Hospitality Business Toolkit

This document provides a comprehensive toolkit for the hospitality business, covering topics such as monitoring and managing financial performance, HR life cycle in hospitality job roles, and the impact of legislations on decision making. It offers valuable insights and resources for professionals in the hospitality industry.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
Investigate the principles of monitoring and managing the financial performance...............3
Use double entry book keeping system to record sales and purchase transactions in a general
ledger......................................................................................................................................4
Make a trial balance applying the use of the balance off rule................................................5
LO 2.................................................................................................................................................5
Analyse the different stages of HR life cycle applied in hospitality job role and its importance
of retaining and developing talent..........................................................................................5
Develop a performance management role for hospitality job role, with the application of
techniques for resolving negative behaviour and to overcome issues of staff retention........7
LO 3.................................................................................................................................................8
Specific legislations that hospitality organisation has to comply...........................................8
Evaluate how company, employment and contract law will have potential impact on decision
making in hospitality industry................................................................................................9
LO 4...............................................................................................................................................10
Interrelations between functional roles within hospitality sector.........................................10
Discuss different methods of communication, coordination and monitoring applied within a
specific department of hospitality department to strengthen value chain............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality management can be defined as business in the sector of hotels, cruise ships,
resorts etc. (Etherton‐Beer and et. al., 2021). Any individual who is involved in hospitality
management has to manage the staff and service in the hospitality business. The managers have
to apply some management concepts and structural leadership in dining, areas of accommodation
general guest services and staff management. They have to work in every function and
responsibilities to ensure that guest experiences best services. The staff member has to ensure the
warm welcome of the guest and to provide every service which the guests want. Intercontinental
Hotels & Resorts was created in 1946 by Pan Am's founder Juan Trippe. This hotel has 213
hotels & resorts and its headquarter is in Denham, Buckinghamshire, UK. This report covers
finance and record transactions to reduce costs within the hospitality industry. It also covers how
to manage the human resource life cycle within HR strategy. In addition with it, this report
covers the impact of legal and ethical considerations on hospitality business. This report give
detailed information on importance of coordinating and integrating various functions of
departments within the hospitality sector.
LO 1
Investigate the principles of monitoring and managing the financial performance.
Monitoring and managing the financial performance provides certainty in the functioning
of activities (McClanahan, Goorley and Auxier, 2021). Because monitoring the accounts helps to
prevent the bankruptcy and allows the management to make short term and long term decisions.
Managing the finances of Intercontinental it is essential because it helps to do further planning of
effective utilisation of resources. With the coming of new technologies there are new ways
which the hospitality industry can monitor their financial performance. They have to monitor the
KPI and have to use it for optimizing the operations which will increase the profitability. The
hospitality business uses various financial statements for measuring their performance in
monetary terminology. There are certain principles which are used to monitor and manage the
financial performance which are discussed below- Preparation of inventory records- Inventory records means to record all the information
about the stock and the type of stock which the entity possess. In Intercontinental it is
important to check the number and types of rooms available. Effective inventory

preparation involves yield and revenue management. This is the most important record
which every hotels keep it with themselves.
 Preparation of key financial statements- Preparing financial statements is considered to
be good for making better decisions and also help the management to work efficiently.
The financial statements involves summarising, reporting and analysing of the financial
statements which helps to forecast future results.
 Organise the finances- The finances which the intercontinental maintains has to be
organized in an effective manner. Personal loans, bank accounts credit cards and other
transactions must be tracked. Organizing finance provides the information about how
they have used and what other safety they have to take.
Use double entry book keeping system to record sales and purchase transactions in a general
ledger.
 Double entry book keeping means to record any business transactions amount must be
documented in two accounts (Barik, Prusti and Mohapatra, 2020). This system also
requires that both the debit and credit side must be equal.

 This system helps to record the transaction with accuracy which reduces the errors in the
accounts and provides complete information.
 Sales, purchase account, stock and other items can be recorded and can be compared with
different years and the profit and loss can be measured.
 The double entry book keeping system helps to reveal the true financial position of the
business and also this system is complete in itself.
 The intercontinental usually do their double entry book keeping on the accounting
software which helps them to record all the sales and purchase transactions of the hotel
rooms. For each of the purchase and sales transactions both the side need to be equal.
Make a trial balance applying the use of the balance off rule.
Trial balance is a financial statement where balances of all the ledger accounts are
recorded in debit and credit columns (McAvoy and Butler, 2018). Business usually prepares trial
balance at the end of the accounting year. Trial balance is prepared to discover the accuracy of
ledger accounts. Sales transaction has to be analysed for identifying the performance of the sales
against the defined goals. Purchase transactions are done to measure the purchases done in the
business. These transactions are then compiled in the trial balance by the finance department as
shown below. The trial balance provides the idea about the financial position of the business.

LO 2
Analyse the different stages of HR life cycle applied in hospitality job role and its importance of
retaining and developing talent
HR life cycle means the different stages which every HR has to go to implement the
functions. Each stage has its own challenges and difficulty which they have to work on for
making it a smooth process. Different stages of HR life cycle are explained below in context
with job role-
Hotel manager- Hotel manager is the person who manages the day- to-day operation of
the hotel (Brooks, Mosier and Bassett, 2020). It is important for the manager to involve in every
function of the hotel and to guide staff to work in a great manner.
HR life cycle-
Recruitment- The first stage of the life cycle is to recruit the right number of talented
employees. When any business has to make growth they have to recruit right manager who can
handle all the work in simple way. Intercontinental hr has the main duty to recruit the manager
who can do all the tasks and can provide innovative idea which can help in growing the hotel.
Onboarding- Onboarding stage has to analyse whether the hired person have adjusted
within the environment (Abokifa and et. al., 2020). They identify their position, roles and their
long term contribution for the hotel. The Intercontinental hr has to work in this stage providing
full information about the role and to discuss the hotel mission and values.
Career development- This stage is the employee development stage where the HR has
to encourage the employee for its development and to learn new skills. In terms of
Intercontinental the hr always tries to develop the communication skills and other skills which
will help in inner development of the manager.
Retention- The next focus of every HR is to retain the employees in the hotel. This
means that the atmosphere and culture of the hotel must be suitable for them. The main
responsibility of HR is to cultivate good relationships among staffs and to have good
communication with them.
Separation- Their comes a time when the staff leaves from the hotel because of any
reason either retirement, or for any personal reason. It is important for the HR to remain open
and transparent in communicating any thing with them as this will help them to not worry for the
future.

Importance of retaining and developing talent-
When the business keeps their work in a transparent manner and builds trust and loyalty
among employees, it ultimately retains the employees (Kavanaugh and Lavallee, 2020). Training
and development of staff is necessary for retaining the talent which falls in onboarding and
training stage. In terms of Intercontinental it is very important for the HR manager to make their
staff productive and helps in engaging the employees in onboarding task. To provide the training
and skill development to the employees it is very important that HR knows their current talent
and weaknesses. Retaining means reduction in turnover by providing them with right incentives
and good working environment. Leaders have to see that appraisal are effective and efficient for
the employees.
Develop a performance management role for hospitality job role, with the application of
techniques for resolving negative behaviour and to overcome issues of staff retention.
Performance management means to manage the performance of employees and to
develop them with full capability and commitment which works in achieving the goals of
businesses(Read and et. al., 2020). The mangers have the responsibility to define the
performance culture inside the hotels by communicating the goals and mission and clearly
explaining the work expectations from the staff. Workers also feels motivated when they receive
the rewards & recognition for their performance. Performance management role for hospitality
job role have been discussed below-
Plan- The Hr manager have to plan every activity of the business and to check the
performances of each employee. The major aim of performance management is to allow the
opportunity so they can work with full potential to meet the business needs. It is the
responsibility of Intercontinental Hr to describe the job and to provide them with career planning
and future growth opportunities. The manager of Intercontinental has to follow various
techniques to plan the performances of the staff by providing them training and motivating the
employees to achieve organisation goals. Planning the performance management can also be
done with the help of conducting meetings where the manager can discuss the vision and mission
of hotels.
Monitor- Monitor includes how the hr manager monitors the performance of the
employees which will ultimately lead to accomplishment of goals (de Castro Mendes, Cavenaghi
and Marques, 2021). The success of monitoring a performance is to check the work regularly and

to do meetings with the employees. In terms of Intercontinental, the major responsibility is to
check whether the staff is performing their duties and working according to the expectations.
They also do daily evaluation programs from working daily tasks to coming on time they watch
everything. Regular feedback and motivations increases the morale of staff which gives them
honest feedback. The manager can also monitor their performance by communicating with other
staff members.
Review- Review is to assess the performance of employees what they have done to
perform their duties. The hr manager focusses on their current work as well as on forward
looking purpose. They judge the performance of the employees and when any staff performs
good tasks they provides them with incentives and those individuals who are unable to perform
the tasks they provide them the guidance. The intercontinental hr manager has to provide honest
reviews to the staff as well as to the hotel manager so they can work effectively. By making
notes the hr manager can help in giving suitable information to the fellow employees.
LO 3
Specific legislations that hospitality organisation has to comply.
It is important for the organisation to have full knowledge about the hospitality laws so
they can provide employee welfare ,adequate services to guests and to maintain compliance of
rules (Chan, 2019). Intercontinental hotels and resorts comply with these rules otherwise it
would result in fine and fall in goodwill of the hotel industry chain. By following such laws the
hotels signify that they give priority to their customers and honours all the agreements which the
state makes for them. Some legislations are mentioned below in context with the intercontinental
hotels-
Health and safety at work act,1974- This act determines the duty of every individual to
managers, employees and owners to maintain health and safety in the hotels. The act explains
that effective training must be provided to the staffs and to managers so that they would be able
to understand all the rules. It also explains that safe working environment must be provided to
the staff so they can work effectively. This act is basically provided to ensure the safety and
health of the staff. Intercontinental follows this law with the motive to provide safety to the
employees and staff.

Food safety act,1990- Food safety act was made to ensure that no consumer should eat
anything which can be harmful for their health. Any business which is engaged with food has to
follow this act (Tormey, Hardebolle and Isaac, 2020). Intercontinental hotels and resorts
provides food to their consumers so they have to follow this legislation. The hotel follow this act
in which they does not serve anything which will be harmful for the health of consumers and
provide guarantee that all clean and hygiene practices are carried out. The hotel also ensure that
food management system is followed with correct training and with correct labelling.
Hotel proprietor act,1956- This law explains the safety which has to be kept by the
owner for ensuring full safety of the luggage of customers. Certain items are described under this
law where the owner is responsible and in some the owner is not responsible for safeguarding the
items of guests. The owner will be responsible for those items where the guests have kept the
luggage or any item with them, or the items have been charged to them or the items have been
given to owner but the owner declines to accept it.
Evaluate how company, employment and contract law will have potential impact on decision
making in hospitality industry.
Government imposes various rules and regulations to the hospitality industry which is
sometimes beneficial but sometimes difficult for the industry to follow them. Intercontinental
hotels and resorts are following these rules otherwise they would suffer heavy fines on the hotel
chain. The impact of such laws in context with the intercontinental hotels are mentioned below-
Company law- Any change in the company laws might affect the functioning of the hotel
because taxation policies charging VAT and also changes the employer employee relations
(Sharma and et. al., 2020). This is because the employer might want to develop certain relations
with their employees but because following such laws might impact the procedure of the
industry. Managing the safety of employees is also other point which has to be followed by the
manager. Company law has to make sure that the ethics and good health is also provided within
the hotel because with such laws the manager has to make changes.
Employment law- Employment law impacts the businesses in larger way. It changes
every aspect of business whether it is hiring or providing wages and benefits to the workers. The
hr manager has to keep in mind the employment law while recruiting any individual. As this law
covers the wages and provides benefits to the individual the manager has to make decisions for
such factors. This law provides information about who are eligible in receiving such benefits.

Because of which the hotel industry has to make decision according to it, taking into account all
the perspectives.
Contract law- Contract means the terms and conditions which has been decided between
the suppliers of food and also in some cases with the employees. The main purpose is to provide
every details in very concise manner about all the financial agreements or official records. The
contracts which are already being set up by the industry also surrounds them with difficulty as
they have to make decisions according to that and has to make efficient decisions which should
not harm any party.
LO 4
Interrelations between functional roles within hospitality sector.
Every hospitality sector has to perform various tasks regularly because of which they
have to make different departments which helps in regulating the functions. The main objective
of the functional departments is to ensure that activities of each and every department are
interrelated with the aim of directing the efforts towards the common objective. In general there
are numerous departments in Intercontinental hotel such as Hr department, marketing
department, accounting and finance which performs daily functions of the hotel-
Interrelation between Human resource and Finance department- Both the
departments works for same objective which is performance and effectiveness. In case of Hr, the
manager is responsible for employee welfare which is used to create competitive advantage
(Smith-Tran, 2019). While the hotel performance is always measured in financial terms which
creates interrelations as the hr department have to make direct communication with the finance.
Also, the hr manager of intercontinental recruits employees considering the finance and cost of
recruiting new individuals. The finance department determines the cost for providing incentives
and benefits which the hr manager has to consider. Both works in different areas but
understanding each other functions could help in improving the productivity and performance of
the hotel.
Interrelation between sales and marketing department- Intercontinental hotels and
resorts has to do marketing about their hotel which helps in increasing the sales. When these two
departments work together it helps the hotel chain to stay ahead in the competition. Marketers
understand the needs of customers and identify the level of competition in the market. And the

sales department works after the marketing department have performed its activities. Marketing
department designs the strategies to create awareness among consumers and sales department
performs the activities by selling rooms to consumers. Thus, sales and marketing department are
equally proportionate with each other where the efficiency of marketing department will increase
the sale and inefficiency will decline the productivity of sales department.
Discuss different methods of communication, coordination and monitoring applied within a
specific department of hospitality department to strengthen value chain.
Each method whether it is communication, coordination or monitoring is important for
smooth working in the hospitality department. Good communication helps in sharing the
thoughts, ideas of different individuals which helps in effective performance between
departments. Same with adopting coordination and monitoring within the departments will help
in continuous improvements in the performance.
Methods of communication- Written- Printed or recorded materials can provide details about every single activity
which is performed in the department (Pozzoli, 2018). This method is mostly useful for
accounts department which has to keep the permanent record of all the transactions
conducted within the hotel. Thus, written method helps to build the trust and loyalty
between employees and the top management.
 Oral/Verbal- This method requires oral or face-to-face communication between the
individuals. Verbal communication helps in sharing thoughts, ideas which ultimately
helps the departments to increase their productivity. Marketing department of
intercontinental, mostly have their communication verbally which helps to develop good
interrelations. The hospitality department requires such communication because it helps
them in receiving right and updated information from their seniors which helps to
increase their morale.
Methods of coordination and monitoring-
Departmentalization- In every business various departments are made which means
division of large management into smaller groups (Fox and Archard, 2018). With the
development of departments employees gets the idea about where they have to report and want
to communicate if they find any difficulty. This helps in coordination of employees and provides
them clarity.

Centralization/Decentralization- These functions determines where the actual power lies
with and where the subordinates have to report. This helps in coordination of employees as they
are aware about the people who will make decisions.
CONCLUSION
Thus from above report it can be easily concluded, that hospitality management is the
administrative task which has to be performed by the manager. As the manager of the hotel the
person has to look various departments to check whether they are working in effective manner.
Good hospitality and efficient services are important for any business. In this area the manager
has to face many complex areas and have to come up with those issues. And also the manager is
bounded with many responsibilities whether to look after guest or to make any changes inside
the hotel. Certain legislations are to be followed by hotels which are for the safety of the
employees as well as to consumers.

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