Analysis of Risk Management and Employee Satisfaction at Hilton Hotel

This report provides a comprehensive analysis of risk management practices within Hilton Hotel, focusing specifically on the factors influencing employee motivation and performance. The study examines the effectiveness of financial and non-financial incentives, and their impact on employee satisfaction levels. It employs both descriptive statistical analysis and regression methods to evaluate the relationship between employee benefits and performance outcomes. The report identifies key stakeholders and potential risks, including employee dissatisfaction and turnover, and proposes strategies for effective risk management, such as regular employee interviews and performance monitoring. The findings highlight the importance of aligning incentives with employee needs to foster a positive work environment and improve overall organizational performance. The report concludes with actionable recommendations for Hilton Hotel to enhance its risk management approach and optimize employee engagement.

RISK MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................................................................3
Descriptive analysis.................................................................................................................................................................................3
Forecasting methods................................................................................................................................................................................5
Suitable conditions for implementing qualitative techniques. Implementation of qualitative techniques into problems for future use.8
CONCLUSION............................................................................................................................................................................................8
REFERENCES............................................................................................................................................................................................9
..................................................................................................................................................................................................................................... 9

INTRODUCTION
The practices through which organisations are able to determine and effectively manage financial risks are known as risk
management. The risk assessment is based on various factors such as inflation, regression, volatility, etc. The present report is mainly
focused on the risk assessment and management process considered by Hilton hotel. It is one of the leading hospitality industry of
Australia. They are providing services at international platform (Bremberger and et.al., 2017 ). They takes various actions to improve
their products and services and maintain brand value. The company is facing some risk related to the performance of their staff. The
firm offers financial and non-financial benefits to their employees, but their work is still not producing effective outcomes. The
present report consists of various quantitative and qualitative technique. It helps in determining factors that demotivate employees. It
plays significant role in taking actions for motivating staff.
Evaluation of statement
It is true statement that knowledge can be divided in to uncertainty and perfect knowledge. Means that when any business
person operate its business there may be two sort of situation. In first situation there may be limited knowledge about business
problem and due to this reason lots of uncertainty may come in existence. Whereas, in second sort of situation one have perfect
knowledge about the business conditions and is in position from where it can make accurate predictions about outcome of situation.
So, basically there is a broad spectrum where there are two sort of conditions like one is uncertain and other one is certain. Risk
heavily lie in case of uncertain spectrum in comparison to certain conditions. This is because in case of condition of perfect knowledge
one have reliable facts and figures and broad knowledge of situation. Thus, by evaluating figures one is able to make reliable
decisions. On other hand, in case of uncertain condition everything is vague and it is like leaving arrow in darkness. One just by
making assumptions and estimations make decisions which is very wrong. Hence, there is high probability that decisions taken by one
in uncertain condition may be wrong.
In order to solve work based problems one must use analytic tools instead of making assumptions about situation and making
decisions. Under this managers must gather data in respect to work based problems and by using techniques like cluster analysis,
decision tree and regression analysis etc. By using these tools pattern can be explored and lots of hidden facts from data sets can be
explored. By using results of cluster analysis lots of decisions can be made by managers. In same way by using regression method
relationship between dependent and independent variables can be identified and decisions can be made by managers. It can be said
that use of analytic tools help managers a lot to solve business problems.
Risk management
There are basically two principles in respect to risk management that are followed by business firms namely consequence
based security management and risk reliant safety management. Former one concept state that while managing risk it must be
identified that if specific risk will not be managed then in that case what will be consequences. This help one in identifying those
activities where risk is comparatively higher than other activities. Apart from this risk residual concept state that probability and nature
of risk must be taken in to account while managing risk in the business.
Consequences of event
Firm is giving financial and non-financial incentives to the employees but desired results are not obtained. In case same trend
remain in existence financial burden on the firm will increase as employees do not feel motivated even financial incentives are given
to them. Thud , desired return are not obtained on invested amount. 8 steps for effective risk management are as follows.
 Identification of stakeholders of business
 Identification of reasons due to which risk comes in existence
 Finding out measures that can be adopted to control risks
 Performing analysis of risks
 Evaluation of risk
 Preparing risk management plan
 Execution of aforementioned plan
 Monitoring and evaluation of plan

Potential stakeholders
Potential stakeholders of current problem are as follows.
 Managers
 Top Directors
 Employees
In case of every risk specific treatment need to be given like if there is any risk which is very high it must take serious. On other hand,
if any risk is low then it can be avoided. In current case there is heavy risk of the fact that higher number of employees may remain
dissatisfied from the incentives that is given to them. Such kind of risk need to be taken seriously.
Identify risk
Major risk is that firm may work in wrong direction as it is giving financial and non-financial incentives to the employees but
fruitful results are not obtained. This may happened because firm is not taking right step to motivate its employees. Failure will lead to
wastage of money and time. Employee turnover may increase due to lack of motivation among employees to work hard for
organization.
Monitoring risk
In order to monitor risk time to time interview of employees can be taken and it may be identified whether after giving
financial or non-financial incentives employees are felling motivate or their performance is declining consistently. By doing so
success or failure of strategy can be determined.
Descriptive analysis

Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
Doyouthinkthatpoorem
ployeesatisfactionistheb
iggestissueinHilton
26 1 3 1.69 .788

HiltonHotelprovidefina
ncialandnonfinancialbe
nefits
26 1 2 1.35 .485
satisfiedwiththemonitor
ybenefits 26 1 4 2.65 1.056
monitorybenefitsimpact
onemployeeworkingper
formance
26 1 2 1.42 .504
companycanimprovesat
isfactionlevelofemploye
es
26 1 3 1.85 .881
Valid N (listwise) 26
From the above table, it can be stated that majority of the employees with the organization are not satisfied with the type of
work they perform. Employees are the face of the firm as they have direct interaction with customers. When they are not satisfied,
then it has negative impact over the business. From the response taken from 26 workers, it can be stated that majority of individuals
have agreed that employees are not satisfied. In addition to this, the total standard deviation attained for this questions is 0.788. This
show that most of the people strong agree that when employees are not satisfied, then this is termed to be the main issue for the
business and organization.
There are different type of strategies that are implemented by the business through which they tent to raise the satisfaction
level of employees. In this context, Hilton hotel aims at providing their workers with financial and non financial benefits. In
accordance with the mean identified that it is 1.35 and this show that more than half of the workers get financial and non financial
benefits. Further, the rate of standard deviation is 0.485 which is too low. From the value that is received from this, it can be stated
that even after providing employees with benefits, the rate of satisfaction is low.
From the other questions that was asked in questionnaire from employees of Hilton hotel, it can be stated that the financial and
non-financial benefits that are given to workers are not effective. It requires to provide proper consideration in which workers get
satisfied and this way the rate of performance can be raised. More specifically, there are about 2.65 which is obtained as mean
average. This shows that majority of the employees have selected the option not satisfied. Further, the rate of standard deviation is 1.
056 which is also low, it shows that firm need to take up proper focus on improving the financial and non-financial benefits.
There are different ways that are identified that due to which the rate of performance of workers gets negatively affected. In
this context, there are different type of research that are conducted in similar topic. As per the findings, it can be stated that employees
of Hilton Hotel are not satisfied with the benefits that are provide by the firm and from the data analysed, it can be determined that the
performance also gets negatively affected due to this reason. More specifically, it is identified that mean is 1.42 which show that
majority of the respondents have selected yes as their response for their question asked. Apar0.t from this, the standard deviation is
0.504 which is low. From this, it can be concluded that performance of the employees is getting negatively affected due to improper
facilities that are provided by the firm.
Some of the reasons due to which performance gets affected are de motivation, lack of training, unhealthy environment, etc.
From the questionnaire develop and from the response that were given by the workers, it can be stated that people are not the main
reason due to which workers can get to raise their satisfaction level is with the help of making improvement in the financial and no
financial benefits. When monitory benefits are high, then employees will put on their full efforts with the help of which they can
support the firm to grow. From the analysis conducted, it is identified that mean is 1.85. This shows that majority of the workers have
selected to improve the monitory benefits that are provided by the firm. The issue of dissatisfaction can be improved by improving this
area.

Forecasting methods
Symmetric Measures
Value Asymp. Std.
Errora
Approx. Tb Approx. Sig.
Interval by Interval Pearson's R .512 .138 2.918 .008c
Ordinal by Ordinal Spearman Correlation .498 .162 2.816 .010c
N of Valid Cases 26
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
H0:There is no significant mean difference between financial and non-financial benefits as well as satisfaction that people have from
benefits.
H1:There is no significant mean difference between financial and non-financial benefits as well as satisfaction that people have from
benefits.
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1
HiltonHotelprovidefi
nancialandnonfinanci
albenefitsb
. Enter
a. Dependent Variable: satisfiedwiththemonitorybenefits
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .477a .228 .196 .947
a. Predictors: (Constant), HiltonHotelprovidefinancialandnonfinancialbenefits
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 6.355 1 6.355 7.084 .014b
Residual 21.529 24 .897
Total 27.885 25
a. Dependent Variable: satisfiedwiththemonitorybenefits
b. Predictors: (Constant), HiltonHotelprovidefinancialandnonfinancialbenefits
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 1.255 .557 2.251 .034
HiltonHotelprovidefinancialandnonf
inancialbenefits 1.039 .390 .477 2.662 .014
a. Dependent Variable: satisfiedwiththemonitorybenefits
Interpretation: expiation level of employees is depended upon the financial and non-financial benefits provided by company. Value
of co-relation is 0.11 which means both variables are related with each other’s. If Hilton hotel provides satisfactory financial benefits

to its workers as per their needs then it will support in motivating them. Thus, their working performance will be improved to great
extent. On other hand if cited firm does not pay attention on needs of its employees then it will negatively impact on their satisfaction
level and their performance will be affected. R-square test has been done in order to find out impact of financial and non-financial
benefits provided by entity on employee's atonement level and their performance level. Results of R-square is found 022 which means
economic benefits are moderate depends upon satisfaction level of employees. If it improves then moderate change will occur in the
moral and contentment level of workers of the hotel. Significant value is 0.14 which means that if Hilton hotel makes changes in its
policies and practices in respect to its financial and non-financial benefits then it will support the organization in improving morale of
its workers. With the help of this cited firm will be able to identify their needs and will be able to fulfill these requirements. By this
way issue of poor satisfaction will be resolved in the entity soon and people will retain in the workplace for longer duration.
Correlation is the statistical tool which explains the relationship between depended and independent variable. From the calculation it
can be interpreted that satisfaction level of staff members and rewards and recognition are completely related with each other’s. If
people are not happy in workplace then they will not perform well that will affect financial performance of entity. It is essential for
Hilton hotel to identify needs of its workers and accordingly provide them monitory and non-monitory benefits.
H0: There is no significant mean difference between satisfaction levels that people have from monetary benefits and performance of
employees on job.
H1: There is no significant mean difference between satisfaction levels that people have from monetary benefits performance of
employees on job.
.
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 satisfiedwiththemoni
torybenefitsb . Enter
a. Dependent Variable:
DoyouthinkthatpooremployeesatisfactionisthebiggestissueinHilton
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .011a .000 -.042 .805
a. Predictors: (Constant), satisfiedwiththemonitorybenefits
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression .002 1 .002 .003 .957b
Residual 15.537 24 .647
Total 15.538 25
a. Dependent Variable: DoyouthinkthatpooremployeesatisfactionisthebiggestissueinHilton
b. Predictors: (Constant), satisfiedwiththemonitorybenefits
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 1.670 .434 3.848 .001
satisfiedwiththemonitorybenefits .008 .152 .011 .054 .957
a. Dependent Variable: DoyouthinkthatpooremployeesatisfactionisthebiggestissueinHilton
Interpretation

 R: R reflect relationship that is between two independent and dependent variables. In present case independent and dependent
variables are satisfaction levels that people have from monetary benefits and performance. It can be observed that value of R is
0.01 which means that independent and dependent variables are not correlated to each other. In other words it can be said that
there is not any sort of relationship between variable performance of employees of job and satisfaction that employees have
from financial and non-financial incentives. Thus, means that with change in one variable any big variation does not comes in
independent variable.
 R square: Value of R square is 0.00 which means that due to change in independent variable 0% change comes in dependent
variable (Statistical Reasoning for Public Health 2: Regression Methods, 2017). Means that with change in satisfaction level
that employees have from financial and non-financial incentives does not bring any sort of change in their performance. This
also means that there are many other factors that directly or indirectly affect employee’s performance at workplace. Financial
and non-financial incentives are not playing any sort of role in improving employee’s performance.
 Adjusted R square: It is another important component of regression analysis as it reflect change that can be observed in model
with addition of new variable in the model. It can be seen that value of adjusted R square is -.04 which means that with
addition of new variable -4% change comes in the results. It can be said that addition of new variable to model is not
beneficial. Hence, addition of values can be added to the existing variables and in this way data can be gathered in more
accurate manner.
 Sum of squares: It is one of the most important component of regression because it reflect the difference that is between mean
value and other data points of the variable. The difference that exist between mean value and data points is squared and in this
way sum of squares is computed. It can be observed that sum of square is less or very minimum for regression which is 0.04.
This reflect that most of data points have same value. However, in case of regression sum of squares is 15.53. It can be said
that there is difference in value of sum of squares of both regression and residuals.
 Level of significance: Level of significance value is 0.95>0.05 which means that there is no significant mean difference
between dependent and independent variables which are employee satisfaction and performance. It can be said that both
variables are changing at same rate and there is non-difference in rate of variation across both variables.
 Beta: Value of beta is 1.670 which means that with change in independent variable dependent variable only changed by 1.670
points. It can be said that with change in independent variable only minor change comes in dependent variable.
Suitable conditions for implementing qualitative techniques. Implementation of qualitative techniques into problems for future use.
Qualitative research strategy is based on the methods in which researcher gathers information through communicating with employees in
different ways such as interview, survey and questioner. It is one of the simplest and faster method for collecting information. In this strategy
information is represented in the form of graphs and charts. It supports in developing deep understanding about problems. On the basis of that
companies are able to changes. While considering this method, user is free to apply unstructured and semi technical tools, due to which people do
not having technical skill or knowledge are able to handle it ( Kamitsis and Simmonds, 2017 ). The suitable condition of implementing this
method is when company wants to gather in-depth text based information. All the data is gathered with the help of interviews and surveys and
with the help of assumptions and hypothesis outcomes are generated. If organisation is not provided with any specific structure for collecting
information, qualitative research method is appropriate because it is based on unstructured strategies. Along with this helps in developing initial
understanding about any problems. With the help of this method inductive research is considered where, all the models and theories are
implemented on the basis of information pattern. It provides flexibility to the researcher while implementation ( Walliman, 2015). Along with this
gives opportunity to make changes, if necessary outcome is not achieved. Therefore, the above forecasting techniques is suitable, when
organisation are not provided with specific structure for gathering data. With the help of this process they will get short term plans and also able to
backtrack is effective result is not achieved.
The workplace problem of the Hilton hotel is, they provide financial and non-financial benefits to their employees. The performance of
workforce is still not producing effective outcomes. It affects growth and profitability of the firm and also increasing risk factors for them. In order
to overcome these issues, various strategies are applied for mitigating it (McLeod, 2014). In order to improve future outcomes qualitative
technique can be implemented. Through this step organisation is able to conduct survey, where staff will be considered as sample space. With
the help of set of questions, reason of employees demotivation can be identified, such as workplace condition, organisational policies, etc. On the
basis of those factors necessary steps can be implemented by the firm. It helps in overcoming their problems and supports in managing company's
risk. In case if Hilton hotel is not provided with data and information related to the motivation level. They cannot measure impact on their
performance. Through implementing qualitative techniques the firm can face to face interview ( Toye and et.al., 2016). While conducting face to
face interview with employees authorities of Hilton hotel will be able to determine the factors that affects performance of employees. On the basis
of that company is able to take necessary steps for resolving those issues and motivating them.

CONCLUSION
On the basis of above report it is analysed that risk management is essential practice for increasing profitability and maintaining stability.
There are various strategies applied by the Hilton hotel for research, such as qualitative and quantitative. It helps in determining the factors that are
affecting employees. With the help if implementing quantitative techniques, company is able to apply tools like regression for generating effective
outcomes. However, with the help of qualitative approach firm is able to frame questioner for gathering information with the help of employees.
Through this method organisation is able to develop short term and strategies, handle these issues. Along with this if the company is not provided
with data for determining risks, they can consider face to face interview. It helps in identifying issues and on the basis of that necessary strategies
can be taken.