalry firms.
Training and development: For the purpose of retaining there existing employees, it
will be necessary for Hilton to provide appropriate training to employees so that they can be abel
to work as per the requirement. It will also allow the organisation to retain them for longer period
of time.
P5).
For company like Hilton, there HR team has the option to to review the performance of
every employee with below mentioned procedure.
Objectives Delivering training Review performance Monitoring & control
Promotion on
equity and
diversity
It will be the
responsibility of HR
team to give proper
training to there
employees and
developing the comfort
The performance of the
employee can be easily
review with the help of past
and present performance
while co-ordinating with
other employees (Jasnoff
Performance of every
employee should be
reviewed because it
will directly or
indirectly allow them
to perform better and
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zone that how different
people can work
together.
and Sheikh, 2019). give equal opportunity
to all of them.
Managing
multicultural
&
international
teams
In this respective file, it
will be necessary to
understand for HR team
of Hilton to provide
training to employees on
the basis of different
culture and there
languages.
Here, management can
have a overview of
organisation and
satisfaction level of guest
who visits the hotel in
recent period of time.
It will be important for
the organisation to
monitor about the
performance and in
that respective manner
promotion and
appraisal should be
given.
LO3
P6).
Hospitality Industry plays the crucial role for any of the nation but there are number of
duty which they must comply. Even there are number of laws and regulations which has been
enforced upon service industry. There are some of the laws and regulations which must be
complied by Hilton Hotel for the purpose of accomplishing there targets on time. The different
legislation are:
Environment legislation: In present scenario, Hilton Hotel must be able to comply with
the laws and regulations of environment law. Here, they are needed to find out the ways through
which they can reduce the waste material from there business organisation (Olson and Rajagopal,
2017).
Food and safety legislation: It will be important for Hilton Hotel to comply with food
and safety law where they will be required to deliver food product as per the requirement of the
law. It is necessary for the purpose of ensuring the safety of a public at large.
Cyber security: In any of the circumstances, it will be important for the management of
Hilton Hotel to not provide customer information to any of the person.
Employee legislation: Employment law will have great importance for Hilton Hotel
which simply explains that how any of employee should be treated within the organisation.
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P7.
In present scenario, different business organisation have different way of performing the
business activity and several law implies upon the organisation. It is crucial to understand, the
way of making decision will have its impact on the business. Below, there are some of the law
with its impact.
Company law: It is necessary to understand that company law has a great importance on
a company where they must comply all of the terms and condition. This law gives opportunity to
take decision as per the guidelines which reduces the chances of errors for the company. For
example: Hotel Hilton has to conduct meeting for shareholders and in this case with the help of
company they can easily decide what are the essential topic they must discuss during the AGM
which will have a positive impact (Jasnoff and Sheikh, 2019).
Contract law: The law where parties get the knowledge that how they are required to
enter into the valid contract. This particular law has a positive impact on a business organisation
as contracted party will not get the opportunity to terminate any of the condition in between the
project. For example: Hilton Hotel has entered into the contract with its supplier that payment of
every product will be given only after the completion of 2 month from the date of purchase.
Here, supplier will not be allow to seek for payment before the time period of 2 months which is
a positive in this law.
Employment law: This law determines the relation of employer and employee within the
company. In any of the circumstances, company will not allow to discriminate among the
employees. For example: If management of Hilton tries to do discrimination between the
employees then in that respective situation legal penalties can be imposed and that can have a
negative impact on a company.
LO4
Covered in PPT
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CONCLUSION
It is understood that, any of the organisation requires to manage each and every activity
in a systematic manner to achieve the target. Different laws and regulations are needed to be
followed while delivering the services to the public. HR cycle simply explains that in any of the
situation HR team must take there decision as per the requirement of a organisation for
accomplishing the goals on specific time period.
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REFERENCES
Books & Journals
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
Bagdasaryan, R., 2019. The Structure of the Trial Balance. Integrated Science in Digital Age:
ICIS 2019. 78. p.103.
Richardson, J. and Smiseth, P.T., 2019. Effects of variation in resource acquisition during
different stages of the life cycle on life‐history traits and trade‐offs in a burying beetle.
Journal of evolutionary biology. 32(1). pp.19-30.
Jarratt, D. and et. al., 2019. Developing a sense of place toolkit: Identifying destination
uniqueness. Tourism and Hospitality Research. 19(4). pp.408-421.
Benson, T. and et. al., 2020. The development and validation of a toolkit to measure consumer
trust in food. Food Control. 110. p.106988.
Nelson, G. S., 2018. The analytics lifecycle toolkit: A practical guide for an effective analytics
capability. John Wiley & Sons.
Kim, K.H. And et. al., 2018. Effects of corporate social responsibility on corporate financial
performance: A competitive-action perspective. Journal of Management. 44(3).
pp.1097-1118.
Jasnoff, G.R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of Undergraduates
Employability Toolkit. In EdMedia+ Innovate Learning (pp. 158-161). Association for
the Advancement of Computing in Education (AACE).
Olson, E. D. and Rajagopal, L., 2017. Event Management Training Toolkit.
ONLINE
Financial performance. 2019. [Online] Available through:
<https://www.investopedia.com/terms/f/financialperformance.asp/>
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