Managing Finance and HR in Hospitality Business

This report focuses on managing finance and HR in the hospitality industry. It covers topics such as financial transactions, managing and monitoring business, double-entry bookkeeping system, trial balance, cost evaluation, recording information, HR life cycle, legal and ethical considerations. The report is based on the case study of Hotel Hilton.

Hospitality business
and toolkit
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
LO1 .................................................................................................................................................4
1. About financial transaction of business. ............................................................................4
2. Principles of managing and monitoring business. .............................................................4
3.Principles of double-entry bookkeeping system. ................................................................5
4. Prepare the trial balance by using data and analytics. .......................................................6
5.Evaluate various kinds of cost and its contribution in managing data. ..............................7
6. significance of recording information by considering accounting principles. ..................8
7. conclude about financial management and its role. ...........................................................8
LO2 .................................................................................................................................................8
1. Review the HR life cycle. ..................................................................................................8
2. Evaluate HR life cycle and its significance. ......................................................................9
3. Prepare performance management plan by reviewing the specific job role. ...................10
4. Make valid judgements and recommendations................................................................11
LO3................................................................................................................................................11
1. Identify specific legislation(s) that hospitality organisations. .........................................11
2.Impact of contract and employment law on organisational performance. .......................11
3. Potential impact of any two of the legislations by using standards. ................................12
4. Impact of ethical issues on the legislation and regulations. ............................................12
LO4................................................................................................................................................12
Covered in PPT. ...................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
A hospitality unit consist of restaurant, hotel or an amusement part which consist of
various units such as maintenance of facility and direct operations in order to serve consumers in
best manner. It is multibillion dollar industry which rely on availability of leisure time,
disposable income of consumers and level of satisfaction for gaining desirable outcomes.
Respective report is based on the Hotel Hilton which is a global brand of full services of hotels
and resorts under flagship of American multinational hospitality company Hilton. Respective
report is based on the Investigation of way to manage the finance and record transactions in order
to minimise cost responsible for hospitality sector. Further it includes the way to manage the
Human resource life cycle with the HR strategy in order to remain competitive in market. It also
includes the potential impact of legal and ethical considerations on respective industry. At last it
includes the significance of coordinating and integrating kinds of functions of departments in
hospitality industry.
MAIN BODY
LO1
1. About financial transaction of business.
An organisation that opened the business in the Moorgate in London EC2Y that
specialise in the healthy salads to serving with the blended juices and smoothies. With aimed to
open the gymnasium to bring additional trade, in that regards the financial transactions of
hospitality business are balance sheet, income statements, cash flow statements and shareholders
equity. The major source document used by organisation is checks, invoices and receipts, credit
memos. In respective organisation they by using the double entry book keeping system as it
ensures the arithmetical accuracy of books of accounts in proper manner (Bouwer, 2019). The
major process record to follow the information are journal entries which is the basic method to
record the transaction and receipt of supplier invoices.
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2. Principles of managing and monitoring business.
The major principles of managing and monitoring financial performance of business are
as follows:
Preparation of key financial statements:
Financial reports are the basic kind of reports for conducting business operations in very
smooth manner. In financial statements are balance sheets and profit and loss account. Balance
sheet enables to an organisation to acknowledge about their financial health and it consist all
kinds of assets and liabilities of an organisation (Bradshaw and et.al., 2019). The profit and loss
shows the financial condition by reflecting the revenue and expensed incurred during the
operations of organisation. In respective organisation that specialised in preparing the salads and
juices aimed to trade in Gym also so by using respective tool they can acknowledge about their
financial stability.
Analysis of HR:
Human resource consider one of most important assets for organisation that regularly
operate business activities. If the turnover rate is high then it is essential for organisation to
invest more in recruitment process to gain better outcomes.
3.Principles of double-entry bookkeeping system.
Double-entry book keeping system refers to the process which records the information
twice in order to record business transactions (Carpi and Pınar Şenoğuz, 2019). It potentially
depict about the overall debit side balance is equal to amount of credit.
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In it the word cash in hand denote as interest of credit card interest and activities are known as
revenue with equal amounts in cash balance.
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4. Prepare the trial balance by using data and analytics.
Balance of rule: In it the accounts of organisation remain close at the conclusion in a
financial period and not shut down will remain until this year respective period is known as
balance (Chan, 2019). The major goal is to verify the material in report and invoices are
sufficient or not. At last in fiscal year the reports shows reviews of success of organisation.
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It shows the equilibrium position of organisation.
5.Evaluate various kinds of cost and its contribution in managing data.
There are no. of cost used in an organisation one of them are fixed and variable cost.
Fixed cost which does not change with the increase or decrease in the amount of goods and
services produced or sold (Elshaer, 2019). Variable cost which change as the quantity of goods
and services changes. Respective kind of cost directly influence the cost of products and services
in raising prices. To calculate the profit margin divide gross profit by revenue and to make
margin percentage multiple result by 100.
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6. significance of recording information by considering accounting principles.
It is very much important for the business owners to make a habit of recording the
business transactions each and every day (Filimonau and Delysia, 2019). Respective activity
helps in making informed, effective and precise decisions at any time. It helps in kept business
records act as an reminder of an individuals deductible credits and expenses in order to gain
desirable outcomes. In context of organisation they to accumulate necessary information
regarding expenses and income of expanding their trade to remain competitive in marketplace.
7. conclude about financial management and its role.
It has been concluded that financial management is very much important for an
organisation to acknowledge the financial health of organisation by producing reports, direct
investment activities and by developing strategies and tactics for attaining long term financial
goals. Financial management also enables to monitor the core income and expenses of
organisation in order to take potential decisions. It also recommended that organisation need to
record the financial information properly in order to make business decisions viable.
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LO2
1. Review the HR life cycle.
In an organisation HR life cycle is one of most important role to manage and describe the
time of personnel in organisation and role of them at a particular stage (Hess, Kilb and Garcia,
2020). In context of Hotel Hilton they apply different stages of HR life cycle in order to
eliminate issue of acquisition and retention in organisation.
Recruiting and Onboarding:
Recruiting is the chain of activities concerned with hiring of new people, the major role
of HR department in respective stage is to assist in hiring. While organisation not properly guide
employees, they not able to engage oneself with goals and objectives. It is fact that turnover is
very high in the first 90 days of hiring so proper guidance and motivation is required. In context
of Hotel Hilton to eliminate the issue of talent acquisition and retention they list out skills and
capabilities and accordingly onboard people in system.
Orientation and career planning:
Orientation is the process by which employee become the member of organisation by
learning new duties, establishing relationships and many more (Higgins-Desbiolles, Moskwa
and Wijesinghe, 2019). Career planning in respective stage employees and their supervisors
work out in achieving long term career goals within organisation. The role of respective stages in
issues of talent acquisition and retention that by properly educating the employees regarding
roles and plan for their growth helps in build close relationship with organisational goals.
Career development:
Career development opportunities helps to organisation to keep engaged employees with
organisational goals over time (Jarratt and et.al., 2019). In context of Hotel Hilton they by
providing training and development to their employees to provide growth in their career which
directly helps to acquire the best and retain them for long time.
Termination and transition:
In an organisation some employees choose the long and successful career and some other
to be laid off. So provide proper termination enhance respect and loyalty of organisation. In
context of Hotel Hilton by coordinating the termination they provide career opportunities in
other companies.
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2. Evaluate HR life cycle and its significance.
HR life cycle plays very much important role in coordinating and managing the business
activities in order to gain desirable outcomes. Here are the importance of HR in supporting and
retaining talent for F&B manager.
Recruiting and Onboarding:
Respective stage of HR life cycle is significant to select by list out all the potential skills
and capabilities of an individual such as for F&B manager the required skills are communication,
leadership in order to gain desirable outcomes. In context of Hotel Hilton to support, grow and
retain the F&B manager by provide training and growth opportunities by delegating roles and
responsibilities to them.
Orientation and career planning:
Respective stage of HR life cycle helps in giving education and plan for the employees
growth so that they can engage one self with organisational goals and objectives (Jasnoff and
Sheikh, 2019). The major role of HR in respective stage is to providing knowledge of advance
tools and techniques and conduct orientation program so that they can best serve consumers.
Career development:
Career development is most potential to engage employees with organisational goals and
by giving challenging tasks to them. In context of Hotel Hilton they plan for their employees
growth in which HR plays major role in giving challenging tasks to F&B manager.
Termination and transition:
In respective stage organisation properly planned for transition of employees so that they
can plan for growth in their upcoming life. In context of Hotel Hilton, HR managing transition
by considering all policies should be followed so that F&B manager can grow.
3. Prepare performance management plan by reviewing the specific job role.
PMP is a process enables to engage organisations by aligning knowledge of workers and
resources to strategically plan to ensure organisational short and long term objectives (Kilibarda,
Djokovic and Suzic, 2019). Here are the Performance management plan for the job role of F&B
manager:
Plan:
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In respective stage organisation set priorities by setting expectations for individual and
give proper direction. In context of F&B manager, the first priority for them is to serve
consumers properly to enhance their level of experience by building strategies.
Monitor:
In respective stage of PMP organisation and management communicate with the F&B
manager in Hotel Hilton by specifying key roles and responsibilities on weekly basis (Kuščer
and Mihalič, 2019). Such as the priority of F&B is to enhance consumer experience so it needed
to perform frequent check ins by using the approach to gain desirable outcomes. So management
monitor or evaluate performance of an individual.
Review:
In respective stage, management review the performance by setting priorities to avail
opportunities. In context of Hotel Hilton, as per regulations they set timelines to achieve specific
objective for F&B manager.
4. Make valid judgements and recommendations.
It has been recommended that in each stage of HR life cycle the needed documents is job
description and specification to choose one of best candidate for a specified job role. In context
of Hotel Hilton to select best personnel for F&B manager they have to specify skills and
capabilities with roles and responsibilities in order to gain desirable outcomes.
LO3
1. Identify specific legislation(s) that hospitality organisations.
To regulate the business activities in proper manner within the hospitality industry
required some sort of legislations that are Equal pay as changes occurs around holiday pay
calculations in regards of overtime. National minimum wage also the required legislation that
prove problematic these days and health and safety regulations to provide one of best
environment in which employees can give one of their best efforts.
2.Impact of contract and employment law on organisational performance.
In an organisation, employment act affects each and every aspect of the workplace by
determined the rights regarding hiring of an individual, wages and benefits, discrimination, leave
of medical and termination process with many more (Wiltshier and Griffiths, 2019). In context
of Hotel Hilton they by following the employment laws by complying with kinds of rules and
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regulations to avoid the costly kind of employment tribunal claims. For an example in hospitality
industry with the help of employment law organisation can be able to set the working hours and
pay with sickness absence to coordinate employees properly.
Contract law directly affect on the organisations processes at vital level as business deals
in providing the products and services. Respective law engaged with every purchase, selling and
rendering services that sold at specific range of pricing in certain conditions. In context of Hotel
Hilton they to sell the product in specified price range and in certain conditions affect on their
decision-making.
3. Potential impact of any two of the legislations by using standards.
In hospitality industry the major legislations that directly impact on the standards that are
as follows:
Minimum requirement for hospitality compliance: In Hospitality industry by following
standards such as ISO 9001 that is potential for respective industry in order to operate legally
(Wiltshier, Griffiths and Clarke, 2019). Documents required are occupational health and safety
management manual, H&S management policy, accountability of major employees and many
more. It impact on the standards as it set as per legislation and norms in it.
Food and beverage regulations:
F&B is one of most important legislation that helps to protect the areas of interest of
people in order to serve them properly (MAS, 2019). There are kinds of food safety standards
such as interpretation and application, Food safety programs that helps in food hazards by
collaborated with food handling. Respective law in the Hotel Hilton in setting standards
regarding food and its safety.
4. Impact of ethical issues on the legislation and regulations.
Ethical issues directly impact on the regulations and principles such as toxic workplace
culture and discrimination and harassment are two ethical issues. Respective issues or hazards
directly affect on the legislations and their nature as management mould them accordingly. So it
is very much potential to build legislations and apply deliberately them. Legislation enables to
improve the company employ contract by specifying duration for which an employee is hired for
organisation and designation specifies such as manager, executive and vice president. All areas
should be specified by using the legislation and code of conduct in respective organisation.
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LO4
Covered in PPT.
CONCLUSION
From the above report it has been concluded that hospitality sector is one of most
important for economy as it helps to enhance consumer experience and contributes in giving
employment. Financial information and its accounting plays very much significant role to
measure and evaluate the performance of organisation in terms of monetary. Managing the staff
members is important to gain desirable outcomes by delegating the roles and responsibilities in
order to gain desirable outcomes potentially. Legislations in the organisation regulate the
activities and procedures to gain results in specified time period in determined goals and
objectives.
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