Detailed Analysis of Hilton Hotels' HR and Accounting Practices

This report provides a comprehensive analysis of Hilton Hotels' HR and accounting practices. It begins with the preparation of journal entries, ledgers, and a trial balance, followed by the calculation and interpretation of key financial ratios such as operating profit margin, return on capital employed, and current ratio. The report then delves into the issues of talent acquisition and retention within the hospitality sector, specifically focusing on the Hilton group. It outlines the different stages of the HR life cycle for accounting jobs, including staffing, training, motivation, and performance evaluation. The report also reviews these stages, evaluates their importance, and suggests recommendations for improvement. Furthermore, it discusses relevant legislations, regulations, and standards affecting Hilton Hotels' decision-making, along with the importance of communication and coordination within the accounting department and different communication methods. The report concludes with an overview of the key findings and recommendations for enhancing HR and accounting processes within the Hilton group.

MANAGING HOSPITALITY
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................4
1. Preparation of journal entries..................................................................................................4
2.Preparation of ledgers account ................................................................................................5
3.Preparation of Trial balance.....................................................................................................6
4. Calculation of financial ratios ................................................................................................7
b. Return on capital employed....................................................................................................7
c. Current ratio ...........................................................................................................................8
1. Issues in talent acquisition and retention in hospitality sector................................................8
2. Different stages of HR life cycle in Hilton group for accounting job....................................9
3.Reviewing the different stages of HR cycle .........................................................................10
4 Evaluating the different stages of HR cycle and importance of HR .....................................10
5 Development of performance management plan ..................................................................11
6 Recommendation on improving processes and documents at each stage in HR life cycle. . .11
7. Legislations, regulations and standards that affect the decision making of the Hilton hotels
...................................................................................................................................................12
8 Importance of communication and coordination in accounting department of the Hilton
hotel...........................................................................................................................................13
9. Different methods of communications and coordination......................................................13
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality management is planning and organising the various components within in the
hospitality industry such as managing hotels, resorts, private clubs, casino bars and more
specifically sales, operations, business development, other strategic events within the
organisations. The present report will lay emphasis on Hilton group of hotels and its
management (Lopes, 2016). The assignment will cover hotel's HR's issue in appointing
accounting professionals, different stages involved in HR life cycle, impact of legislations and
regulations on the organisation. The importance of communication and coordination in different
departments in the organisation and the different methods of communication will be highlighted
in the present report.
1. Preparation of journal entries
Journal entries for year 2016
Date Particulars Debit Credit
1/04/2016 Cash a/c Dr.
To Capital a/c
1,80,000
1,80,000
10/05/201
6
Assets a/c Dr.
To cash a/c
1,30,000
1,30,000
15/06/201
6
Purchases a/c Dr.
To cash a/c
6,000
6,000
01/07/201
6
Cash a/c Dr.
To Sales a/c
8000
8000
01/08/201
6
Purchases a/c Dr.
To cash a/c
9000
9000
01/09/201
6
Sundry expenses a/c Dr. 200

To Bank a/c 200
01/10/201
6
Cash a/c Dr.
To Sales a/c
17,000
17,000
01/11/201
6
Wages a/c Dr.
To Cash a/c
2,100
2,100
01/12/16 Postage a/c Dr.
To bank a/c
300
300
2.Preparation of ledgers account
Sales Ledger account
Date Particulars Amount Date Particulars Amount
31/12/2016 To balance c/d 25000 01/07/2016 By cash 8000
01/10/2016 By cash 17000
Purchase Ledger account
Date Particulars Amount Date Particulars Amount
15/06/2016 To cash 6000 31/12/216
By balance
c/d 15000
01/08/2016 To cash 9000
Assets ledger account
Date Particulars Amount Date Particulars Amount
10/05/2016 To cash 130000 31/12/216
By balance
c/d 130000
Capital ledger account
Date Particulars Amount Date Particulars Amount

31/12/2016
To balance
c/d 180000 By cash 180000
Cash Ledger account
Date Particulars Amount Date Particulars Amount
1/04/2016 To capital 180000 10/05/2016 By assets 130000
01/07/2016 To sales 8000 15/06/2016
By
purchases 6000
01/10/2016 To sales 17,000 01/08/2016
By
purchases 9000
01/11/2016 By wages 2100
31/12/2016
By balance
c/d 57900
Wages account
Date Particulars Amount Date Particulars Amount
01/11/2016 To cash 2100 31/12/2016
By balance
c/d 2100
Postage Ledger account
Date Particulars Amount Date Particulars Amount
01/12/2016 To bank 300 31/12/2016
By balance
c/d 300
Sundry expenses Ledger account
Date Particulars Amount Date Particulars Amount
01/09/2016 To bank 200 31/12/2016
By balance
c/d 200

Bank Ledger account
Date Particulars Amount Date Particulars Amount
31/12/2016
To balance
c/d 500 01/09/2016
By sundry
expenses 200
01/12/2016 By postage 300
3.Preparation of Trial balance
Particulars Debit Credit
Capital 180000
cash 57900
purchases 15000
sales 25000
bank 500
wages 2100
postage 300
sundry expenses 200
asset 130000
0
TOTAL 205500 205500
4. Calculation of financial ratios
a. Operating profit margin ratio
Operating profit margin ratio = Operating Income/ Net sales*100
year 2015 2014
Operating profit 1042 914
sales 11365 9482

Operating profit ratio 1042/11365*100=
=9.168%
914/9482*100
=9.639%
Interpretation: The operating ratio has not much changed in the year 2015 as compared
to 2014. This means that company increased the revenue in the year 2015 in same proportion as
its operating income in relation to the previous year. Company's has not been able to cut its
operating costs in the current year which is why the operating profit did not increase in 2015.
The other interpretation is that the company is stable in its operating profit earnings which is a
good sign of its growth and prosperity.
b. Return on capital employed
Return on capital employed= Net operating profit / capital employed*100
Year 2015 2014
Operating profit 1042 914
Capital employed 13943 11033
ROCE 1042/13943*100 =7.47% 914/11033*100=8.28%
Interpretation : The company's return on capital has decreased in the year 2015 by
0.81% as compared to the previous year 2014. The firm has not been able to reap the benefits of
the capital invested in the business in the present year and showing the falling trend. Although it
is interpretation of just two year but if the fall continues than it will become problem for the
company to pay back the capital to shareholders by not earning sufficient profits for surviving in
the industry.
c. Current ratio
Current ratio = Current assets/ current liabilities
year 2015 2014
Current Assets 7700 4926

Current Liabilities 5174 1508
Current ratio 7700/5174=1.4 4926/1508 = 3.2
Interpretation: The current ratio of company has reduced in the year by 1.8% as
compared to the year 2014. Ideal current ratio is 2.1. In year 2014, the company had ideal cash
with it which reduced the productivity of the company. Whereas, in the year 2015, company has
less ideal cash as compared to last year hence the company's productivity has increased.
d. Day's trade receivables
Day's trade receivable = account receivable/ average sales per day
Year 2015 2014
Account receivable 4280 2540
Average sales per day 311137 25978
Day's trade receivable 0.14 0.1
Interpretation: The day's trade receivable ratio has increased by 0.04. The company's
per day sales has been increased over the year. And it is resulting in increase in profitability of
industry.
e. Sales revenue to capital employed
Sales revenue to capital employed = net operating profit/ EBIT
Year 2015 2014
Net operating profit 575 534
EBIT 961 892
Sales revenue to capital
employed
0.59 0.59

Interpretation: on the basis of ratio evaluation, sales revenue to capital employed
remained same in both the year of the industry
1. Issues in talent acquisition and retention in hospitality sector
 Lack of skills required: Hilton group have found it difficult to hire people with pre
requisite accounting skills who can the handle the financial related issues.
 High employee turnover rate: The hospitality industry is facing very high turnover rate.
The reasons being low wages and unusual time shifts which makes them to leave the
organisations sooner.
 Retaining the employees: When the right people for the right jobs have been found out
then the next challenge hospitality industry faces is how to retain them in the
organisations. Employees tends to shift more if they do not see their growth and
satisfaction in the company.
Retention problems in the hospitality industry are very common. People quits the
hospitality firm very sooner because of the odd shift timings, low salaries, lack of personal
development and career growth and very fewer people choose this industry. The retaining of
employees is considered as serious issue by the companies as it involve huge costs in recruiting
and hiring the professionals and labour. However, there are ways to overcome these challenges.
Retention benefits and medical benefits can be provided to the employees for creating future
security to them. Motivating the employees through proper recognition programs and assisting
the employees in developing their careers.
2. Different stages of HR life cycle in Hilton group for accounting job
The HR cycle in the Hilton hotels involve different stages in HR life cycle which are
discussed below:
a) Staffing: Finding right people for the right jobs and placing them at their appropriate
place is the first stage in the life cycle of HR. Talent acquisition by identifying the number of
people required in the organisation and searching out the suitable jobs are focus of the HR.
Hiring of the accounting manager include searching the candidates possessing the needed skills
for the required jobs and offering them to join the company. Explaining the career opportunities
in the Hilton group and providing the overview of the organisational cultural and working,

benefits available for the employees for encouraging them to join the organisation. Lastly to set
an interview protocol including written test and vocal tests regarding accounting knowledge
b) Training and education : Once the accounting manager is finalised and appropriate
salaries and benefits fixed. They are then put to jobs, their education and training starts with the
senior officers in the Hinton's finance departments for making them familiar with the working
and culture of the company.
c) Motivation: For retaining the accounting manager in the company, head of accounting
department organises various motivational programs for them to create sense of loyalty in them.
Monetary perks such increase in salaries, bonuses and non monetary benefits like employees'
recognition, career development plans, job security measures.
d) Evaluation of the performance: Accounting department of the Hilton group have a
stage of evaluating the performances of the hired accounting manager by comparing it with the
standards set by them and accordingly conducts performance appraisal programs.
3.Reviewing the different stages of HR cycle
The Hilton group follows different stages in its HR life cycle which are staffing, training
and development, motivation and lastly performance evaluation. Use of intensive recruitment
process for the skilled employees has proved beneficial for the company as the cost associated
with such hiring is matched with amount of gain it will reap through their expertise (Afsar,
Shahjehan and Shah, 2018). However, the same protocol should not be used for hiring people
for very low posts and this job should be outsourced by the Hilton to be more efficient as the
time and cost required in hiring of workers will not be worth spending. The training and
development stage involves a detailed study of the organisation and its working but it should be
more focussed on growth of the employees through more participation and by observing the
creativity and innovative ideas of the accounting professional rather than just giving them a
prefixed set of learning courses.
4 Evaluating the different stages of HR cycle and importance of HR
Staffing :Hilton hotels follows a fix protocol of hiring the accounting professionals by
testing their accounting knowledge, general knowledge about the hospitality industry, body

language, passion for the job through activities like group discussions. The protocol has helped
the company to hire high competent skilled accountants.
Training and Education: The company provides necessary trainings and education
sessions regarding the work and culture to make them efficient in their working and getting
familiar with the team members and senior authorities. This helps the organisation to provide a
better working place for the employees.
Motivation: Motivation stage of HR cycle ensures the employees' loyalty towards the
Hilton group. This stage of the HR brings the best of accounting professionals by motivating
them according to their needs. Efficient motivation strategies is the way of Hilton to retain its
highly skilled accounting professionals.
Evaluation of performances : HR evaluates performance of the people and accordingly
sets the compensations, training and developments programs by comparing with the standards of
the company. When accounting people falls below the standard performances, corrective actions
are taken against them. This stage helps the company to figure out who is performing
outstanding and contributing to the success of the company and who are becoming the
hindrances in the accounting department.
5 Development of performance management plan
Development of a performance management plan will include various stages which are
given below:
Guiding: The very first stage in performance management plan is to provide training and
mentoring to the newly appointed accounting professionals as this will create a proper
understanding of the company to the employees. Efficient coaching will result in efficient
employees and in reduced employee turnover and more job satisfaction.
Evaluation : Time is given to the accounting professionals to understand and perform
their jobs after which their performances are judged by the appropriate seniors in the
management. A set of standard performance is outlined at the time of their recruitment and
coaching against which the actual performances of the accounting professional are compared. If
the actual performances of the accounting specialist does not match the standards and differs by
large margins then corrective actions are taken. But when the performance are up to mark then
rewards and recognition are given to the accounting professional.

Termination: Termination is the last stage in performance management plan where the
employee who fails to perform and deliver the job are retrenched as they do not contribute
anything to the organisational goals and objectives.
The performance management plan of Hilton also include ways to improve the
performance of the accounting people in the company such as avoiding multitasking,
distractions, setting the goals and following the instructions of boss.
Performance evaluation plan of Hilton group of hotels
Employee name : Vincent Joseph
Job title : Assistant accounting manager
Hired on : 1 July 2018
Review Date : 15 August 2018
Next date : 15 September 2018
Team player : The employee is a good team player shows commitment towards the work in
the team and cooperates with the other members of the team.
Organisational skills : The employee showed good organisational skills, was good with self
discipline in meeting his work commitments, efficient in decision making.
Communication skills: Communication skills of the Vincent was observed good. He
communicated very professionally within the accounting department and followed the
instructions appropriately.
Deadline meeting capability : Employee was sufficient in meeting his work deadlines.
Vincent was efficient in performing his tasks on time and was quite good with time
management.
6 Recommendation on improving processes and documents at each stage in HR life cycle
HR life cycle of Hilton group involve lengthy processes and documentation while performing its
duties.