The Hospitality Business Toolkit: Financial Transactions, HR Life Cycle, Regulations, and Integration of Departments in the Hospitality Industry

This report covers financial transactions, principles of managing financial performance, double entry bookkeeping system, HR life cycle, employment regulations, and integration of departments in the hospitality industry. The report also includes an analysis of The Tower hotel, London, and its practices related to financial management, HR life cycle, and legal obligations. The report emphasizes the importance of financial management, HR practices, legal obligations, and coordination of departments in the hospitality sector.

Hospitality industry
Business toolkit

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
LO1..................................................................................................................................................2
LO2..................................................................................................................................................7
LO3..................................................................................................................................................9
LO4................................................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality industry play a key role in the development of an economy and also helps in
generation of employment (Abbott, and Palatnik, 2018). The hospitality industry includes the
development of hotels, restaurants, resorts, cruise which are used by travellers and tourists.
Hospitality industry can be classified on basis of effective business operations in order to lead at
the marketplace. It is analysed that hotel industry which is major part of hospitality industry is
large sector which provides food and accommodation to different customers. In this project there
is an analysis of finance and record transactions to minimise responsibly within the hospitality
sector. This report also covers how to manage human resources life-cycle within the context of
hospitality industry. The potential impact of legal and ethical considerations on the hospitality
business. In this project example of The Tower hotel is taken into consideration which is one of
the finest hotels in United Kingdom. The Tower hotel is situated in London and performs various
services based on hospitality sector to gain attention of customers.
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MAIN BODY
LO1
1. An introduction to financial transactions of hospitality business
The financial transactions are major types of exchange related to monetary values which
are developed by business organisations. In order to develop effectiveness in various operations,
it is important for the company to focus on financial transactions. The major focus on financial
transactions include development of significant business practices which are fruitful for all the
company (Adler, and Stringer, 2018). The Tower hotel has a professional financial management
which is effective in development of a business entity. The double entry book keeping system is
important for a business in order to manage different financial transactions. It is also major
responsibility of a business to focus on all the financial transactions in a precise manner in order
to lead the marketplace.
2. Investigate principles of managing and monitoring financial performance of business
In the functioning of a business there are various tools and techniques which are based on
development of financial performance. The major principles which are adopted by The Tower
Hotel, London are mentioned below:
 Development of financial records- The development of financial records of a business
are helpful in determination of financial position of a company. It is essential for a
business to focus on financial management in order to achieve different types of goals
and objectives in a set period of time.
 Allocation of funds- The financial records in a business helps in proper allocation of
funds according to budget set by a company. Many companies in the global and domestic
marketplace should focus on key goals and objectives. This helps a business to perform
expenditure and income on the basis of allocated funds.
3. Explain the principles of double entry bookkeeping system of debits and credits, using a
standard data from operations.
The double-entry book-keeping system refers to the process which is used by a business
to develop dual transactions which are conducted by a business. In order to develop data
processing of financial transactions it is important for the business to focus on long term
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evaluation of funds for the business. The major principles of double entry book-keeping system
are mentioned below:
 Maintenance of transparency in the business functions and transactions
 Helps in management of payroll of employees
 Records all transactions which are based on monitoring
 Ethics and integrity are two important principles of financial management
The word cash in hand is depicted at credit side of a business accounting books
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4. Produce a basic Trial balance using a sample data, stating the steps used and purpose of the
Trial Balance.
Balance of rule: The accounts of organisation remain close as per the conclusion in a
financial period and the company must not shut down. The balance which is remaining at the end
of financial year will be carried forward (Ballou, Heitger, and Stoel, 2018). At the end of fiscal
year the balance will be used in utilising resources. The preparation of trail balance for The
Tower hotel London is mentioned below:
5. Analyse types of cost and how they can be managed to influence the financial performance of
business.
There are various types of cost which are used by the company in order to calculate the
profit. The two major costs which are applicable to the company's operations are known as fixed
or variable costs (Bennett, and James, 2017). Fixed costs are considered as definite amount of
cost which is incurred in a business for production of products and services. The variable cost is
related to changing cost of a business according to value development according to needs and
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demand of customers. The cost analysis along with profit margin of The Tower hotel is given
below:
ACTUAL PROFIT OR LOSS
STATEMENT
PER UNIT TOTAL
£ £ £ £
SALES 50 800000
COST OF PRODUCTION
DM 10 190000
DL 20 380000
VOH 5 95000
FOH 5 95000
40 760000
OPENING INVENTORY 0
CLOSING INVENTORY -120000
COST OF SALES 40 -640000
STANDARD PROFIT 10 160000
ADJ. FOR UNDERABSORPTION -5000
BUDGETED PROFIT 155000
6. Importance of accurate recording of transactions in line with accepted accounting principles
It is crucial and compulsory for a business to analyse key areas of accounting principles
in order to conduct sustainable and ethical business. The recording of transactions should be
done with proper and systematic approach in order to find out exact position of the company.
The accounting principles should be kept in mind by the accountant of a company in order to
manage all different transactions on daily basis. It is also major role of a business to develop and
focus on ethical goals and objectives which are essential for business development.
7. Include a conclusion that critically evaluates the role of financial management and monitoring
in achieving growth in your business.
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From the above discussion it can be concluded that financial management is a backbone
of a business which helps in development of a company. All major companies should also
include focus on key objectives of financial management in order to establish effective business
channels (Charifzadeh, and Taschner, 2017). The company should also focus on financial
management in order to implement major strategies related to accounting with proper
supervision and control. Financial management also helps a business to determine its exact
position and performance at the marketplace.
LO2
1. Review of different stages of the HR life cycle as applied to issues in talent acquisition and
retention within F&B sector
The human resource management is an important part of a company, which is helpful in
management of large number of workforce. The HR life-cycle is an important process of human
resource management in which there are different practices related to functioning of HR. Main
HR life-cycle based stages are mentioned below:
 Recruiting and on boarding- The recruiting is a major function of human resource
management in which HR hires right employees for the business. It is major function of
human resource management to provide skilled and trained employees to the
organisation.
 Career planning- In this approach human resource management of a business performs
career planning of different employees. This helps in supporting development of whole
business organisation and supports in increasing productivity of employees.
 Career development- In this stage career development is considered as major concern
for HR based functions. The career development is a major concept in HR life cycle
which includes development of different operations.
2. Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent as applied to the specific job role.
In the overall development of an organisation, human resource management plays a very
vital and significant role. The importance of HR and life cycle for The Tower hotel is mentioned
below:
 Growth and expansion- A business entity increases its overall growth and expansion
with the help of human resource management (Dzuranin, Jones, and Olvera, 2018).
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Tools and techniques related to growth and expansion of a business helps in overall
development of a business entity. The career development function of HR management
that provides effectiveness in various business based operations.
 Increase employees potential- With the help of HR practices, a company can enhance
the overall potential of workers. Employees should also focus on training and
development provided by human resource management to achieve different targets.
 Achievement of organisational goals and objectives- The Tower hotel in London can
easily achieve its set goals and objectives with the support of HR practices. All goals and
objectives of a company are achieved with help and support of HR life-cycle based
practices.
2. Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent as applied to the specific job role
It is important to consider a major approach which is beneficial for increasing overall
growth of a business entity. The major stages along with performance management for job role
of hotel manger at The Tower hotel London are mentioned below:
 Plan- In this stage the food and beverage manager of a business in hospitality industry
will include development of planning. Planning includes development of a strategic
framework which is important for business development and expansion.
 Implementation- The implementation of planning framework is also essential for the
business in order to implement a plan (Fleischman, and Parker, 2017). Also the
implementation of policy should be developed by a business to perform overall objectives
in a well defined manner. In this stage also there is an involvement of major ethical
practices which should be followed by employees of a company.
 Review and feedback- In this stage of planning, a business includes application and
development of policies in order to review them. The review and feedback is essential to
be taken into consideration for development of business entity as it includes formation of
different feedback based standards.
3. Make valid judgements and recommendations
It is recommended for The Tower hotel to develop a performance oriented action plan for
systematic growth of company. It is also crucial for the business entity to analyse the importance
of HR functions and implement them in a well and advanced manner. Companies at the
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marketplace should also focus on analysing key goals and objectives with majority of employees
functioning. The F&b manager of The Tower hotel should focus on analysing various tools and
techniques of HR development in order to lead at the marketplace.
LO3
1. Identify specific legislation(s) that hospitality organisations
The development and functioning of a business is also dependent upon following
employment legislation in a well defined and systematic manner (Hsieh, Ma, and Novoselov,
2019). Companies should develop a key approach in order to formulate effective practices of
business legislations. This will help business to conduct all operations in a legal and ethical way.
The major types of employment legislations which are followed by The tower hotel are:
 Employment security laws
 Employee safety laws
Illustration of how the company’s employment and contract law impact on business decision-
making
It is essential for a company to focus on employment laws in order to formulate various
various employment based practices. The law which is related to the employment has various
rules and regulations related to different consequences of employment. These practices helps a
business to cover employment based development and conduct an ethical business at the
marketplace. It is also compulsory for a business to put an emphasis on legal practices. In the
recent times, contract law creates a legal obligation on a party which is involved in any type of
contract. Different business practices which are related to development of employment are
helpful in formation of legal contract law (Hutahayan, 2020). A business has to develop
decision-making according to legal obligations it has made under employment law.
3.Examine the potential implications of any Two (2) of the regulations on standards using
examples.
The major two implications of legal obligations and regulations on standards in order to
develop a legal business. The regulations increase different practices based on a business
functioning legally binds it to fulfil different duties and goals. Different business regulations that
creates standards on a business are mentioned below:
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 Responsibility- A business develops a evolution related to responsibility in order to
develop and achieve various targets. The company becomes ethically responsible for
different operations and towards with the support of different regulations.
 Corporate social duty- The development of corporate social duty is performed with the
support of social responsibility. This legal practice helps a business to focus on weaker
sections of society and to perform ethical practices. In this approach a business donates
significant amount of revenue to the enhancement of weaker sections of the society.
4. Critically reflect on the impact of ethical issues of regulations, legislations.
I understand that ethical issues and challenges should be developed by a business in order
to lead the marketplace in a legal manner. Employment law is the major legal code of conduct
according to my knowledge in order to develop effective business practices. I also realise that
corporate social responsibility is a major practice related to business development which helps
the social development (Janvrin, and Watson, 2017). I consider that a business or any company
should follow contract law to create a legal obligation in the contract. In my views, a company
should also focus on aims and objectives and achieve them with help of legal strategies. I
consider that planning framework is also an important part of a business which is helpful for
focused growth.
LO4
Analysing the importance of coordinating and integrating various functions of departments
within the hospitality sector
Describing the different functional roles within the hospitality sector and their interrelation
There are different functional roles of a business in the hospitality sector which are
essential for development of operations. The main functional roles which are played by
management of Tower hotel are described below:
 House keeping department- In the functioning of a business, house keeping department
is concerned with maintaining cleanliness at the workplace. The whole department is
dedicated to provide effective operations related creating a healthy and hygienic
workplace.
 Food and beverage department- This department is considered as one of the major
departments which are dedicated to provide services related to food and beverage
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(Sledgianowski, Gomaa, and Tan, 2017). The customer needs are fulfilled because of
food and beverage department by preparation of effective dishes.
 Kitchen department- The kitchen department is concerned with preparation of food
from the vegetables and raw materials. All major departments are rely on kitchen
department for providing essential services.
Analysing different communication methods and levels used in an organisation
The practices that are based on communication helps a business entity to increase
development of a business. Communication practices which are verbal and non verbal in nature
helps individuals to focus on team development. Coordination improves the capacity to act upon
different tasks that are mentioned by employees. It is also essential role of a company to select
the following methods of communication:
 Formal communication- The formal communication refers to the exchange and passing
of professional information from one source to other. Practice of formal communication
also helps a company to analyse and achieve various targets on the basis of ethical
communication based practices.
 Informal communication- Practices based on informal communication supports a
company to develop focused practices related to social environment (Turner,
Weickgenannt, and Copeland,, 2020). The informal communication helps in development
of effective relationships between employees.
 Written communication- The practice of written communication helps an individual to
write an information on evidence basis. In this approach written communication based
practices are performed by writing different aspects.
Analysing coordination and integration within a business organisation
The business organisation should promote practices based on coordination and
integration for effective development. In the recent times, importance of coordinating in
hospitality sector is increasing day by day. Application of coordination helps the company to
perform different tasks in a precise manner (Weigand, Blums, and de Kruijff, 2020). This
technique also helps a business to evaluate practice of decision-making and leadership in the
company.
Analysing the effectiveness of different communication methods, integration and monitoring
within a specific department can help achieve organisation objectives
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In the overall development and achievement of employee goals in a company, it is major
responsibility of a company to promote various communication methods. A business should also
focus on analysing the key strengths which are related to focus on implementation of
communication methods. The Tower hotel is using formal communication based practices in
order to perform all operations with utmost responsibility.
Recommendations
The Tower hotel London should follow following recommendations in order to analyse
and achieve target goals. The hospitality industry should also majorly focus on analysing key
practices based on following recommendations:
 The business organisation should implement the application of human relationship theory
in order to succeed at the marketplace.
 The Tower hotel should focus on leadership based practices and adopt democratic
leadership style (Wells, 2018). This approach will help the hotel to grow more at the
marketplace.
 Company should follow all employment legislations in order to grow and expand in
marketplace in a sustainable manner.
 Business organisation should focus on key goals and objectives with help of strategic and
planning framework.
 The Tower hotel should also focus on cost leadership in order to provide affordable and
reasonable price to customers.
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CONCLUSION
From the above stated report it can be concluded that it is essential for a business entity to
focus on analysing various goals and objectives in context of hospitality sector. This can be also
concluded that it is important for a business entity to focus on human resource management for
management of large number of employees. The above stated discussion concludes effectiveness
of value chain in hospitality sector for long term development of hotel industry. This project also
concludes role played by financial management in order to focus on analysing practices on the
basis
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REFERENCES
Books and Journals
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implications for instructors. Accounting Education, 27(1), pp.72-93.
Adler, R. and Stringer, C., 2018. Practitioner mentoring of undergraduate accounting students:
helping prepare students to become accounting professionals. Accounting & Finance, 58(4),
pp.939-963.
Ballou, B., Heitger, D.L. and Stoel, D., 2018. Data-driven decision-making and its impact on
accounting undergraduate curriculum. Journal of Accounting Education, 44, pp.14-24.
Bennett, M. and James, P. eds., 2017. The Green bottom line: environmental accounting for
management: current practice and future trends. Routledge.
Charifzadeh, M. and Taschner, A., 2017. Management accounting and control: tools and
concepts in a Central European context. John Wiley & Sons.
Dzuranin, A.C., Jones, J.R. and Olvera, R.M., 2018. Infusing data analytics into the accounting
curriculum: A framework and insights from faculty. Journal of Accounting Education, 43, pp.24-
39.
Fleischman, R.K. and Parker, L.D., 2017. What is past is prologue: Cost accounting in the
British industrial revolution, 1760–1850. Routledge.
Hsieh, C.C., Ma, Z. and Novoselov, K.E., 2019. Accounting conservatism, business strategy, and
ambiguity. Accounting, Organizations and Society, 74, pp.41-55.
Hutahayan, B., 2020. The mediating role of human capital and management accounting
information system in the relationship between innovation strategy and internal process
performance and the impact on corporate financial performance. Benchmarking: An
International Journal.
Janvrin, D.J. and Watson, M.W., 2017. “Big Data”: A new twist to accounting. Journal of
Accounting Education, 38, pp.3-8.
Sledgianowski, D., Gomaa, M. and Tan, C., 2017. Toward integration of Big Data, technology
and information systems competencies into the accounting curriculum. Journal of Accounting
Education, 38, pp.81-93.
Turner, L., Weickgenannt, A.B. and Copeland, M.K., 2020. Accounting information systems:
controls and processes. John Wiley & Sons.
Weigand, H., Blums, I. and de Kruijff, J., 2020. Shared ledger accounting—implementing the
economic exchange pattern. Information Systems, 90, p.101437.
Wells, P.K., 2018. How well do our introductory accounting text books reflect current
accounting practice?. Journal of Accounting Education, 42, pp.40-48.
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