Unit 4: The Hospitality Business

This document discusses the financial transactions and principles of managing and monitoring financial performance in the hospitality business. It also explores the different stages of the HR lifecycle and the role of financial management in achieving growth. The document provides recommendations for improving financial management and discusses the importance of accurate recording of transactions. Additionally, it examines the integration and coordination within a business organization.

Unit 4 The Hospitality
Business
1

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction to the financial transactions of your hospitality business.......................................3
Investigate the principles of managing and monitoring financial performance of the business..4
Explain the principles of double – entry bookkeeping system....................................................4
Trial balance:...............................................................................................................................7
Discuss the importance of accurate recording of transactions with accounting principles.........8
Role of financial management and monitoring in achieving growth along with
recommendations.........................................................................................................................9
Different stages of the HR life cycle...........................................................................................9
Evaluation of Stages of HR Lifecycle.......................................................................................10
Performance Management Plan.................................................................................................10
Recommendations......................................................................................................................11
Identify specific legislation that complies with daily transaction of the business.....................11
How company’s employment and contract law impact on business decision – making...........11
Potential implications of regulation on standards......................................................................12
Impact of ethical issues of regulations, legislations and principles with recommendations.....12
Exploration of different functional roles and how they interrelate with each other in hospitality
organization...............................................................................................................................12
Different communication methods and levels used in an organization.....................................13
Review of integration and coordination within business organization......................................13
Analyse the effectiveness of different communication methods, integration and monitoring
with the specific department......................................................................................................14
Distinction between judgements and recommendations how coordination and integration
enhance the business performance.............................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
2

INTRODUCTION
Hospitality is defined as services which are being provided to people or individuals within
hotel or in social industry (Kim and et.al., 2017). Marriott International is the American
multinational company that operates in hotel sector providing services to customers.
The report will analyse Marriott Hotel’s financial performance which will help in
maintaining the financial statements and balance sheets overall. The HR department functions
will also be analysed along with performance management which organization will incur. The
legislations, regulations within hospitality industry will be also described. Different functional
roles of hospitality sector and how they interrelate with each other will be described within
hospitality industry.
MAIN BODY
LO1
Introduction to the financial transactions of your hospitality business
Financial transactions are the transactions which are done for analyzing the scale of the
business and this is done with the help of how the profits and losses are managed of the Marriott
International Hotel. The financial transactions of the organization carry out the functioning of the
transactions which are being processed in and outside the business of the organization. The type
of source documents which the organization has are the deposit slips, credit memos, invoices,
purchase orders, cheques, time card of employees, receipts etc (Al-Wattar and et.al., 2019).
Along with this, the recording processes which Marriott follows is that the records which are
made for purpose of the how the financial transactions are done while recording the statements
which becomes helpful for the organization in future use. Marriott International follows proper
financial transactions which help the business grow on scales of how transactions are being
processed and this also enables the procedure of how finances are managed effectively for future.
Transactions:
Mr Joseph started its business with cash by £969.73.
Mr Joseph open a bank account with cash of £290.92
Mr Joseph purchased good from Mr Bishop on credit £387.89 and also paid carriage of £19.39.
Those goods were sold to Mr Brown at £193.95
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Mr Bishop return goods of £9.70
Sold goods to Marcia for £ 678.81
Paid rent of £96.97
Purchased furniture for cash for £77.58
Paid cheque of £48.49 for advertisement
Withdraw £58.18 from bank for personal use.
Recovered £630.33 from Mr Brown in full settlement against account.
Goods costing £9.70 donated to NGO.
Salary paid to employees £145.46
Interest received from bank
Compensation of £0.78 received from Mr Joseph on debit of £193.95
Stocks and goods at the end of year £310.31.
Investigate the principles of managing and monitoring financial performance of the business
There are five principles which are helpful in monitoring and managing the financial
performance of the Marriott International. These principles are described as below –
 Consistency – Transactions of the Marriott must be handled in a proper consistent
manner. This will initiate the procedures and policies which addresses the routine work
which the organization does.
 Timeliness - A reasonable period of time must be allotted so that all the transactions are
done in that way and is consistent in which the timelines are framed appropriately.
 Justification - The reason for the transaction is must for Marriott which will define that
how much and in what manner the transaction is being done (AKMEŞE and et.al., 2020).
 Documentation – The documents in the transaction process are must for managing the
transactions of the Marriott therefore, they should be managed properly.
 Certification – The authorization of the transactions must be done in such a manner that
they are verified by the Marriott international.
Explain the principles of double – entry bookkeeping system
Double – entry bookkeeping is the accounting system where the entry of the account is being
done on the basis of how the other account entries are done. Double – entry bookkeeping has two
4

sides which are known as debit and credit sides in the business. Hence, there is principle of
double – entry bookkeeping systems which define the following patterns of transactions and
accounting. This principle is as follows –
 Debit Side = Credit Side – The transaction is based on the debit and credit side which
helps in managing the accounts (Faccia and et.al., 2019). This helps in understanding the
transaction that the equal amount of double entry bookkeeping should be done.
And for this there are three accounts which are being managed by Marriott International which
helps in making the transaction possible by analyzing the financial structure of the organization.
This helps the organization in knowing what are the sources through which the debit and credit
can be handled effectively and efficiently.
Journal entries:
Cash a/c DR £969.73
To Capital a/c £969.73
Bank a/c DR £290.92
To Cash a/c £290.92
Purchase a/c DR £387.89
To Mr Bishop a/c £387.89
Carriage a/c DR £19.39
To cash a/c £19.39
Mr Brown a/c DR £193.95
To sales £193.95
Mr Bishop a/c DR £9.70
To purchase return £9.70
Donation a/c DR £9.70
5

To purchase a/c £9.70
Salary a/c DR £145.46
To Cash a/c £145.46
Bank a/c DR £19.39
To Interest £19.39
Cash a/c DR £155.16
Bad debt a/c DR £38.79
To Mr Joseph £193.95
Closing stock DR £310.31
To trading a/c £310.31
Marcia a/c DR £ 678.81
To sales £ 678.81
Rent a/c DR £96.97
To Cash a/c £96.97
Furniture a/c DR £77.58
To Cash £77.58
Advertisement a/c DR £48.49
To bank £48.49
Drawing a/c DR £58.18
To bank a/c £58.18
Cash a/c DR £630.33
6

Advertisement a/c £48.49
To Marcia £678.81
Ledgers:
Cash account:
Particular Amount Particular Amount
to capital 969.73 by bank 290.92
To
Marcia 630.33
by
carriage
a/c
19.39
To Mr
joseph 155.16 by rent a/c 96.97
by
furniture 77.58
by salaries 145.46
by bal c/f 1124.89
1755.21 1755.21
Bank Account:
Trial balance:
Trail balance
Sr
number Name of accounts Debit amount
Credit
amount
1 Cash a/c 1124.89
2 Capital a/c 969.73
3 Bank a/c 203.64
4 Purchase a/c 378.2
5 Sales a/c 969.73
6 Purchase return a/c 9.7
7 Bishop a/c 290.92
8 Carriage a/c 29.09
9 Rent a/c 96.97
10 Furniture a/c 77.58
11 Advertisement a/c 48.49
12 Drawing a/c 58.18
13 Discount allowed a/c 48.49
14 Donation a/c 9.7
15 Salaries a/c 145.46
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16 Interst a/c 19.39
17 Bad debts a/c 38.79
2259.48 2259.47
P&L:
Particular Amoun
t
Gross profit as per trading
account 15000
Less;
Expenses
shop rent 4000
light and heat 250
salary 3000
insurance 120
7370
Net profit 7630
Discuss the importance of accurate recording of transactions with accounting principles
It is important for the organization to maintain accurate recording of transactions so that in
future there are no problems and no issues which disturbs the financial transaction process of the
organization. By keeping the accurate recording of the transactions, it will be seen that there will
be better operations in business, proper preparation of financial statements will be performed and
money will be saved where it cannot be spend unnecessarily. This is the basic importance of how
the accurate recording of transaction cam be done and how they play major role in the
organization (Weygandt and et.al., 2019). There are various types of accounting principles which
are – consistency principle, economic entity principle, going concern principle, materiality
principle, reliability principle, time period principle etc. Therefore, these principles help the
transaction process to take place in an effective manner. This also helps in making the effective
process of the accounting and how the procedures of the accounting are maintained in
organization or company.
8

Role of financial management and monitoring in achieving growth along with recommendations
Financial management is defined as the function in the organization which is concerned
with the expenses, credits, profitability and managing the scale of the finance on overall basis.
The role of financial management in the growth if the organization is observed through the basis
that the organization is able to manage and make the profitability factor of the organization
reaches the scale of success (Prihartono and et.al., 2018). Financial management helps in
monitoring the growth and development of the finance of the organization on large basis.
It is recommended that for uplifting and to enhance the financial status of the organization,
the company will be able to analyze the profits and the losses which are being incurred. Various
strategies should be framed which enables the effects of how the finances of the organization can
be managed and monitored. Thus, these are the two important recommendations which should be
worked upon and considered as important for the benefit of the organization significantly.
LO2
Different stages of the HR life cycle
Attraction- This is first stage in which through job advertisement candidates are attracted to
apply for job in Marriott International. This is aimed at attracting highest number of people so
that best candidate can be selected.
Recruitment- This involves screening of applications and selecting applications that are most
relevant and suitable for the job post in Marriott International (Svensson, Andersson and Faulk,
2018). Followed by this candidates are recruited in organisation based on different selection
criteria such as interview, selection test.
On-boarding- This is a stage of lifecycle in which candidate becomes employee of Marriott
International and during on-boarding they are given induction training.
Development- In this stage of HR lifecycle in Marriott International, employees undergoes
different training and development sessions. This is done to enhance their ability to perform on
their respective job roles.
Retention- In this stage employee retain in organisation.
Separation- In this stage employee of the organisation separates from the organisation.
9

Evaluation of Stages of HR Lifecycle
Attraction- In this HR ensures that adequate information is given to potential candidates to
make them understand their suitability for the role. Employer branding is very important for
attracting talented and competent candidates for the role of finance manager.
Recruitment- In this stage, candidates are required to go through selection process and for
finance manager’s job selection test is an appropriate method of selection (Svensson, Andersson
and Faulk, 2018). This is because finance manager needs to have financial aptitude test.
On-boarding- This involves introducing finance manager in Marriott International with
organisation and its finance department of Marriott International.
Development- In this finance manager in Marriott International is given training for enabling
finance manager to carry out their work efficiently.
Retention- In this stage finance manager in Marriott International is retained in organisation and
for this different motivation is used by organisations.
Separation- This is a stage in which finance manager separates from organisation and this
happens because of several reasons. These reasons include termination, completion of contract,
retirement and layoff.
Performance Management Plan
Plan
Developing performance objectives- Performance objectives for finance management are
developed and this involves objectives for role of finance manager.
Developing key performance measures- This involves developing key performance measures
for finance manager.
Identifying areas for development- This involves identifying areas for development against
requirement of role of finance manager (Mone, London and Mone, 2018).
Agreeing personal development goals- This involves developing goals for personal development
in agreement with employee.
Acting- In this stage finance manager works on developed goals of performance.
Tracking- Finance manager is regularly monitored and is given help and assistance wherever
required.
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Reviewing- This involves reviewing their performance and performance appraisal is also part of
this phase.
Recommendations
Here it can be said that every stage of HR lifecycle involves some kind of documentation.
Such as documentation about selection performance of candidate, documentation about details of
candidates, and training records are different documentations in HR lifecycle (Wang and et.al.,
2017). These documents can be improved by increasing transparency and along with this sharing
employees’ should also be given opportunity and means of making their contribution in creation
and updating documentation at each stage.
LO3
Identify specific legislation that complies with daily transaction of the business
There are specific legislations which are followed by the organization that complies with
the daily transaction of the business which are – repayment and acceptance on loan services,
certain deductions from the income is the main legislation which is followed by the business
entity etc (Harvey, 2019). All the transactions are based on the fixed amount which can be
withdrawal for the specific purpose and this initiates the most effective way which is being
followed by the organizations and the businesses. The daily transactions in the business help the
business and the organization to take initiative of how the processing of transactions is done in
an effective manner.
How company’s employment and contract law impact on business decision – making
The Marriott’s employment and contract law impact the business decision – making in
ways through which it depicts the basic forms of rules and regulations which the organization
follows along with the employees residing in it. The employment law is framed with the
collection of rules and regulations between the employees and the employers which depicts their
relationship (Golding, 2021). Employment law denotes that the employer is in charge of hiring
the employees for the organization. This impacts the decision - making of the organization. The
contract law which the organization frames for the company is the regulation which Marriott
follows so that proper business decisions are taken.
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Potential implications of regulation on standards
The implications of the standards which are being applied to the organization play
significant role as both the standards that is the employment law and the contract law are
important which ensures the company to follow the set rules and regulations which are there in
the most effective way possible (Blind and et.al., 2017). The standards are being implied on the
scale of what are the major changes which takes place on the daily basis in organization. The
standards are being followed by the organization which makes the whole process of Marriott and
its business run under certain standards and norms which are to be followed in significant
manner.
Impact of ethical issues of regulations, legislations and principles with recommendations
Ethical issues which arises in the Marriott International is the main thing which is being
considered by the company as the ethical issues of the organization affect the employees and the
organization on large scale (Dimitriou and et.al., 2018). Legislations can improve company
employment contract by-
The company should follow all the rules and regulations which are being monitored and
framed to be followed. The legislations should be framed in such a way that employees are
working in the organization. This improves the company’s employment contract on effective
basis. Marriott looks after the issues and the regulations which are being regulated for the
purpose of how to follow them.
LO4
Exploration of different functional roles and how they interrelate with each other in hospitality
organization
Different functional roles are as follows –
Food and Beverage Department – In the hospitality industry, food and beverage department
are the most important department which provides the services to the customers in the Marriott
International.
Sales and Marketing Department – Sales and marketing department in Marriott International
ensures how the promotion and branding of the organization is done (Wahyuningtyas, 2020).
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Maintenance Department - The maintenance department of the Hotel ensures that all the repair
and the functioning is done appropriately and if anything is to be repaired is taken into
consideration by the Hotel.
All these departments interrelate with each other in specific ways such as the food and
the maintenance department are the organization ensures that the hotel is serving the best in the
facilities and the eatables to the customers. Along with this, sales and marketing of the hotel
coordinates with the Hr department ensuring that all the rules and regulations which the sales
department has to follow are made under the HR department of the Hotel.
Different communication methods and levels used in an organization
Different communication methods which are to be described are as follows –
Verbal Communication – Verbal communication is the communication in which the individual
speaks and is in conversation with other individuals.
Non – Verbal Communication – Non – verbal communication is the communication which
engages in not speaking and doing action (Zheng and et.al., 2019).
Written Communication – Written communication is done through email writing, memos,
contract or a report.
Listening – Listening is the form of communication in which one person speaks and the other
listens.
Visual Communication – Through visual communication, it creates the most effective forms of
how the communication can be done effectively.
There are three different levels of management in an organization which are –
Administrative, Executive and Supervisory.
Review of integration and coordination within business organization
Within business organization, it is very important for the organization, the Marriott to
analyze its processes and verify what is to be done with the purpose of how the functioning is
being done. Integration and coordination within business organization is done to ensure that all
the functions in the organizations are running smoothly and effectively (van Hillegersberg and
et.al., 2020). It is very important that the process and the functions of the Marriott Hotel are
coordinated well along with the department of the organization to ensure that the activities and
13

tasks are taking place accordingly and the strategies are being framed by the company on large
scale to be followed.
Analyse the effectiveness of different communication methods, integration and monitoring with
the specific department
Effectiveness of the communication methods helps the organization in knowing what is to be
done and what are the activities and processes which takes place day by day. Through
communication methods, it becomes easy for the Marriott Hotel to ensure that all the processes
are running smooth on the scale of how the things are been done (Wolkin and et.al., 2019). The
integration and monitoring with the specific departments of the Hotel are – Sales and Finance
department, HR department etc. The organization ensures that all the work is being done on an
effective note and that this is the aspect in which the company is displaying itself in the market.
Distinction between judgements and recommendations how coordination and integration
enhance the business performance
Coordination Integration
1. Coordination is defined as the process of how
collectively individuals gel well with other individuals
(Trein and et.al., 2020).
1. Integration is the term which defines the act of uniting
different things and people along with.
2. Coordination helps in enhancing the various
procedures and patterns through which the work is being
done skilfully and effectively.
2. Integration helps in collecting the various details
which are being imbibed for the work so that
information is gathered on collective basis.
Recommendation on how the integration and the coordination enhance the business
performance is by the term that the Hotel is able to make the impact of how effective these two
factors are. The Hotel should ensure that all the work is being distributed to the individuals in the
most effective manner possible so that there is no fault in following the processes of the
organization collectively.
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CONCLUSION
Thus, it is concluded from the above report that Marriott Hotel’s financial performance
helps in maintaining the financial statements and balance sheets overall. The HR department
functions are also analysed along with the performance management which the organization
incurred. The legislations, regulations within the hospitality industry were also described.
Different functional roles of hospitality sector and how they interrelate with each other was
described within the hospitality industry. Thus, the hospitality industry helped in taking the
actions effectively and overall functions of the Marriott were described for the total evaluation of
the organization and its functions of how it worked.
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REFERENCES
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Golding, G., 2021. Employment as a relational contract and the impact on remedies for
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