Institution of better Accounting Strategies in the Management of a Franchised Hotel Contents

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Institutionof better Accounting Strategies in the Management of a FranchisedHotel

Contents

Executive Summary 5

1. Introduction/Background 6

2. Statement of the Problem/Research Project 7

3. Methodology 8

4.Findings. 8

4.1 Objectives 9

4.1.1.Broad objective of the study 9

4.1.2 Specific objectives 9

4.2 Testing Hypothesis 9

4.2.1 Hypothesis 1 9

4.2.2 Hypothesis 2 11

4.2.3 Hypothesis 3 12

4.2.3.1 Hypothesis 3a: Planning 12

4.2.3 Overall Summary of Hypothesis 3 15

5. Conclusions 15

6. Recommendations 17

References 17

Listof Tables

Table1.0: Strategy…………………………………………………………………………….10

Table2.0 Figure 2.0: Pie-chart showing number of personnel who agreed thatplanning forms a big part of better accounting strategies for afranchised hotel…………….………………………12

Table3.0: Whether evaluation plays a big role in the accounting strategiesfor a franchised hotel……………………………………………………………………………………………14

Listof figures

Figure1.0: Number of strategies ticked by the staff members…………………………………10

Figure2.0: Pie-chart showing number of personnel who agreed that planningforms a big part of better accounting strategies program for afranchised hotel…………………………………… 13

Figure3.0: Staff responses to the role of implementation in betteraccounting program……….13

Institutionof Better Accounting Strategies in the Management of a FranchisedHotel

ExecutiveSummary

Thispaper aims to show how effective accounting methods in hotelmanagement can be set up to propel a franchised hotel to a greatsuccess. The station of interest for this study was theIntercontinental Mark Hopkins Hotel in San Francisco. This comes inthe view of the need to revamp its accounting strategies so as tomake it quite productive and in a good position of showing someresources that it has at its disposal at any given time. The researchadopted a descriptive survey methodology in which the researcherrelied on the views provided by the respondents. The researcherapplied the use of purposive sampling to choose the respondents sincethis method was much easier and cheaper owing to the limitedavailability of funds and time for the study. Data was collected byused of structured questionnaires and key informant interviews inwhich the employees and a part of the management were engaged. Thefindings showed that most of the employees of the hotel were aware ofthe different better accounting strategies that a company mayinstitute in its activities. The findings also showed that most ofthe respondents believed that planning, implementation, andevaluation were key strategies for ensuring that the exercise ofaccounting for the resources as well as highlighting the amount ofliability that the company has been quite effective. The findings,therefore, confirmed that it is possible for Intercontinental MarkHopkins hotel to institute better strategies that will ensure thatthe kind of accounting exercise that it carries out is quiteeffective. So as to make sure that there is a better implementationof better accounting measures suggested, the management of the hotelneeds to train the employees on the various better accountingpractices. It also needs to focus on motivating the staff foundaccounting department as well as concentrating on hiring highlyqualified personnel. Through the proper application of the strategieshighlighted in this paper and acting on the recommendationssuggested, the process of instituting better accounting strategieswithin the company will be highly fruitful.

1.Introduction/Background

Afranchised hotel is a large and dynamic institution that requiresgreat accounting management strategies that will help to ensure thatall the financial records are put in order and prevent any risk ofunwarranted losses or pilferage of funds. It requires a clear,decisive action on the part of the management given the laid downobjectives of the company and how they expect to benefit from it.

Whilehiring the best staff in the accounting department for the venturecould be viewed as the ideal exercise towards this measure, it isjust part of the entire process since the practice involves a lot ofvariables that need to be taken into consideration if better resultswere to be realized. Among them could be issues related to theinstitution of checks and control measures that will act as a guidefor the process and prevent the accounting department from veeringoff the plan (Lambert, 2012). These could be issues related to properperiodic auditing and reporting of the results obtained so as toestablish clearly if the plan is moving forward as desired or if moreneeds to be done so as to make it more fruitful. This is clearly acomprehensive venture that requires proper coordination from all thedepartments involved so as to enable the company runs in unisontowards the achievement of is goals. Most companies are nowinterested in putting up better accounting strategies in theiroperations so as to harness great results. This is the new trend andis picking up quite quickly (Chapman and Shields, 2009). Without theapplication of these measures, most companies are faced with theproblem of proper allocation of their resources since they will notbe aware of how much they have. This causes a big risk ofexperiencing losses as a result.

2.Statement of the Problem/Research Project

Theissue of better accounting strategies has for a long period formed abasis for the growth of given companies. This is quite evident by thefact that many companies have had to take their accounting departmentstaff for extra training as well as hiring consultants who canprovide expert advice on what needs to be done. They have alsoemployed the institution of sophisticated financial managementsystems from established IT firms so as to strengthen theiraccounting departments. This paper aims to come up with strategiesthat a franchised hotel may put up in its accounting activities so asto revamp it and make it fruitful. It is important to delve into thistopic since it will help to outline the various measures that afranchised hotel may take up so as to ensure that it reaps greatlyfrom its operations and avoid any risks of losses (Graham andChartered Institute of Management Accountants, 2008). Many companieshave suffered massive losses due to the lack of these efficientplans. The aim is, therefore, for the management and the employees tobe made aware of the kind of measures that are worthwhile.

Thisreport aims to bring out the findings of the research conducted inwhich the measures to be used to ensure that the level of accountingof company resources in a franchised hotel is quite effective. Withthe best application of such strategies in accounting, the process ishighly likely to be successful. The management will, therefore, savea lot of resources that would have had gone to waste (Neuhausen, etal., 2007). It will also be able to make efficient financial plansfor the company since it will have a vivid picture of some resourcesthat it has and therefore, be in a good position to lay down properbudgetary allocations.

3.Methodology

Thestudy applied a descriptive survey design in which the responses ofpeople in the form of filling questionnaires is taken intoperspective with an aim of obtaining their true views on thequestions highlighted in the tool of study. The use of a survey studywas worthwhile in this exercise since it aimed to establish ways inwhich effective accounting strategies would be set up in the company.The study applied purposive sampling in which the researcher pickedout the individuals needed for the study at will. The use of hismethod was reached upon because it is quite easier and cheaper tocarry out (Ray, 2012). The study area for the survey was theIntercontinental Mark Hopkins hotel found in San Francisco. Thetarget population for the study was part of the management of thehotel as well as the staff of the facility.

Thesample size for the study was pre-determined for ease of the studyand only 30 members of were staff interviewed. Data collection wasdone by the use of questionnaires and key informant interviews.Qualitative data was provided by the responses to the open-endedquestions provided by the interviewers in the questionnaires. It wasalso provided during the key informant interviews. Quantitative datawas provided by the responses of the interviewees in the structuredquestions found in the questionnaires. Data analysis was done by theuse of Statistical Package for Social Scientists (SPSS) and waspresented in the form of tables and charts during the process ofreporting the findings. Corresponding discussions of the findingsfollowed paving way for drawing empirical conclusions from the studyas well as the appropriate recommendations related to the same.

4.Findings.

Thefindings of the study were based on the data obtained from thestructured questionnaires presented to the members of staff as wellas the answered provided by the sampled members of the management onthe key informant interviewed. All the questionnaires were codedsystematically and analyzed, and the findings are as illustrated

4.1Objectives 4.1.1.Broadobjective of the study

Thebroad objective of the study was to come up with effective accountingstrategies that can be instituted in a franchised hotel, in thiscase, the Intercontinental Mark Hopkins hotel.

4.1.2Specific objectives

Thespecific objectives of the study were as follows

• Tofind out whether staff members are aware of many better accountingstrategies

• Toestablish whether hiring highly qualified personnel within theaccounting department is the greatest factor for efficient accountingstrategies.

• Toevaluate the various variables that make up good accountingstrategies for a franchised hotel.

4.2Testing Hypothesis4.2.1Hypothesis 1

H0-Staff members are not aware of many better accounting strategies.

H1-Staff members are aware of better accounting strategies.

Totest this hypothesis, a total of 30 staff members were subjected toquestions in which they were asked to tick against on the betteraccounting strategies that they were aware of as indicated in thetable below.

Table1.0: Strategy

Strategy

Tick

Development of an efficient and measurable accounting tool

The management hiring highly competent personnel within the accounting department.

Continuous training of the staff within the accounting department to make them well acquainted with the new trends in accounting.

The management completing hiring the services of consultants to assist in the institution of better accounting measures.

Learning through benchmarking on the best accounting measures that are used by other companies and have become successful.

Theresults were analyzed in the order of the number of strategies thatthe employees were aware of at the time of the study. The findingsare shown below.

Figure1.0: Number of strategies ticked by the staff members.

Giventhe fact that personnel who are aware of more than two accountingstrategies are more than half, we reject the null hypothesis andembrace the alternative one. This indicates that majority of thestaff are aware of many accounting strategies. Although the resultsshowed that majority of the staff members were aware of up to threestrategies, it is still a fair result. More needs to be done so as tomake most of the staff members aware of many better accountingstrategies that are likely to benefit the company abundantly.

4.2.2Hypothesis 2

H0- Hiring highly qualified personnel within the accounting departmentis not the greatest factor for efficient accounting strategies.

H1-Hiring highly qualified personnel within the human resourcedepartment is the greatest factor for efficient accountingstrategies.

The30 employees interviewed by the use of structured questionnaires weresubjected to this question. Their responses were weighed on a Likertscale calibrate Strongly agree, agree, don’t know, Disagree,Strongly disagree. They data obtained was tested by use of theone-sample T-test, and the results are as shown in the table below.The results showed a value of 1.65 in which most of the respondentslay between strongly agreeing and simply agreeing that hiring highlyqualified personnel within the accounting department is the singlefactor that can lead to better accounting strategies within thecompany. We reject the null hypothesis because this variable has agreat strength.

Table2.0 How hiring highly qualified Personnel within the accountingdepartment contributes to better accounting strategies

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Hiring highly qualified personnel within the accounting department is the greatest factor for efficient accounting strategies.

30

1.65

.465

.055

4.2.3Hypothesis 3

Thehypothesis in this section was tested independently for each of thevariables highlighted. These included the aspect of planning,implementing and evaluating accounting. The results are as shown

4.2.3.1Hypothesis 3a: Planning

H0–Planning does not form a crucial part of the better accountingstrategy for a franchised hotel

H1-Planning forms a crucial part of the better accounting strategy for afranchised hotel

Thefindings showed that 80% of the respondents agreed that planningforms a crucial part of the better accounting strategy. We,therefore, reject the null hypothesis for this reason. The resultsare shown in the pie-chart below.

Figure2.0: Pie-chart is showing the number of personnel who agreed thatplanning forms a big part of better accounting strategies for afranchised hotel.

4.2.3.2Hypothesis 3b: Implementation

Theresults for this variable showed that 90% of the respondents hadviews that implementation plays a big part in the better accountingstrategies. We, therefore, reject the null hypothesis.

Figure3.0: Staff responses to the role of implementation in betteraccounting strategies

H0–Implementation does not form a crucial part of the better accountingstrategies for a franchised hotel

H1-Implementation forms a crucial part of the better accountingstrategies for a franchised hotel

4.2.3.3Hypothesis 3c: Evaluation

H0–Evaluation does not form a crucial part of better accountingstrategies for a franchised hotel

H1-Evaluation forms a crucial part of better accounting strategies for afranchised hotel

Inattempting to test this hypothesis, all the respondents were askedwhether they believed that evaluation played a big role while runningbetter accounting strategies for a franchised hotel. The results weretested by use of a one-sample T-test with Yes being assigned 1 whileNo being assigned 2. The results are as shown.

Table3.0: Whether evaluation plays a big role in the accounting strategiesfor a franchised hotel

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

Evaluation forms a crucial part of better accounting strategies for a franchised hotel

30

1.15

.690

.081

Thefindings showed a mean value of 1.15, which is far much closer to 1than it is to 2. Since 1 represents Yes, we, therefore, reject thenull hypothesis and state that evaluation plays a big role in betteraccounting strategies.

4.2.3Overall Summary of Hypothesis 3

Giventhe fact that all the three variables in this hypothesis werepositive, we can, therefore, indicate that planning, implementation,and evaluation form an important part of the better accountingstrategies of a franchised hotel.

5.Conclusions

Giventhe nature of the findings that were obtained in the study that aimedat findingout the best accounting strategies that could be taken upby Mark Hopkins Hotel in San Francisco, it is imperative to indicatethat majority of the interviewees were quite responsive. Although amajority of the staff members were aware of more than threestrategies that are applied in the process of better accounting, thissituation can be improved further so as to make them aware of more.

Inthis way, they can come up with better measures that will ensure thatthe company operates within the confines of its financial strength soas to avoid any risks of losses that could result from pooraccounting procedures. The factor of hiring highly competentpersonnel within the accounting department seems to provide the kindof reprieve that the management may fancy regarding coming up withbetter accounting practices. During the key informant interviewsconducted with a selected group of members who form part of themanagement, they argued out that the staff within the accountingdepartment need to be highly motivated to handle their duties, andthe idea of qualification was highly far-fetched. They maintainedviews that proper plans need to be laid down so as to ensure thatdepartment runs smoothly. These assertions were confirmed bystructured questionnaire interviews in which most of the respondentsagreed that planning forms a bigger part of the accounting process.This planning includes activities such as preparing guidelines forthe operation of employees within the accounting department as wellas putting in place all the necessary equipment and facilities thatthey may require.

Perhapsone of the essential phases of the better accounting process is theone that deals with implementation. Here, efficient plans are put upas well as the acquisition of well trained personnel is taken intoconsideration. The company may also benchmark on the kind ofaccounting processes that have had great beneficial effects for othercompanies with an aim of ensuring that it also institutes suchmeasures in its operations so as to harness tremendous benefits inthe process. Implementation of a better accounting process is themain feature in this issue. It requires a highly competent manager inthe form of the chief financial officer who shall act as a visionaryleader for the department to achieve its goals. For an accountingprocess to be highly effective there needs to be a control and checkssystem that will help to ensure that the employees are working withinthe guidelines and are carrying out an apt job of highlighting anumber of resources that the company has at its disposal as well asthe amount of liability that it suffers. This virtue may beactualized through periodical evaluation of the accounting processesas well as auditing and reporting of the details found within thefinancial books of the company for its benefit. This aspect helps toimpart a virtue of responsibility on the part of the staff within theaccounting department so that they take extreme care to ensure thatthey act within the provisions of their mandate and avoid strayingwhat they are required to do.

6.Recommendations

Aboutthe findings obtained during the study, various recommendations aresuggested as a result. One of them deals with the need for the hotelmanagement of Intercontinental Mark Hopkins to institute regulartraining sessions in which the various members of staff within theaccounting department will be taught about different betteraccounting strategies so as to make them capable carrying out theirduties efficiently and keep up with the growing trends in the fieldof accounting. The management also needs to revamp the on the hiringof highly competent personnel within the accounting department whoare well able to conduct their duties efficiently. It also needs toinstitute a great chief financial officer to head the department andensure that such personnel are well motivated and facilitated toconduct their duties effectively. It also needs to instituteplanning, implementation, and evaluation as part of its betteraccounting strategies in a bid to make the process quite successful.

References

Chapman,C. S., Hopwood, A. G., &amp Shields, M. D. (2009).&nbspHandbooksof Management Accounting Research: 3-Volume Set.Burlington: Elsevier.

Graham,T., &amp Chartered Institute of Management Accountants.(2008).&nbspManagementaccounting business strategy.Oxford: CIMA.

Lambert,R. A. (2012).&nbspFinancialLiteracy for Managers: Finance and accounting for betterdecision-making.New York: Wharton Digital Press.

Neuhausen,B. S., Schlank, R., Pippin, R. G., Accounting Research ManagerGroup., &amp CCH Incorporated. (2007).&nbsp2008CCH accounting for business combinations, goodwill, and otherintangible assets: Interpretations of U.S. and internationalaccounting standards.Chicago, IL: CCH.

Ray,A. (2012).&nbspTheMethodoloy of Sampling and Purposive Sampling.Munich: GRIN Verlag.

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