Unit 4: Hospitality Business Toolkit

This document provides a comprehensive study material on the financial transactions of the hospitality business, principles of managing and monitoring financial performance, double entry bookkeeping system, and more. It also covers the different stages of the HR life cycle and their importance in talent acquisition and retention. The content is relevant to Unit 4 of a hospitality course.

Unit 4: Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART A...........................................................................................................................................1
An introduction to the financial transactions of hospitality business.........................................1
Investigate the principles of managing and monitoring financial performance..........................2
Explain the principles of double entry bookkeeping system......................................................3
Produce a basic Trial balance......................................................................................................4
Analyse types of cost and how they can be managed to influence the financial performance...5
Discuss the importance of accurate recording of transactions....................................................5
Critically evaluates the role of financial management and monitoring in achieving growth.....6
PART B............................................................................................................................................6
Different stages of the HR life cycle as applied to issues in talent acquisition and retention....6
Stage of the HR life cycle and the importance HR plays in supporting, growing and retaining
talent............................................................................................................................................7
Develop a performance management plan to support the specific job role................................7
Recommendations on how processes and documents at each stage of the HR life cycle...........8
Identification of specific legislation that hospitality organisation has to comply.......................8

Determine how company's employment and contract law impact on business decision making
.....................................................................................................................................................9
Examine potential implications of any two regulations on standards.........................................9
Critically evaluate impact of ethical issues of regulations, legislation and principles..............10
Exploration of the different functional roles within hospitality industry sector and how they
are interrelated...........................................................................................................................10
Examine different communication methods and levels used in an organisation......................10
A review of coordination and integration within a business organisation................................11
Analysis of effectiveness of different communication methods, integration and monitoring
within an organisation...............................................................................................................11
Judgements and recommendations............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality business is consist of broader concept which also consist of event planning,
theme parks, lodging, cruise line, transportation and many other additional field as well. It also
get include various aspects that collectively fall under larger umbrella as like motels, restaurant,
hotel, theme park and many others too. In addition to this it also consist of five basic segment as
like lodging, food, recreation, travel and tourism (Higgins-Desbiolles, Moskwa and Wijesinghe,
2019). It is an industry that has worked for to advance adequate objectives which is processed to
advance and enhance overall quality framework by which customers get attracted towards
different facilities that is offered by hospitality business. It is also be defined as cordial and
generous welcome as well as reception under which better treatment is offered to all the guest.
The report below is based on Hyatt that is a usually known for its hotel and resorts which is also
be an American multinational organisation that also manages luxury and business hotel, resorts
and vacation properties. The report below consist of finance record and transaction to minimise
cost, human resource life-cycle in relation to HR strategy, potential impact of ethical and legal
consideration within hospitality business.
MAIN BODY
PART A
An introduction to the financial transactions of hospitality business
Introduction to the financial transactions
The business transaction is usually been used by the business in order to control and
manage all the different detailing of the business through which profitable ending is resulted in
favourable manner. It is a basis which is required for the business and under this financial
transaction is analysed that has direct impact over profitability and productivity of business. In
relation to Hyatt the management make sure to measure and monitor financial performance and
with this ability to control both debit and credit sales is managed in appropriate mode (An, and
Quail, 2018). The financial transaction is basically an agreement that is used to carried suitable
interaction in between buyer and seller. For this, clear information is transformed that ensure
clear compliance to investors through which perfect dealing is processed systematically.
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Source documents is defined as a initial form that consist of suitable information which
is recorded for to maintain balanced transaction in clear manner. In this suitable data is recorded
and administered that assist to maintain better accountability with sustained flexibility. Hyatt
make adequate usage of different source as like cheques received, cash vouchers, sales credit
notes, journal vouchers, purchase credit notes etc. In this information is collected in documented
manner so that it is sustained by management for a longer period of time.
Recording process: It is a process in which Hyatt hotel manage and maintain journal in
which all entry and accounts are managed. It is even more helpful as with this information is
collected in chronological form through which easy working is processed that also assist to
reduce level of discrepancies with effectiveness.
Investigate the principles of managing and monitoring financial performance
There are different principles that is required by business to manage the financial
transaction that has offered certain support through which easy management is processed within
Hyatt and it is as briefly explained below as:
Consistency: It is a principle under which adequate transaction is controlled with suitable
consistency and for this different policies and procedures are established by Hyatt as with this all
the transaction is addressed in routine manner (Ma, Cheng, and Hsiao, 2018). It assists the
management to measure and monitor financial performance as with this profitable ending is
processed in optimised way.
Timelines: Hyatt and its management ensure to handle all the processed transaction with
certain reasonableness and during this activities is outlined in suitable time frame which is also
be bounded by federal agencies. It aid to complete the task within the assigned period of instance
as with this all requirement and objective is achieved in timely basis.
Justification: Hyatt and its management make ensure that there is a reason behind all the
transaction whether it is for debt or credit but it is processed with support of project goals and
objectives (Mejia, and Torres, 2018). It also get adhere to outline all the transaction with support
of federal and in this vital focus is maintain towards effective decision making.
Documentation: It is the most prominent form of principle which support all the certain
transaction that is performed within the business. In this Hyatt hotel and its management ensure
to retain, organise and complete accurate audit that helps for future transaction that is performed
within the business.
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Certification: It is principle in which Hyatt get ensure to approved all its transaction that
is carried out in authorised manner and for this all the policies and procedure is signed by higher
authority.
Explain the principles of double entry bookkeeping system
Double entry bookkeeping system is refers to system of recording where every entry in
account requires a corresponding and opposite entry in a different account. The double entry
consist of two equal ans corresponding side which is known as credit and debit. Moreover this is
based on the simple principle that is for every debit there must be equal credit side and there is
at-least two accounts should be involved in ant transaction.
Profit and loss statement of The hyatt hotel for march 2021
Profit and loss statement of The hyatt hotel for March 2021
Particulars Amount Particulars Amount
To Opening Inventory 17000 By Sales 145000
To Purchase 63000 Less : Return Inward -3200 141800
Less : Return Outward -1800 61200 By Closing Inventory 21000
To Gross Profit 84600
Total 162800 Total 162800
To Administration Cost 33000 By Gross Profit 84600
TO Distribution Cost 30500
To Depreciation 9000
To Finance Cost 1600
To Tax 2100
To Net Profit 8400
Total 84600 Total 84600
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Produce a basic Trial balance
A trial balance is refers to the bookkeeping worksheet which contains all ledgers that are
complied into debit and credit account column totals that are equal. A company prepares trial
balance periodically as per the requirement of task (Nayak, and Taylor, 2018). The main purpose
of preparing a trail balance is to check all the entries in book keeping system is mathematically
correct.
Trial Balance for The hyatt hotel
Particulars Debit Credit
Storage Cost 500
Purchase 10500
Sales 14600
Moter
Expenses 530
Cash at Bank 54000
Cash in Hand 18700
Payables 29100
Premises 250000
Van 52250
Fixtures 8350
Inventory 23200
Receivables 15420
Sales Return 900
Purchase
Return 70
Salaries 5000
Business Rates 1480
Capital 397060
Total 440830 440830
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Analyse types of cost and how they can be managed to influence the financial performance
Cost is refers to the money which a company spend on the creation and production of
product and services. There are various types of cost which is explained below in context to
Hyatt hotel:
Fixed cost: This is a cost which does not change with number of goods and services a
company over a short period of time. Such as cost of building, rent, legal bills etc. It is managed
by the hotel through effective cost estimation so that future financial performance can be
managed properly.
Variable cost: this cost fluctuates with the level the production output changes, it is
depended upon the number of goods and Services Company produces. This cost is being
managed by hotel through resources planning this will ascertain future resources requirements
and scope for work.
Operating cost: This cost is refers to the expenses which are associated with day-to-day
business activity (Bilro, Loureiro, and Guerreiro, 2019). For managing this Hyatt hotel is
focusing inventory management and other strategies to reduce cost such as cancelled unused
services and negotiate with suppliers.
Discuss the importance of accurate recording of transactions
Proper book keeping includes maintaining up to date accounting system, that records
business transactions when they occur along with this, keep all important receipts or bills on the
behalf of the business. Some of the importance of accurate recording is discussed below in
relation to Hyatt hotel:
 Accurate recording is important as it will help Hyatt in maintaining backup for all income
and expenses which is incurred at the time of audit.
 Accurate recording helps in inform owner about their business financial position which
further help in strategic planning.
 It will help in avoiding interest and penalties as it make easier to pay the right amount of
tax at the right time.
 Well kept records help in tax saving, as it act as a reminder to deduct person's credit and
expense. This reminds them about all expenses that is need to be claim against income.
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Critically evaluates the role of financial management and monitoring in achieving growth
Financial management and its monitoring is the essential for business as it help
maintaining the accurate financial position and provide scope for growth. it plays a crucial role in
making financial decisions and exercise control over the fund or finances of the organisation
(Zopiatis, and Theocharous, 2018). In addition to this, it estimates capital requirements for the
smooth running of operations. Moreover, it ensures that financial are to be invested effectively
and efficiently in order to make the organisation profitable, sustainable and viable for the run
long.
PART B
Different stages of the HR life cycle as applied to issues in talent acquisition and retention
HR life is defined as the continuous process of integrating HR activities. It is associated with the
integration of hr strategy creation and it execution with employees life cycle. This is consisting
of the 5 stages which are discussed below in context to the Hyatt hotel:
Recruitment and selection: This is the process which is associated with recruiting
individuals at the vacant places in the job area or for some specific job role and selecting them on
the basis of their qualification and skills. The HR manager of Hyatt using this step to recruit
people for food and beverage department in which manger focus on getting best talent and
skilled employee.
Induction and orientation: this refers to a program which is implemented for employees
so as to prepare them for their job role and designation. So that they can perform with optimal
capabilities and appropriateness. HR manages of Hyatt hotel use this to render positivity within
working environment.
Career planning and development: once employee are established within the
organization. A manager is now focusing on providing them career opportunities to grow. Hyatt
manager has implementing this through providing them performance appraisal, recognition and
team incentives (Benson, and. et. al.,2020). So that employees feel motivated and get retained
within the organization.
Retention: there is lot of time and money invested in the cycle of each employee which is
essential for smooth and effective running of operations. For this hr manager of hotel is focusing
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on providing tool, environment and skill set that an employee need to work effectively in order
to retain them longer period of time.
Separations and termination phase: this is refers to the process in which employees
leave organization by voluntary and get retirement from their responsibility and duties. Hr
manger of Hyatt hotel is using this process for retire their existing employees so that new talent
and skilled people can be admitted.
Stage of the HR life cycle and the importance HR plays in supporting, growing and retaining
talent
HR life cycle plays vital role in supporting, growing and retaining talented and skilled employees
within the organization so that productivity and quality outputs can be enhanced.
Recruitment and selection: In this HR manager is going to recruit those candidates who attain
appropriate skills and knowledge. This helps in improving quality of employee.
Induction and orientation: This is going to help in understanding about working pattern within
an organization that makes employees work accordingly. It will support employees in gaining
information and in understanding business environment.
Career planning and development: It will improvise talent in employees by making them realize
about those skills in which they hold specialization. This will increase quality of outputs
Retention: This step in HR life cycle helps in keeping talented employees within the
organization with the use of various techniques such as positive environment, maintaining
healthy relationships, keeping motivation and satisfaction high.
Separation and termination phase: At this stage, hr manager retire existing employees, this exit
process also promotes positive atmosphere as this provides scope to recruiting new talent at the
vacant places.
Develop a performance management plan to support the specific job role
Performance management plan is refers to a collaborative process which is used to
recognize various activities which are aligned with employees and their efforts towards
accomplishing business goals (García-Rodríguez, Dorta-Afonso, and González-de-la-Rosa,
2020).The HR mangers of Hyatt hotel is executing this plan as to control and evaluate employees
performance and provides clear direction towards attaining business objectives. The major role
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in hotel is to manage quality of foods along with this, luxurious services so that customers
satisfaction could be enhanced.
Plan: In this step manger of food and beverage department of Hyatt is trying to identifying the
issued faced by the customers and which is needed to be improved by taking corrective action. In
order to get customer attention and retention for longer period of time.
Track or monitor: In this manger directs and motivated the employees so that valuable and
favorable outcomes can be received.
Review: within this process all the performed activities is being measured by the mangers so that
Hyatt hotel is able to meet the customers’ expectations effectively.
Recommendations on how processes and documents at each stage of the HR life cycle
From the above analysis it has been observe that Hyatt hotel is already using a hr life
cycle that help in supporting, growing and retaining talented employees. Along with this, at
recruitment stage, it can also select existing employees in order to promote them at higher
designation this will help in reducing cost. At induction stage Hyatt hotel can promote healthy
competition so that employees focusing giving their best and overall performance could be
enhanced. In addition to this, at career planning and development stage, hotel should involve
effective feedback mechanism so that growth can be attained within short period of time.
Moreover there are various strategies which Hyatt hotel can use so that overall performance and
productivity could be increased along with brand value such as encourage peer recognition.
Identification of specific legislation that hospitality organisation has to comply
Legislation is described as the salutatory laws which are governed by the several legal
authorities and government of UK. It is also defined as preparation and enactment of laws
through legislative body with the support of its lawmaking process. These have been developed
for providing safety and protection to employees working (Goodall, 2018). In hospitality
industry there are various legislations related to health and safety measures so that proper
assistance and optimum level of satisfaction can be provided to customers. Some of legislations
are discussed below in context to Hyatt hotel:
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Environmental Legislation act, 1974: This act as been made for the issues which are arising due
to the industrial waste that affects air, water and atmosphere. With the use of such business
practices Hyatt hotel is able minimise waste and lesser harm will be extended to environment.
Food Safety Legislation act, 1990: This law is established for managing food quality and
services. This ensures that food is to be made as per the quality and safety standards and contains
appropriate quality ingredients.
Consumer Legislation act, 2019: It is describe as the law which is made for protecting
consumer’s rights along with minimising business problems. This has been implemented by
Hyatt hotel in order to increase customer satisfaction and attainment of goals.
Determine how company's employment and contract law impact on business decision making
There are various potential impacts on the decision-making process by different
legislations and laws governed. Some of the laws are described below:
Employment law: This law regulates relationship between employees and employers.
The law has been covered that what is company is paying to its employees for their work and
creates minimum requirements for working conditions. It has been impact on the decisions
related to hiring of employees and their activities. With this law Hyatt hotel is able to maintain
an healthy relationship among employees.
Contract law: This is refers to a legal binding between two parties in order to enter into
an agreement. Mangers of Hyatt hotel have implemented this and ensure agreement is to be
according to the laws and regulations.
Examine potential implications of any two regulations on standards
Employment Relation Act: This has been regulates the relationship among the employees
within workplace. The main objective of this act is to help in building better employment
contract which makes employee understand about working procedure in an organisation which is
being discussed by superiors.
Equality and Diversity Act: this act provides a legal framework in order to protect the
rights for employees in the organisation. It helps in to protect individual from the unfair
treatments with support of this Hyatt hotel is able to retain employees for longer period of time
and performance get enhanced.
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Critically evaluate impact of ethical issues of regulations, legislation and principles
Ethical issues are used to address moral conflicts within an organisation. In hospitality
industry, equality and diversity at the work place is the regulation which ensures everyone has
access to the same opportunity and fair treatment. That helps Haytt hotel in to develop a positive
environment, along with this employment relation legislation act is meant to create positive and
healthy work environment (Jelassi, and Martínez-López, 2020). This will enhances employee
engagement in hotel and employee motivation. Moreover honesty is one of the principle that is
need to be available in every organisation. Ethical executives are honest and truthful in their all
dealings and not deceive others by misrepresentation, partial truth etc.
Exploration of the different functional roles within hospitality industry sector and how they are
interrelated.
There are various businesses that come under hospitality industry and each one has their own
roles, structure and functions which are interconnected with other. Some of the interlinked
departments of Hyatt hotel are discussed below:
House keeping and front office: These are the two key departments of hotel which
ensures smooth running of operations while providing optimum level of satisfaction to
customers. They are interlinked with each other as housekeeping is responsible for cleaning
guest rooms and provides required services. Whereas front desk is concerned with check in and
checkout process of guest which is need to be in coordination for the better experience of
customers.
Food and beverages services and Food production department: These play a key role in
hotel which is interconnected with each other. As food and beverages service department is
responsible for serving food items which is made by food production department as per the need
of customers.
Examine different communication methods and levels used in an organisation
There are various communication methods used by Hyatt hotel and some of them are explained
below:
Email: This is refers to the method of exchanging information, opinion, idea etc. it is
most formal way of communication that is used by the hotel to communicate its vital information
within the organisation.
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Conferences: It is a method that is used for meeting of several people in order to discuss
a particular topic. This is used to discuss strategies by higher authorities and directors for
decision making.
Seminars: It has been initiated to access mass audience together for motivating
employees to perform better as achieve the desirable goals and objectives so that company can
get a better growth at a work place.
A review of coordination and integration within a business organisation
Coordination and integration refers to the function of management which ensures that
different departments or group of people work together properly in order to achieve objectives
effectively. It is a collection of processes which is required to ensure that all the elements of
project are properly coordinated (Jasnoff, and Sheikh, 2019). With this, Hyatt hotel can impose
unity of direction of the employees towards common goals. It help hotel in the optimum
utilization of resources so that profit maximize and cost get reduced. In addition to this,
coordination helps in align employee’s goals with organisational goals which will help in
achieving professional growth along with personal growth.
Analysis of effectiveness of different communication methods, integration and monitoring within
an organisation
Communication is necessary for the effective and smooth running of operations, as this
help in maintaining coordination between departments. There are various methods which is
being used by the Haytt hotel such as email for conveying message to employees, conferences,
seminars etc. this is a basis of decision making and improves managerial efficiency. In addition
to this, integration is ensures that project is coordinated properly so that objectives can be
achieved in the specified period of time along with positive outcomes (Goto, and. et. al., 2018).
Moreover monitoring is associated with the observation, checking the progress and quality of
operations over a period of time. It facilitates deep insight of management, identify problems
along with its solutions and provides support in highlighting opportunities that can be expanded
and provides growth to the company.
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Judgements and recommendations
As per the above information, we can observe that Hyatt hotel is hotel can enhance its
performance and productivity through utilization of various strategies and techniques. As it is
already using various legislation that is beneficial for company, employees and consumers.
Along with this, it can also use data protection legislation that helps in protecting confidential
information and important data. Moreover Hyatt hotel cam implements ethical code of conduct
in order to maintain discipline and order between employer and employees or staff members so
that a adequate environment can be maintained.
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CONCLUSION
As per the above analysis it has been concluded that financial management and its
monitoring plays a crucial in maintaining the business financial position and its growth. There
are various factors and principles required for business transaction that provides certain support
through which easy management is processed. Moreover there several roles and function within
the organisation which has their prominent impact on overall performance and productivity of
the company. Business is associated with various laws an legislation which offers smooth
running of operations along with many benefits.
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REFERENCES
Books and Journals
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hospitality research? A review of sustainable restaurant literature from 1991 to
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promote business information literacy in higher education. Journal of Library &
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Ma, E., Cheng, M. and Hsiao, A., 2018. Sentiment analysis–a review and agenda for future
research in hospitality contexts. International Journal of Contemporary Hospitality
Management.
Mejia, C. and Torres, E.N., 2018. Implementation and normalization process of asynchronous
video interviewing practices in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’
perspective. Worldwide Hospitality and Tourism Themes.
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García-Rodríguez, F.J., Dorta-Afonso, D. and González-de-la-Rosa, M., 2020. Hospitality
diversity management and job satisfaction: The mediating role of organizational
commitment across individual differences. International Journal of Hospitality
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Goodall, J., 2018. A toolkit for parental engagement: From project to process. School Leadership
& Management, 38(2), pp.222-238.
Jelassi, T. and Martínez-López, F.J., 2020. AccorHotels’ Digital Transformation: A Strategic
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Springer, Cham.
Jasnoff, G.R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of Undergraduates
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