The Hospitality Business Toolkit

The report covers financial transactions, HR strategies, legal and ethical functions, and communication methods in the hospitality business. It includes Premier Inn's accounting cycle, principles of managing financial performance, HR life cycle, performance management plan, legal compliance, and impacts of employment and contract laws on decision making.

The Hospitality
Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Financial transactions of Hospitality business by identifying source documents and recording
processes that are followed by Premier Inn by use of accounting cycle diagram which is as
follows-...................................................................................................................................1
The principles of managing and monitoring the financial performance of Premier Inn........2
The principles of Double entry Bookkeeping system of Debit and Credits with the help of
standard data from your operations........................................................................................3
The analysis of Trial Balance using a sample data of sales and purchase transactions, stating
steps to propose Trial Balance................................................................................................8
Analysis of the types of costs and ways their influence can be managed upon the financial
performance of Premier Inn with the help of example...........................................................8
Discuss the importance of accurate recording of transactions in line with accepted accounting
principles................................................................................................................................9
TASK 2............................................................................................................................................9
The different life cycles of HR Practices that are required to solve the issues of talent
acquisition and employee retention in Premier Inn................................................................9
Developing a performance management plan to support specific job role..........................10
How the processes in the stages of HR life cycle can be improved with the help of specific
examples...............................................................................................................................11
Legalities that the hospitality management organisations like Premier inn need to comply and
adhere to carry their business with the help of examples.....................................................11
The impacts of company's employment and contract laws on the decision making of business
..............................................................................................................................................12
Organisational chart that demonstrates the interrelation between the various functions of
hospitality sector...................................................................................................................13
Different communication methods and levels within a business organisation ....................13
Review of integration and coordination within an organisation with the use of examples..14

Effectiveness of different communication methods, integration and monitoring within a
specific department to achieve organisational objectives and strengthen values.................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Hospitality business is a broad concept that is linked to the service sector that consists of
restaurants, event planning, tourism, hotels, bars, theme park, etc. Premier Inn is among the
largest British hospitality business which was established in 1987 and is headquartered at
Dunstable, England, UK. The report will cover the HR strategies, the functions that are of legal
and ethical terms, which are important for coordinating the different areas of functions of
Premier Inn. It will demonstrate stages of HR life cycle, performance management plan to
support the specific job role and how these stages can be improved. Moreover, the report will
illustrate how company's employment laws impact business and various functional roles within
the hospitality sector and communication methods used in the organisation. Further, it will
analyse coordination and integration, along with different communication methods to achieve
coordination for the achievement of organisational objectives.
TASK 1
Financial transactions of Hospitality business by identifying source documents and recording
processes that are followed by Premier Inn by use of accounting cycle diagram which is as
follows-
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Source documents are the business forms that consists of all the finical transactions of the
business from buying the smallest of things to the huge investments. It includes business
transactions of purchase/sales, receipts and invoices of payments or receipts (Naisola Ruiter,
2021). The main structure of the source documents and recording process of Premier Inn
involves, Journals, posting it to Ledger, Trial balance, balance sheet and the final accounts. The
company uses advance technology for calculations and preparation of its books of accounts.
Premier Inn utilises computerised accounting to record all journal transactions chronologically
and calculate their sales. The company performs Journal entries consisting of date, particulars,
ledgers, debits and credits and additional notes linked to the reference numbers in the books.
The principles of managing and monitoring the financial performance of Premier Inn
The activities of the business are very important and keeping a record of these statements
and activities preformed by the company is also important. The management of finance is
essential for the business because it helps in gliding the business without hindrances (AlNuaimi,
Khan and Ajmal, 2021). The business operations of Premier Inn incur financial transaction on
daily basis and keeping an record of these transactions is mandatory for the organisation to keep
a track of its performance and keep themselves on secure side of laws. The main principles
governing the financial performance of Premier Inn are elaborated below- Allocation of funds: The finance teams should focus on properly allocating the finance of
the business according to the requirements of the daily activities. The budgets should be
prepared by the finance teams in such a manner that should look and be realistic in
approach. Proper Documentation: The preparation of accounts should be followed by proper
preparation of journal, ledger accounts, trial balance, balance sheet and books of final
accounts. The expenses and incomes should be clearly mentioned and every transaction
in the final accounts should be properly backed by clear accounts and entries.
 Avoiding unfair practices in preparation of the accounts: The unfair practices should be
avoided by Premier Inn while preparing their accounts and finances. The finance team
should avoid window dressing, which is a ill practice performed by many organisation to
falsely create certain transactions to gain profits (Nayak and Taylor, 2018). This types of
false practices are considered severe legal offence and the companies who does so may
be sealed.
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The principles of Double entry Bookkeeping system of Debit and Credits with the help of
standard data from your operations
Journal entries
3

Ledger accounts
4

5

6

7

The analysis of Trial Balance using a sample data of sales and purchase transactions, stating
steps to propose Trial Balance
Analysis of the types of costs and ways their influence can be managed upon the financial
performance of Premier Inn with the help of example
The types of costs in the hotel service industry involves many costs related to the day to
day transactions. The hospitality services are continuous and works for 24/7 which means the
activities needs to be maintained and recorded all the times (Jasnoff and Sheikh, 2019). The
company also incurs expenses on continuous basis which include rent for their stores, Taxes,
beverage, raw materials, water and electricity, telephone bills, food and beverages. The costs can
be reduced by properly planning the costs incurred on these items and reducing the wastage.
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Discuss the importance of accurate recording of transactions in line with accepted accounting
principles
The recording of financial transactions is one of the core element of a business firm
where transactions in monetary terms are executed on a regular basis. To manage the record of
transactions and asses the financial position of a company, it is very important for Premier Inn to
maintain proper financial statements on a regular basis (Wang, Wang and Wang, 2022). In
context to Premier Inn, the accurate recording of transactions in order to comply with accounting
principles: Revenue recognition principle: According to the accrual concept, the business is suppose
to record revenues in the year in which they are earned rather than the year in which they
are received. Cost principle: This principle states that assets are required to be recorded at acquisition
price and proper depreciation is to be charged (Maffei, Casciello and Meucci, 2021). Matching principle: Expenses and revenues of the same accounting period should be
identified and matched in the year of their occurrence. Full disclosure principles: The accuracy of financial statements should be ensured and
wrong information regarding assets and liabilities should be avoided so that the outsiders
could have access to correct financial position of the business.
 Objectivity principle: This principle states that financial statements should not be biased
and are prepared without considering personal views(Sorin and Sivarajah, 2021).
TASK 2
The different life cycles of HR Practices that are required to solve the issues of talent acquisition
and employee retention in Premier Inn
The life cycle of HR practices include a long chain of activities that are interconnected to
each other. The HR practice include interpretation of business strategy, HR strategy,
organisational design, job design/team design/ departmentalisation, HR planning, vision/culture,
recruitment and selection, on-boarding and induction, assessment and appraisal, training &
development, engagement and reward, career growth and then retirement (Qin, 2021). The HR
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practices that are required to solve the issues of talent acquisition and employee retention in
premier Inn are as follows- Analysing the requirements: Premier Inn should firstly understand the availability of
manpower and required manpower to fulfil certain job position. Attraction, recruitment and selection: Attracting the best chefs, managers, attendants
etc. is the first step of HR practice then recruiting them with the proper selection
procedure. Induction/orientation/on-boarding: It is important for a new employee to get familiar
with new work environment therefore, induction or orientation process is done. Career planning and development: For the growth of the employee the career planning
and development phase should be formed by premier Inn (Ranjan and et.al., 2022). Retention: If Premier Inn wants to maintain long term relations with its employees, they
should provide proper growth opportunities to the employees.
 Separation/termination phase: At the time when the employees has contributed for the
company should, they should be freed from their duty with a promise of secure future.
Developing a performance management plan to support specific job role
The performance management is a essential part of every business because it helps to
evaluate the actual results to the predetermined objectives. The performance management is
basically the comparison of actual outputs with the predetermined objectives that are to be
achieved and identify the causes of deviation (Shekhar, Gupta and Valeri, 2021). The
performance management of specific job roles can be done by- Plan: It refers to predetermining or planning in advance what are the requirements that
are to be achieved by specific job role. The Premier Inn should determine the plans
beforehand and analyse whether they are achieved on time or not. Monitor: The Premier Inn should constantly analyse the performance of the particular job
roles according to the predetermined objectives so they could constantly improve their
working to achieve results effectively and efficiently.
 Review: Premier Inn should review the performance after correcting the deviations so
that the performance can be corrected if there are any problems even after aligning the
predetermined objectives to the actual results.
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How the processes in the stages of HR life cycle can be improved with the help of specific
examples
The various processes of HR life cycle of Premier Inn can be improved by using different
strategies of improving HR practices (Farrington, Antony and O’Gorman, 2018). The ways by
which the HR life cycle can be enhanced are as follows- Creating first impression: At the time of attraction/recruitment/selection the company
should create best impression. This could be done by improving the corporate culture,
providing employee contract, and maintain healthy employee relations. Getting top talent on-board: Premier Inn could do so by enhancing their strategies for
advertising their job position, such as through internal talent, employee referral and best
selection strategies. The on-boarding should be a pleasant for employees and this could
be done by communicating core values of the company and introducing them to the
organisation in appropriate manner.
 Making top talent stick to the company: Premier Inn should always try to retain their
best candidates because these employees gives maximum to the company and they should
be valued.
Legalities that the hospitality management organisations like Premier inn need to comply and
adhere to carry their business with the help of examples
There are many laws for the hospitality industry to comply wit in order t6o carry their
business smoothly which are as follows- Employee welfare act, 1998: The hospitality businesses like Premier Inn should be well
compliance with employee laws in the hotel industry. Trade Description Act, 1968: It states that the hospitality industries like Premier Inn
should be clear and accurate while providing the information to their customers. Client service: Premier Inn should be well aware of the client services and their welfare.
This can be related to the terms of maintaining hygiene, security, safety, etc. Data Protection Act: Under this law Premier Inn should be careful with the prevention
and security of data of the customer.
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 Health and safety laws, 1974: The other laws are related to the food safety and
maintaining the minimum standards for good food as prescribed under laws. Legal Compliance: The laws by federal government has prescribed certain standards that
are to be followed by hospitality industry while doing their business. It includes
consumer protection act, public health, minimum food standard, etc.
 Licensing: The another legal requirement for the Premier inn is related to the licensing of
the company. The company should be licensed under law and should entrench required
documents before starting the business.
The impacts of company's employment and contract laws on the decision making of business
The company's employment and contract laws are very important for the company
because of many reasons. The laws are very important part of the businesses such as Premier inn
because they arise as the existing companies deal with its stakeholders (Khaliq and et.al., 2022).
The main impacts of employment laws and contracts are on the decision making of Premier Inn.
Contract is the document of promise that states what the company would require for another
party to perform and what the company would give in return. It helps to take the decisions
quickly because it could identify what are the expatiations and what is to be done. The decision
making improves as the contract states about the price, quality, quantity, method of delivery etc.
which helps the company as well as the other party to take quick decisions. The employment and
labour laws include worker protection safety and security of employees at the workplace. The
company could easily hire employees with the help of contracts and better employment laws that
enhances the ability of employers and employees to work with the company. The company could
utilise the safety laws and other laws at their site of work to enhance the safety of customers.
Premier Inn should follow employee laws to provide clear job description to its employees.
Organisational chart that demonstrates the interrelation between the various functions of
hospitality sector
The hospitality sector is a growing and one of the major industries which contributes in
the economic development. The functioning of this industry is classified in different functional
areas which determine the proper working activities of a hotel organisation. These functional
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areas are highly interrelated with one another in context to the working of the company which is
explained below:
Finance and Human resource: Finance department is associated with taking major financial
decisions and preparation of budgetary and financial statements. The efficiency of human
resource department in hiring potential and competent employees decides the proper accounting
functions which are majorly done by accountants (Uen and et.al., 2018). These two are highly
interrelated as training employees is a part of human resource management and financial
department is associated with acquisition of funds for training purpose. Human resource is a
critical functional area in the working of the Premier Inn as employees working in financial
department are recruited through effective performance of human resources managers.
Marketing and Finance: The marketing department conducts research and study to analyse the
demand of customers which requires funds and the acquisition of funds is related to the finance
department. Likewise finance department of the company will likely to get affected with the
activities of marketing department. For instance, unplanned and ineffective spendings done by
marketing department in organising advertising campaigns and sales promotion events could
affect the working of finance department.
Different communication methods and levels within a business organisation
The methods and levels of communication used by Premier Inn to carry necessary
operations of the hotel are broadly classified into two major mediums which are discussed
below:
Verbal Communication: This form of communication refers to the process of interacting or
conveying messages through which useful information is exchanged in the organisation. This is
the most common form that the hotel use in routine activities for the purpose of communicating
to employees and guests staying at the hotel (Enke and Borchers, 2019). This type of
communication is applied in face-to-face meetings and conferences and in general conversations
of day to day operations. The queries of customers and interaction among staff members are
facilitated with oral communication.
Written Communication: The organisation also make effective use of methods of written
communication where necessary. The hotel make use of wide range of methods to facilitate
written communication through using social media and emails. This also includes written
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documents, business proposals, memos, brochures etc. to maintain the formal code of conduct in
the events of the routine management functions.
Review of integration and coordination within an organisation with the use of examples
The hospitality and hotel industry is a prominent business where success and efficiency
could be established through proper coordination among staff members and management.
Effective coordination and working with collaboration is extremely crucial to carry routine
operations of hospitality services. In context to Premier Inn, the integration of multiple efforts of
all elements of the company ensures the potential results and favourable outcomes for the hotel.
The company ensures that their staff members collectively works for the better performance of
organisation and for the accomplishment of organisational objectives (Barata, Cunha and Stal,
2018). For instance, lack of coordination among various functional areas of the organisation is
likely to create chaos and affects the working of an organisation resulting in unfavourable
outcomes. The activities of a functional area tends to affect if efforts are not coordinated
properly. Working with cooperation is very significant in order to ensure proper management of
various operational functions.
Effectiveness of different communication methods, integration and monitoring within a specific
department to achieve organisational objectives and strengthen values
The concept of business communication is very crucial for the constructive functioning of
an enterprise. The hospitality business ventures are employed with numerous staff and involves a
massive amount of customers which are required to be attended with proper communication.
While managing and executing hospitality functions, Premier Inn has to maintain the structural
flow of communication which is completed in steps in large organisations. In large and complex
organisations like Premier Inn, the process of communication takes place through different
structures which makes the process of delivering messages quite lengthy (Tang and et.al., 2019).
Therefore, to ensure effective communication it is highly important that different departments
work with integration and collaboration to ensure efficiency in the process of communicating
information. Proper communication is likely to disrupt with numerous elements causing
disturbance and disrupting the flow of information. For instance, hotel instructions are not
properly received by customers or purchase requirements are not properly received by supply
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chain department. These type of errors are tend to affect the activities of the hospitality business
and delay the course of operational activities. To reduce the errors caused due to inefficient
communication structure, the relevance of working with high collaboration and integration is
substantially important.
CONCLUSION
It can be concluded from the above report that the hospitality industry is vast and its
operations involves huge finances. Therefore the company needs professionals such as
accountants and financial experts to mange their finances effectively and accurately. It is
analysed that business performance can be understood with the hep of balance sheet and books of
accounts. The hospitality companies utilises various ways to enhance their profits and improve
their productivity. The company has many functional areas which work in coordination and
integration to enhance customer service. The report had been explaining legal rules and
regulations that are mandatory in order to conduct the business in ethical manner. Thus, the
different communication channels could be utilised to manage and monitor the activities of the
business in order to foster their value chain.
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REFERENCES
Books and Journals
Uen, J.F. and et.al., 2018. Supervisory mentoring and newcomer innovation performance in the
hospitality industry. International Journal of Hospitality Management, 73, pp.93-101.
Enke, N. and Borchers, N.S., 2019. Social media influencers in strategic communication: A
conceptual framework for strategic social media influencer communication. International
Journal of Strategic Communication, 13(4), pp.261-277.
Barata, J., Da Cunha, P.R. and Stal, J., 2018. Mobile supply chain management in the Industry
4.0 era: An annotated bibliography and guide for future research. Journal of Enterprise
Information Management.
Tang, S. and et.al., 2019. A review of building information modeling (BIM) and the internet of
things (IoT) devices integration: Present status and future trends. Automation in
Construction, 101, pp.127-139.
Maffei, M., Casciello, R. and Meucci, F., 2021. Blockchain technology: uninvestigated issues
emerging from an integrated view within accounting and auditing practices. Journal of
Organizational Change Management.
Naisola Ruiter, V., 2021. HUMANIZING HOSPITALITY INDUSTRY HUMAN RESOURCES
MANAGEMENT TO IMPROVE RECRUITMENT AND RETENTION OF RESILIENT
HOSPITABLE TALENTS IN THE SECTOR.
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.
Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’
perspective. Worldwide Hospitality and Tourism Themes.
Jasnoff, G.R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of Undergraduates
Employability Toolkit. In EdMedia+ Innovate Learning (pp. 158-161). Association for
the Advancement of Computing in Education (AACE).
Wang, G., Wang, H. and Wang, L., 2022. Research trends in tourism and hospitality from 1991
to 2020: an integrated approach of corpus linguistics and bibliometrics. Journal of
Hospitality and Tourism Insights.
Sorin, F. and Sivarajah, U., 2021. Exploring Circular economy in the hospitality industry:
empirical evidence from Scandinavian hotel operators. Scandinavian Journal of
Hospitality and Tourism, 21(3), pp.265-285.
Qin, S., 2021. Positionality of refugee business support and hospitality building under cognitive
dissonance theory: an enterprising route of refugee entrepreneurship. Journal of
Enterprising Communities: People and Places in the Global Economy.
Ranjan, A. and et.al., 2022. Hospitality in the Experience Economy. In Planning and Managing
the Experience Economy in Tourism (pp. 85-106). IGI Global.
Shekhar, S., Gupta, A. and Valeri, M., 2021. Mapping research on family business in tourism
and hospitality: a bibliometric analysis. Journal of Family Business Management.
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.
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Khaliq, A. and et.al., 2022. Application of AI and robotics in hospitality sector: A resource gain
and resource loss perspective. Technology in Society, 68, p.101807.
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