Impact of Financial and Non-Financial Factors on Hospitality Industry - Lavish Stay Hotels

This report discusses the impact of financial and non-financial factors on the hospitality industry, focusing on Lavish Stay Hotels. It covers the management of financial records, assessment of human resource life-cycle, potential impact of legal and ethical considerations, and the importance of coordinating and integrating various functions within the hospitality sector.

Hospitality BusinessToolkit

INTRODUCTION
Hospitality industry provides variety of services in order to fulfil demands of customers.
It involves many fields such as hotel which provide accommodation services, restaurant gives
food services, travelling services etc. It is a growing industry in every country. In order to meet
the needs of customers and survive in competition, it requires adequate financial and human
resources in order to conduct its activities without any hindrance. Further, the other non-financial
aspects such as legislation that impact the business greatly. The chosen company to understand
impact of various financial and non-financial is Lavish Stay Hotels headquartered at Cardiff Bay,
London. The report covers management of financial records to minimise costs incurred,
assessment of human resource life-cycle in the context of HR strategy, potential impact of legal
and ethical considerations and importance of co-ordinating and integrating various functions
within hospitality sector.
• TASK 1
• TASK 2
• Review different stages of HR life cycle and their importance for retaining and developing
talent
Every personnel has to go through each stages of HR life cycle as it provides many
opportunities, challenges and benefits to employees. HR has a very important role to play in this
and is bound to make adjustments according to changes in business environment due to external
and internal forces. The contribution of each stage is crucial in retaining employees and their
further development. HR managers of Lavish Stay Hotels focus on providing opportunities for
retaining employees. The stages that are followed by HR managers by Lavish Stay Hotels are as
follows:
BOX 1- Lavish Stay Hotels has provided advertisement about vacancy in newspaper, social
media and mails to make aware large number of potential employees.
BOX 2- The interview is conducted by HR manager which is then followed by group discussion
along with a written test to know that the strategic capabilities of employees. Further, the
decision to final a candidate is based on score that is evaluated from the answers given by
potential employees.
BOX 3- The questions that are asked from potential candidates are as follows:
Question 1. Tell me about yourself and your family?
Question2. What do you want to join this company or what was the reason for moving out of the
company you were working previously?
Question3. What do you know about hospitality industry in UK? What are the services offered

by it?
Question4. Suppose, you get selected for the job and after 6 months of your joining, Lavish Stay
suffer a huge loss. What will you do in such situation in order to reduce the loss? What all
strategies and techniques will be used?
Question 5. What can be done to increase market share in terms of market capitalization and
how does various legislations affect an organization engaged in hotel services?
BOX 4- Induction is done to make selected candidates to know about the job position they have
been hired for along with goals and objectives of an organization. It involves introduction to the
entity and it’s various departments.
BOX 5- It is a formal activity to review performance of employees working in Lavish Stay. It is
done evaluate the current level of efficiency and make action plans in order to improve it.
BOX 6- Learning and development benefits to Lavish Stay are that it improve employer, the time
and cost to fill the position is reduced, increases quality of hire and achieve business goals. The
benefits to staff or employee are that constant opportunities are created. Further, development of
employees both personally and professionally
BOX 7 Promotion refers to the process of assessing and tracking high-performance employees
who are suitable to fill top management positions when they become vacant. It is important to
boost and push employees capabilities and productivity.
BOX 8- There could be many reasons such as work environment and culture, opinions of
employees, job opportunities etc. For moving out of the company. Personnel exit fin order to
grab better position and opportunity. It can be prevented in many ways such as providing growth
opportunities, adjustments in compensation according to their performance, preference to
employees' health and safety, appreciation and appraisal etc.
BOX 9- The questions that are asked in exit interview of Lavish Stay are as follows:
Question 1. What made you accept the new job offer?
Question 2. What was the reason to look for a new job?
Question 3. What could the company do for you to remain employed here?
Evaluation of importance of HR life cycle in context to strategic talent management and
overcoming issues of staff
There should be co-ordination between talent management and planning which should be
aligned with company's strategic plan and objectives. It is followed in order to survive in
competitive market by creating new opportunities. It is done for long term.
Rotation of staff is an process followed by entities in whereby employees are assigned
two or more tasks at fixed and regular Gap in order to let them work in all departments of an
organization. It is not only beneficial for employee but for corporation also.
The importance of above-mentioned points are as follows:

• Advertisement in through various modes help company in getting potential candidates for
an interview. For instance, large number of people seeking job get to know about
vacancy, which will let company choose potential and best employee.
• Interview help in selecting suitable candidate for job vacancy. For example, interviewer
will get to know about confidence level along with intelligent and skills before finalizing
an employee.
• Induction helps selected employees to understand the structure, policies, objectives and
environment of an organization. For example, if employee is unaware about these basic
elements, then they will not able to start working efficiently.
• Performance review helps in retaining employees as they are rewarded on the basis of
their performance. For example, an employee has performed well in last three months, so
he will be rewarded with bonus.
• Development can be achieved through training and opportunities. For example,
prospective candidates look to work in companies that provide growth opportunities.
• Promotion is again a huge contributor in keeping employees. Employees need appraisal
in the form of monetary benefits and promotion. For example, if Lavish Stay promote
their employees on 6 months basis then, this will motivate them to work hard and achieve
targets within time.
• Exit is useful if inefficient employees leave the company. This makes ways to choose
new and fresh talent who will increase company's profits. For example, an employee who
lacks in meeting specified performance criteria moves out of company. This will have
ways to search new talent.
Judgement and recommendation about improvement in HR processes and documents for
effective talent planning throughout HR life cycle
Lavish Stay should emphasize on effective talent planning by identifying requirement to
hire employees, whether the recruitment will be internal or external, selecting right candidate for
right job, their compensation, solving grievances etc. There are various stages in HR life cycle,
and every stage provide variety of benefits. The employees must judged on each stage in order to
make decisions regarding promotion or demotion. Along with this, HR policies and strategies
should be made on the basis of current market trends, employment rate and availability of job
vacancy. For example, the policies will provide ways to adopted to monitor and evaluate
performance of employees and on the basis of analysis, appreciate their work or suggests ways to
remove or minimise variances. It will provide basis for monitoring the work. Further, these
should be changed according to changing environment.