The Hospitality Business Toolkit

This document provides a comprehensive toolkit for the hospitality business, covering topics such as managing financial performance, HR life cycle, legal and ethical considerations. It includes principles of financial performance, double entry system, trial balance, stages of HR life cycle, performance management plan, and identification of specific legislation. The content is relevant for students studying hospitality management or related courses.

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Principles of managing and monitoring financial performance ..................................................1
Double entry system of debits and credits to record sales and purchases transaction ................2
Produce a basic trial balance applying the use of balance off rule .............................................3
Task 2...............................................................................................................................................4
Different stages of HR life cycle that are applied to specific hospitality industry......................4
Evaluation:...................................................................................................................................5
Develop performance management plan for specific industry by applying technique to solve
negative behaviour ......................................................................................................................5
Ethical Issues:..............................................................................................................................6
Task 3...............................................................................................................................................7
Identification of specific legislation that a hospitality organization comply ..............................7
Legislation:..................................................................................................................................7
How company, employment, and contract law has potential impact on business decision ........8
Task 4 ..............................................................................................................................................8
Different functional roles in hospitality sector and their interrelation ........................................8
Different methods of communication, Coordination and monitoring in specific department.....9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Hospitality business refers as section of service industry in which different types of
products and services are provides to guests and increase the satisfaction level. Many people
have basic business idea which uses to offer the variety of services and managing all functions
(Stoyanova-Bozhkova, Paskova, and Buhalis, 2020). In other words, it is also known as
accommodation sector in which customers are enjoying food and beverage, bed & breakfast,
hotels, resorts, food and drinks and others that can help to provide the satisfaction to all people.
The report is based on The Ritz London that is famous hotel of UK, providing variety of
products to their guest and increase performance. The report covers managing finance and
recording transactions, human resource life cycle, impacts of legal and ethical consideration that
are uses to make right business decisions.
Task 1
Principles of managing and monitoring financial performance
Finance is the core activity for any business as it needed to perform role and
responsibilities that supports to increase the business transaction and profitability. In context to
Ritz London, different principle of financial performance are defined below:
Principle and managing monitoring financial performance : This is uses by
management by analysing function and activities of organization that develop understanding how
to control and manage effectively. In relation to Ritz London, uses this principle to manage the
business transaction and performance effectively.
Principles of risk and return: This principles is uses by management to know risk that
arises while operating a business and get the return. The financial management of Ritz London
uses such principle that can help to earn the profitability by managing all functions.
Diversity principle – In this principle, funds and capital are allocated between activities
that reduces risk and arranging all assets. This can help to operate a business and managing all
financial transaction effectively (Bradshaw and et.al., 2019).
Principle of double entry system and bookkeeping system: As per this system all
transactions should be recorded on the debit and credit side properly that can show the both side
effect and states profitability. The management of Ritz London is following principle of double
entry and book keeping system that can help to maintain good performance.
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Bookkeeping: This can be explained as system which uses by organization to provide
the financial data and record them properly. The meaning of book keeping system is to record
the transaction and bring the changes in budget which can help to operate the business smoothly.
Double entry system of debits and credits to record sales and purchases transaction
John
Particulars Amount Particulars Amount
To Sales A/c 15000 By Bal.c/d 15000
Total 15000 Total 15000
William
Particulars Amount Particulars Amount
To Bal.c/d 20000 By Purchases A/c 20000
Total 20000 Total 20000
Sales
Particulars Amount Particulars Amount
To Trading A/c 25000 By John A/c 25000
Total 25000 Total 25000
Purchases
Particulars Amount Particulars Amount
To William A/c 20000 By Trading A/c 20000
Total 20000 Total 20000
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The use of Double Entry System can offer plenty of advantages to the organizations so
that they are able to effectively and efficiently ensure that they can record the different types of
transactions easily (Dzhandzhugazova and et.al., 2016). This system acts as a base for recording
business transactions. Thus by making the use of this particular system offers the following
benefits to the firms-
 Proper record of transactions- The use of Double Entry System can help a lot in
maintaining a proper record of transactions effectively and efficiently. Thus In the case of
Ritz London it can help a lot in ensuring that a proper record of the transactions can be
maintained effectively and efficiently.
 Identification of financial information- Double Entry System can help a lot in ensuring
that overall identification of financial information can be done in the right manner. For a
hotel like Ritz London this can be helpful so that the financial information can be
managed appropriately without problems and issues.
Produce a basic trial balance applying the use of balance off rule
Trial Balance
Particulars Amount
Debit Credit
John A/c 25000
William A/c 20000
Sales A/c 25000
Purchases A/c 20000
Total 45000 45000
The use of Trial Balance is beneficial for an organization like Ritz London can be highly
helpful in ensuring that it can check its ledger balances (Viglia and Dolnicar, 2020). The
following advantages are offered by its preparation-
 Checking of accuracy- The preparation of Trial Balance can be highly helpful in
ensuring that the overall accuracy of the accounts can be assessed in a highly effective
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manner. This can be very helpful in ensuring that if there is any mistake in the accounts it
can be identified and therefore rectifying techniques can be used to remove it (Gaur and
Afaq, 2020).
 Presentation of financial information- Preparing a Trial Balance can help a lot in
ensuring that the overall presentation of financial information can be done appropriately.
Therefore for the organizations it can be useful in ensuring a proper presentation of their
given financial information in the right manner.
 Base for preparing Final Accounts- Trial Balance acts like a base through which the
Final Accounts of the organization can be prepared. Therefore for the organizations it can
be highly useful in ensuring that they are able to prepare their Final Accounts in the right
manner without facing problems and issues in the future.
 Rectification of mistakes- Preparing a Trial Balance can help the organizations a lot in
ensuring that the different types of mistakes which have occurred in the Accounts can be
identified and the appropriate rectifying actions can be taken so that they can be rectified.
Task 2
Different stages of HR life cycle that are applied to specific hospitality industry
HR Life Cycle: HR life cycle is the integration of HR activity in the organization. It is
the continuous process which start with creation of HR strategy and execution of employee life
cycle. It include business strategy, organization design, recruitment, training and development
and exit of employee. In Ritz London, there is a proper HR life cycle. HR plays very important
role in the development of an organization and its culture. HR provide right employees to the
organization at right time. Business owner do not have time for day to day employee problem so
the HR plays important role in large organization like Ritz London.
Attraction:The first stage in HR life cycle is attraction of skilled employees towards
workplace. For this employer branding is essential to attract them as Ritz London has done by
offer good perks and benefit to the employees so the best talent attracts towards them. Perks are
important for employees as they improve life of the employees. But only perks cannot attract
employees towards the organization. Organization's culture, environment, Opportunities and
growth attract them (Slocum, Aidoo and McMahon, 2020).
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Recruitment:It is important for a business to hire right people as they help in the growth
of the business. In order to hire right people, HR need to prepare strategic plan for hiring,
compensation and benefit package. They need to prepare interview for the positions they are
hiring. They need to choose right channels to hire suitable candidate. In Ritz London, there is
specific procedure to hire the candidates.
On boarding:Through on boarding process employee is introduced to the company.
With this process employee feel that they are part of the organization and learn his responsibility
in the organization. In Ritz London, there is special induction plan to introduce employees in the
company and in this process HR tell the employees about brand and values of the organization.
Enablement: This stage helps the HR to make employees familiar to the culture, norms,
mission, vision. It also include guiding employee in paperwork and introduce employees to
benefit plan etc (Chang, Ku and Chen, 2019).
Development: At this stage, both employee and HR work for the long term goals of the
organization. It is important to provide development opportunities to employees to keep them in
the organization. HR department help the employee to match his long term objective with
company's objective. This provide professional growth to employees and prepare them to take
responsibility and challenges.
Retention: In this step, HR motivate the employee, appreciate them for their hard work.
In Ritz London, HR appreciate employees by providing them extra benefit like gift card, extra
paid time off etc. Large organization nurture and groom their employees for continue working in
the organization.
Separation: This is the last step of the HR life cycle. In this step HR need to ensure that
all the procedure are followed smoothly from exit interview to leaving of employee. Ritz London
also have a system of separation and all the steps are need to be followed while leaving
organization.
Evaluation:
From the above discussion it has been evaluated that HR plays very important role in
employee and organization relationships. HR use different stages of HR life cycle like attraction,
recruitment, enablement, on boarding, development, retention, separation. HR plays important
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role in the growth of employee by matching their objectives with company's objectives. They
also support employees by providing guidance in their career. HR motivate employees by
providing them growth and by appreciating them to retain employees for long period of time.
Develop performance management plan for specific industry by applying technique to solve
negative behaviour
Performance management plan is defined as continuous process of improving
performance by deciding individual goals and allocating the work between employees that can
help to manage the all functions and activities effectively. This is important for all organization
to understand what is running in trend and how the all customers can be satisfied. In relation to
Ritz London, management prepare the performance management plan for the purpose of
increasing sales and profitability that are as explained:
Plan The management of Ritz London uses the new
technology for the purpose of providing safe food and
living facility to their guest as per affordable price that
can help to attracts the large number of customers.
Job role and skills Human resource manage is specific role which is
performing by an individual by preparing the job
description and understanding responsibilities that can
help to operate the business effectively (Mazzarotto,
2019).
The Human resource is having time management,
recruitment skills, staffing and talent management skills
that helps to increase the business performance by
attaining goals.
Monitoring and controlling The Human resource management of Ritz London is
evaluating employee's performance by using KPI tool and
uses the effective strategy that can help to monitor and
control the organizational productivity.
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From the above analysis it judged that by preparing performance management plan and
using performance evaluation tool chosen hotel can operate its business effectively and attain the
higher profitability. Moreover, the process of HR life cycle is being uses by HR manager to
recruit and retain the talent management which can help to manage the all functions and improve
the profitability.
Ethical Issues:
Breach of contract: Breach of contract is braking of terms and condition of a agreed
contract. It can be done in any form from late payment to failed in delivering an assets. In this
contract innocent party has right to seek compensation in form of damage. If the company is
breaking contract it will decrease the reputation of the company in market and affect its
goodwill. It also break the trust of customers with company and also decreases value of their
shares (Williams, 2019).
Discrimination and diversity: Discrimination at workplace means treating employees
differently regarding their work and duties. Providing diversity and preventing discrimination at
work place helps to resolve ethical issues. It include discrimination related to age, religion, pay,
sex, disability, race etc. Employees should treated equally at work place and should prevent
unethical behaviour at work place. There should be same rules for everyone in the organization
as it increase the reputation of company in the market. Company should be aware while
implementing business policies as it lead discrimination at workplace (Lakshmipati, 2020).
Task 3
Identification of specific legislation that a hospitality organization comply
Legislation:
Health and Safety at Work Act 1974: This act promote high standards of safety and
health at work place. It helps to provide protection to employees and public from the work
related activity. It is duty of employee, employers, manufacturer, supplier, trainee to obey this
act. Ritz London also obey this act and they maintain clean and safe environment for their
employees as well as public (Arevalillo, 2019).
Equality Act 2010: This act provide legal framework to provide protection from
discrimination at workplace or in general society. This act is replacement of anti discrimination
act. It is easier to understand from previous law and it include different way of unlawful
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treatment with someone. At Ritz London, all employees are treated equally whether male or
female. Before this act, discrimination cover in the different act like sex discrimination act, race
relations act etc.
Corporate Social Responsibility: It is the regulation that help business to responsible to
stakeholders and public. Business has impact on different aspect of society like economic,
environmental etc. It provide an opportunity to business like Ritz London To strength their
relationships with public and stakeholders. As the value of CSR is increased in the minds of
customer, employees and supplier, business see CSR as a great opportunity (Clerkin and et.al.,
2020).
How company, employment, and contract law has potential impact on business decision
Contract law: This shows specific legislation between two and more than two parties
with their mutual consent that can help to make the right business decision. The Ritz London
may follows the contract law in case of engaging with other parties with agreement that leads to
improvement in organizational performance (Hughes and Boss, 2020).
Company law: This refers as body corporate in which all businesses are operating and
managing. A company is having separate legal entity which is created by following all regulation
not natural birth. This is important for all organization to follow this act and run their functions
effectively. The Ritz London is also follows company law as it is operating its hotel in wider
range and providing the variety of products as well as services.
Employment law: This law is related to job roles and responsibilities that are needed to
perform and completing task effectively. According to this act Ritz London is following all
employment legislation and rules that gives benefits to all employees who are working and
motivating them to work properly. This helps to attain the business goals by completing task
timely (Karmokar, 2019).
Therefore, by following the regulations of Employment law and contact law chosen hotel
can operate its business effectively as it create contractual relation between two parties and uses
different resources that can help to manage the all activities.
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Task 4
Different functional roles in hospitality sector and their interrelation
In business organization there are different roles and responsibilities that are performing
by management which can help to bring the new changes and attain the higher profitability. In
Ritz London, management is performing different roles and responsibilities such as:
HRM with marketing: In business organization employees are main assets who are
recruited by human resource management and assign in to different work. In context to Ritz
London, HRM and marketing function are interrelated as marketing department uses different
channel to reach the candidate who are unemployment and wants to show their talent by working
and HR department helps to recruit the talented and skills people who can accept challenge and
work properly (Figueroa-Domecq and et.al., 2020).
Marketing with finance: In relation to business marketing and finance are important
function as finance department of Ritz London provides the fund and other financial resource to
marketing department which helps to perform the all marketing activities. This helps to increase
the business performance and profitability effectively.
Different methods of communication, Coordination and monitoring in specific department
Communication and coordination is defined as important function for any industry and it
supports to share the goals and getting work done effectively. In business organization number of
employees are working where it is important to use effective method of communication as it
connect people with each other and solve the problems. In context to Ritz London, different
method of communication, coordination and monitoring are as defined:
Group meeting: This means collection of people who gathered for the purpose of
sharing information and making decision is considered as group meeting. In relation to Ritz
London, management can use group meeting in the form of general meeting, annual meeting,
board, meeting, and others that can help to share information and attaining business goals
(Poddubnaya and Shipilov, 2019).
Communication Methods
Verbal : This method involves speaking activities, face to face communication,
interaction and others which uses by management and employees of Ritz London for the purpose
of sharing information and completing task.
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Non-verbal: The another method of communication is related to verbal that involve
facial expression, gestures, postures and others for passing information and making right
business decision.
Written – The written method of communication is uses by people in the form of text,
SMS, chats, e-mails and more which can help to manage the all functions and activities
effectively (Zhao, Xu and Wang, 2019).
It has been reviewed that coordination and integration are important aspects for Ritz
London as it bring the uses of different communication and coordination method that uses to
make right decision by clearing information.
The communication method such as verbal, non-verbal and written are uses by Ritz
London for sharing data and information that fills needs and provide satisfaction to all customers
and strengthen the productivity. Moreover, Human resource management integrate and monitor
overall performance of all employees who are involved in business activities that can help to
complete the work and attain higher profitability (Ngo, Lohmann and Hales, 2020).
CONCLUSION
From the report it can be conclude that financial transaction and information are
important for any business as it helps to manage all functions that needs finance. Book keeping
and double entry system is being uses to record transaction on double side and getting the
profitability. HR life cycle process are attrition, separation, onboard, training, evaluation and
others are needed to perform specifically and completing the goals. Communication and
coordination are important aspects which are uses to share the information and complete the
organizational goals.
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REFERENCE
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Customer Relationship Management in the Hospitality Industry. In Handbook of
Research on Engineering Innovations and Technology Management in
Organizations (pp. 1-23). IGI Global.
Mazzarotto, G., 2019. The effects of social sustainability on guest choice, customer satisfaction
and willingness to pay a premium in the hospitality industry.
Hughes, C. and Boss, S., 2020. How Rural Public Libraries Support Local Economic
Development in the Mountain Plains. Public Library Quarterly. pp.1-24.
Figueroa-Domecq, C., and et.al., 2020. Technology double gender gap in tourism business
leadership. Information Technology & Tourism, 22(1), pp.75-106.
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Zhao, Y., Xu, X. and Wang, M., 2019. Predicting overall customer satisfaction: Big data
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Management. 76. pp.111-121.
Ngo, T., Lohmann, G. and Hales, R., 2020. Integrating the third way and third space approaches
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community-based tourism enterprises in Vietnam. Current Issues in Tourism. 23(15).
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Karmokar, S., 2019, September. Service Design Business Concepts for the Elderly: Design
Thinking Approach. In European Conference on Innovation and Entrepreneurship(pp.
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Slocum, S. L., Aidoo, A. and McMahon, K., 2020. The Business of Sustainable Tourism
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Lakshmipati, P. V., 2020. Design thinking for HR. Vidwat. 13(1). pp.6-7.
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Clerkin, K. D., and et.al., 2020. Influencing nutritional habits of college students using a food
pantry. Journal of American College Health, pp.1-5.
Williams, D., 2019. Co-op Model for Early Care: Cutting Costs and Improving
Quality. Childhood Education. 95(5). pp.54-56.
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