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Principal Of Managing And Monitoring Financial Performance

University: THE LONDON COLLEGE

  • Unit No: N/A
  • Level: High school
  • Pages: 33 / Words 8336
  • Paper Type: Assignment
  • Course Code: HNHM304
  • Downloads: 464
Question :

This assessment will cover the following questions:

  • Identify how to manage record and finance transactions to reduce costs responsibly within the hospitality sector.
  • Examine the significance of coordinating and integrating various functions of departments within the hospitality sector.
  • Assess the potential impact of ethical and legal considerations on a Hotel Hilton business.
  • Analyse how to manage the Human Resource life cycle and its impact on the HR strategy.
Answer :
Organization Selected : Hotel Hilton

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 c/d

15000

 

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 c/d

200

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

 

Also Read:- Retail Industry And Its Aspects In UK

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.

Social events

The HR depart met of Hilton is mainly responsible for managing the various events and gathering and this is the method which they use for communicating with different clients and thus expand their value chain. The HR organizes social events where it invites all its clients and target customers and thus disseminate its branding message. Through this, they are able to understand the perception of customers and clients (Stiff and Mongeau, 2016).

Effective communication

This is the well-through method through which HR department of Hilton is able to coordinate with other departments to strengthen the value. Like the HR department communicates with the finance department to have an understanding of the resources as well as money that will go in managing recruitment and selection. This eventually help them to have a great coordination with various other departments of the hotel. HR department communicates with the front office regarding any social event or gathering to arrange and hence cooperates with them for favourable outcome (Cornejo and et.al.,2017).

Sound planning

This is the another method of coordination which the HR department of Hilton employs for enhancing and managing the overall value chain. When there is effective planning of the resources, then HR is able to clearly understand its responsibilities as well as responsibilities of other department. This in turn helps them to increase the brand image among customers and clients and thus expand the value chain.

 

CONCLUSION

From the above study, it has been summarized that various methods of financial performance have been used by them. In this firm has been made use of tools such as benchmarking, Balance Scorecard which has helped them in improving internal processes. By making use of these tools firm has also made their internal capabilities stronger. Various functions have also been performed by human resource management of firm.

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