Report on Human resources management customer service of Hilton Auckland

 Human resources management customer service has critical importance in the hospitality business. In the hospitality business, HR managers develop appropriate decision making strategies about the operations of their staff at different job positions. HR managers develop strategies for employee’s performance management, staff training and customer satisfaction toward the offered services. Performance management strategies include the identification of an employee’s performance gap after appraisal and performance evaluation. Although, performance management strategies result in the improvement of employees performance in operations and increase organizational productivity (Eccles, Ioannou, & Serafeim, 2014).

Conclusively, performance management support increase in financial profitability. Hilton Auckland is really interested in improved customer satisfaction strategies to build customer equity in the targeted market. For excellent customer services, Hilton Auckland is following international standards. Improved customer services and high customer satisfaction is a factor that contributes to the overall financial strength of the company (Bourne, Mills, Wilcox, Neely, & Platts, 2000).               

· The importance of empowerment (concepts such as perishability)

Employee’s empowerment is a strategy to delegate power and authority to the employees at different levels to execute business operations independently. In the competitive market of hospitality business organizations are required to increase employee’s performance efficiency. The decision about the empowerment of employees can benefit Hilton Auckland by encouraging employee’s performance efficiency towards their services. Flexible hierarchy of control promotes employees creativity and innovativeness to generate competitive advantage. Research conducted on employees empowerment concludes that no single entity can cover wide ranges of the project and all operations covered in an organization effectively. By sharing responsibilities managerial staff can hand over each task to the specialized person of that field.

For instance, in the hospitality business of Hilton Auckland, customer service providers directly interact with customers on a daily basis, therefore, they have a better idea about the basic requirements of customers and their issues. Thus, by making the decision about empowering employees Hilton Auckland can motivate its employees to make their services according to the requirements and needs of customers. Hilton Auckland business can increase the net income of a fiscal year by reducing the cost of operations and increasing revenue. Employees satisfying and innovative services attract customer's attention to the hospitality business. Good employee’s morale and high involvement in ethical practices will also encourage an increase in sales as customers will get satisfaction from the delivered services (Asgarsani, Duostdar, & Rostami, 2013).                 

·  The impact of technology of Human resources management customer service

According to the analysis of Hilton Auckland, the hotel offers personal rooms and event rooms with ultra-modern features and technology. All major services of Hilton Auckland are supported by modern technology. From entry security checking to rooms warming system, all are technology based. Modern technology is a reason for the success of Hilton Auckland hotel in Australia. Hotel is applying fundamental operational strategies about improved and advanced technologies in the hotel. Complimentary Wi-Fi in public areas and lobby, advanced security checking, and online booking system are the evidence of advanced technology used in the Hilton Auckland for the purpose of customer retention and satisfaction. Such benefits and advance features have also a positive impact on customers experience provided by the hotel. Thus, appropriate decisions taken in the support of technology use will promote sales and results in the increase of annual revenue from hospitality services (Aucklandnz.com, 2019).     

·  Knowledge of current data (cash flow, creditors pricing)

In the decision making process management of an organization require knowledge of current data. Information about operational activities, promotional activities, and financial details provide support to the management while developing plans and taking decisions about the execution of business operations. Hilton Auckland management needs to have knowledge about cash flow and creditors pricing while deciding about financial matters of the hotel. Cash flow includes cash inflow (investment and financing) and cash outflow (all expenditures and cost of operations). Having a clear idea about these financial details Hilton Auckland management can make the right decisions about expansion or control of business operations in the hotel. Clear idea about cash outflow and knowledge behind this cash outflow can support management to identify gaps and determine cost control strategies for the increase in profit margin. (Arman, 2017)       

· Quadruple bottom line of Human resources management customer service

The quadruple bottom line provides a way to evaluate, determine, and value the addition of spirituality, faith, and culture in the reporting. Culture, faith and spirituality are subjective values which are difficult to determine in an organization. However, in the hospitality business, such core values have significant importance. The quadruple bottom line can be expressed as purpose, planet, people, and profit. It adds navigation of vital goals and objective without ignoring or compromising on the core values. Hilton Auckland hotel of Australia is also focused on promoting faith and cultural values in the business. Moreover, efforts done for these core values are also presented in the sustainability reporting and internal reports of the hotel (Edelheim, 2015).           

b)  In Hilton Auckland hotel business, generally, some accounting principles are considered that can be used to identify the key terms under the conceptual framework. Generally, the accepted principles mean that the principles can be used to recognize the general guide for financial reporting purpose. The objectives of financing reporting are to provide a complete vision for the investment, credit decisions, identify the economic resources, claims for the resources, and change in the use of resources. The major assumptions used by accountants of Hilton Auckland hotel are the monetary unit, business entity principles, going concern principles, cost principle, and time period principles. The following fundamental financial principles will generate an impact on the business of Hilton Auckland with the possibility to make a hotel more efficient and effective.

Business entity principle of Human resources management customer service

Business entity principle is related to the transactions associated with the business and it must be separately recorded by the business owners. This process requires the use of separate accounting records to keep the information secure and completely exclude the assets and liabilities from the other entity or the owners. In the case of the hospitality and hotel industry, it can be used to separate and maintain liabilities and assets distinctly from the executives, employees, and principles. The principle means that the only transaction is directly pertaining to the business to be entered in the specified books of the company. In Hilton Auckland business, the reliable internal system is developed on the basic concepts of accounting, conventions, concepts and business principles.

Monetary unit principle of Human resources management customer service

The monetary unit principle states that record business transactions can be separated and expressed in terms of currency. The company is not liable to record such kind of non-quantifiable items such as employee skill levels, the ingenuity of the engineering staff, quality of the customer services and the type of services that are provided to the customer in any kind of business. There are different assumptions about the monetary unit principles that regard it as primary national monetary conditions in the hotel business. The Hilton Auckland hotel office can show all the office supplies on the balance sheets. These supplies can be stationery products.

Going concern principle of Human resources management customer service

The going concern accounting principle deal with preparing the financial statements that are the greater part of the financial information. The information is based on the hypothesis that the company continually follow for the normal development of the company and to improve future activities. In the going concern principle, the resources are used to operate. In case if the business is not a going concern it can be listed as bankrupt business and the assets were liquidated (Ifac.org, 2004).  

Cost principle of Human resources management customer service

The cost principle is referred to the simply stated assets and the records of cost at the time when they are acquired at the specified price and time. The assets are not revalued by the cost and they are not consumed for the price that is paid by the Hilton Auckland hotel office.

Time period principle of Human resources management customer service

The concept of time period principle is to show the report as financial results and activities that are over the standard time period. The time period in the analysis is usually monthly based, quarterly, and annually. The accounting period is used to measure investing conditions, shareholders role and performance of the company (Loughran, 2011).

Task: 2

Question: 1

Hotel saffron (a 50 room hotel) has an annual occupancy of 64% and generates room revenues of $1200000 has staffing costs of $450,000 their net profit is $80,000 while because of booking cancellation they loss 14% of sales revenue.

= $1, 68,000

Thus the net loss because of unavailability of proper cancellation policy is around $1, 68,000. Considering this scenario the following business management strategies can be employed to improve the hotel’s performance.

·         Develop Booking cancellation policy of Human resources management customer service

Hotel administration should introduce a new policy for booking cancellation. They should charge the cancellation fee around 10% to 50% of the booking payment of rooms. For instance, a booking cancellation 24 hours ahead of arrival time should be charged with at least 25% of the booking payment.

·         Offer special discounts in off-seasons   of Human resources management customer service

The hotel should also offer some special discounts to their customers during off-seasons which will attract them to have a reservation in Hotel saffron. Discounts and special packages usually grab the attention of tourist who searches for better accommodation with reasonable price packages such as weekly, and 3 days packages.

Question: 2

By using industry standards and discussing the performance in actual terms of dollars and percentages it is analyzed that 14% booking cancellation is comparatively very low in the industry. Hotels are even having more than 31% cancellation rate in off seasons and seasons. Industry analysis shows that the direct cost of cancellation faced by hotels is around 1,165 euro if cancellation rate is 19% and hotel resell that room to a new guest (Delgado, 2016). However, still Hotel saffron should pay attention to cancellation policy development no matter at what comparative level hotel is facing cancellation cost but after all, it causes to decrease profit margin. 

Question: 3

· Yield Management of Human resources management customer service

Yield management strategies influence the mind of proposed customers to increase sales and revenue stream from a time-limited resource and fixed resource. For instance, revenue generated by a hotel from the reservation of its room for customers. Hotel Saffron can work on yield management strategy to maximize their revenue stream over the fiscal year. They need to focus on 3Rs which includes the right customers, the right time, and right rate (charges for the room) (Fanawala, 2018).    

· Seasonality of Human resources management customer service

In summer seasons hotel Saffron earn huge profit by increasing prices for their rooms as demand increases. However, in winter seasons hotel saffron face demand issue. Demand decrease in the winter season. Seasonality influence business of hotel saffron, therefore, they need to make strategies for the promotion of hotel in off-seasons also.   

·  Perishability Management of Human resources management customer service

Perishability management is essential for managing factors which can influence the hotel's productivity. The hotel should not overbook rooms when demand increases as in the cause of uncertainty or poor management they will lose the goodwill of the hotel (Wood & Brotherton, 2008). 

· Productivity Management   of Human resources management customer service

Hotel saffron and other hotels working in the same market can increase productivity by improvement in services offered to the customers. Increase in the employee’s efficiency and reduction in wastage can increase the productivity of the hotel.