Strategic Human Resource Management in Hospitality

The provided study aims to eliminate negative work environments and improve staff retention through various actions and plans of HR professionals. It also discusses methods for improving communication and coordination among employees in the hospitality business.

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY-1...................................................................................................................................1
Double entry book keeping to trial balance.................................................................................1
ACTIVITY-2...................................................................................................................................5
Evaluating the methods to measure financial performance.........................................................5
ACTIVITY-3...................................................................................................................................6
HR life cycle for talent Management...........................................................................................6
ACTIVITY-4...................................................................................................................................7
Performance planning..................................................................................................................7
ACTIVITY-5...................................................................................................................................7
Training on law for hospitality industry......................................................................................7
ACTIVITY-6...................................................................................................................................8
Legal and ethical considerations..................................................................................................8
ACTIVITY-7...................................................................................................................................9
Examining the functional roles....................................................................................................9
ACTIVITY-8...................................................................................................................................9
Analysing communication, coordination and monitoring methods. ...........................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The hospitality business is a broad category of field within the service sector which
includes lodging, food and drink service, event planning, transportation, cruise line and many
more additional services. The report will be based on the Carnival Corporation & Plc which is
Cruise operator company in British. This study will help in revealing the trial balance from
finance department and also provide various recommendations in order to improve financial
performance. It will also help in investigating Talent management of the company using HR Life
cycle. Moreover, the report will concentrate towards the performance planning of workforce and
various legal and ethical considerations are also been provided.
ACTIVITY-1
Double entry book keeping to trial balance
Double Entry Book-keeping system helps Carnival corporation & PLC to record its
transactions and with the help of this journal entries accountant of company prepare Ledger
Accounts & Trial Balance(Ghazali, Mustapha and Saber, 2016).
Journal Entries
Date Particulars Debit Credit
01/02/18 Purchase a/c Dr.
To Kate's Kitchen
a/c
£5,001.00
£5,001.00
01/02/18 Purchase a/c Dr.
To Harry a/c
£29,552.00
£29,552.00
03/02/18 Cash a/c Dr.
To sales
£13,027.00
. £13,027.00
06/02/18 Kate's Kitchen a/c Dr.
To Bank a/c
£5,001.00
£5,001.00
10/02/18 Cash a/c Dr.
To sales a/c
£10,653.00
£10,653.00
14/02/18 Bank a/c Dr.
To sale a/c
£2,008.00
£2,008.00
1

17/02/18 Cash a/c Dr.
To sales a/c
£13,321.00
£13,321.00
17/02/18 Harry's a/c Dr.
To cash
£29,552.00
£29,552.00
22/02/18 Purchase a/c Dr.
To Kate's Kitchen a/c
£7,013.00
£7,013.00
24/02/18 Cash a/c Dr.
To sale a/c
£12,329.00
£12,329.00
TOTAL £127,457.00 £127,457.00
Ledger Accounts
Bank Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
14/02/18 To sales £2,008.00 06/02/18 By Kate's a/c £5,001.00
28/02/18 To closing bal. £2,993.00
£5,001.00 £5,001.00
Cash Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
03/02/18 To sales £13,027.00 17/02/18 By Harry's a/c £29,552.00
10/02/18 To sales £10,653.00
17/02/18 To sales £13,321.00 28/02/18 By closing bal. £19,778.00
24/02/18 To sales £12,329.00
2

£49,330.00 £49,330.00
Harry's Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
17/02/18 To cash £29,552.00 01/02/18 By purchase £29,552.00
£29,552.00 £29,552.00
Kate's Kitchen Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
06/02/18 To bank £5,001.00 01/02/18 By purchases £5,001.00
22/02/18 By purchases £7,013.00
28/02/18 To closing bal. £7,013.00
£12,014.00 £12,014.00
Purchase Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
01/02/18 To Kate's a/c £5,001.00
01/02/18 To Harry's a/c £29,552.00
22/02/18 To Kate's a/c £7,013.00 28/02/18 By closing bal. £41,566.00
£41,566.00 £41,566.00
3

Sales Account
Date Particulars Amount (Dr) Date Particulars Amount (Cr)
03/02/18 By cash £13,027.00
10/02/18 By cash £10,653.00
14/02/18 By bank £2,008.00
28/02/18 To closing bal. £51,338.00 17/02/18 By cash £13,321.00
24/02/18 By cash £12,329.00
£51,338.00 £51,338.00
Trial Balance
Particulars Debit Credit
sales £51,338.00
Purchase £41,566.00
Kate's Kitchen £7,013.00
Cash £19,778.00
Bank £2,993.00
£61,344.00 £61,344.00
Every restaurant has to use Key Performance Indicator's (KPI's) for operating its
business. Carnival corporation & PLC is also recommended to use KPI's in its business because
company is offering variety of services such as accommodation, foods & beverages, events, bars
and many other services. KPI's which should be used by Carnival corporation & PLC are
discussed below-
4

 Cost of Goods Sold (COGS)- COGS helps Restaurant of Carnival corporation & PLC in
finding cost in preparation of each food & beverage item. According to principle of
financial management Cost of goods sold helps in minimising & managing cost,
recording of inventory and maximises profits. Thus, this KPI restaurant in managing its
performance and it is calculated as below-
COGS- Opening Inventory+ Inventory Purchase – Closing Inventory
 Prime Cost- Prime cost is a KPI used by restaurants to cut down unnecessary cost and
for earning more money out of it. Carnival corporation & PLC should use this KPI
because it helps company in managing its performance by determining standard cost for
producing its foods & beverages items. Restaurants of Cruise lines track their prime cost
on a weekly basis which helps company in managing its financial performance by
enhancing profits and by offering its products at an affordable price(Lopes, 2016). This
KPI is calculated as-
Prime Cost- Cost of Goods Sold + Total Labour
ACTIVITY-2
Evaluating the methods to measure financial performance
Financial performance of Carnival Plc starts with the sales forecast of the company which
is used to establish the revenue for setting budget for further strategies. Financial statements
produced by accounts are used to communicate financial information about hospitality
enterprise. Suggestions to improve the financial performance of the Cruise line are as follows:
 Online sales and marketing of the firm helps in attracting large number of customer. So
company should make significant improvements in technology in order to gain the
control over the online presence of the market (Ali, 2018). It is one of the effective and
efficient method which helps in increasing the sales of the company.
 Organization should improve the customer engagement via development of effective
customer service team. Customer satisfaction is one of the main key which leads to the
successful development of Carnival Plc.
 Finance manager of Carnival cruise line should also increase cost of room services as it is
considered as one of the most important financial calculation for the hospitality industry
in order to determine the collected revenue over a certain period.
5

Key performance indicator is a term used by the industry for accessing the type or
performance measurement in evaluating the success of business. Two key performance
indicators in improving the financial performance of the Carnival Corporation Plc are as follows:
Online Rating: This KPI helps in increasing the online presence of the firm and therefore it
encourages more customers in using hospitality services. It helps in increasing the publicity of
the carnival cruise.
Revenue per available room (RevPAR): This KPI is regarded as one of the most effective Key
performance which remains crucial in order to understand the success and profitability of the
firm (Christiansen And et.al., 2017). It is calculated as multiplying ADR (Average daily room
rate) with Occupancy rate.
ACTIVITY-3
HR life cycle for talent Management
HR Life cycle is a concept in Human resource Management that helps in determining the
employees time within a particular company. So at each stage of HR life cycle human resource
manager plays the important role in managing the employee relations, satisfaction, remuneration,
training, development and hiring of the workforce etc. The role of food and beverage manager is
to ensure company's cooking and servicing standards. Meanwhile, food and beverage manager
set the daily and cleaning schedules for the kitchen and front of the house, hire, train and
discipline employees and set the work schedule of waiters and waitresses. HR life cycle consists
of five different phases such as Recruitment, education, motivation, evaluation, celebration. Out
of which recruitment is their one of the most important phase as it helps them in managing and
retaining talented employees.
Recruitment stage of HR life cycle helps is concerned with hiring and selection of the employee
in order to perform operational tasks of Carnival Plc (D'Annunzio-Green, 2018).
Education phase is concerned with the training and development of the employees in order to
develop the skills among workforce that meets the main objectives of the firm. Third stage i.e.,
Motivation which is termed as one of t he important factor as satisfaction of staff leads to the
effective and efficient productivity. Thus result in increased profitability of Carnival corporation.
Evaluation phase is used to take the regular feedback and supervision of the tasks in order to
identify the performance of the company. Fifth stage of HR life cycle is celebration which is
6

concerned with rewards and recognitions to the employees for their good work. It keeps them
satisfied and motivated all the time.
Talent management can be defined as an organization's commitment in order to hire,
recruit, develop and retain superior and talented employees. It mostly comes into picture when an
organization need to manage and retain their talented employees. Furthermore, Talent
management refers to the skill of attracting and nurturing the highly skilled employees,
integrating new workers and also development and retention of current employees in order to
meet current and future business objectives. HR life cycle stage is very important for employing
the skilled workers which help company in meeting the main objectives. It is important for the
efficient business performance. It is a full scope HR process which helps them to attract,
motivate, develop and retain highly skilled employees. It consists of three main components:
 HR process full scope: Talent management activities require full potential in order to
manage and integrate HR processes with each other.
 Develop, attract, motivate and retain: Talent management touches all the HR processes
that starts from hiring employees to on boarding employees, from performance
management to retention.
 High performing employees: The main purpose of talent management is to increase
overall performance of the employees by motivating them, retaining, engaging them so
that they can perform better.
ACTIVITY-4
Performance planning
Performance planning is referred as a process of improvising employees efficiency and
productivity by identifying strategies that helps in managing the overall business performance.
Managing the workforce in a better way helps in delivering the appropriate output of the
company. Employees of Carnival cruise liners are facing various problems related to the working
conditions and negative culture at workplace which has resulted in decreased performance and
low profitability of the firm (Ho and Law, 2017). This impacts on the ineffective strategies of the
company so in order to improve the overall business performance, Carnival Plc need to
implement the strategies related to the performance improvement.
In vacations, large number of customers approach the hospitality industry so workload
has been increased. Due to this, waiters feel immense pressure, and they are refusing to do
7

additional tasks. It leads to the negative environment of the workers at workplace. Thus, it effects
the retention of the employees.
 So in order to resolve this issue, HR manager have raise satisfaction level of the
employees. HR life cycle consists of motivation phase which helps in resolving the
negative behaviour at workplace. Additional monitory benefits such as incentives and
extra pay for the additional tasks need to be provided. It encourages them to perform
better and thus helps in effective performance management.
 In order to retain the skilled and loyal employees of Carnival Plc, Hr manager need to
provide compensatory amount in order to keep staff members motivated (Iyer and Jarvis,
2019). Satisfied employees helps in delivering the efficient output and hence results in
increased profitability of the firm.
Performance management plan
Target area Why it is required to be
improved
Expected results Actions required to
be taken
Organizing skill It is required to be
improved HR
department is failing to
address talent, skills and
performance of all the
employees.
Raise satisfaction level
of employees by
Organizing all the work
more efficiently
Provide monetory
benefits, record daily
performance and
provide benefits on the
basis of them.
Motivate
employees
Employees are required
to be motivated so that
they can work more
enthusiastically
Raise motivation of
employees
Provide compensatory
amount, provide
essential holidays to
the employees.
ACTIVITY-5
Training on law for hospitality industry
A working knowledge of laws governing the hospitality industry is not only concerned
with knowledge but it also provides security concerns for customers as well as staff of the
8

Carnival corporation. HR manager need to provide the trainings and knowledge about
understanding the legal aspects of the hospitality business. Various legal considerations are as
follows:
 Hotel and Motel Fire Safety Act, 1988 : This act is made for ensuring the fire safety for
the employees working in the hospitality industry. Staff members and customers of the
Carnival Plc are protected under this Act if their health conditions are get affected.
 Keeping customers safe or Health and safety Act, 1974: this is a legal consideration that
customers and their private details need to be highly protected and secured with the
strangers. During the hotel bookings, consumers share their personal details with hotel
staff which need to be protected under protection Act 1998.
 Discrimination or Equality Act, 2010: It is illegal practice and harassment and unequal
treatment of the employees in hospitality management industry is considered as illegal
practices (Jhamb and Singh, 2019). Laws are introduced for the protection of such
employees at workplace.
 The Licensing Act 2003: This act helps in preventing crime and disorder. It also helps in
reducing public nuisance within the organization.
Company employment and contract law leads to the huge impact on the profitability of
the Carnival corporation Plc. As employment law is concerned with the working hours of the
employees and minimum wages of staff members. And contract law deals with agreement which
is made between employees and company leads to the huge impact on decesion making of the
managers.
ACTIVITY-6
Legal and ethical considerations
Ethical values in business is referred as the beliefs, working procedure and behaviour of
the workforce within the organization. Business ethics is the study of different situations,
activities and decisions in which issues of right or wrong are addressed. However, legal
principles are governing the hospitality operations within Carnival Plc performs the tasks on the
basis for the legal norms and policies of the government (communication and coordination in
Hospitality business, 2017)).
9

There are various ethical and legal considerations are involved in carnival Plc in order to
maintain the safe and ethical environment for the workforce of the company and for this there are
few ethical considerations that should be followed within the organization are: all the employees
personal information should be kept confidential and should not be used without their concern,
none of the employees should be harmed or harrsed within the organization premises both
mentally and physically.
ACTIVITY-7
Examining the functional roles
To,
HR manager of Carnival Corporation Plc,
Hospitality industry generally consists of various different types of departments which
deals with different operations of the company. All such department are categorised according
to the nature of operations and therefore workforce of the company is authorised to perform
different functions according to their skills. Carnival cruise line is divided into various
functional tasks such as Food and Beverage department, Hotel accommodations, Front office
department, House keeping, Customer care service etc.
The aims and objectives of the different functional unit within the organization may
vary according to their t asks and operations. The Role of manager within Food and beverage
department is to deliver quality based food facilities to customers (Nair and Choudhary, 2016).
Also, the food prepared should meet standards in order to provide nutritious food to customers.
The role of Hotel Accommodation team is to deliver the luxury room services considering the
ethical and legal practices in mind. Availing better room services to clients. The room need to
be fully maintained and cleaned. Customer care service of the Carnival corporation Plc, have
to develop the effective communication skills in order to communicate with the customers
clearly and provide them proper details about the services goods provided by this cruise line.
The main functions of the House keeping department is to ensure immaculate care and
upkeep of all guest rooms and public spaces. However, all the functional units are aimed at
achieving the main objectives of the organisations which is increased customer satisfaction.
This ultimately leads to increased sales and maximised profitability of the Hospitality company.
Integrity of these functional roles is quite important as all of these functional roles are
interrelated to each other. Carnival corporation Plc will be able to provide proper customer care
10

service only when their house keeping department will be organized properly.
ACTIVITY-8
Analysing communication, coordination and monitoring methods.
Food and beverage department of Carnival Plc consists of various different types of
activities in providing the services to customers. It is very important that they all coordinate their
activities with each other in order to meet the main objectives of the firm. All such activities are
collectively aimed at Customer satisfaction so Carnival cruise line need to promote
communication, coordination and monitoring of the activities which helps in delivering the
effective performance of the employees.
Different methods of communication
Communication is one of the important task which promotes the interaction between the staff
members and it also helps in establishing the strong relationship among employees. There are
various different types of communication methods which are as follows:
Verbal communication is one of the fastest communication which helps in exchanging
the information efficiently but this may be responsible for the miscommunication (Phillips and
et.al., 2017). This method is helpful for the short time and the information is exchanged through
the oral means of communication. However, written communication is most effective method
of exchanging the information from one person to another. But, it is inefficient as compared to
verbal because it takes time to reach at every employee within Carnival cruise line. On the other
hand, communication through e-mail is one of the most effective and efficient method which
helps in exchanging the information from one place to another. It is most convenient type of
communication as it helps in proper flow of information to all so Carnival Plc follows this
method for circulating the legal information to all staff.
Effective communication plays a vital role in development of an organization. It help the
organization in planning, monitoring, controlling as well as motivating employees. In simple
words it works as a building blocks for the organization which can help them to achieve their
objectives in a well defined manner. These different type of communication can help the
organization in achieving their objectives like Written communication can help in spreading
required information in an easy manner, with the help of verbal communication organization can
easily provide training and guidelines to their employees so that they can work efficiently.
11

Different methods of coordination
Coordination helps in matching the actions and tasks of the team member according to
the plan or strategy of the firm. All the actions are collectively aimed at effective and efficient
operations in order to meet main objectives of the Carnival Plc. It ensures the sound planning of
the organization. There are various different types of methods which helps in coordinating the
actions and plans between all the team members. Such methods are direct, group, staff meetings,
informal coordination etc.
Direct coordination is referred as most effective means of achieving coordination. It may
be in the form of written communication, electronic etc. However, group meetings are held to
evaluate the status of operation as each individual level. So this types of coordination can be
achieved through group meetings. On the other hand, informal coordination is effective and
efficient means of coordination which helps is adopted by the food and beverage department of
Carnival hospitality industry. It is the process of social interaction and mutual adjustment among
staff.
Method of monitoring
This is the process of proper supervision that helps in examining progress according to
the performance of the staff members (Zoghbi-Manrique-de-Lara and Guerra-Baez, 2016). It is
the area of growing importance for the development of the different activities. Monitoring the
performance of the organization can be done through various methods such as performance
indicator, rapid appraisal, formal surveys etc.
Performance indicator measures the input, process and output of the workforce and this
method is used for setting the targets and measuring the progress in meeting organizational goal.
On the other hand Rapid appraisal method is also one of the important aspect that is cheap
method which ensures the efficient decision making of the managers (TangAnd et.al., 2018).
Whereas, formal surveys is efficient and effective way of monitoring the performance.
CONCLUSION
From the above study, it can be concluded that hospitality industry involves various
different types of activities among which HR is responsible for managing employee relations and
performance management of the workforce. The study has provided various actions and plans of
HR professionals in eliminating the negative environment at workplace and staff retention. It has
12

also provided various methods that helps in improving communication, coordination among the
employees.
13

REFERENCES
Books and Journals
Ali, A.A., 2018. Strategic planning–organizational performance relationship: Perspectives of
previous studies and literature review. International Journal of Healthcare
Management.11(1). pp.8-24.
Christiansen, L.C. And et.al., 2017. The global human resource management casebook.
Routledge.
D'Annunzio-Green, N.A., 2018. Is talent management a strategic priority in the hospitality
sector?. Worldwide Hospitality and Tourism Themes. 10(1). pp.2-130.
Ho, G.K. and Law, R., 2017. Finding and Fostering Our Future Tourism Leaders:
Undergraduate Choice in Pursuit of Hospitality and Tourism Higher Education. BEST EN
Think Tank XVII: Innovation and Progress in Sustainable Tourism. pp.30.
Iyer, G.R. and Jarvis, L., 2019. CSR adoption in the multinational hospitality context: A review
of representative research and avenues for future research. International Journal of
Contemporary Hospitality Management.
Jhamb, R. and Singh, G., 2019. Corporate social responsibility in hotel Industry: Issues and
Challenges. In Corporate Social Responsibility: Concepts, Methodologies, Tools, and
Applications (pp. 1250-1257). IGI Global.
Nair, G.K. and Choudhary, N., 2016. Influence of critical success factors of total quality
management on financial and non-financial performance of hospitality industry: an
empirical study. International Journal of Productivity and Quality Management. 17(4).
pp.409-436.
Noe, R.A., and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Phillips, P. and et.al., 2017. Understanding the impact of online reviews on hotel performance:
an empirical analysis. Journal of Travel Research.56(2). pp.235-249.
Tang, T.W. And et.al., 2018. The benefits of high performance human resource practices in the
implementation of an artistic strategy in the hotel industry. Handbook of Human
Resource Management in the Tourism and Hospitality Industries. pp.391.
Yaqoob, I., and et.al., 2017. Enabling communication technologies for smart cities. IEEE
Communications Magazine, 55(1), pp.112-120.
14

Zoghbi-Manrique-de-Lara, P. and Guerra-Baez, R., 2016. Exploring the influence of ethical
climate on employee compassion in the hospitality industry. Journal of Business
Ethics. 133(3). pp.605-617.
Online
communication and coordination in Hospitality business. 2017. [Online]. Available
through:<https://accountlearning.com/techniques-of-effective-coordination-in-organization/>
15

16

17

18