Managing Financial Performance and HR Life Cycle in Hospitality Business

This report discusses the principles of managing and monitoring financial performance, HR life cycle stages, legal compliance, and coordination and integration of different functions in the hospitality business. It includes a case study of Hilton International Hotel and provides recommendations for improvement.

Hospitality Business
Toolkit

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART A...........................................................................................................................................1
Introduction of financial transaction of hospitality business by identifying types of source
documents and recording process ...............................................................................................1
Investigation of principles of managing and monitoring financial performance ........................1
Explanation of principle of double entry book keeping system of debit and credit by using
standard data from operation ......................................................................................................2
Explanation of trial balance along with using sample data, stating different steps used and
purpose of trial balance................................................................................................................4
Analysation of types of cost and can be managed to influence financial performance of
business and representation of profit margin ..............................................................................5
Discussion of importance of accurate recording of transaction in line with accepted accounting
principles .....................................................................................................................................6
Conclusion that critically evaluate role of financial management and monitor attainment of
growth in business along with recommendation .........................................................................6
PART B............................................................................................................................................7
Lo2...................................................................................................................................................7
Review of different stages of HR life cycle as applied issues in talent acquisition and retention
within food and beverage sector .................................................................................................7
Evaluation of each stages of HR life cycle and importance of HR that play role in supporting,
growing and retaining talent applied to specific job role ............................................................8
Development of performance management plan to support to specific job role ........................8
Valid judgement and recommendation of processes and documents at each stage of HR life
cycle can be improved ................................................................................................................9
Lo3. .................................................................................................................................................9
Identification of legislation that hospitality organisation needs to comply and adhere to daily
transaction of business along with using example to explain where it applicable ......................9
Illustration of ways in which employment and contract law of company create impact over
decision making of business .......................................................................................................9

Examination of potential implication of any of two of regulation on standard ........................10
Critical reflection of impact of ethical issues on regulation, legislation and principle by
identification of ethical issues and valid judgement and also recommendation for company that
how these legislation can be improvement employment contract ............................................10
Lo4.................................................................................................................................................10
Exploration of different functional roles within hospitality sector and how these can be
interrelated with using organisation chart .................................................................................10
Explanation of different communication methods and levels used in an organisation .............11
Review of coordination and integration within business organisation along with using
examples ...................................................................................................................................12
Analysation of effectiveness of different method of communication, integration and
monitoring within specific department that helps to achieve objectives of organisation and
strength of their values chain ....................................................................................................12
Judgement and recommendation for coordination and integration that enhance overall
performance of business ...........................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality business is one that includes restaurant, amusement park, hotel that is focusing in
providing best services to customers that enhance customer experience. It is one of growing
industry which is depended on leisure time, disposable income of consumer, level of satisfaction
of customer in order to get desired results (AlNuaimi, Khan and Ajmal, 2021). This project
report includes study of Hilton international organisation which is a American hospitality chain.
It is including umbers of hotel, resorts under their name. It was founded in the year 1919 by
Conrad Hilton in US. This project report includes investigation of how to manage financial as
well as recording transaction in order to minimise cost that is involved in hostility sector. It is
assessing different ways of managing human resource life cycle within HR strategy. It illustrate
impact of legal and ethical consideration of hospitality business. Moreover, it explain importance
of coordination and integration of different functions of department in hospitality business.
MAIN BODY
PART A
Introduction of financial transaction of hospitality business by identifying types of source
documents and recording process
Financial transaction can be described as an agreement, communication that is conducted
between seller and buyer to exchange an asset for payment. It consist various changes in status of
finance that is related to business or individual. It is a major exchange that is related to monetary
values that is created through business (Chandrasapth, Yannopoulou and Bian, 2022). In order to
conduct operation of company in effective manner, it is important for a company to focus in
financial transaction. Financial transaction is concerned with development of business practices
that is fruitful for company. Hilton international organisation is having professional financial
management in their business which is important for management of finance in company in
effective manner. In this, double entry book keeping system is also playing important role for
managing financial transaction.
Investigation of principles of managing and monitoring financial performance
There are various principle of financial performance which assist managers of Hilton
international organisation to manage finance of company in efficient manner. These principle
1

includes consistency, justification, documentation, timeliness, certification and explanation of it
is mentioned below:
Consistency: Financial transaction of Hilton International Hotel should be handled in consistent
manner as there are various policies as well as procedure of company that are identified for
purpose of managing on a regular purpose (Davis, Gough and Taylor, 2019).
Timeless: Financial transaction of company should be handle within a specific period of time. It
helps them to maintain proper record of financial transaction within their organisation
Justification: There is a specific reason for each and every transaction that provide support to
goals of project. Managers in Hilton International Hotel needs to consider that justification for
every tradition.
Documentation: it is another principle and according to which, there should be sufficient
documentation for purpose of retain, organise and complete an audit.
Certification: It is another principle that states that financial transaction of an organisation can
be approved as well as carry out different authorising signature.
Explanation of principle of double entry book keeping system of debit and credit by using
standard data from operation
Double entry book keeping system can be described as corresponding entry which is made for all
transaction like debit and credit. It is system that is based on concept that every transaction has
two parts and create impact over two ledge accounts (Farrington, Antony and O’Gorman, 2018).
It is a system that is maintained in Hilton international organisation that is dealing with two or
more accounts of business transaction. It is based on certain principle which are mentioned
below:
 Debit should be written at left side whereas credit should be on right side.
 All debit have their corresponding credit.
 Debit get benefits whereas credit provide benefits.
2

3

Explanation of trial balance along with using sample data, stating different steps used and
purpose of trial balance
Trial balance can be described as general ledger account that is including ledger of business .it is
consisting a list that including nominal ledger account that provide values of nominal ledge
balance. All nominal ledger account will holder debit or credit balance (Ferreira and Brothers,
2022).
Purpose of preparing trial balance is that it provide assistance for developing financial statement
of company. It has its assets and liabilities which are placed in balance sheet. Income as well as
expenses of company are appear in profit and loss accounts of company and assist for developing
final accounts.
4

Analysation of types of cost and can be managed to influence financial performance of business
and representation of profit margin
There are various types of cost involved in business which is reduce profitability level of
business. Explanation of these cost in context of company is mentioned below:
Direct cost: Direct cost can be described as cost that is linked with production of products and
includes labour and material (Ferreira, 2019).
Indirect cost: It is another cost that is difficult to identify and cannot be tracked within a
individual department. These cost are not directly linked with production but is indirectly linked.
Fixed cost: Fixed cost are those which can be easily calculate in business and be more tangible.
It is fixed for business regardless of their performance.
Variable cost: Variable cost are those which can be change according to performance of
business. With increasing unit of product, cost of company is also increased.
5

Discussion of importance of accurate recording of transaction in line with accepted accounting
principles
It is essential for owner of business to make a tendency for recording various business
transaction on each as well as every business. There are various activities in business which
helps for making effective, informed as well as precise decision (Fuchs and Höpken, 2020). It is
important for business to record transaction that helps individual to remember deductible credit
and other expenses to get desired results. In context of Hilton International Hotel, there are
various information required by business that are linked with income and expenses of company
that assist them to remain competitive.
Conclusion that critically evaluate role of financial management and monitor attainment of
growth in business along with recommendation
From above mentioned discussion, it can be concluded that financial management is key
of success for an organisation that helps business to maintain good financial health of company
through various investment activities, producing reports, developing strategies, tactics for
attainment of financial goals (Higgins-Desbiolles, Bigby and Peters, 2022). Financial
management allow company to monitor and analyse their core income as well as other expenses
6

that provide them guidance for making decisions. It is recommended to organisation to record
various financial information that is important in order to make viable decisions.
PART B
Lo2
Review of different stages of HR life cycle as applied issues in talent acquisition and retention
within food and beverage sector
HR life cycle can be described as continuous process that integrate different HR activities. It is
integrating both creation of HR strategy and execution of employee life cycle. It consist five
main stages which are mentioned below:
Attraction, recruitment, selection: It is first stage of HR life cycle which take place before
employees looking for a employee. It is encompasses brand of organisation that provide shape to
perception of employees of company (Höpken and Fuchs, 2021). Recruitment is another activity
that includes finding out suitable people for company that provide them success. Selection is
another step in which managers of Hilton is selecting suitable candidate for their organisation.
Induction, orientation, on-boarding: It is another stage of HR life cycle in which managers of
employers are introducing employees to organisation. In this, employees inspired with their new
roles, understanding culture of company and settle within team.
Career planning and development: It is a stage in employees is focusing on getting
opportunity that provide them growth. It is a key stage that assist company to understand ways in
which they can deal with performance management. After performance appraisal, employees
which have worked with dedication will get growth and reward for their work.
Retention: It is another stage in which focus of organisation is to retain employee for long term
in their organisation (Jones and Comfort, 2022). Employees who work with dedication are
important for companies and it is their responsibility to retain these employees for long term.
Separation and termination phase: It is last stage of HR life cycle in which employee is
leaving from organisation. Good employees ca be retained by organisation that create positive
environment and at same time, employee who are not working their work with dedication will
leave the organisation.
7

Evaluation of each stages of HR life cycle and importance of HR that play role in supporting,
growing and retaining talent applied to specific job role
HR life cycle is including different types of HR activities. HR management helps business to
manage different functions of business for various reason which are mentioned below:
Growth and expansion: HR function helps business to manage human resource in effective
manner that allow them to saves efforts and time of employees and invest it on other activities
(LeDoux and Bristow, 2022). It helps company to saves cost of human resources which provide
them growth and expansion in market.
Increase employee potential: HR function helps company to manage Human resource in a ways
that improve potential of employees. Human resource managers of Hilton international hotel
provide timely training and development opportunities fro business. It is important for them to
attain target and goals of company.
Attainment of organisation goals and objectives: Managers of Hilton International Hotel are
focusing on attainment of goals and objectives of company which can done with providing
support of HR practice.
Development of performance management plan to support to specific job role
Performance management plan can be described as an effective tool that ensure that employees
can get success through attainment of professional goals along with organisational goals. It helps
company to align knowledge and resources of company along with objectives of organisation
(Marques and de Souza Neto, 2022). Performance management plan for food and beverage
manager in Hilton International Hotel is mentioned below:
Plan: It is a stage in which organisation can sett expectation for employees within organisation
through setting various priorities. In context of Food and beverage management, it is important
for a person to set priority that allow them to serve to consumers effective that enhance their
experience.
Monitor: It is another stage of performance management plan in which managers of
communicate with food and beverage managers of Hilton Hotel through specifying different
roles and responsibility on regular basis (Matthews, 2020).
Review: It is last stage of performance management plan in which managers are review
performance of employees. In relation to Hilton international hotel, there are various regulation
set by food and beverage managers that provide them opportunity to attain goals of company.
8

Valid judgement and recommendation of processes and documents at each stage of HR life cycle
can be improved
From above mentioned discussion, it cam be recommended to managers of human resource that
there are various stages of HR life cycle which is to be followed in business that require different
documents like job description, specification and prepare candidate for purpose of specific job
role (Naisola Ruiter, 2021). In context of Hilton International Hotel, it is essential for food and
beverage management to posses some skills that allow them to get desired outcomes.
Lo3.
Identification of legislation that hospitality organisation needs to comply and adhere to daily
transaction of business along with using example to explain where it applicable
In order to carry out business in a country, it is responsibility of business to follow various laws
and regulation. It is also important for them to avoid interruption of government and other legal
authority. These laws are also followed by business of Hilton International Hotel and some of
these laws are mentioned below:
Minimum wages law: Hilton International Hotel ensure that they are providing atleast minimum
wages law to employees. This organisation is focusing on working with employees that helps
them to satisfy their workers with organisation (Oktadiana and Pearce, 20201).
Employment safety law: It is also responsibility of managers of Hilton Hotel to ensure safety of
employees at workplaces. It is important for them to avoid equipment that can harm health of
their employees or can cause injury to them.
Illustration of ways in which employment and contract law of company create impact over
decision making of business
Employment law can be described as area of law that govern employer and employee
relationship. Business who has numbers of employees needs to employees all employment law.
Hilton international Hotel is following this law in their organisation which allow them to
successfully conduct their business. It includes laws like prevent discrimination, promotions of
health and safety of workplace.
Contract law is one of law that is to be followed by managers of Hilton International Hotel that
play important role in business. It is a law that is related with purchase, selling as well as
rendering of different services that can be sold in market in specific pricing.
9

Examination of potential implication of any of two of regulation on standard
Hospitality industry is one of industry which is following legal obligation as well as standard
regulation in business. These practices allow business to be function legally and allow them to
attain their business. These implication of regulation in context of Hilton Interactional hotel is
mentioned below:
Responsibilities: Business has developed various evolution for their responsibility that assist
them to attain different target set by them (Urquhart, 2022). Managers of Hilton International
Hotel has followed various ethical responsibility that allow them to provide support to different
types of regulation.
Corporate social responsibility: It is responsibility of business to contribute towards society as
they are using resources, facilities of society. There are various types of legal practices that is
adopted by managers of Hilton Hotel that assist them to fulfil their corporate social
responsibility.
Critical reflection of impact of ethical issues on regulation, legislation and principle by
identification of ethical issues and valid judgement and also recommendation for company
that how these legislation can be improvement employment contract
Ethical issues are creating various impact on business and in order to avoid these impact,
business needs to conduct their operation in legal manner. Employment law is playing important
role in business as it includes various legal practices that is important for efficiency of business.
It is also responsibility of business to consider all these practices in business. It is recommended
to business to follow certain practices which are mentioned below:
 There should be proper security of data of employees and business that helps them to
prevent threat from their business and also make their business to be more ethical.
 It is also recommended to business to fulfil ensure corporate social responsibility that
improve their image in market.
Lo4
Exploration of different functional roles within hospitality sector and how these can be
interrelated with using organisation chart
There are various function in business which are playing important role. All these functions has
their own roles and responsibility towards attainment of goals and objectives of business. These
10

functions includes financial, human resource, management, research and development,
marketing and others. These functions are also interrelated to each other for purpose of getting
success in business.
All these functions are interrelated to each other as financial is a function that deals with
management of financial information and funds in business. Marketing on the other hand, deals
with understanding target customers and increasing awareness among customers. For this
purpose, marketing manager require funds which they can get from finance department. Human
resource managers on the other hand deal with shortage of employees and for this, they needs to
provide them payment for which they are depended on finance department.
Explanation of different communication methods and levels used in an organisation
There are different methods of communication used in business which include verbal, non
verbal, written, visual and other. Explanation of it in context of Hilton international Hotel is
mentioned below:
Verbal communication: It is a type of communication which can be on one to one basis. It can
be take place in Hilton International hotel over telephone, video conference, voice message.
Non-verbal communication: it is another form of communication which is based on voice tone,
facial expression, hand movement, eye contact, body language (Vetitnev and Chigarev, 2021).
Written communication: it is a method of communication which can be used in formal as well
as informal manner. It can be done in Hilton International Hotel through letters, report, emails,
social media and other ways.
Visual communication: It is another communication in which information is delivered through
graphical representation or visual aids. It can be done in Hilton International Hotel through
presentation, charts and other ways.
11

Listening: It is a communication that allow people to listen actively while other person is
speaking, it is focusing on what other people is saying.
Review of coordination and integration within business organisation along with using examples
There are various practices that is to be implemented in business for purpose of coordination as
well as integration that allow them for development. In present scenario, needs to integration and
coordination has more arise in hospitality sector. For this, there are different types of practices to
be adopted by business that helps them to manage operation in effective manner. It is a technique
that allow business for purpose of making decision and adopt leadership in company.
Analysation of effectiveness of different method of communication, integration and monitoring
within specific department that helps to achieve objectives of organisation and strength of
their values chain
Communication is playing important role in business that allow employees to work with
dedication and attain goals and objectives of company. It is responsibility of business to focus on
strength and weakness of different method of communication that allow them to adopt suitable
method communication in business. Hilton Internation organisation is adopting best practices of
communication in their organisation that allow them to fulfil their business responsibility.
Judgement and recommendation for coordination and integration that enhance overall
performance of business
 From above mentioned discussion, it can be recommended that managers of company
needs to coordinate among different efforts made by employees for performance of
improving performance of communication.
 It is also recommended to them that there should be free flow of communication that
allow them to avoid misunderstanding and contribute to performance of business.
CONCLUSION
From above mentioned project report, it can be concluded that hospitality business is playing
important role in an industry. It is contributing to economy of a company in many ways by
creating employment, improve GDP and other ways. Financial information is playing important
role and due to which it is important for hospitality business to manage finance and financial
information. There are different types of legislation to be followed in hospitality industry which
is to followed by managers of company.
12

13

REFERENCES
Books and Journals:
AlNuaimi, B.K., Khan, M. and Ajmal, M.M., 2021. The role of big data analytics capabilities in
greening e-procurement: A higher order PLS-SEM analysis. Technological Forecasting
and Social Change, 169, p.120808.
Chandrasapth, K., Yannopoulou, N. and Bian, X., 2022. Good fortune and its influence on B2B
relationships: The case of the Mae Manee money solution campaign in
Thailand. Industrial Marketing Management, 101, pp.223-237.
Davis, N.L., Gough, M. and Taylor, L.L., 2019. Online teaching: advantages, obstacles and tools
for getting it right. Journal of Teaching in Travel & Tourism, 19(3), pp.256-263.
Farrington, T., Antony, J. and O’Gorman, K.D., 2018. Continuous improvement methodologies
and practices in hospitality and tourism. International Journal of Contemporary
Hospitality Management.
Ferreira, B. and Brothers, G., 2022. Permatourism. In Encyclopedia of Tourism Management and
Marketing (pp. 1-3). Edward Elgar Publishing.
Ferreira, D., 2019. Research on big data, VGI, and the tourism and hospitality sector: Concepts,
methods, and geographies. In Big data and innovation in tourism, travel, and
hospitality (pp. 75-85). Springer, Singapore.
Fuchs, M. and Höpken, W., 2020. E-tourism curriculum. Handbook of e-tourism, pp.1-26.
Higgins-Desbiolles, F., Bigby, B.C. and Peters, A., 2022. Indigenous Tourism. In Encyclopedia
of Tourism Management and Marketing. Edward Elgar Publishing.
Höpken, W. and Fuchs, M., 2021. Business Intelligence in Tourism. In Handbook of e-
Tourism (pp. 1-31). Cham: Springer International Publishing.
Jones, P. and Comfort, D., 2022. Modern Slavery Statements and the UK's Largest
Housebuilding Companies: An Exploratory Research Paper. Property Management.
LeDoux, T.F. and Bristow, R.S., 2022. Aerial Imagery. In Encyclopedia of Tourism Management
and Marketing. Edward Elgar Publishing.
Marques, O.R.B. and de Souza Neto, V.R., 2022. Behavioural Nudging. In Encyclopedia of
Tourism Management and Marketing. Edward Elgar Publishing.
Matthews, P., 2020. Insights of an accidental enterprise educator. In How to Become an
Entrepreneurship Educator. Edward Elgar Publishing.
Naisola Ruiter, V., 2021. HUMANIZING HOSPITALITY INDUSTRY HUMAN RESOURCES
MANAGEMENT TO IMPROVE RECRUITMENT AND RETENTION OF
RESILIENT HOSPITABLE TALENTS IN THE SECTOR.
Oktadiana, H. and Pearce, P.L., 2020. Losing touch: Uncomfortable encounters with tourism
technology. Journal of Hospitality and Tourism Management, 42, pp.266-276.
Urquhart, E., 2022. Interpretative Tools. In Encyclopedia of Tourism Management and
Marketing. Edward Elgar Publishing.
Vetitnev, A.M. and Chigarev, D.V., 2021. Assessment of overtourism manifestations by visitors
of Russian destinations. The case from sochi. Journal of Environmental Management &
Tourism, 12(1), pp.218-232.
14