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
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Property a/c
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Sales a\c
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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.
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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.
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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
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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.
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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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