Hilton Hotel: A Comprehensive Analysis of HR and Financial Performance

This report provides a comprehensive analysis of Hilton Hotel's financial and human resource (HR) performance. It begins with an introduction to the financial metrics used to monitor the hotel's success, including journal entries and key performance indicators such as operating profit margin, return on capital employed, current ratio, receivable turnover ratio, and sales revenue to capital employed. The report then delves into the issues related to talent acquisition and retention within the hospitality sector, highlighting challenges in attracting, selecting, and motivating candidates. It further examines the HR life cycle, focusing on the stages of attraction and recruitment, onboarding, development, motivation and retention, and separation, specifically in the context of a business development manager role. The report evaluates the importance of each stage in the HR life cycle and the role of HR in each. Additionally, it includes a performance management plan, recommendations for improving processes and documents across the HR life cycle, and a discussion of relevant regulations, legislation, and standards and their impact on organizational decision-making. Finally, it emphasizes the importance of communication and coordination within the value chain. The report concludes with a summary of the key findings and recommendations for improving Hilton Hotel's overall performance.

The Hospitality Business
Toolkit

Table of Contents
The Hospitality Business Toolkit....................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Journal entries..............................................................................................................................1
Issues related to talent acquisition and Retention within hospitality sector..............................11
HR Life Cycle............................................................................................................................12
Evaluation of Stages of HR Life Cycle and Importance of HR in that Stages..........................13
Performance Management Plan.................................................................................................14
Recommendations to improve process and documents at all stages of HR Life Cycle............15
Regulation, Legislations and Standards and their impact on decision making of the
organisation................................................................................................................................16
Importance of Communication and coordination in Value Chain.............................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
This report includes accounting measures in terms of monitoring financial performance
of the Hilton Hotel. This is important as financial success is most important indicator of success
of the organisation. Later in this report various functions which are covered by HR of the
organisation have been included. This includes functions like talent management and retention of
employees. Stages of HR cycle and their evaluation have also been included in this report. This
report includes performance development plan for the role of business development manager.
This has been followed by regulations and legislation which are required to follow by
HiltonHotel. Lastly importance of communication and coordination in HR department of the
organisation has been discussed in this report. These all have been discussed in context of Hilton
Hotel. This is a hotel which has been founded in 1919 and is headquartered at Tysons Corner,
Virginia, United States. This hotel serves at around 5757 locations in the world and employs
more than 160000 employees all over the globe.
MAIN BODY
Journal entries
1

2

Property a/c
3

Sales a\c
4

5

Operating profit margin
It is the profitability or performance ratio which reflects percentage of profit which is
produce by a company from its operations, prior to subcontracting the interest charges and taxes.
It can be calculated by the operating profit through total revenue and expressing the percentage.
This margin is also known as the EBIT margin that is Earning Before Interest and Tax.
Operating profit margin is also known as the operating income margin, profit margin. From the
above table it can be interpreted that the performance ratio or profitability of Hilton hotel reflect
that the company had gained the operating profit of 914 for the year 2014 and 1042 for 2015.
This indicates that the performance of company has been enhanced and the company is doing
well.
6

Return on capital employed-
Return on capital employed is stand for ROCE. It is the financial ratio which determine a
profitability of company's and the efficiency capital is applied for. The high ROC implies more
and more economical use of the capital. ROCE must be higher than capital cost. If not then the
company is less productive and is inadequately developing the value for shareholders. This is
helpful in measuring that how efficiently Hilton is using their capital, simply they can put ROCE
for measuring that how well company is utilizing their capital further for generating profit.
Return on capital is employed is to be considered one best ratio of profitability and this is
commonly used by several investors for determining whether organization is suitable for
investing in or not.
From the above table it can be interpreted that the Hilton hotel's ROCE is less than
comparable to the year 2015 that is 8.28% to 7.47%. It states that the Hilton is less productive
and it is not efficient for the shareholders to invest into the Hilton hotel as whole. Thus, the
company's overall cataleptic divested is not utilized greatly for the growth and development of
the hotel.
7

Current ratio-
Current ratio is liquidity ratio which measure organization's ability for paying short term
obligation or these due across one year. It told that investor and the analyst that how a company
can maximize current asset on their balance sheet for satisfying the current debts and another
payable. For calculating ratio, analyst must compare the organisation's current assets to their
current liabilities. Current assets are listed on the balance sheet of the company that can also
includes cash, inventory and another assets and account receivable which are expected to the
liquidates or turning that into cash within less than one year of time period. The current liabilities
contain wage, accounts payable, tax payable and current amount of the long term-debt.
From the below table it can be stated that Hilton performance has been enhanced from
the year 2014 to 2015 which has seen the minimum difference among the ratio. The increase in
8

ratio state that company is performing well and gaining huge revenue and profit margin from last
year. The company has enhanced their overall current asset and liabilities within the year. This
has a positive sign towards the company significantly.
Receivable Turnover ratio
It is the account receivable turnover ratio in an accounting measure which is utilized for
quantify organization's overall effectiveness for collecting its receivable or the money which is
own by the customers. This ratio show how good Hilton hotel is managing and using their credit
and how it extends to the consumer and how fastly the short-term debt is being collected or is to
be paid.
From the below table it can be interpreted that the Hilton hotel is performing well as the
receivable ratio of company for the year 2014 is 98 and the for 2015 is 137 which state that the
short term debt of company are effectively paid and maintain by company significantly.
9

Sales revenue to capital employed-
This ratio is related to concern with effective utilization of organization's assets. It can be
calculated by diving sales revenue by the capital employed. The higher assets turnover ratio is
prefered to the low one, as it indicates the assets are effectively used within the company.
From the below table it can be assumed that the assets within the Hilton Hotel are utilized
greatly and this can be stated from the ratio of year 2014 that is .86 and for year 2015 it is .82. It
is clear from the above data.
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Issues related to talent acquisition and Retention within hospitality sector
There are various issues which hospital sector face when it comes to talent acquisition and
biggest in all of them is searching the right person who can fill the gap of talent in Hilton Hotel.
Issues related to Talent Management are-
Searching Candidates
This is the major issue and this comes just after hotel device to recruit new people to fill the gap
of required manpower since existing manpower. This required lot of efforts from the source of
hotel to locate the right type of candidate (D’Annunzio-Green, 2018). The candidate who is
capable in context of skills and a fit in organizational culture.
Attracting Candidates- Challenge does not stop at finding candidates later they are required to
attract as well. In case candidates do not get attracted than they will not apply for the post in the
organisation. This requires organisation to prove that they are best place to work at and can fulfil
all the needs and requirements of the employees.
Motivation and Retention- Once candidate get selected and hired in organisation later they are
required to motivate so that they doo not leave the organisation. Motivation is a very important
factor in retaining the candidates. Retention is important as high rate of attrition increase cost of
Hilton and decreases its productivity.
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HR Life Cycle
Hr life cycle is the cycle of employee from their entry in the Hilton to their exit from the
organisation. This consists of some stages through which employee passes in organisational life.
Here job role of business development manager is being taken to explain the Hr life cycle.
Attraction and Recruitment- This is the first step of life cycle of HR in this candidate is
attracted to apply for the post of business development manager (Williamson and Harris, 2019).
Later the candidate applies and gets in the process of selection for this company post its vacancy
to various platforms so that candidate can be aware about the vacancy in Hilton. This includes
giving knowledge of prospective candidate and employee about the required skills and
knowledge of business development manager and what experience for the post is required so the
person who fits into these criteria can apply for the job.
On boarding- In this stage of HR life cycle employee gets on boarding in the Hilton. This
includes their induction and orientation about their job and the organisation. In this employee
start working on their respective post at Hilton Hotel.
Development- This includes process of giving training and development to employee so that
they can perform their job with efficiency. This includes both giving training of the skills which
are required to perform the task just after employee joins the Hilton Hotel and in between their
work at Hotel so that their existing skills can be enhanced and also to give knowledge about
updates skills and knowledge.
Motivation and Retention- This is the stage at which business development manager is
motivated by the organisation in various ways some of them are monetary and nonmonetary
rewards and good compensation and recognition for their exceptional performance in the Hotel.
This motivates Business Development managers to stay in the organisation and work for the
organisation.
Separation- This is the last stage in the cycle and this includes separation of employee from the
Hotel (Gupta, 2017). There are various reasons because of them employee gets separated from
the organisation. Such as, end of the contract, retirement, termination from job and resignation.
Business development manager leaves the post and this again become vacant.
These are all stages of life of human resources. These stages are important as they cover all
the life of employee in the Hilton Hotel. This start from the time Hotel starts looking for
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employee who can take over the place of business development manager. This is a big
responsibility and this is why company have to ensure that the employee possess all the qualities
which should be in the employee. This is ensured while selecting and recruiting manager and
than during on boarding of the employee they show their quality and skills. Later these skills are
enhanced while training and development so that all the task can be completed by the manager
with efficiency. This training ensures both skills which are required to be possessed by the
manager and which are necessary to complete their important task. Other than this training also
includes enhancing and providing skills and knowledge which can improve the efficiency and
effectiveness of the performance of the business development manager. Later they are motivated
through various methods managers are motivated so that they keep performing to their best and
retain in organisation. This is important as if employees do not stay in organisation this increase
the rate of attrition and this increase cost of the organisation and also decrease the productivity of
the organisation. This is because people who can work and work efficiently are not available in
the organisation.
Evaluation of Stages of HR Life Cycle and Importance of HR in that Stages
What are the various stages of life of HR in the organisation have been discussed earlier
and now this includes evaluation of the stages and which stage is more important in life of HR.
In all these stages HR plays an important role in these stages and these are as follows-
1st Stage - Attraction and Recruitment is the first stage of HR life cycle. This is the HR who is
supposed to carry out the function of attracting efficient candidates which are available in the job
market (McCracken and et.al., 2017). This requires them to design clear and proper required
skills and experience and qualification so that people who want to apply for job does not have
any type of ambiguity. This stage in very important without this stage Hilton Hotel will not be
able to carry out the whole process. This is the foundation of the all other process of the talent
management.
2nd Stage- this is the process from where actual management of talent gets started and talent
become part of the organisation. In this HR plays an important role to ensure that employee gat
all the required assistance to work in the hotel without assistance employee will not be able to
work effectively. This will affect performance of hotel and performance of employee.
3rd Stage- This stage includes those activities which are carried out to ensure that employee is
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equipped with all the knowledge and skills. This will ensure they know everything related to
their job and also that they can work efficiently in their time and before them and also in a
manner which is cost effective for the organisation. They are equipped with updated knowledge
so that they can work with the changing pace of competition and market. The role of HR in this
is very significant as the whole process is carried out by the HR which includes determination of
training need, carrying out training and lastly determination of results and changes because of the
training.
4th Stage- this includes motivating and retaining employee in the Hilton Hotel (Gupta, 2019).
This includes various methods of motivation and this is the role of HR that they ensure what are
adequate techniques through which employees of the Hilton Hotel can be motivated so that they
retain in organisation.
5th Stage- This is the last stage and all the formalities and activities which are related with exit of
the employee from the hotel are carried out by the employee and this is why role of HR is also
very significant in this stage.
Performance Management Plan
Performance management plan includes setting objectives and later carrying out activities
and functions which can contribute in achieving those objectives. This also includes ensuring
that all the skills and qualities which are required to carry out in the functions are possessed by
the employee. Such performance management plan is being discussed here for the role of
Business Development Manager. This includes objectives of Hilton Hotel which are increasing
its customers and market share. Later business development manager has responsibility to ensure
that business get new customers and at the same time ensures that old customers are loyal for the
hotel. For this a SWOT analysis of the Business Development Manager have been carried out
which is-
Strength
 Communication Skills
 Data Analysis Skills
 Project Management Skills
Weakness
 Negotiation skills
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 Team Management Skills
Opportunities
 Attracting new customers
Threat
 Negotiation with old and existing customers
 Dealing with team dynamics
To overcome the weaknesses the plan through which performance of business development
manager can be managed is as follows-
Skills Need Method to improve Time
required
Measurement
Team
Management
Skills
This is very important for a
person who has been
employed for the level of
manager in the organisation as
they are required to manage
team and dynamics in teams
of the department.
Through taking
workshops which are
dedicated for this
purpose.
Taking help from
books and other experts
of the skill.
2 to 6
months
Documentation of
improvements and
changes in
performance before
and after.
Negotiation
Skills
These are important while
dealing with customers and
specifically those with who
are existing customers of the
hotel.
Regular practicing and
increasing confidence
while dealing with
customers.
6-12
months
Success in positive and
favourable negotiations
with customers.
Recommendations to improve process and documents at all stages of HR Life Cycle
These stages are very important and in organisations these are documented. This also
includes documents related to employees (Malik, 2018). Some recommendations are being given
here so the process in each stage and documentation can be improved by Hilton Hotel.
In relation with process hotel should ensure that while recruiting it adhere process which
can ensure that manpower and employee joining the hotel already does not have any issues
which might require them to leave the hotel some time after they join it. In this hotel should
documents record of all the candidates who have been approached for interview and selection
procedure and specifically those who have not joined the hotel after being selected in the
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process. This will help hotel to have record of those which are efficient and hotel can contact
them in future.
This is the process of getting the employee onboard. In this hotel should make a contract
with employees which can bind then to spend a minimum time in the organisation so that
employees do not leave the organisation and documents in these that company needs to maintain
are contract with employees and other basic and job related details of the employees.
In the stage which includes training and development of employees’ record which are
required to keep and maintained are record related to needs and requirement of training,
documents which include training and development program and later their appraisal in the form
of what changes and improvement employees have shown in their performance after their
training.
Documents for their motivation are certificate of recognition. In HR department they are
also required to document pay and monetary rewards given to employees (Marks, 2019). To
imp[rove this process hotel should ensure that employees are being motivated through right
methods and changes in performance of employees is the criteria and measurement of the
effectiveness of motivational techniques.
Lastly what documents HR are required to keep in this are documents related to exit
interview and the process which Hotel follows for the exit of the employees. To improve the
process in context of those which are leaving hotel by resignation hotel should try to stop them in
organisation in order to reduce the employee turnover. In this hotel should ask the employee
reason of leaving the organisation and when hotel found that the reason is valid then hotel should
take steps to improve the situation.
Regulation, Legislations and Standards and their impact on decision making of the organisation
For organisations to work without any legal issues it is very important that organisations
follow the regulations and legislations which have been developed and designed to be followed
by them to govern the organisations. This is very important and the regulations and legislations
related to hospitality industry under which Hilton Hotel operate regulations and standards are as
follows-
Employee Welfare
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Due to different nature and different type of employees which are posted and recruited in
hospitality industry the laws for the employee and their welfare are also different in this industry
and industry have to ensure that while taking decisions (Peisl and Shah, 2019). The types of
employees in this industry are permanent and seasonal and this becomes the basis for decision in
the industry. Hilton hotel have to make different type of rules and welfare policy for its
permanent workers and for its seasonal workers. In this industry part time employees are also
employed and have specific protection under the law. Hotel has to ensure that these are taken
care while making policy and rules for the employees.
Services of the Client
Clients are important for all the business organisations as they are the reason for them
organisations operate and they keep the organisations alive and grow. In relation with Hospitality
they have to take care of this aspect most significantly. The reason behind this is that under the
industry of hospitality various sub industries also operate and this includes various functions like
food preparation, maintaining hygiene and also ensuring safety of the customers. While making
decisions all these needs to be taken care so that hotel can avoid any type of legal issues.
Importance of Communication and coordination in Value Chain
Value chain refers to activities which are most important to carry out business and
business operations. The activities which are included in the value chain of Hilton Hotel are-
Primary Services
 Inbound Logistics
 Operations
 Outbound Logistics
 Marketing and Sales
 Service
Supportive Services
 Infrastructure
 Human Resources Management
 Technology Development
 Procurement
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In relation with all these activities HR department of the organisation have to ensure that all the
department of the organisation are equipped with efficient and effective manpower.
These requires them to communicate and coordinate with various department to ensure
availability of the employees and in case there are employees required in the department Hr have
to communicate their need externally so that interested candidates can apply for the job in the
organisation.
Along with external communication they have to coordinate internally as well (Bianchi, 2016).
This is because there are various people in the department which contact with different candidate
in such case coordination make it easy to ensure their further processing of the selection process.
In relation with contribution of communication and coordination to improve value chain
is that all the activities of the value chain are linked with employees and it is not possible to carry
out any task without them and HR department ensures that employees are available in the
organisation to carry out all the activities.
CONCLUSION
On the basis of above report it can be concluded that talent management and retention
which are very crucial aspect of HR in the organisation face many challenges and difficulties.
These are searching and attracting right candidate. Later various stages of HR life cycle which
can be understood as life cycle of employees in organisation, includes various stages from their
attraction to organisation and ends at their separation. Later what are the various regulations and
standards which have to be followed by hospitality industry have been included and these are
different in this as thi8s employs employees on various different basis. Communication and
coordination are crucial for the success of organisation and these are important to strengthen the
value chain of the organisation, importance of communication and coordination have also been
discussed in this report. All these discussion over various aspect suggest that functioning of
hotels are different from all other business organisations. Challenges are faced by HR department
of all the organisation but when it come to hospitality attraction of candidates and attrition of
employees both are major challenges which are required to be deal by the HR department.
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