The Hospitality Business Toolkit - Desklib

This report covers the key principles of financial and non-financial performance indicators, business activities, legislation, financial statements, effective communication, and human resources in the hospitality industry. It also includes the HR life cycle, performance management plan, legislation compliance, and functional roles within the industry.

The Hospitality
Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Financial transactions of hospitality business with identification of the recording process and
source documents with use of accounting cycle diagram......................................................1
Principles of monitoring and managing the financial performance of the organisation........2
Principles of Double Entry Bookkeeping system of credits and debits with the help of
standard data...........................................................................................................................3
Analysis of Trial Balance with use of purchase transactions and sample data of sales.........8
Analysis of types of cost and ways of managing the impact upon the financial performance9
Importance of accurate recording of transactions with the use of various accounting principles
................................................................................................................................................9
TASK 2 .........................................................................................................................................10
Different stages of the HR life cycle and its application to issues in talent acquisition and
retention within the beverage and food sector......................................................................10
Performance management plan to support specific job role ...............................................11
Recommendations and judgements and improving each stage of the HR life cycle............12
Specific legislation(s) that hospitality organizations has to comply....................................12
Company’s employment and contract law impact on business decision-making................13
Different functional roles within the hospitality sector and their interrelation....................14
Different communication channels practised in organisation are:.......................................15
Effectiveness of the different communication methods, monitoring and integration of the
specific department for the purpose to achieve objectives of the department......................16
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
The hospitality industry involves various kinds of services that includes tourism, lodging,
event planning, drink and food service, theme parks, tourism and travel. When it comes to
hospitality industry, the organisation has a major impact on the actions and areas of the
organisation. The organisation chosen for this report is Royal Lancaster London, United
Kingdom. The company is involved in providing high standards and luxury hospitality services
and comfort to its guests. The report involves the understanding of the key principles in relation
to the various non financial and financial performance indicators. In addition to that the report
involves the various business activities and there application to the hospitality industry which
involves dealing with the regulation and legislation, interpreting the financial statements,
budgeting and forecasting, effective communication and retention of staff. Moreover it involves
the deep understanding of the key business practices and principles that involves legislation and
the law, financial aspects of hospitality, effective communications and human resources.
MAIN BODY
TASK 1
Financial transactions of hospitality business with identification of the recording process and
source documents with use of accounting cycle diagram
Source documents are basically the various business forms that involves the financial
transactions of the organisation that includes small as well huge investments. It also involves the
invoices of the payments or receipts, receipts and transaction of sales and purchases. In context
to Royal Lancaster London, the recording process of the main structure of the sales or purchase
basically involves the final accounts, journals, balance sheet, ledge posting and trail balance.
Moreover, organisation uses preparation of the books of accounts and use of updated technology
in order to do calculations. In context to organisation, it uses online computer based accounting
for the purpose to calculate their sales and record the journal entries(Sano and Sano, 2019).
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Principles of monitoring and managing the financial performance of the organisation
In context to business, the various business operations and activities plays a very
important role and it is very important to record such activities and financial statements of the
company. The management and monitoring of finance plays a very important roles as it helps in
running the business operations more smoothly and with less errors. In context to organisation, it
involves maintenance of financial transactions and also record keeping is mandatory in order to
keep a track of the financial performance of the company(Canning, Gendron and O'Dwyer,
2018).In context to organisation, the various principles that governs the performance of finance
involves:
Avoiding unfair practices while preparing the accounts: In context to organisation, while
preparing the finances and accounts, the unfair practices must be avoided by the organisation.
There should not be any type of malpractices such as window dressing and any type of breaking
of laws.
Allocation of funds: In context to the organisation, the finance team need to focus on allocation
of funds in a proper manner as per the daily activities and requirements of business. While
preparing the it should be made in a more true and realistic approach(Zook and Blankenship,
2018).
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Proper Documentation: While preparing documents it should involve proper preparation of the
documents that involves preparing the books of financial accounts, trial balance, journal, balance
sheets and ledger. While preparing the accounts it is very important to mention each and every
transaction in a clear cut manner(Zook and Blankenship, 2018).
Principles of Double Entry Bookkeeping system of credits and debits with the help of standard
data
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Analysis of Trial Balance with use of purchase transactions and sample data of sales
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Analysis of types of cost and ways of managing the impact upon the financial performance
The costs involved in hospitality sector involves various different type of costs and also
includes day to day transactions. In context to hospitality services, it need to work for 24 hours in
a continuous manner and need to keep a record of the activities. The organisation also need to
bear different type of costs which involves telephone bills, taxes, electricity and other
expenses(Faraca, Tonini and Astrup, 2018).
Importance of accurate recording of transactions with the use of various accounting principles
The recording of transactions plays a very important role in the business operations which
also involves the transactions in terms of monetary values on a day to day basis. For the purpose
to manage the recording of the transactions it is very important to analyse the financial position
of the organisation which plays a very important role in the hospitality industry and also involves
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the maintenance of financial statements. In context to the organisation, in order to find out
accurate transactions it is important to consider the various principles which involves:
Full disclosure principle: It involves full disclosure of all the assets and liabilities of the
company and should not have wrong data and information. It is very important to have a
accurate and correct record of the financial position of the company.
Cost principle: It involves the situation where the assets need to be recorded at proper
depreciation and acquisitions price.
Revenue recognition principle: It basically involves the recording of the revenues earned by the
organization in a year.
Matching principle: It involves the revenues and expenses of the accounting period which need
to be matched and identified as per the occurrence of the transactions.
TASK 2
Different stages of the HR life cycle and its application to issues in talent acquisition and
retention within the beverage and food sector
The HR life cycle basically involves the constant and continuous process and procedure
of the integrated HR activities(Sandjong, 2021).Under this process the cycle begins from the
business strategy which is afterwards converted into the HR strategy, recruiting, organizational
design, training and development and HR activities till the employee's exit. The HR life cycle
involves five stages which includes :
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Attraction, recruitment and selection: In context to attraction, it starts even before the company
is looking for new employee. In case of recruitment it basically involves searching for
prospective employees in order to hire best talent for job roles.
Induction, orientation and on boarding: During this stage, there is a layout of expectations
among the employee and employer. In context to the company, the organisation ensures that
employees feel inspire and is valued and welcomed properly(Ghosh, 2020).
Career planning and development: After the employee has settle down in the organisation, it is
important to focus on providing them opportunities to grow. In context to organisation, the
company founds out various ways of boosting productivity and improving talent.
Retention: The process of hiring an employee involves a lot of time and effort and when it
comes to organisation it is very important to retain the talent. In context to company, the
company need to create a surroundings or culture that helps in boosting the confidence of
employees(
Yang and Zhao, 2018).
Separation and Termination phase: At this stage, it is very important to understand the reason
of employee leaving an organisation. In context to employee, it is very important to prevent the
current staff from worrying about the future and creating a productive and positive environment.
Performance management plan to support specific job role
The performance management is basically considered as the corporate management tool
that basically helps in evaluating the work of employees and helping the managers to monitor.
The main objective of performance management is to create a surroundings that helps the
individuals to perform with their best capabilities and working the most efficient and effective
manner. In order to implement the management in a effective way in the company it basically
involves the three components:
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Plan: It involves establishing expectations and assessing priorities for each person. In order to
effectively and efficiently accomplish a plan it is very important to make the individuals
understand about the various steps which are involved in completing a plan(Pohl, Hilty and
Finkbeiner, 2019).
Monitor: It basically involves following up with the play and having a control over the plan on
weekly basis. In order to complete a task or plan in a timely manner it is very important to
monitor the tasks.
Review: It basically involves setting up priorities and also providing tangible timeline in order to
complete the task. The benefits of the performance management involves a highly motivated
workforce and also enhancing the engagement of employees.
Recommendations and judgements and improving each stage of the HR life cycle
In order to improve the HR life cycle it is important to clearly and openly communicate
with the employees and staff about the duties and roles. It is very important to effectively
manage and train and also focusing on implementing the buddy system in the training program.
It is also recommended to use advanced technology, developing an effective training program,
improving organizational communication, building a culture and also providing regular
feedback to the employees. In context to organisation it is very important to establish a proper
communication channel, encouraging the external learning, rewarding the employees, assessing
knowledge and skills together and also working on encouraging the team members for the
purpose to be responsible and accountable for their own development. In context to organisations
it is very important to communicate in a effective manner and to learn ways to manage the
responsibility through implementation of a proper buddy system in the training programmes.
Furthermore, it is also important to clearly and openly communicate with the employees
regarding their duties and roles(Amiri, Nejad and Alamdari, 2018).
Specific legislation(s) that hospitality organizations has to comply
Legislation basically involves enacting and preparing of laws by the state and local or
national legislatures that are basically applied to the regulations and rules of administrative
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agencies. In context to hospitality industry, the individuals who basically run the companies in
the UK are quite familiar with implications of the safety regulations and forever changing health.
In context to hospitality industries, the Health and Safety at Work Act 1974 is applied and need
to be adhered. It further involves:
Licensing: It basically involves various rules and involves two types of license that includes the
personal licenses and premises licenses. Furthermore, it also indicates that it is illegal to buy
alcohol from a non registered wholesaler and every activity in the hospitality industry requires
licensing.
Marketing: In context to hospitality, it is very important to protect the rights of consumers and to
ensure that each and every product must be of superior quality and with all the necessary
information and details. In context to food safety and hygiene it is important to ensure that the
consumers are free from any harm.
The health and safety at work act(1974): It is one of the most important act and involves
regulations such as smoking in public places, fire safety, swimming and outdoor safety and
manual handling(Council, 2021).
Company’s employment and contract law impact on business decision-making
A company's employment basically involves the hiring of employees on a temporary
basis which is also known as “Temping”. In context to contract laws, it majorly affects the
businesses as all the companies are involved in providing a product or service which is basically
involved in the activity to render services, to purchase and to resell. In context to contract law,it
is very considered to be a very important factor as it majorly affects the business operations and
affects the ways of doing a business and also plays a major role in improving the career in the
commercial law. The decision making basically involves the process of making a choice that
includes gathering data and information, assessing the alternative resolutions and identifying a
decision. The contract law plays a very important role and creates a major impact on the decision
making process. The employees plays a very important role in the decision making process and it
is very important for the employees to have a proper understanding of the ideas and to
understand towards their contribution in the organisation which results in creating a positive
impact and ever-increasing the job satisfaction(Zona, Boyd and Haynes, 2019).
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Different functional roles within the hospitality sector and their interrelation
The functional roles basically involves the description of the various activities and skills
which are highly important and typical and are need to be performed by each and every
department in the organization. The functional roles are basically defined by the structure of
organisation of the company. In each functional role, the resources are assigned to each
department. There are various functional roles within the hospitality industry which includes:
Marketing department: Marketing is all about satisfying and understanding the customer
requirement in a profitable manner. In context to hospitality, it is very important to understand
the demand and needs of the guested and also to focus on carrying out various promotional tools
and advertising campaigns.
HR Department: The HR department of any hotel is basically involved in carrying out various
tasks and responsibilities. It basically involves person specification, designing jobs, advertising
jobs, hiring and training new people and advertising jobs on appropriate media.
Finance and accounting department: This department is considered to be one of the most
important department in the hospitality industry. It basically involves preparing of the financial
statements budgetary control, cost controlling, dealing with the tax issues and billing and credit
control(Ferreira and Sousa, 2020).
Purchase department: It is also known as procurement department. In context to hotel, this
department is basically responsible for ensuring the success if the company and also to use best
quality equipment and products in order to enable efficiency(Poon, 2019).
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Different communication channels practised in organisation are:
The communication between departments of business and employees is crucial for the
organisation in order to ensure smooth operation of business activities and to achieve long term
goals in an appropriate manner. The different channel of communication used within
organisational structure of Royal Lancaster Hotel are:
Formal Communication:
The type of communication which is often practised between customers and clients in
order to fulfil basic business objectives is referred as formal communication. In context to
company, The firm practice formal communication channels in order to perform certain business
tasks in the most professional manner(Moscardo, 2019).
Informal communication:
The type of communication channel used by employees in order to connect with other
employees or their bosses to satisfy their social needs. In relation to the company, the firm
follows informal communication channel which helps the firm to convey necessary information
in the fastest manner.
Directional communication: The communication process of organisation is directional as it
involves major three types downward, upward and horizontal. In relation to company, the
company follows directional communication in order to keep positive working environment.
The following four directions of communication process is :
 Downward communication: In this, the communication flows from upward to
downward and allows employee of higher position to connect with lower ranking
employees.
 Upward communication:In this, the information flow from lower level workers to top
level managers.
 Horizontal communication: In this, the communication takes place between
departments of the organisation and between people of same positions.
Review of coordination and integration within business organisation:
Coordination is crucial for management as it integrate all business functions in order to
collectively achieve goals and objectives of the firm. The coordination act as a force that binds
different business functions in order to achieve harmonious working environment within the
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organisation. In relation to company, it helps the organisation to coordinate different business
functions and aids the firm to enhance positive working environment. In addition to this,
coordination supports the firm to successfully integrate micro and macro level dynamics and
boosts building of trust among workers that support the organisation to achieve objectives in an
appropriate manner.
Business integration is crucial about binding firm's system together in to a stream line
process that aids the firm to achieve organisational objectives.
Effectiveness of the different communication methods, monitoring and integration of the specific
department for the purpose to achieve objectives of the department
When it comes to business organisation it plays a very significant role for the proepr
functioning of the enterprise. In context to hospitality sector, it is employed with large customer
base and staff which includes proper communication. In order to manage the various functions of
the hospitality it is very important to maintain the desired communication channel. In context to
large organisations, it involves various communication methods and structure.
CONCLUSION
From the above report it can be concluded that, the hospitality industry is a vast area and
involves huge costs and expenses. In order to keep the record of daily transactions and to
maintain the record of financial performance of the company, the organisation needs financial
experts and accountants for the accuracy and effectiveness of the transactions. Moreover the
hospitality industry uses various ways and methods for the purpose to improve productivity and
enhance profits. IN addition to that the report involves the explanation of the regulations and
rules which are essential for the business operations.
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REFERENCES
Books and Journals
Amiri, A., Nejad, R. and Alamdari, A., 2018. The Role of the Health System Development Plan
for Improving the Performance of Educational and Therapeutic Hospitals in Yasuj city. Revista
Publicando, 5(16 (1)), pp.861-868.
Canning, M., Gendron, Y. and O'Dwyer, B., 2018. Auditing in a changing environment and the
constitution of cross-paradigmatic communication channels. Auditing: A Journal of Practice &
Theory, 37(2), pp.165-174.
Council, C.M.B., 2021. North Dean Woodland Management Plan-west: Calderdale Engage:
Community consultations: Calderdale Council.
Faraca, G., Tonini, D. and Astrup, T.F., 2018. Wood waste in a circular economy-dynamic
accounting of greenhouse gas emissions from resource cascading. In 2nd Conference on Life
Cycle Assessment of Waste: Integrated Residual Resource Management and Assessment.
Ferreira, L. and Sousa, B.B., 2020. Understanding the role of social networks in consumer
behavior in tourism: A business approach. In Handbook of research on social media applications
for the tourism and hospitality sector (pp. 367-384). IGI Global.
Ghosh, S., 2020. Female entrepreneurs in the hospitality industry: A panel causality analysis of
EU countries. Arthaniti: Journal of Economic Theory and Practice,
p.0976747920942486.
Moscardo, G., 2019. Encouraging hospitality guest engagement in responsible action: Building
comprehensive theoretical models to support effective action (invited paper for ‘luminaries’
special issue of International Journal of Hospitality Management). International Journal of
Hospitality Management, 76, pp.61-69.
Pohl, J., Hilty, L.M. and Finkbeiner, M., 2019. How LCA contributes to the environmental
assessment of higher order effects of ICT application: A review of different
approaches. Journal of cleaner production, 219, pp.698-712.
Poon, T.S.C., 2019. Independent workers: Growth trends, categories, and employee relations
implications in the emerging gig economy. Employee Responsibilities and Rights
Journal, 31(1), pp.63-69.
Sandjong, F.L.D., 2021. Training Strategies for Increasing Employee Job Satisfaction and
Retention in the Hospitality Industry (Doctoral dissertation, Walden University).
Sano, K. and Sano, H., 2019. The effect of different crisis communication channels. Annals of
Tourism Research, 79, p.102804.
Yang, K. and Zhao, J., 2018. The expansions of Chinese companies in foreign hospitality
industry. In The Hospitality and Tourism Industry in China (pp. 89-114). Apple
Academic Press.
Zona, F., Boyd, B.K. and Haynes, K.T., 2019. Coordination, control, or charade? The role of
board interlocks among business group members. Management Decision.
Zook, M.A. and Blankenship, J., 2018. New spaces of disruption? The failures of Bitcoin and the
rhetorical power of algorithmic governance. Geoforum, 96, pp.248-255.
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