Business play a vital role in the environment where it is operating which is of dynamic n nature. There are number of changes that are taking place and has to be evaluated in order to accomplish final goals in set time period. The company included in this report is Hotel Hilton that belongs to hospitality sector and operates in many part of the world. The assignment focuses on different types of business organizations present in corporate world as well as importance of accounting system. Apart from it, there are number of functions played by the HR department in business.
1.1 Different types of public and private organization in UK
There are number of companies in UK, both private and public, and objectives of each of them are different from other companies. On one hand, there are public companies whose objective is to serve the public and to offer them best quality products and services without discriminating amongst society. The prime objective of these companies is to swerve the people and not to earn the profit. Some of public associations are described as follows:-
- Royal Dutch Shell
- Gamma Communications
- British Petroleum
On the other hand, there are private companies whose prime objective is to earn and maximize its profits by satisfying the customer needs in the most effective manner. To serve the general public is its secondary objective (Shenkar, Luo and Chi, 2014). Private companies, due to immense competition existing in the market, try to deliver best quality products to their customers. Some of the private companies are mentioned below:-
- John Lewis Partnership
Therefore, we can say that there are number of private and public companies in the market with different objectives, sizes, scope and structure and they all serve and fulfil different needs and requirements of the customers.
1.2 Different structures within businesses and reason for variation
Public companies and private companies are different from each other in various aspects. From ownership of the company to management of the company, all things are different in private companies as compared to public companies. Public companies are controlled by government whereas closely held companies are owned and managed by one or more members of the company. A list of differences along with basis of difference between private and public companies are expressed as follows:-
- Director: A private company may have a sole director, whereas every public company must have two directors.
- Company secretary: Private companies need not to appoint a company secretary unless its articles require it to do so whereas it is compulsory for a public company to have a company secretary to manage all the administrative matters of the company.
Share Trading: Shares of private companies are rarely traded as there is no established market place whereas shares of public companies are openly traded in the stock exchange (Adjei, Baffoe, Amofa and Agbamu, 2014).
- Shareholding: In private companies, most of the shares are held by the directors of the company whereas in case of public companies, any person including government can apply for issue of shares.
- Registered office: Both private and public company needs to register its principle place of business with registrar of companies and it should be within the boundaries of England and Wales. This principle place of business is known as registered office of the company.
1.3 Impact of local and global economic environment on selected business
Strategies of every business organization are widely impacted by rules and regulations of the business environment. So it becomes very necessary for them to follow national terms and conditions, norms and policies while formulating strategies. In fact, in or case, Hotel Hilton have to face various internal and external forces because they are planning to expand their current business across other regions in order to gain maximum profit by providing best services to the customers. Some of the internal and external factors affecting hotel Hilton are global economic environment, political environment, local policies of the regions and their term and conditions of running the business in a smooth and efficient manner (Storey, 2016).
2.1 Importance of accounting for business concern
Every business organization have to perform accounting function in order to keep records of all materialistic information that is of their interest. Funds are consider most important resource for every business hence it is the responsibility of the management to make it optimally utilized in order to gain high returns. Importance of accounting for business concern is described as follows:
- Helps in minimizing company losses: There are number of activities that results in losses for the company hence, if proper accounting system is maintained necessary steps can be taken at the right time and extra losses can be minimized.
- Budget formulation: Budgets helps in regulating the future activities that will yield them high profits to the organization. For instance, balance sheet is a most important accounting instrument that highlights the financial position of the company therefore, t be drafted in accurate manner.
- Accomplishment of final objectives: Proper management of accounting system is directly inked in achieving ultimate vision and mission of the company.
5.1 Functions of HR department in business
HR department plays an important role in Hotel Hilton as they are consider building block of the business organization. They have number of responsibilities that include recruitment, selection, employee management and many others. Functions of HR department is described below:
Recruitment and selection: it is the role of HR manager to recruit potential employee for the business organization hence, they have to follow selections procedure in order to carry out this process (Doppelt, 2017).
- Impart training and development programs: Every employee requires training in order to enhance their knowledge and skills so that they could work with more efficient and effectiveness. Thus, it is the role of HR manager to design proper training programs for the employees.
- Designing motivating factors: The management must motivate their workers by devising number of means so that they can contribute with more efficient in achieving the ultimate objectives and aims of the company. Therefore, HR manager have to identify the requirement of motivating their employees.
5.3 Key features of employment legislations
As employees are consider important resource of nay company as they align their personal objectives with the organization’s aims thus, they need to be protected with any violations and other problems. There are number of acts and regulations that are formulated which protect the interest and rights of every individual which is working in the business organization. Some are illustrated below:
- Health and safety act: It is the prime duty of the management of company to ensure safety of the workers who are working there. For this, managers must guide their employees regarding safety issues and keep a check on them. There are number of tools and equipments that require proper usage therefore, correct handling is required.
Minimum wage Act: According to this act each and every individual members that is working will receive minimum wages that has been set by the government so that they could earn their basic needs and requirement of the life (Omar, Leach and March, 2014).
3.1 Interpret the information displayed on profit and loss account
The financial position of the business organization is described by the profit and loss account which is prepared for the particular financial year (Dunning, 2014).
Thus. It helps in finding out the profits and losses that has been earned by the company and take decisions accordingly. There are number of financial statement that are been prepared under this which include balance sheet, income and expenditure statements that record all the expenses and earnings of the company in that particular financial year. Hence, it is a very important component that assists in finding out the actual position of the business entity in the current market place. Hotel Hilton is a well-established business and is earning huge gains and revenues. There are number of branches that located in several part of the world thus, all of them different earning and financial statement according to the working level. Hotel Hilton have increase its profit ration from 2016 to 2017 which is significant growth for them.
4.1 Self roles and others in team
Leaders have a prominent role in the business organization as they are the ones who combine the efforts of every members in accomplishing final goals and objectives. Hotel Hilton have proper system of team in which there are group of people who belong to that team and have certain roles and regulations that are being played by them. The leaders lead that team who continuously motivate the workers to work in accordance to the set norms and rules. Thus, leaders are consider most important individual entity in the company as he contains lots of abilities and capacities to coordinate the work of every staff members by aligning their personal objectives with company’s goals and reach to the ultimate vision. There are number of characteristics and skills that must be contained by the leaders that are influential behavior, change agent, problem solver etc. Therefore, if these qualities are present in the leader’s behavior than he could easily lead his team in proper direction (Ward, 2016).
4.2 Describe aspects that support future training events
Management of Hotel Hilton have to formulate number of training event to train their staff members to work according to the set goals and objectives. Therefore, managers have to focus on applying various motivational theories that include Maslow’ s theory of motivation, on the other hand there different leadership styles that have its own advantages and disadvantages. For instance autocratic leadership style do not allow subordinates to work according to them whereas democratic leadership style provide full freedom to them.
Managers need to focus on various stages of team development which is divided into five stages starting from forming, storming, norming, performing and adjourning. All this is a sequence of phases that need to be properly formulated.
4.3 appropriate use of different motivational theories in business activities
Motivational factors plays an essential role in increasing the efficiency and productiveness of the employees. It has been observed that motivated employees contribute with higher effectiveness as compared to less motivated. Hotel Hilton adopts Maslow’s motivational theory concept in order to motivate their employees by considering their basic, safety social needs.
4.4 impact of various leadership styles on employees
Hotel Hilton follow democratic leadership style in which superiors allow their subordinates to contribute their ideas and thoughts in decision making process. On the other hand autocratic leadership style restrict the growth of every staff members (Gassmann, Frankenberger and Csik, 2014).
6.1 Impact of customer service on business success
Customers are consider most important asset for the business organization as they produce products and services for them. Thus, it become the prime duty for hotel Hilton to deliver quality services to their customers in the market place. This helps in building the conducive relationship with them so that they can retains for longer period of time. The management system of hotel Hilton always formulate number of strategies in order to improve the connection with their clients and satisfy their needs and wants.
6.2 Benefits of customer profiling to business
Customer profiling is consider most important aspect in success of the business in several ways that are described below:
- Effective communication system: Effective communication helps in maintaining the conducive relationship with the customers for longer period of time.
Profit Maximization: If Hotel Hilton have properly examined the requirements and preferences of the customers than they could able to work accordingly and results in earning high financial gains and profits (Bernstein, 2015).
From the above prepared report it has been concluded that every type of business organization plays an important role in the corporate world. The report focuses on the case of hotel Hilton in which management have to examine various number of external factors that affect the business. On the other hand there are some legislations related to employees that protect their interest. Apart from it, the assignment also highlight the importance of management accounting system.
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