Managing Hospitality Organisation

This document discusses the importance of talent acquisition and retention in the hospitality industry, along with analyzing the stages of HR life cycle and the role of HR in supporting and growing specific job roles. It also includes a financial statement analysis and ratio analysis for a hospitality company.

Managing Hospitality
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Financial statements & ratio analysis:.........................................................................................1
Provide an analysis for issues emerging in talent acquisition and retention in hospitality
industry........................................................................................................................................7
Discuss different stages of HR life cycle....................................................................................7
Examine each stage of HR life cycle and importance HR play in supporting and growing
applied to specific job role..........................................................................................................8
Develop a performance management plan for specific job role mentioned above ....................9
Recommendations for improving documentation and process at HR life cycle.......................10
Evaluate specific regulations, legislations, and standards and their impact on organisational
decision making........................................................................................................................10
Importance of communication and coordination in a specific department in hospitality
organisation for value chain......................................................................................................11
Critically analyse different methods of communications and coordination..............................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality is refers to the relationship between guest and the host in which hist has been
receive the guest with its goodwill. Hospitality industry is define as the broad category within the
services industry which has been associated with the lodging, food and beverages service, event
planning, theme parks and transportation etc. in which this has been concerns with the hotel,
restaurants and parks (Li, and Liu, 2018). The hospitality industry has been consist of the any
company which has been deals and put efforts for the higher customers satisfaction along with
this is mainly concerned with meeting leisurely need rather then basic needs. It is an multibillion-
dollar industry which is highly depended on the availability of leisure time, disposable income
along with the complete customers satisfaction. Hospitality industry is divided into four
segments that are food and beverages, travel and tourism, lodging and recreation. This industry is
describe as the largest and fastest growing industry across the world along with this, it has been
creates and employment and has the biggest contribution in the growth of country economy
whole creating large number of new job (Pizam, and Tasci, 2019). This report is based on the
Whitbread PLC which is an British based company with headquarter Houghton Regis, England
in. This has been operating in luxury hotels and resorts. The below report is consist of the
analysis of how to manage finance for minimizing cost, evaluation of human resources life cycle,
illustration of potential impact of legal and ethical coordination on business and importance of
coordinating and integrating various function of departments within hospitality industry.
MAIN BODY
Financial statements & ratio analysis:
Date Particular Amt.(Dr) Amt.(Cr)
01/04/16 Cash 180000
To capital a/c 180000
10/05/16 Property 130000
To cash 130000
15/06/16 purchase 6000
To cash 6000
1

Sales/ Capital
employed*100
01/07/16 Cash 8000
To sales 8000
01/08/16 purchase 9000
To cash 9000
01/09/16 Sundry expenses 200
To bank 200
01/10/16 Cash 17000
To sales 17000
01/11/16 Wages 2100
To cash 2100
01/12/16 Postage expenses 300
To bank 300
Cash a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To capital 180000
By
property
13000
0
To sales 8000
By
purchase 6000
2

To sales 17000
By
purchase 9000
By wages 2100
By
balance
c/d 57900
205000
20500
0
Bank a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To balance c/d 500
By
postage
expense 300
By sundry
expenses 200
500 500
3

Capital a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To balance c/d 180000 By cash
18000
0
Property a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To cash 130000
By
balance
c/d
13000
0
Wages a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To cash 2100
By
balance
c/d 2100
4

Postage expense
a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To bank 300
By
postage
expenses 300
Sundry expenses
a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To bank 200
By
balance
c/d 200
Sales a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To balance c/d 25000 By cash 17000
By cash 8000
5

Purchase a/c
Particular L.F Amt. Date Particular L.F
Amou
nt
To cash 6000
By
balance
c/d 15000
To cash 9000
15000
Trial balance Amt.(Dr) Amt.
Cash a/c 57900
Capital a/c 180000
Purchase a/c 15000
Sales a/c 25000
Property a/c 130000
Wages a/c 2100
205000 205000
Calculation of ratio 2014 2015
Operating profit ratio
Operating profit /
Sales*100
914 / 9482
* 100 9.63
1042 /
11365
*100 9.16
Return on capital
employed ratio
EBIT / Capital
employed 914 / 6797 0.13
1042 /
8769 0.11
6

Current ratio
Current assets / Current
liabilities
4926 /
6797 0.72
7700 /
8769 0.87
Trade receivable ratio
Credit sales / Average
receivables
9482 /
2540 3.22
11365 /
4280 *
365 2.65
Sales revenue to
capital employed ratio
Sales/ Capital
employed*100
9482 /
6797 1.39
11365 /
8769 *100 1.29
Ratio analysis is about comparing financial information by ratio analysis. It is about
knowing how business helps for knowing its financial performance. It helps for knowing
business liquidity, turnover, profitability etc (Teoh, Wang, and Kwek, 2019).
Investors using ratio analysis for knowing companies past & present performance. It is about
how much profit company generates & its dividend paying ability for investors. Investors are
who investing their money in business. This data helps for knowing how company measures its
performance it helps for knowing its liquidity, turnover & profitability. It tells how company
performing which resources gives it benefits, how it is able to manages its resource for long term
profitability.
Investors using these ratios for knowing is this better for investing money this company will give
them higher income. They sees inventory within the business. In many cases, it is important to
understand the dynamic driving as managers experience situations from time to time, changing
their strategies to make stocks and companies more attractive. Generally, ratios are not used
separately but are combined with other ratios. Having a good view of the ratios in each of the
four categories mentioned earlier will give you a complete overview of the company from
different angles and help you see potential red flags.
Examples of Category Analysis Phases
The various types of financial estimates available can be sorted into the following six categories,
depending on the data sets they provide:
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1. Water Measurements: It is about how business manage its liquid assets. Liquid assets includes
cash, preliminary expenses & stock. These liquid requires by business for maintaining its daily
activities. It is also known as working capital ratio, because it includes current liabilities &
current assets.
2. Solvency Ratios
It Also known as financial growth ratio because it includes turnover for
business,turnover includes assets turnover, debtors turnover & creditors turnover ratio. solvency
ratio compare business debts in respect to its assets, cash flows & equity to assess performance
for business it runs for long term. Examples of solvency ratios include: debt equity ratios, debt
ratios, and interest rate estimates.
3. Profit Estimates: This is about profits which company earns in respect to its sales. It is about
how much profits business earns for its sales. Profit ratios includes operating profit ratio, gross
profit ratio, net profit ratio etc.
4. Performance Measures: It is known as performance measures, how well a company uses its
assets and liabilities to generate sales and increase profits. For it there are various elements
which includes net profit, gross profit, income etc.
5. Integrating Estimates: It is method for knowing company's ability for generating interest
payments & other obligations which are related to its liabilities. Examples include for this are
interest rate and credit service rating.
6. Market Expectations: These ratios are widely used in basic analysis for company. This ratio
includes dividend earning ratio, price earning ratio, earning per share ratio, and dividend pay
ratio. Investors use these methods to know future gains and performance.
Provide an analysis for issues emerging in talent acquisition and retention in hospitality industry
In order to accomplish the gaols and objectives it is necessary for the company to acquire
and retain talented employees or staff within organisation so that they will contribute with full
potential in to increase overall productivity and profitability. In this talent acquisition is refers to
the systematic procedure which has been undertaken for finding and acquiring skilled human
resources in order to meet organisational need for labour requirements (Pizam, and Tasci,
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2019). A company has been associated with the talent acquisition team which has a
responsibility for finding, acquiring, assessing and hiring candidates in order to fill the positions
and roles that are required and essential to meet goals and objectives of the company. Along with
this, for success of na organisation, only acquiring talented employees is not enough it is
necessary for company to retain them for longer period of time so that productivity and longer
sustainability at market place get enhanced. Hospitality industry is all about providing customer
satisfaction, in which it is important for Whitbread hotel to acquire and retain talented so that
they will contribute in meeting customer's expectation through providing memorable experience
to them (Murphy, Gretzel, and Pesonen, 2019).
Discuss different stages of HR life cycle
There are five stages that are explained below:
Attraction, recruitment, selection: This is the first step which is associated with
attraction that has been started when a company looking for a new employees which is done
through brand marketing(Teoh, Wang, and Kwek, 2019). Recruitment is all developing good
pipeline from the available candidates for vacant position. Moreover, selection is the process in
which HR of hotel will hire the applicant to fill vacant position.
Induction and orientation: This is have been undertaken by HR in order to ensures that
new employees feel motivated and inspired by the new role, becomes comfortable with
company's culture and get settle with team.
Career planning and development: After the employees established in company, it is
responsibility of HR to focus on providing career opportunity so that they will grow and
developed for future. This has been done through providing them performance appraisal,
recognition, incentives or setting of new goals.
Retention: This process is time consuming which also require lot of money in which
company has to make sure that employees get retain for longer period of time in
organisation(Murphy, Gretzel, and Pesonen, 2019). For HR ensures that employees get positive
and effective working environment, motivation and skills set so that they feel engaged with
organisation.
Termination phase: This is the last phase in which employees started resigning form the
company, this is an important part as with this company acquire fresh and new talent which will
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going to perform will potential and provides higher productivity (Cain, Thomas, and Alonso Jr,
2019).
Examine each stage of HR life cycle and importance HR play in supporting and growing applied
to specific job role
Human resources department of any organisation plays a vital role as it has the
responsibility if bringing talent and skills in the organisation with motive of enhancing
productivity and profitability. There are fiver stages of HR cycle through which human resources
department of Whitbread hotel will go through for bringing candidate at vacant position of
account manager.
Recruitment: This is the first step in which HR department will develop a pool of
candidate for vacant place(Cain, Thomas, and Alonso Jr, 2019). Strategic plan is going to be
develop by HR department of Whitbread hotel will full knowledge of accounts manager position
that need to be filled with best applicant.
On-boarding: This is the step in which company get new employee at position of account
manager in which it is necessary for the Whitbread hotel to inform employee about the specified
job role such as duties and duties along with this, also inform about the company culture in order
to ensuring retention of employees.
Development: This step has been highlights that, human resources department of
Whitbread hotel has to provide efficient opportunities and challenges so that skills of the new
account manager get enhanced and keep motivated.
Retention: This is the process which is associated with the elimination and reduction of
cost of for recruiting replacement for vacant position. For this Whitbread hotel is focusing on
providing good working conditions for new employee at account manager position with
effective rewards.
Exit: It is the step at which employees leave organisation due to their retirement age, in
this Whitbread hotel is going to ensure that account manager will retire without ant disruption
and distraction.
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Develop a performance management plan for specific job role mentioned above
Performance management is refers to the systematic procedure in which company has
been ensures the effectiveness and efficiency of different activities which has been performed by
employees in order to accomplishment of goals an objectives (Chazan, 2019). The main motive
of performance management is to align employees performance with the objectives and policies
of an organisation, while providing proper supervision and guidance to workforce. Human
resources department of Whitbread hotel is associated with the responsibility of improving
performance along with productivity. Therefore, stages of performance is explained below:
PLAN
This includes stimulation of performance objectives which is essential for determining
and any variance amongst current and desirable performances of account manager. In this
SMART objectives has been develop such as build relationship with investors and extremal
parties, report of pertinent data and work with support of all legal requirements.
ACT
This is the action in which account manager will get on job trainings and orientations
session by the senior at staff finance of Whitbread hotel(Marques-Pinto, and. et. al., 2018). The
head of the finance department will take the orientation and induction meeting for introducing
about company's culture, duties and responsibilities along with vision and mission. Moreover, off
the jib training will be provided in future for the enhancement of skills of account manager.
TRACK
Human resource department of Whitbread hotel has the responsibility for tracking the
performance of the employees within organisation. HR executive set the benchmark for each
employees and keep on tacking the performance of account manager so that better outcomes can
be achieved.
REVIEW
Once the performance of account manger is tracked and evaluated as per the benchmark
and SMART objectives, now the executive has to reviewing them and reward the staff
accordingly so that they will be motivated for the higher and more better results.
Recommendations for improving documentation and process at HR life cycle
As pre the above, discussion it has been measured that Whitbread hotel is already using
effective processes and documentation that are involve in HR life cycle. But there are some
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recommendation that has been addressed for the improvement in processes which contribute in
the gaining effective outcomes(Koc, 2019Koc, 2019). In this HR department can set the
expectation at early stage with detailed roles and responsibility so that better candidate can be
recruit as per the requirement. Along with this, hotel have to design attractive compensation and
benefit plans in order to engage top talent. Moreover, a company should provide an organised
development through which employees see their career growth and development within
organisation.
Evaluate specific regulations, legislations, and standards and their impact on organisational
decision making
Company, employment and contract laws are the essential factors which has a impact on
the process of decision making in hospitality organisation. It is necessary for the Whitbread hotel
to follow such legislation so that business activities and operations will be done on the timely
basis and develop a positive impact over decision making.
Company law: This is define as the standard which has to be associated with the
company to abide with the ethical and legal purpose while business operations and transaction
(Syed, and Ozbilgin, 2019). Company law has influence the whole process of decision making
process of Whitbread hotel as to concentrate on respective guidelines provides by section which
help in the significant decision making in relation to employees and company.
Employment law: This is refers to the legislation which has been concerned with
workforce, employees, personnel’s and relationship among employees. In context to the
employment law, human resources department in Whitbread hotel ensures that all the
recruitment criteria and guideline has been set as per the employment law or legislation.
Importance of communication and coordination in a specific department in hospitality
organisation for value chain
Hospitality organisation has been developed with the collaboration of various functions
and departments that work towards accomplishment of common gaol and objectives of the
company. In Whitbread hotel also there are various department which are interlinked with each
other in order to implementation of all the business activities and strengthen the value chain
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through bringing best performance for the accomplishment of organisation goals in stipulated
period of time.
Human resource and kitchen department: in Whitbread hotel both the departments are interlinked
as human resources department has the responsibility to bring best chef and kitchen staff and
kitchen department keeping up with the objectives made by HR department for offering best
quality of food and beverages (Chazan, 2019).
housekeeping and front office: housekeeping department and front office are communicate and
interlinked with each other in which housekeeping update front office about availability of clean
or ready room, occupied or stay over etc. on basis of which front office provide room to guest.
Moreover, housekeeping working is based on the room sales projections which is prepared and
distributed by the from office office desk.
Critically analyse different methods of communications and coordination
Communication: This is define as the process which has been takes place for exchanging
important information from one person to another. Communication in every organisation plays
vital role in enhancing interaction, implementation of strategies or plan(Kallmuenzer, 2018).
Along with this, method used in Whitbread hotel are oral and written in which meetings are
conducted for oral form and minutes are formulated in written. Moreover, formal and informal
communication also used by the company.
Coordination: The Whitbread hotel has been take the utilisation of two ways for
coordinating activities in organisation. In which employees are assist to provides their view point
with one another so that conflict can be reduce and second is, company has been plan proper
scheduling for activities that has to be followed with strictness.
Different communication channels which create impact in organisation: Face to face communication: through this face to face communication as it is one of
channel of communication that can be use within an organisation. In this process real
person presence in terms of facial expression help recipients towards message interpret
that message as the speaker intends. Mobile communication channels: Through a better mobile communication channel
should be used when private or more type of message complex creates delayed with
individual small groups.
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Evaluation:
From above two major communication channels which would creates effective role within
Whitbread hotel with staff and other rest supervisors. This communication channels would help
to communicate with better to staffs and customer as well as.
CONCLUSION
As per the above analysis it has been concluded that, Hospitality industry is define as the broad
category within the services industry which has been associated with the lodging, food and
beverages service, event planning, theme parks and transportation etc. Accounting is about
managing transactions for businesses. These transactions recorded for journal, ledger, trial
balance etc. ratio analysis is about which helps businesses for knowing its financial performance.
It helps businesses for knowing liquidity, turnover, profitability etc. Performance management is
refers to the systematic procedure in which company has been ensures the effectiveness and
efficiency of different activities which has been performed by employees in order to
accomplishment of goals an objectives. These helps businesses for running its activities which
helps for better performance which helps for higher profitability for businesses.
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REFERENCES
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