The Hospitality Business Toolkit

This report discusses three different activities in the hospitality industry: management of finance and recording, management of the human resource (HR) life cycle, and the impact of legal and ethical considerations. It provides insights on improving performance and adhering to legal and ethical regulations.

The Hospitality Business
Toolkit

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ACTIVITY-01.................................................................................................................................1
Management of finance and recording........................................................................................1
ACTIVITY-02.................................................................................................................................4
Management of the human resource (HR) life cycle...................................................................4
ACTIVITY-03.................................................................................................................................6
Impact of the legal and ethical considerations.............................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business or company within hospitality industry need to use various productive
business tools in their daily operations. A business toolkit provides different effective ways to a
company which helpful in improve its current performance in respective industry. Toolkit always
includes various innovative tools which important an organization to save its lots of time and
money. This toolkit is also helpful in reducing human efforts. This report discusses three
different activities which has been based on Honest burgers' company. It is a restaurant company
within the UK's hospitality industry. First activity covers management of finance and recording,
second activity covers management of the human resources life cycle, and lastly the third activity
covers impact of legal considerations.
ACTIVITY-01
Management of finance and recording
Financial transaction is considered as the transaction occurred between buyers and sellers in
respect top exchange of some short of asset or financial security in order to complete the
transaction. Companies and corporate organisation follow different processes in order to record
the financial transaction occurred in the normal business operations of corporate organisation
(Häusler, 2017). Accounts departments in companies utilise invoices, cash register, computer
generated receipts, deposit slips, purchase orders and other respective documents that can guide
the company management about the complete details involved in financial transactions occurred.
Principle of managing and monitoring financial performance
Financial management is a process which involves reporting of financial transaction
ocuured during the normal business operations of company. Financial department of Honest
Burger use principles like consistency, timeliness, justification, documentation and certification.
Consistency: Financial transactions must be reported on a consistence basis in respect to manage
the financial records in company. Accounting principles used in financial management guides
that company must follow the principle of consistency in respect to monitoring the financial
transactions occurred during the normal business operations of company. Company must follow
the consistency of one year in aspect to maintaining financial transactions in regard to calculate
company's profitability.
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Timeliness: Timeliness is also an important principle utilise under financial management. All
transactions must be recorded on a timely basis at the time the transaction has actually occurred
in respect to reporting such transaction.
Justification: Justification is also a crucial aspect involve in managing financial transaction of
company. All transaction recorded in books of accounts must be justifiable enough with the
suitable evidences like records, receipt and other suitable ways.
Documentation: All financial transactions that is recorded in financial books of accounts must
be justifiable in respect suitable documents. Financial department must hold the sufficient
document in against the recorded transaction.
Certification: Certification indicates by containing a signatures over all respective documents
from the authorised person involved in transactions.
Principle of double entry book keeping system
Double entry bookkeeping system is also a crucial accounting principle used to record
financial transaction occurred in the normal business operations of company (Jones, 2017). This
system of accounting emphasis over recording financial transaction by involving two accounts
while recording the transaction. As per the principle of double entry bookkeeping while
recording any transaction there must be another account recorded in books of accounts
corresponding to that account in order to complete the transaction. This theory emphasis that
there is always more than one party involved in financial transactions so both the party must be
involved in process to record the transaction.
Trial Balance
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Trial balance is also a crucial financial document prepare by financial department of
Honest Burger in respect to record the financial transaction of the company. Trial balance is a
statement that specifies about all the cash transactions occurred in the entire year or all such
transaction which involves liquidity in order to complete the transaction get recorded in the trial
balance. To assess the liquidity position of company finance department prepare trial balance of
entire financial year. IN case of any differences occurred in the liquidity situation or position of
company financial department or company's stakeholders can review the trial balance of
company.
Types of costs
Cost are considered as all expenditure occurred by companies and organisation during the
entire year (Maddeaux, 2019). Cost can be segregated into fixed cost, variable cost and semi
variable cost based on the nature of expense.
Fixed cost: Fixed cost are considered as all such cost that give advantages for more than one
accounting year to corporate organisation. All such cost occurred in the financial year that will
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support the corporate organisation from its benefits for more than one year are considered as
fixed cost. For example expenditures like furniture, land, machinery and other respective
expenses are considered as fixed cost.
Variable cost: Variable cost are considered as all such cost that carry the revenue nature.
Expenditures like raw material expense are considered as variable costs.
Semi variable cost: Semi variable cost are considered as all such costs that has a part consist of
fixed in nature and the other consist as revenue in nature.
Calculation of Profit Margins
Sales = 400000 £
Cost of good sold = 350000 £
Gross Profit = Sales – Cost of goods sold
400000 £ - 350000 £ = 50000 £
Profit Margins
Gross Profit / Sales * 100
50000 £ / 400000 £ * 100
12.5%
Importance of accurate recording of transaction
All financial transactions must be recorded accurate in nature. To identify the actual
financial position and situation of Honest Burger it is crucial to record the actual transaction so
that complete analysis of the financial stability of company can be analysed.
Recording of financial transaction is a significant tasks company management conduct in
order to project the financial position of company in front of all stakeholders of company.
Principles like accrual, consistency follows in order to record the financial transactions of
company (Murillo and King, 2019). Types of cost are also concluded based on the nature of
expense such as fixed cost, variable cost and semi variable cost.
ACTIVITY-02
Management of the human resource (HR) life cycle
HR life cycle is segregated in the following stages that can be summarised in the
following manner.
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Attraction: HR department of Honest Burger engages in marketing operations in order to attract
the efficient human resources for meeting various positional requirement of the company.
Marketing play huge role in attracting human resources of company.
Recruitment: HR department various human resources for different positional role in company
(Poddubnaya and Shipilov, 2019). Based on the requirements attached with different positional
role in company HR department recruit best talents by internal and external recruitment
campaigns.
On boarding: On boarding is a process conduct in corporate organisation. This is call as
socialisation process occurs in organisation. HR department conducts various team bonding
sessions as a part of this approach.
Enablement: Entablement is a process which involves giving authority in the organisation
structure in respect to any role in organization.
Development: Development of company's human resources is a crucial role HR department of
Honest Burger needs to engage with. HR Department conduct activities sucu as training and
development activities in order to implement development in company.
Retention: Retention is an effective HRM function involved in HR life cycle. HR department
give proper support to company's employee's in order to retain the human resources of company
and also to low the employee turnover of company.
Separation: HR department also engage in separation process related to company's employee's.
Importance of HR life cycle activities:
All stages involve in HR Life cycle provides the following importance.
Improves company's profitability: HR department provide effective employees for meeting
various positional role in company (Pirani and Arafat, 2016). Skilled human resource improves
the profitability of company by its operational efficiencies. Effective HR manager analyse the
requirements of company based on that effective human resources get hire by HRM.
Improves productivity: Skilled human resources improves the productivity of employee's of
company at different job role. Activities like training and development improves the efficiencies
of company's employee's which enables employees to perform more effective tasks.
Improve work culture: HRM department play significant role in improving work culture of
organisation. Stages like retention, development, on-boarding enables HR department to improve
the organisation culture.
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Performance management plan
Skills Activities Resources Time frame
Managerial skills Providing professional
training.
Coaching.
Online lectures of
professionals.
Books and journals.
Internet.
Social Media
applications.
6 weeks
Time management
skills
Professional training.
Experts guidance.
Books and Journals
Professional meet up
3 week
Delegation skill Coaching on
evaluation and
analysis.
Training over
personality
assessment.
Internet
Social media
applications
Books and Journals
Seminars
3 weeks
Judgement and Recommendations
HR department can conduct documentation at each stage in HR life cycle about all
functional activities. This will enable HRM to assess all the functional activities and also to
analyse about all the demerits of the different stages of HR Life cycle. Taking significant
decisions to improve such negative aspects will improve the productivity of HRM operations.
ACTIVITY-03
Impact of the legal and ethical considerations
Legal and ethical considerations plays great role on in the hospitality industry. Reason is,
these legal and ethical considerations are too important to maintain ethical environment within a
company within hospitality sector (Esparza-Aguilar, García-Pérez-de-Lema and Duréndez,
2016). These considerations useful for honest burgers as well. Some major legal and ethical
consideration has been mentioned below which every business need to adhere in their daily
operations.
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Employment Law: Each business or company within the hospitality sector is responsible to
adhere this law in their daily operations. In this case, Honest burger also need to follow concepts
of employment law in their workplace. This company can gain effective workforce, if it properly
follows concepts of this law. Reason is, employees always like to work in this organization
which completely adhere employment law, because employees are able to use their basic rights
with the support of this law.
Contract Law: This is another major legal and ethical regulation which this company is highly
needed to adhere in their daily operations. Contract law plays great role in each type of
industries, because this give opportunity to businesses for running their operations in proper
channel. In the case of honest burger, this company need to financially deal with many parties,
like suppliers, investors, etc. In this case, contract law give facility to the company to make their
all financial statements. Contract law basically includes a contract system which is signed by two
or more than two parties to complete any deal (Fotiadis, Mombeuil and Valek, 2018). With the
support of contract law, this hospitality company is also able to remove financial conflict and
errors from its business operations. That's why this law is too important to the company.
Safety and Security: Safety and security is another legislation and ethical consideration which
each business or company within hospitality industry is need to consider. According to this
consideration, top-level management of honest burger need to create a safe and secure zone in
their restaurant, because it is necessary to provide favourable services to customers. The main
aim behind safety and security is to remove such elements from the own restaurant which
negatively impact it. On the other side, if any business maintain effective safety and security in
their workplace, then it can indirectly build ethical environment in their workplace for their
employees and customers as well.
Equality: Equality is another term under legislation and ethical consideration which this honest
burger is need to follow in their business environment. According to equality term, a business or
company need to give equal growth opportunity to their all employees. On the other side. When
any company has employed equality in their workplace, then it can indirectly show their high
humanity standard in the market. Most people are like to work in those organizations which
gives equal promotional opportunity to an employee (Ghanem and Elgammal, 2017). Equality
promotes highly productivity in an organization, because employees put great efforts in
workplace if their management treat them equally.
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Reflection
Currently many organizations not treats their all employees in equal manner. They give
growth opportunity to some selected employees in the workplace. This action of organizations is
completely violating the business ethics, because each organization is need to employee ethics
inn their workplace. In this case, top-level management of honest burger is need to properly
follow concepts of equity act, because if management not follow this then this action of it turn
into violation of legislation and ethical consideration.
On the other side another ethical issue is, many times companies not pay their employees
according to working hours. In this situation, those organizations are indirectly violating
employment law, because each business is responsible to pay their employees according to
employment law. In this case, management of honest burger is need to properly maintain
employment contract, because it too necessary for building effective relationship with existing
employees.
CONCLUSION
It can b concluded that when a company properly manage their finance and recording of
transactions, then it can easily minimize its operational costs within hospitality sector. On the
other side, a business within hospitality industry like honest burger is able to effectively manage
their human resource (HR) life cycle with the support of various HR management strategies. But
human resource management of this company is still need to become active in their operations,
because it can gain more productive results through improvement. According to third activity,
the company within hospitality industry is necessarily needed to adhere all legislation and ethical
consideration in their daily operations. These legislation and ethical considerations will help to
the company to run their business operations in ethical manner.
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REFERENCES
Books and Journals
Esparza-Aguilar, J. L., García-Pérez-de-Lema, D. and Duréndez, A., 2016. The effect of
accounting information systems on the performance of Mexican micro, small and
medium-sized family firms: An exploratory study for the hospitality sector. Tourism
Economics. 22(5). pp.1104-1120.
Fotiadis, A., Mombeuil, C. and Valek, N. S., 2018. Designing and Implementing a Marketing
Plan'. The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality.
Emerald Publishing Limited, pp.297-311.
Ghanem, M. and Elgammal, I., 2017. Communicating sustainability through a destination’s
website: a checklist to inform, motivate, and engage stakeholders. Journal of Travel &
Tourism Marketing, 34(6), pp.793-805.
Häusler, N., 2017. Organisational Culture and Community Culture in the Hospitality Sector.
In Cultural Due Diligence in Hospitality Ventures (pp. 45-66). Springer, Cham.
Jones, E. D., 2017. Houghton Hospitality: Representing Sociability and Corruption in Sir Robert
Walpole's Britain. Eighteenth-Century Studies. 51(2). pp.235-254.
Maddeaux, S. J., 2019. Online guidance on oral history from Manchester Histories Historical
Research Project and East Midlands Oral History Archive. Archives and Records. 40(3).
pp.325-327.
Murillo, E. and King, C., 2019. Why do employees respond to hospitality talent
management. International Journal of Contemporary Hospitality Management.
Pirani, S. I. and Arafat, H. A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production. 132. pp.129-145.
Poddubnaya, E. S. and Shipilov, N. Y., 2019. Strategic diagnosis methods of the hotel business
organizations activities. Экономика и управление: теория и практика. 5(4). pp.19-
26.
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