The Hospitality Business Toolkit: Managing Finance, HR Life Cycle, and Legal Compliance

The Hospitality Business Toolkit provides insights on managing finance, HR life cycle, and legal compliance in the hospitality industry. The report covers principles of financial management, HR life cycle stages, and regulations like Health and Safety Act and Data Protection Act. It also includes recommendations for attracting talent, engaging employees, providing career opportunities, and ensuring legal compliance.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Investigate principles of managing and monitoring financial performance...........................1
Explain the principles of double entry bookkeeping system..................................................2
Produce a basic trial balance..................................................................................................9
Analyse types of cost and how they could be managed.........................................................9
Importance of accurate recording of transactions................................................................10
Evaluation of role of financial management........................................................................10
A review of the different stages of the HR life cycle as applied to issues in talent acquisition
and retention within the food and beverage sector...............................................................10
Evaluate each stage of the HR life cycle..............................................................................11
Performance management plan............................................................................................12
Recommendations................................................................................................................12
REFERENCES..............................................................................................................................20

INTRODUCTION
Business Toolkit is defined as a collection of different aspects of companies that are very
essential for managers to understand in order to operate firm smoothly. In hospitality sector there
are different departments within a hotel which are interlinked with each other that includes
finance departments, Human resource division and various others (Daniela, 2019). There are
several legislation and laws which are very essential to follow in hotels so that effective services
could be provided to guests along with maintaining safe working environment for employees.
For the purpose of this report Bulgari Hotel and Residency has been taken which is located in
Knightsbridge, London. This hotel was established in the year 2012 and was built by Sir Robert
McAlpine. The report analysed managing finance and recording of transactions in order to
reduce cost. How managers could manage Human Resource life cycle along with impact of
ethical and legal components on hotel has also been discussed. Furthermore, importance of
coordination and integration of various function within different departments has been
mentioned.
MAIN BODY
TASK 1
There are several financials within an agreement that is happened between buyers and sellers in
exchange of assets for payment. Financial transactions are maintained inform of income
statements, cash flow, equity of shareholders or balance sheet. There are several documents
which are utilised by Bulgari residency and hotels in order to maintain proper budget for the
business. Funds of the company is managed by dedicated employees who worked in finance
team. They implement all the principles and ethics associated with finances in their job role.
Investigate principles of managing and monitoring financial performance
There are specific principles that the respective hotel utilises while supervising and organising
finances of organization that are defined below
Proper allotment of budget
By conducting proper research of the previous documents and evaluating future expectations, the
finance team of the respective hotel assigned budgets to various department within organization
(Victorovna and Ivanovich, 2019).
Proper documentation
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A book or proper record of finances must be maintained by the financial department of an
organization. Finance team of the respective hotel prepare proper documents and accounts in
order to support expenses as well as income that occurred during the financial year. The finance
division of the hotel prepare all essential accounts that are needed to analyse profitability of the
hotel.
Ignoring unfair practices
Window dressing is defined as tactic of falsely representing financials of a company so that
personal gain could be make. It is the responsibility of senior authorities within an organization
to monitor and supervise activities of financing team so that they could not conduct any illegal or
ethical actions (Minor and Heyes, 2022). In case of the selected hotel, it implements right
approach and maintain trustable relationship with investors of the organization.
Explain the principles of double entry bookkeeping system
Double entry bookkeeping system is described as the procedure by which companies translocate
are maintained in double column like credit and debit. It is very important that balance sheet of
credit and debit should be equal.
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3

Ledger accounts
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5

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Produce a basic trial balance
Trial balance is described as bookkeeping Worksheet where balance of overall Registers is put
together into credit and debit account column that should be equal. The main aim of making a
trial balance is to make sure all the entries of companies in a bookkeeping worksheet are correct
mathematically.
Analyse types of cost and how they could be managed
There are several kinds of cost which are utilised by companies that includes variable cost and
fixed cost. Fixed cost is defined as Cost which could not change with enhancement or reduction
in the amount of manufacturing. On the other hand, variable cost is defined as because those
changes according to quantity of products or services. Both is cost could directly impact the
financial performance of an organization.
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Importance of accurate recording of transactions
It is very important for companies to maintain records of daily transaction related to business in
order to operate functions efficiently. It also assists companies to make informative, effective
and precise decisions. In case of the selected hotel maintaining and recording financial records
help it in determining market position that helps it in taking better decision in future.
Evaluation of role of financial management
Financial management is important in an organization in order to maintain financial performance
and producing reports that could help it in achieving long term financial objectives more
effectively. Financial management also helps companies to supervising income and expenses of
business activities that could also assist them in taking potential decisions.
A review of the different stages of the HR life cycle as applied to issues in talent acquisition and
retention within the food and beverage sector
Human Resource life cycle is defined as journey of employees within an organisation and it
starts from the moment they start interacting with firms and continues until the day they leave. In
case of Bulgari Hotel and Residency, the HR life cycle has been explained below:
Attraction, Recruitment and Selection
Journey of employees starts with when they interact with organisation for the first time
through advertisements. In case of the selected hotel, it is unable effectively use social media
platforms to attract large base of candidates which enhance issues for the firm to recruit right
candidates for the job role (Mphahlele, 2019). The HR department of the respective organisation
is overworked and understaffed which further creates issues for the firm to select talented
individuals.
On-boarding, Orientation and Induction
During this stage employers try to make new employees feel valued by interacting with
them and encourage them to participate more in activities as well as work in teams. In terms of
respective hotel, it is struggling to experiment with various methods of engagement and because
of understaffed issues it is unable to invest more time as well as efforts to organise proper
orientation for employees.
Career Development and Planning
At this stage employers try to provide more opportunities for their employees by
providing them rewards according to how they are performing in the organisation. In terms of the
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selected organisation, it is facing absence of right incentives and other monetary benefits for
employees which enhance issue related to engagement of workers. It also minimizes possibilities
for employees to grow within organisation.
Retention
This phase of employee’s journey is defined as the procedure of minimizing possibilities
of workers turnover by making them feel valued. In terms of selected hotel, it is unable to
prevent employee’s turnover because they could better market opportunities and due to lack of
talented individuals the firm hires wrong candidates which further enhance chances of workers
leaving the firm.
Separation and Termination
This is the last stage of the HR life cycle which explains the procedure of employees
leaving the company which ends their journey with particular firm (Gaol, Abdillah and Matsuo,
2021). In case of respective hotel, employees are leaving it because they are not provided with
more career opportunities as well as no appreciation is given to them from managers.
Evaluate each stage of the HR life cycle
Attraction, Recruitment and Selection: It has been observed that Bulgari hotel and residency is
unable to attract new talent in today’s time of digital world. Due to inefficiency of talented staff
within organization It also create issues regarding recruitment in selection of skilful workforce.
On-boarding, Orientation and Induction: It has been evaluated that the respective hotel is a
struggling to enhance engagement of employees because of inability of managers to organise
more team making activities.
Career Development and Planning: Managers of the respective hotels are unable to provide
monetary benefits and rewards to employees which further increase employee’s turnover (Dolan,
2021).
Retention: Employees of the organization are getting more better opportunities in the market
which reflects inefficiency of the respective hotel to retain its employees and maintaining their
trust.
Separation and Termination: Employee’s turnover in the respective hotel is increasing because
they are finding more attractive job profiles in other organisations. the respective hotel is also not
taking any actions are making efforts to reduce employee turnover.
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Performance management plan
Performance management plan is defined as the process that managers utilise to monitor
and analyse performance of employees. The main aim of this tool is to develop an environment
for workers where they could perform with their best abilities and give high quality work. In
terms of the Bulgari Hotel and Residency, HR manger is required to work according to
performance management plan that is defined below:
Plan
This is the first stage where HR manager of the respective organisation is required to
assess priorities and implements expectations for every employee. The manager must provide
direction and guidance through which employees could be able to accomplish desired objectives
(Lipianin-Zontek and Szewczyk, 2019). Manger could also plan strategies to improve
employee’s engagement within organisation so that issues could be resolved regarding talent
acquisition and retention.
Monitor
At this stage the HR manager is required to monitor performance of employees so that
the organisation could provide them incentives or rewards accordingly. Manger must also ask
employees whether about how they are feeling so that the organisation would be able to fulfil
their needs in order to make them feel valued.
Review
During this phase manager of the respective Hotel is required to take feedbacks from the
employees so that they could feel involved and valued in the organisation and turnover rate could
be reduced. Manager must also focus on forward-looking aims which would provide employees
more opportunities to make their career and improve performance (Pohjola, Lemmetyinen and
Dimitrovski, 2020).
Recommendations
 To resolve the issues related with attracting right and large base of talented candidates,
the respective hotel is required to enhance its digital activities by giving more creative
advertisements. The firm needs to recruit right candidates who possess knowledge of
food and beverages sector in depth as well as assist hotel in appointing more skilful
workforce.
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 The managers of the hotel need to involve employees in team exercises by motivating
them to participate in decision making exercises as well as influence them to become
more interactive with each other.
 The hotel is also requiring to provide career opportunities for employees according to
their performance along with providing them rewards so that they could make more
efforts in accomplishing desired objectives.
 To decrease the possibilities of employee’s turnover, the hotel is required to make them
feel valuable and engage them in more business activities.
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TASK 2
Legislation that hospitality organization
There is various legislation that assist hospitality industry in operating business smoothly and
effectively without any issues. Some of the legislations that Bulgari hotel and residency must
implement are mentioned below
Health and Safety Act 1974
According to this legislation It is very important for organizations to provide secure and safe
working environment to employees along with supervising their health. In case of the
selected hotel, it must ensure that safety of employees is being taken into priority and no such
instruments would be used that could cause injuries (Kane, Taylor and Teare, 2018).
Managers of the organization must also maintain discipline so that safe and healthy
environment could be maintained along with training employees to follow all the procedures
implemented by the company.
Data Protection Act 1998
This act was established by the government of the UK in order to protect customers from any
unethical practices. In case of respective hotel, senior authorities mast identifies all the
details of guest along with analysing how they are paying their bills in order to evaluate their
actions. The hotel should also ensure that no private data of guest or employees could be
hacked all it in the public.
Companies’ employment in contract law impact on business decision making
There are several laws and legislations that are established by government of the UK that
could influence decision making procedures of organizations. In case of Bulgari hotel and
residency it is very important to implement these laws in order to operate business smoothly.
These laws are discussed below
Employment law
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This law influenced decision making in companies along with every component of workplace
by evaluating the rights associated with appointing new candidates, wages, discrimination
and advantages of medical leaves (Harvey, 2018). In case of the selected hotel, it follows
employment act in order to avoid any issues related to employees. The respective hotel takes
decision according to the lowers of employment act that could result in right direction for
business purpose.
Contract law
This law is defined as supply of goods act that gave protection to suppliers as well as buyers.
It directly influences decision making of organizations at high level. In case of respective
hotel, this law is implemented on purchasing, rendering and selling of facilities at certain
conditions or prices.
Examine the potential implication of any two of the regulations
There are several regulations that could directly impact the standards of hospitality sector
which are defined below:
Minimum recruitment for hospitality compliance
Hospitality industry implements standards such as ISO 9001 that assist companies to operate
their businesses in ethical and legal manner. There are several documents which are needed
that include accountability of workers, H&S management policies and others (Moscardo,
2018).
Food and beverages regulations
This regulation is defined as effective regulation that allows companies to protect the
components related to interest of people in order to serve them efficiently. In case of selected
hotel, it implements several food safety standards that includes food safety programs, Food
storage, food distribution commerce sales and import as well as manufacturing that assist the
hotel in maintaining quality of food.
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Critically reflect on impact of ethical issues of regulation, legislation
There are several ethical problems that could directly influence on regulation such as
negative working environment, harassment or discrimination. These problems could directly
impact on decision making and legislations of an organization that could lead to bed image of
the organization. It is very important for the organization to properly implement legislations
and rules related to hospitality sector so that they could operate business smoothly and
efficiently.
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TASK 3
Exploration of different functional roles within the hospitality sector
There are various departments who poses different roles and responsibilities in a hotel. In
case of Bulgari hotel and residency, different type of functional rules is defined below
Marketing department
The main role of marketing department in the respective organization is to promote services
provided by the hotel to the guest through online and offline platforms. The main roles and
responsibility of marketing department is to maintain positive relationship with customers as
well as conducting campaigns which could provide information about the hotel (Swart,
2018).
Human resource department
The role of HR department is to recruit on board select and perform other activities related to
employee’s performance in order to improve workplace environment. In the respective hotel,
roles and responsibilities of HR department is to hire, on board, select, train and reduce
employee’s turnover by providing them more career opportunities within organisation.
Explain different communication methods and level used in organization
There are several types of methods that are implemented by the Bulgari hotel and residency
which helps it in enhancing performance of employees along with creating positive working
environment (de Castro Mendes, Cavenaghi and Marques, 2021). Different communication
methods used by the selected hotel are mentioned below
Verbal communication
Verbal communication is defined as process of communication with others through speaking
words. This could be done by interacting face to face with an individual or group of people or
over video call or telephone (Chomitz and Ali, 2022). In case of the selected hotel, this
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method is used during interview, meetings conference or presentation in front of client.
Verbal communication assists the respective hotel in enhancing team working and providing
opportunities to understand each other better.
Non-verbal communication
This method of communication is described as a process of interacting with others through
hand movements, eye contact, facial expression and posture. In terms of the respective
organization this type of communication is used during meetings and presentations so that
they could express themselves more conveniently.
Review of coordination and integration within a business organization
Coordination is described as procedure of maintaining individuals in order to make them
work together so that their efficiency could be improved. Organization integration is
described as extent to which interdependent and distinct factors of company respond while
achieving similar goals of organization (Antonio, de Almeida and Nunes, 2019). In case of
Bulgari hotel and residency it implements concepts of coordination and integration within
organization that assist it in reducing wastage, conflicts and other issues. Coordination helps
the selected hotel in maintaining positive inter relationship between employees that assist it
in accomplishing organizational objectives more smoothly.
Effectiveness of different communication methods
In companies it is very important to implement different type of communication methods in
order to operate business efficiently and reducing possibilities of conflicts within
organization. In case of Bulgari hotel and residency verbal and nonverbal methods of
communication allows senior authorities to implement business policies and strategies more
effectively along with conveying messages auto information within employees more clearly.
Communication methods also helps different departments within the hotel in maintaining
coordination with each other. Communication methods also assist the respective hotel in
taking feedbacks from clients and employees which further helps it in improving its business
strategies.
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Recommendation
 In order to improve workplace environment of the hotel Bulgari hotel and residency
must implement more legislations and rules.
 Managers of the respective hotel must enhance participation of employees by
motivating them to communicate more frequently with each other along with
understanding culture and background of other employees.
 The respective hotel must also maintain effective organizational structure that could
help it in establishing coordination and integration more effectively.
CONCLUSION
From the above discussion it has been concluded that finances in hotel industry plays a very
important role in maintaining budget and growth often organization. It has also been analysed
that HR life cycle assist companies to resolve issues associated with acquiring and retaining
of employees. It could also be said from the above report that companies must implement
laws and legislation associated with hospitality industry that could assist them in operating
more effectively and smoothly. It is also very important for companies to establish effective
communication methods so that all information or messages could be conveyed without any
miscommunication within organization.
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REFERENCES
Books and Journals
Antonio, N., de Almeida, A. and Nunes, L., 2019. An automated machine learning based
decision support system to predict hotel booking cancellations. An automated machine
learning based decision support system to predict hotel booking cancellations, (1), pp.1-
20.
Chomitz, J. and Ali, A., 2022. Exploring toxic personalities in resorts: a managerial
perspective. Journal of Human Resources in Hospitality & Tourism, pp.1-20.
Daniela, L., 2019. Proceedings of ATEE Spring conference" Innovations, Technologies and
Research in Education, 2019".
de Castro Mendes, B., Cavenaghi, A.J. and Marques, R.B., 2021. Building hospitality
institutionality in Campos do Jordão/Brazil. Current Issues in Tourism, 24(2), pp.264-
278.
Dolan, K., 2021. Profile: Keen eye. Green: sustainable architecture and landscape design, (78),
pp.20-24.
Gaol, F.L., Abdillah, L. and Matsuo, T., 2021. Adoption of Business Intelligence to Support Cost
Accounting Based Financial Systems—Case Study of XYZ Company. Open
Engineering, 11(1), pp.14-28.
Harvey, A., 2018. The Effectiveness of Hospitality Education in Developing Graduate
Competencies (Doctoral dissertation, Griffith College).
Kane, K., Taylor, J.Z. and Teare, R., 2018. Reflections on the theme issue outcomes: Can the
culture of safety and quality in organizations be measured and changed?. Worldwide
Hospitality and Tourism Themes.
Lipianin-Zontek, E. and Szewczyk, I., 2019. Adaptation of business hotels to the needs of
disabled tourists in Poland. Problems and Perspectives in Management, 17(4), p.392.
Minor, K. and Heyes, A., 2022. 50 Shades of the Luxury Hospitality Industry. In The Emerald
Handbook of Luxury Management for Hospitality and Tourism. Emerald Publishing
Limited.
Moscardo, G., 2018. Ethical issues in tourism and hospitality research. In Handbook of research
methods for tourism and hospitality management. Edward Elgar Publishing.
Mphahlele, M., 2019. Perspectives of Public Higher Education Institutions Regarding
Internationalisation of Tourism and Hospitality Qualifications. University of
Johannesburg (South Africa).
Pohjola, T., Lemmetyinen, A. and Dimitrovski, D., 2020. Value co-creation in dynamic networks
and e-tourism. Handbook of e-Tourism, pp.1-23.
Swart, M.P.N., 2018. Providing service quality and customer care in tourism businesses. In The
Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality. Emerald
Publishing Limited.
Victorovna, S.S. and Ivanovich, S.V., 2019. Way to assess the development of municipal tourism
infrastructure. Journal of Applied Engineering Science, 17(1), pp.87-92.
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