HNHM304: Managing Hospitality Organizations - Hilton Hotel Report

This report provides a comprehensive analysis of Hilton Hotel's operations, focusing on financial performance management, HR lifecycle stages, and legal compliance within the hospitality industry. The report details the principles of managing and monitoring financial performance, including budgeting, cost identification, and the use of key performance indicators. It explores the HR lifecycle, specifically recruitment, education, motivation, and evaluation within Hilton, and develops a performance management plan. The report also examines relevant legislation, such as the Health and Safety Act and Employment Act, and their impact on business decision-making. Furthermore, it outlines the interrelation of functional roles and communication methods within the hospitality sector. The report includes double-entry bookkeeping, trial balance, and financial ratio analysis, providing a detailed overview of the hotel's operations and management strategies.

THE HOSPITALITY BUSINESS TOOLKIT

CONTENTS
CONTENTS...................................................................................................................................2
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Principles of managing and monitoring financial performance of company.........................3
P2. Double entry book keeping system.......................................................................................4
Journal entries..............................................................................................................................4
Ledger account.............................................................................................................................4
P3.Produce as basic Trial Balance...............................................................................................7
LO2..................................................................................................................................................9
P4. Different stages of HR life cycle...........................................................................................9
P5 Producing performance management plan...........................................................................10
LO3................................................................................................................................................10
P6 Legislation that company has to comply with and adhere to...............................................10
P7 Describe that how organization employment and contract law has potential impact on the
business decision making in Hilton hotel..................................................................................11
LO4................................................................................................................................................12
P8 Ways in which functional roles within hospitality sector are interrelated...........................12
P9 Methods of communication and coordination......................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality industry includes various types of businesses like for example, food and drink
service, lodging, theme parks, restaurant, transportation, traveling, airline and many other
services. This industry focuses on getting consumer satisfaction by providing them high quality
of services. It is one of the most competitive industry. Present report will lay emphasis on Hotel
Hilton. Hotel is being situated in London United Kingdom. The number of rooms in hotel is 453.
Also the current year revenue is $442-$818. Assignment will highlight the principles of
managing and monitoring financial performance. It will Review the different stages of the HR
life cycle applied to a specific hospitality job role and their importance for retaining and
developing talent. Present assignment will lay focus on Develop a performance management
plan for a specific hospitality job role applying techniques to resolve both negative behavior and
overcome issues of staff retention (Ali, Amin and Cobanoglu, 2016).
LO1
P1 Principles of managing and monitoring financial performance of company
One of the most important aspect is managing and monitoring financial performance of
company. Hotel Hilton must have engaged in monitoring the financial performance on regular
basis. As this aspect can support them in having an idea about uncertainty and risk that can exist
in business. This method can help business in growing and management can also use business
intelligence in order to monitor and manage financial performance. There are various principles
that can be followed by hotel Hilton. It includes following:
 One of the most important aspect which can be used by manager of hotel Hilton is to be
engaged in preparing realistic budget, so that if any issues arrive in budget they can
overcome it (Noelke, 2015).
 Hotel Hilton must make sure that each department in their organization has adequate fund
and effective utilization of resources is being done by them.
 Management also must have engaged in identifying cost and risk and also if they find any
variances remedial actions must be taken by them.
Various tools can be used by company to monitor financial performance of company. This
includes the following:
Key performance indicator: This tool can be used by Hotel Hilton so that they can
monitor actual performance of business. It can support them in growing.

Balance Score card: This can be used by Hotel Hilton to develop strategies to monitor
financial performance. Balance Score card can help firm in improving their internal processes
and also it lays emphasis on effective utilization of resources (Ionel, 2016).
Benchmarking: It is one of the most important tool that can be used by hotel Hilton. This
tool can support company in knowing about whether they have reached out standard set up by
them or not. This tool can help them in knowing about gaps in performance. So company can
work upon it and improve their financial performance.
P2. Double entry book keeping system
Journal entries
Date Particulars Debit (in £) Credit (in £)
1/4/2016 Cash a/c Dr.
To capital
180000
180000
10/05/2016 Property a/c Dr.
To cash a/c
130000
130000
15/6/2016 Purchase a/c Dr.
To cash a/c
6000
6000
1/7/2016 Cash a/c Dr.
To sales a/c
8000
8000
1/8/2016 Purchase a/c Dr.
To cash a/c
9000
9000
1/9/2016 Sundry expenses a/c
DR
To Bank a/c
200
200
1/10/2016 Cash a/c Dr.
To sales a/c
17000
17000
1/11/2016 Wages a/c DR
To cash a/c
2100
2100
1/12/2016 Storage expenses a/c
DR
To Bank a/c
300
300
Ledger account
Cash a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/4/2016 To capital a/c 180000 10/05/2016 By Property
a/c
130000
1/7/2016 To sales a/c 8000 15/6/2016 By Purchase
a/c
6000

1/10/2016 To sales a/c 17000 1/8/2016 By Purchase
a/c
9000
1/11/2016 By Wages a/c 2100
By balance
C/d
57900
Total 205000 205000
Cash at bank a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/9/2016 By Sundry
expenses a/c
200
1/12/2016 By Storage
expenses a/c
300
To balance
c/d
500
500 500
Property a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
10/05/2016 To cash a/c 130000
By balance
c/d
130000
Total 130000 130000
Purchase a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
15/6/2016 To cash a/c 6000
1/8/2016 To cash a/c 9000
By balance 15000

c/d
Total 15000 15000
Sales a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/7/2016 By cash a/c 8000
1/10/2016 By cash a/c 17000
To balance
C/d
25000
Total 25000 25000
Capital a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/4/2016 By Cash a/c 180000
To balance
C/d
180000
Total 180000 180000
Wages a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/11/2016 To cash a/c 2100
By balance
c/d
2100
Total 2100 2100
Sundry expenses a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/9/2016 To Bank a/c 200
By balance 200

c/d
Total 200 200
Storage expenses a/c
Date Particulars Figures (in £) Date Particulars Figures (in £)
1/12/2016 To Bank a/c 300
By balance
c/d
300
Total 300 300
P3.Produce as basic Trial Balance
Particulars Debit (in £) Credit (in £)
Cash 57900
Cash at bank / bank overdraft 500
Capital 180000
Purchase 15000
Sales 25000
Property 130000
Sundry expenses 200
Storage expenses 300
Wages 2100
Total 205500 205500
Operating profit margin
Particulars Formula 2014 2015
Operating profit 914 1042

Net sales 9,482 11365
Operating profit / sales
* 100 9.6% 9.2%
Operating profit margin
Return on capital employed
Particulars Formula 2014 2015
Operating profit 914 1042
Total assets 12541 19117
Current liabilities 1508 5174
Capital employed 11033 13943
ROCE OP / capital
employed 0.08 or 8.28% 0.07 or 7.47%
Current ratio
Particulars Formula 2014 2015
Current assets 4926 7700
Current liabilities 1508 5174
Current ratio CA / CL 3.27 1.49

Receivable turnover ratio (in days)
Particulars Formula 2014 2015
Sales 9482 11365
Average accounts
receivable
2540 4280
Accounts receivable
turnover ratio
Net credit sales /
average accounts
receivable
3.73 2.66
Receivable turnover
(in days)
365 / Accounts
receivable turnover
ratio
98 137
Sales revenue to capital employed
Particulars Formula 2014 2015
Sales 9,482 11365
Capital employed
11033 13943
Sales revenue to
capital employed
Sales / CE .86 .82
LO2
P4. Different stages of HR life cycle
There are various stages in HR life cycle. It has been analysed that Hotel Hilton is engaged in
following all steps. This includes following:
Recruitment: In this hotel Hilton is been engaged in hiring of effective employees. They gather
pool of efficient workers.

Education: In this stage hotel Hilton is been engaged in educating workers about the job and also
knowledge is given about the company.
Motivation: Company will also get involve in motivating employees through rewards and
incentives, in order to decrease employee turnover.
Evaluation: Evaluation will be done through methods such as benchmarking, KPI and other
aspects.
P5 Producing performance management plan
Performance concern Expected standard action Action for improvement Review
date
Change the negative
behaviour of hotel staff
In this waiters of hotel Hilton
needs to behave positive with
consumers who are going to
visit hotel. This will help them
in increasing consumer
experience (Jones, Hillier and
Comfort, 2016).
In this training must be given
by hotel Hilton to employees,
they must also engaged in
motivating workers
15July-30
September
2015
LO3
P6 Legislation that company has to comply with and adhere to
There are different legislation are made by the legal authority of country to keep the
actions of business organization limited and prevent them form those activities which are not
effective or economy of country and people who are working in that particular organization.
Basically these laws are related to the organization policies and activities that are performed by
organization to earn profit.
Health and Safety Act 1974
This is one of the most important thing for the safety and security of employees and
consumers. This is legislation is based on the constructional design and operational design of the
work place (Bernstein, 2019). According to this law this is responsibility of organization to
manage all safety and security needs in order to keep employees and consumers safe and secure
on the work place. It forces the business organization like Hotel Hilton to use effective
organizational design to prevent any kind of accident on the workplace.
Food Safety Act 1990

As a hospitality organization the food and safety act I most important for Hotel Hilton.
This law is all about the process and methods that are used by kitchen of Hotel Hilton to prepare
food. This Act forces the organization to follow all the food safety measures in order to provide
better and healthy food to consumers (Barbieri and Cutuli, 2015). This law help the organization
to avoid different health issues for employees and consumers.
Employment Act 2002
this Act covers all the aspects of employment for organization and its employees. This is
act is design by the legal authorities of country to protect rights of business organization and
employees (Noelke, 2015). There are different other things are included in process that help and
force Management of Hotel Hilton to implement different practices that are effective to prevent
discrimination and illegal activities on the workplace.
This is how some most important legislation are need it be considered by Hotel Hilton to
avoid any legal against the management of hotel.
P7 Describe that how organization employment and contract law has potential impact on the
business decision making in Hilton hotel.
Employment and contract laws affects on the business of Hilton hotel which is vital to
professional success of Hilton because it mainly deal with providing the better product and
services. However, contract law is involved with purchasing selling and rendering services but
considered all type of transactions that require to follows proper terms and conditions. In Hilton
hotel, although having expectation in writing increases success of business which makes easier to
handle confliction between parties (Solnet, Kralj and Baum, 2015). The service provider is
probably even routine check that contract to make sure work progressively done. Contract law
impacts on the Hilton hotel decision making when organization will not adopt point that already
mention in contract. It is an essential for Hilton hotel to follow all steps for managing business
operation and function.
On the other hand, employment law affects on every aspects of workplace where it can be
determined rights related wage and benefits, medical leave, termination and hiring. These are
different types of processes applicable within Hilton hotel through employment law. It always
supports for manger where they can provide equal right to their staff members. it also determined
that employment law useful for decision making at the time of hiring where it keeps from asking
about discriminatory questions. The law provides certain protection such as termination and

other issues which affecting the unemployed. The employee legislation also outlines insurance,
job separation concern and severance pay (Bernstein, 2019). In Hilton hotel, employment law is
place to protect employee who reports illegal activities and other type of violation. In this way, it
helps for decision making against the retaliation and workplace environment. For Example-
Employment Act 2002 covers all aspects of employment within Hilton. Act allows within
organization to protect and secure equal right of employees.
LO4
P8 Ways in which functional roles within hospitality sector are interrelated
There are various kinds of functional roles within hospitality sector and each of these
functional roles are interrelated to each other. Few of the functional departments of hospitality
industry are accommodation, sales and marketing, food and beverages, human resources,
engineering, laundry, accounting etc. Accommodation is one of the main and viral roles in this
industry as majority of the business revenue of a hotel depends upon their accommodations.
Based upon the above functional department some of the functional roles of the organizations
such as Hilton are: Front office receptionist, Chef, Housekeeping, sales executives, maintenance
engineers, Marketing manager, Accountants and many more (Solnet, Kralj and Baum, 2015). All
of these functional roles are completely dependent upon each other. If marketing of the hotel is
not done property and reviews about hotel are not good then less number of customers will get
attracted which will affect profit and revenue generation that comes from accommodation. This
will further affect overall sales done by the organization and if less number of guest will visit the
organization then it will directly/ indirectly affect food and beverages department as well. This
relation is vice versa i.e. if service (laundry, housekeeping or food or beverage) of the hotel is not
good then it will eventually affect profit generated from accommodation.
P9 Methods of communication and coordination
Methods of communication
Feedback
In order to strengthen the value chain, Human resource department of Hilton mainly use
the method of feedback wherein the department mainly solicit the feedback from their target
customers (Mehrabian, 2017). They seek the feedback from suppliers and customers regarding
their services, products etc. and thus makes improvement. This eventually leads to the fulfilment
of needs and demands of suppliers as well as customers.