Managing Hospitality Organisations - Desklib

This report studies the principles of monitoring financial performance of an organisation and assess the various stages of human resources life cycle. The important of HR in searching and retaining talent in hospitality is also assess. The report evaluates several legislations hospitality entity abide by and the impact of contract laws on the industry.

Hospitality Organisation

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. The principle of handling and managing the financial performance.....................................1
P2. The double entry book keeping system of debits and credits to record sales and purchases
transactions in general ledger.......................................................................................................2
P3. A basic trial balance with the use of the balance off rule to complete the ledger.................7
M1. Analyse the sales and purchase transaction to compile a trial balance using double entry
book keeping effectively .............................................................................................................8
D1. Record correctly transactions and produce an accurate trial balance by completing the
balance off ledger accounts and checking that each transaction is recorded with accepted
accounting principles...................................................................................................................9
TASK 2............................................................................................................................................9
P4. The different stages of HR life cycle to specific hospitality job and their importance for
retaining and developing talent....................................................................................................9
P5. A performance management plan for hospitality job role with techniques to resolve
negative behaviour as well as issues of staff. ...........................................................................10
M2. Evaluating the importance of HR life cycle to retain strategic talent management and
overcoming staff retention issues. .............................................................................................11
D2. Making recommendations and judgements on the ways HR processes and documents can
be improved for effective talent planning throughout the HR life cycle...................................12
P6 Identify specific legislations that London Hotel has to comply and adhere to ....................12
P7 Examples related with how company, employment and contract law has potential impact
on business.................................................................................................................................13
M3 Potential impact of regulation, legislation and ethical principle on an organization..........14
D3Critically reflect the potential impact of regulation, legislation and ethical principle of
London House Hotel decision -making. ...................................................................................14
TASK 4 .........................................................................................................................................15
P8 Interrelation between different functions and roles within hospitality sector......................15
P9 Different communication method, coordination and monitoring in the department............18
M4 Evaluate communication and its various methods in relation to London House Hotel.....19

D4 Evaluate communication and its various methods in relation to London House Hotel ...20
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Hospitality is a service industry which covers wide categories of activities such as
accommodation, food & beverages, travel, parks, etc. The industry consists of hotels, restaurants,
agencies for tourism. Management of hospitality organisation is the framework of handling the
various parts that create hospitality industry. It focuses on developing structure of hotels and
their brands to conduct business efficiently. Effective hospitality organisation can be achieved by
providing diverse culture and excellent guest experience. For this report the chosen organisation
is London House Hotels which renders services of rooms to guests in a vintage property.
This report studies the principles of monitoring financial performance of an organisation
and assess the various stages of human resources life cycle. The important of HR in searching
and retaining talent in hospitality is also assess. The report evaluates several legislations
hospitality entity abide by and the impact of contract laws on the industry.
TASK 1
P1. The principle of handling and managing the financial performance
The essential business task owners undertakes is monitoring company's finance
performance to understand firm's position financially. Managers enjoys a big advantage when
they know the current standpoint of company as they can plan their future strategies on that
basis(Chapman, 2011). London House Hotels managers understand the importance of managing
the financial performance of business. The principles used by London House Hotels to monitor
performance financially are explained below:
Consistency: Principle of consistency highlights that all the transactions of company
should be handled in a rational manner. London House Hotels made policies and plan of actions
to address same kind of transactions that take place frequently.
Timeliness- The timeliness principle states that the transactions in a company should be
managed within a specified period of time. London House Hotels accountants settles all their
transactions in time to avoid any delays which can lead to affect firm finances.
Justification- This principle states the finances that supports company's goals and
provides information about whether finances are being used effectively as well as right places.
London House Hotels managers keep all the information of the firm's fields which needs
1

financial assistance. Then, the strategists decides where the finances will be allotted and in what
amount.
Documentation- The principle of documentation highlights that a necessary
documentation about all the transactions that took place in a company must be done(Doniņa,
2015). The accountants at London House Hotels maintain, organize and retain complete data
about all the activities of the firm so that it can help in case of audit.
Certification- This principle emphasis on approval of all transactions of company that
should also carry right signatures of authorizers. London House Hotels managers always keeps
their accounts updated with proper certifications to avoid any discrepancies in firm.
P2. The double entry book keeping system of debits and credits to record sales and purchases
transactions in general ledger.
Double entry book keeping is a system of storing transactions of business where every
transaction is recorded as an individual entry under debit or credit particulars. The amount of
debits recorded should be equal to the amounts of credits. It helps in minimising errors in
company's books of accounting and balance the income with the expenditures. The sales and
purchases of London House Hotels are maintained in double entry book keeping system in
general ledger to know the profits of the company in exchange of the expenses it occurred.
2

3

4

5

6

P3. A basic trial balance with the use of the balance off rule to complete the ledger
A book keeping record where all the balances of ledgers are collected into debit and
credit account and the total of the two is equal is refer as trial balance(Foster, McCabe and
Dewhurst, 2010). The trial balance of London House Hotels is maintained by recording all the
ledger accounts balance in the form of debit and credit of a specific span of time consists of sum
of assets, revenues, expenses and liabilities account.
7

M1. Analyse the sales and purchase transaction to compile a trial balance using double entry
book keeping effectively
Sales of a company are form of revenues for a company so its amount goes in the credit
side of trial balance. The sales of London House Hotels consist of the accommodation and food
8

services it provides to the guests. Likewise, the purchase are the expenses which are written on
the debit side which includes the expenses used for the smooth operations of the hotel.
D1. Record correctly transactions and produce an accurate trial balance by completing the
balance off ledger accounts and checking that each transaction is recorded with accepted
accounting principles
By recording transactions in trial balance it is analysed that the debit and credit balance
for the company is £205500. The aim of creating trial balance is to assure that the entries in the
book keeping system are accurate.
TASK 2
P4. The different stages of HR life cycle to specific hospitality job and their importance for
retaining and developing talent
The HR life cycle is the journey of employees of an organisation they are working in. It
starts with the moment they enter in firm and continues till the moment they leave. There are
various important stages of HR life cycle that ensures that the right selection of candidates at
right role. The HR life cycle stages in context to London House Hotels are as discussed below:
Recruitment- The first step in HR cycle is to attract people for the company that fits a
certain role perfectly(Hassanien, and et. al., 2010). It involves selecting and recruiting people on
the basis of their skills, talents and experience. For recruiting an Assistant Business Development
Manager, at this stage the HR of London House Hotels looks out for people with leadership
qualities and creative approach who can influence other staff of firm to do better in order to
develop business.
Induction- In this step, the HR provides information about the company's expectations
from employees. To ensure successful business operation, every employee should know their job
role and their responsibilities towards organisation. At this stage, the HR of London House
Hotels welcomes the Assistant Business Development Manager and provides the orientation of
hotel. The HR makes sure that the employees feels valued and motivated to do their job.
Development- The employees are already established at this stage so the HR's
responsibility is to provide them opportunities to grow. HR role here is to reward employees
properly for efforts and to further boost their productivity and enhance their talents. At this stage,
9

The HR of London House Hotels identifies maximum potential and talents of Assistant Business
Development Manager and utilize the information in their development.
Retention- Till this step, the company has invested a good amount of money and time on
its employees, so the HR make sure that the employees retain in the firm as long as they can. At
this stage, the HR of London House Hotels provides various job opportunities, secure
environment and effective tools to the Assistant Business Development Manager so they can do
their job productively and achieve their as well as hotel's goals.
Termination- In this step, the employees leaves the organisation due to various reasons
like better growth opportunities at other place, conflicts with the management, not being able to
achieve targets, etc(Hayes and Miller, 2011). The role of HR here is to understand why an
employee leave a firm so that they can know how to retain best personnels in future. At this
stage, the HR of London House Hotels executes this responsibility wisely by knowing Assistant
Business Development Manager's reason of leaving and provides them the opportunity to join
the firm again in future if they wish.
The importance of HR cycle is it helps in increasing commitment and productivity of
employees and minimize conflicts in organisation. The HR of London House Hotels plays an
essential role in retaining and developing staffs in firm for enhanced productivity and better
performances. Employee retention can be improved by training, timely promotions, incentives
and better workplace policies which are effectively handled by HR of firm. The HR of London
House Hotels always ensures that employees with good set of skills and talents stays in the firm
and provides them several opportunities to develop them at personal level.
P5. A performance management plan for hospitality job role with techniques to resolve negative
behaviour as well as issues of staff.
A performance management plan is a set of tools to track as well as monitor
performances of employees and any deficiencies in their work to keep the record of their
improvements. The plan includes communicating and coordinating employees goals with
company's. An enhanced management plan can maximise productivity and revenues for
business. The continuous performance management assists in speeding the cycle of projects and
helps in maximising organisation's fruitfulness. In order to increase employee turnover and their
outputs, a performance management plan is formed by London House Hotels which is explained
below:
10

Planning- This is the first step which highlights the planning and objectives of
organisation which conveyed by management to the staff so they work in one direction. London
House Hotels managers make plans and set targets for each employee so to increase their
efficiency. This also includes various plans in case of any conflicts or miscommunication
between employees which results in eliminating negative behaviour at work-place and promote
competitive environment which can improve productivity.
Monitoring- The objectives set in the planning step are being monitor in this phase.
Monitoring means measuring the performances of employees continuously and see whether they
are working with full potential or not(Kuruuzum and Koksal, 2010). It involves providing
feedback, correct any discrepancies and checking if the specified goals are achieved. London
House Hotels managers performs this activity by monitoring every employees performance as
well as their contribution in achievement of goals. It also helps the managers to eliminate extra
activities which generate no outputs and is taking unnecessary time of staff.
Review- This is the final stage of performance management plan which is used to review
the actions of employees. This task is done to maximise employees productivity and to
understand which actions has the major contribution in the achievement of goals. The
management of London House Hotels performs this action to determine the additional value of
employees for the hotel. This task is also helpful for management to decide the rewards and
promotions employees deserve. This helps in generating the sense of belonging in employees as
their efforts are being considered and recognised.
M2. Evaluating the importance of HR life cycle to retain strategic talent management and
overcoming staff retention issues.
The HR plays an important role to eliminate retention issues of employees which arises at
workplace due to conflicts or miscommunication. Efficient and talented employee turnover is
very essential to increase the performances of London House Hotels. Thus it is very important
for HR of the hotel to provides a good growth prospects to the staff so they will retain in the
business for long time. To overcome the staff retention issues the HR of London House Hotels
provides a safe and secure work environment, gives several employee benefit and allow flexible
working hours.
11

D2. Making recommendations and judgements on the ways HR processes and documents can be
improved for effective talent planning throughout the HR life cycle
The HR of London House Hotels can enhance the recruitment process by properly
outlining the expectations of business from employees. The HR needs to educate the staff at all
stages of their cycle to avoid any delays in hotel operations. For effective talent planning the HR
must provide organized development methods to the staff in order to increase their performance.
The relationship between employee and employer must be maintained by the HR to coordinate
their goals with each other. The HR must prioritise constant evolution of the staff to which can
result in efficient workforce.
P6 Identify specific legislations that London Hotel has to comply and adhere to
Legislations means those preparation which is used upon enacting laws over those
legislative perspective which is based over developing strong lawmaking process. As per the
legislation legal structure within an organization has been maintained helping in covering legal
standards present within an organization. Legislation makes evaluating, amending and voting
done upon laws created in more effective way. They are used for purpose of making bill
permanent law within the country(Kusluvan, and et. al., 2010). It has vital role to be played
making organization provide quality of services through gaining competitive advantage as
business law leads over making legal structure to be used by an organization. Some of the
legislation which is used by London House Hotel explained as follows:
 Food Safety Act, 1990: The main responsibility is based over ensuring about food that it
should be served as per the legal standards stated by food department of an country like
UK. This makes legal issues to be solved in more effective manner in relation over food
safety and guide towards keeping hygiene while preparing the food. Further, through the
legislation customers satisfaction is focused by London House Hotel increasing
profitability with productivity. It is required to be followed by London House Hotel to
accomplish in relation over food and safety set by an organization.
 Employment Act, 2002: The acts has been used for solving issues faced by employees
while working within an organization. As per this act employee's are able to solve issues
related to wages, leaves and employee's tribunal making employee's attain trust over
organization. Further, act made within employment law like Employment Right Act 1995
and Equality Act 2010 has made the problems solve with more effectiveness. The act is
12

responsible over forming employee related strategies by management of an organization.
In relation to London House Hotel uses the act for developing high productivity with
profitability. These law makes hotels develop employee centric policy making
employee's satisfaction created in more effective way.
 National Minimum Wages Act, 1998: The act has been used for making employees gets
there pay on time which made circulation of salary done in more effective manner. It has
been formed by UK government and basic salary over an employee is decided within the
legislation. The legislation make London House Hotel provide fair reward upon work
done by them. The act leads over identify labour skills and use their potentiality
effectively which improve the sales growth as well as margin of profit. London House
Hotel imply the act within business operations for making tasks completed within time
limit specified.
The above discussion shows that London House Hotel requires over using legislation for
making legal structure formed which makes various operations conducted more effectively.
Also the organization uses legislation for making employee's wages paid on time with employees
satisfaction formed. Also legislation makes customer satisfaction created by using food and
safety legislation, Through National Minimum Wages Act, 1998 employee is able to get wages
on time.
P7 Examples related with how company, employment and contract law has potential impact on
business
Legislations and regulations leads towards providing guidance within an organization
helping in making goals to be achieved with efficiency(Lockwood, 2010). These legislations has
both positive and negative impact upon business decision effecting work culture existing within
an organization. Also there are different kinds of legislation and regulations creating negative
impact upon business operations helping in functioning of hospitality sector. In order to make
hotels work more effectively there main law are used which are company contract and
employment law which mainly hampers work life cycle within an organization. Some examples
of various organizations that has facing the problem over violating these law has been given as
follows:
 Wilko is an famous organization dealing with home décor and are fined with £2.4
million as an 35 year old employee was paralysed due to fall of paint tin upon him.
13

 An automotive care manufacturer was penalized over violation norms of contract formed
between BVG and UIL Ltd.
 Warburtons was fined with £ 2m and £ 1.1m over the claim filed by an employee in
relation over discrimination done towards him. In this discrimination took place on basis
of colour.
 LSER and Wettons were penalised for £ 2m and £ 1.1m respectively for prosecution
that was brought by ORR and it caused death of a cleaner.
These example shows that employment, contract and company law are used in creating
direct influence upon decision making process present within an organization. In context of
hospitality industry various changes over regulations has been made with effective objective
present within an organization helping over modifying decision implemented within workplace.
These laws make better decisions formed leading upon improving work conditions and making
employees deal over issues more effectively.
M3 Potential impact of regulation, legislation and ethical principle on an organization
The potential impact of legislation is that it helps in developing laws which are used by
business organizations and hotel industry over conducting business as per legal structure present
within a country. In case of regulations basic rules are developed by an hotel like London House
by keeping in mind hospitality laws(Maier and Hadrich, 2011). Ethical principles lead upon
making discipline and order created within business environment. Ethics holds importance as
they influence behaviour which makes decision making more effective in nature.
D3Critically reflect the potential impact of regulation, legislation and ethical principle of London
House Hotel decision -making.
Each organization willing to perform business function must use legislation in order to
make ethical code of conduct followed with overall performance of an organization. Under some
cases unpredictable impact is created over business performance through decision taken with an
organization. Further, legislation helps over ensuring an organization in providing treatment to
injured employee's providing them compensation over cost of health facilities this makes moral
values of employees improve more effectively. Also regulations helps upon making proper
structure formed with legal standards applied within an organization. Through regulation rules
are made which affects decision making. Ethical principle they are important for improving
14

discipline and order within business environment. It make employees become part of decision
making diversity included within decision making.
TASK 4
P8 Interrelation between different functions and roles within hospitality sector
Organisational Structure of Hotel
Organisational Structure of Carnival Cooperation Plc.
15

Organisational Structure of Theme Park
Organisational structure of hotel
16

Under hospitality industry various kinds of business are present which are hotels,
restaurants, theme parks and tourist agencies. Every business operations are based over their own
roles, functions and organizational structure as they are interlinked within themselves. Certain
functions regarding hospitality sector has been discussed as follows:
 House keeping and Front Office Department: These are important functions which is
important part of hospitality sector which is used for managing work within the hotel. As
house keeping is based over cleaning guest rooms and public area of hotel whereas front
office function provide information to house keeping for making room ready for next
guest(McIntosh and Harris, 2012). The from office department helps over making
information circulated in more effective way which improves image of London House
Hotel
 Food and Beverage Service and Food Production Department: The department is having
essential role to play within hospitality sector. As Foods & Beverage concerns upon
serving and preparing food item over consumer within hospitality sector which makes
food items presented to its customers or guests.
 Finance and Fiscal department: In finance department all kinds of financial activities
takes place with more effectiveness. Under finance budgets and its formation is also
included. In Fiscal department loans and debts are handled which can be fulfilled with
17

the help of finance which shows that these departments are interlinked within each other
making debts to be paid with the helps of loan.
P9 Different communication method, coordination and monitoring in the department.
There are various kinds of communication method that is used within London House
Hotel which has been explained as follows:
 Conference- This is based upon that kind of communication that is based upon meeting
higher authority with board of members. It help over developing strategies in relation to
functions of F&B department making proper decision to be taken with the help of video
conferencing which makes communication easy and effective.
 Seminar- Seminars are being organized in London House Hotel boosting moral values of
employees which helps over motivating performance with better work according to needs
and demands of customer's within London House Hotel.
 Email- These are formal method for making communication done over vital information
within the organization. Relevant information has been transferring over mails within an
organization. The managers of F&B department passes necessary information through
communicating methods.
 Text message- In this method message makes transfer done by management of London
House Hotel done within informal manner. The high authority of F&B department helsp
in making information transferred in more effective way through using method of
communication. Through text message making information reach to employees while
making communication.
 Delegation- This is an important method which is used over coordinating and monitering
with responsibility in more effective way helping over subordinating every work of F&B
department conducted in most effective way.
 Policies and procedures- It is an important method which is used upon coordinating and
managing work of F&B department at whole London House Hotel. It makes department
guided according to planned policies.
Importance of the methods to strengthen value chain
Through this method managers of London House Hotel is able to make appropriate
policies developed within future course of action(Nyheim and Connolly, 2011). It is because
vital information can be transferred within sequential manner and also formal manner. Errors
18

and problems within communication process makes goals and objectives accomplished more
effectively. Thus management of London House Hotel is able to guide and bring motivation
within people increasing productivity of an organization. The goals and objectives of the of the
organisation will be easily achievable because the value chain will be managed and coordinated
in the desired manner. The superior of the value chain can guide its subordinates by making
better plans for the organisation and department helping in making work done more effectively
and efficiently.
M4 Evaluate communication and its various methods in relation to London House Hotel
Communication is one of the most important tool which has been used in order to make
information flow possible. This is an important part which is based over making information
circulated with better techniques. Communication is done by using methods like email, text
message, wahtsapp and conferences. They help over making information reach with more
effectiveness to its employee and customer. In relation to an hotel like London House Hotel it
helps upon making communication done with perfection and increasing positive approach
towards it.
19

D4 Evaluate communication and its various methods in relation to London House Hotel
Communication means those aspects which has been used for developing communication
process increasing flow of information within organization(Qiu, Shaukat and Tharyan, 2016).
Through communication and its methods various important information has been circulated in
more effective way. This is used over making hotel's brand image improved within market.
CONCLUSION
From the above discussion it can be concluded that business is an important aspect which
is required to be developed within hospitality sector. In order to conduit business various kinds
of strategies is required to be used making business operations performed in more effective way.
Every organizations has set of principles that makes organization monitor over situations used
for solving conflict in building better working conditions. In this HR policy and legislation are
discussed with operations of productivity and helps in making employees satisfaction created.
20

REFERENCES
Books and Journals:
Brealey, R.A., and et. al., 2012. Principles of corporate finance. Tata McGraw-Hill Education.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
Chapman, R.J., 2011. Simple tools and techniques for enterprise risk management (Vol. 553).
John Wiley & Sons.
Doniņa, A., 2015. The role of tourism and hospitality companies in ensuring an effective
internship process. The Journal of Education, Culture, and Society. (1). pp.281-290.
Foster, C., McCabe, S. and Dewhurst, H., 2010. Management development skills in the
hospitality and tourism sector: Needs and issues from a regional perspective. Tourism
and Hospitality Planning & Development. 7(4). pp.429-445.
Hassanien, A., and et. al., 2010. Hospitality business development. Routledge.
Hayes, D.K. and Miller, A.A., 2011. Revenue management for the hospitality industry. Hoboken,
NJ: John Wiley & Sons.
Kuruuzum, A. and Koksal, C.D., 2010. The impact of service quality on behavioral intention in
hospitality industry. International journal of business and management studies. 2(1).
pp.9-15.
Kusluvan, S., and et. al., 2010. The human dimension: A review of human resources
management issues in the tourism and hospitality industry. Cornell Hospitality
Quarterly. 51(2). pp.171-214.
Lockwood, M., 2010. Good governance for terrestrial protected areas: A framework, principles
and performance outcomes. Journal of environmental management. 91(3). pp.754-766.
Maier, R. and Hadrich, T., 2011. Knowledge management systems. In Encyclopedia of
Knowledge Management, Second Edition (pp. 779-790). IGI Global.
Manning, L., 2018. The value of food safety culture to the hospitality industry. Worldwide
Hospitality and Tourism Themes. 10(3). pp.284-296.
McIntosh, A.J. and Harris, C., 2012. Critical hospitality and work:(In) hospitable employment in
the hospitality industry.
Nyheim, P. and Connolly, D., 2011. Technology strategies for the hospitality industry. Prentice
Hall Press.
Qiu, Y., Shaukat, A. and Tharyan, R., 2016. Environmental and social disclosures: Link with
corporate financial performance. The British Accounting Review. 48(1). pp.102-116.
Online:
London House Hotels, 2022. [Online] Available through:
<https://www.londonhousehotels.com/>
21