Hospitality Business and Process Review

Hospitality Business and Process Review

Table of Contents
LO1. Investigate how to manage finance and record transactions to minimize costs responsibly
within the hospitality sector.............................................................................................................4
P1. Investigate the principles of managing and monitoring financial performance....................4
P2. Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger...................................................................................4
P3. Produce a basic trial balance applying the use of the balance off rule to complete the
ledger...........................................................................................................................................7
LO2 Assess how to manage the Human Resources life cycle within the context of HR strategy. .9
P4 Review the different stages of the HR life cycle applied to a specific hospitality job role
and their importance for retaining and developing talent............................................................9
P5 Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behavior and overcome issues of staff retention..............10
M2 Evaluate the Importance of the HR life cycle in relation to strategic talent management
and overcoming issues of staff retention...................................................................................12
D2 Make valid judgements and recommendations on how HR processes and documents can be
improved for effective talent planning throughout the HR life cycle........................................13
LO3. Illustrate the potential impact of legal and ethical considerations on a hospitality business
.......................................................................................................................................................14
P6. Identify specific legislation that a hospitality organization has to comply and adhere to...14
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P7. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business decision making in the hospitality industry.............................15
LO4 Explain the importance of coordinating and integrating various functions of departments
within the hospitality sector...........................................................................................................17
P8 Explore how different functional roles within the hospitality sector interrelate..................17
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organization to strengthen the value chain.........17
M4 Analyze how different methods of communication, coordination and monitoring within a
specific department of a hospitality organization achieves organizational objectives and
strengthens the value chain........................................................................................................18
D4 Critically analyses different methods of communication, coordination and monitoring
within a specific department of a hospitality organization and make justified recommendations
...................................................................................................................................................19
References......................................................................................................................................21
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LO1. Investigate how to manage finance and record transactions to minimize costs
responsibly within the hospitality sector
P1. Investigate the principles of managing and monitoring financial performance
It has been observed that it is important for the hotel manager to understand the financial issues
and the way it is performing. There are certain principles that are needed to be followed.
According to the first principle, the hotel needs to establish its budget for defining a new tool. In
addition to this, the second principle states that the budget needs to be reasonable, attainable and
realistic (Mayne, 2017). Depending on the goals and the purposes of the hotel, the budget should
be made. Along with this, the hotel management also needs to follow the financial results for
comparing the budget. This will help in measuring the financial performance of the new hotel.
Another principle is also considered where the problem is identified and the solution is provided.
Along with this, expenditures are also controlled and in addition to this, the costs and the benefits
will be identified. This also helps in understanding the planning and budgeting factors that are
related to the new hotel. The hotel manager needs to focus on such issues for analyzing their
financial statement and performance. In this way, the new hotel in the Lake District will be able
to manage and monitor financial performance.
P2. Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger
A business needs to use the double entry bookkeeping for maintaining its book of accounts so
that it can keep a record of the various factors of income and expenses for the business. It is to be
further stated that when the business is in a context of expansion like in the current scenario it
needs to factorize the effective use of the bookkeeping. The annual cost for the business was
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supposed to be not more than £100000 and also that the expansion investment for the new hotel
was supposed to be £500000. The annual cost has been taken into the general account for the
new hotel. The company is using quick books so that they can record the various transactions for
the business as per the principles of the accounting.
General Ledger(for the investment of £ 500,000.00)
Date Description Transaction Balance(cash)
Dr C
r
Dr Cr
£ 500,000.00
10.01.1
9
Building cost £
225,000.00
£ 275,000.00
12.01.1
9
Satellite TV £
15,000.00
£ 260,000.00
05.02.1
9
Single Beds £
25,000.00
£ 235,000.00
15.02.1
9
Double beds(30Pic) £
35,000.00
£ 200,000.00
19.02.1
9
Modern Reservation System £
17,000.00
£ 183,000.00
23.03.1
9
Digital Phones £
3,500.00
£ 179,500.00
19.04.1 Fax and computers £ £ 154,500.00
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9 25,000.00
05.05.1
9
Lights £
40,000.00
£ 114,500.00
06.06.1
9
Furniture £
85,000.00
£ 29,500.00
07.07.1
9
Carpets £
20,000.00
£
9,500.00
Total £
490,500.00
£
9,500.00
The above general ledger has been computed for the expenses that occurred for setting up the
rooms in the hotel. The hotel was supposed to be completed with the investment of 500000
pounds which the brothers did with an effective cost of 490,500. The payment to the landlord is
not taken into the expansion project as it is to be treated separately and the general account for
the first year is presented below for the Hotel after it has been operational (Nastase, Calin and
Margina, 2016).
The general ledger is not supposed to have crossed the annual cost of 100000 for the business by
maintaining a 20% return on the investment by the brothers. The general ledger for the business
has been prepared below as per the budget of 100000 pounds during the first year of operation.
General Ledger
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