The Hospitality Business Toolkit: Managing Financial Performance, HR Cycle, and Talent Retention

This report explores the principles of managing and monitoring financial performance in the hospitality industry, including the application of double entry bookkeeping. It also discusses the different stages of the HR cycle and the importance of talent retention. Additionally, it covers the impact of legal and ethical factors on the hospitality business and the role of financial management. The report is based on Marriott Hotel, UK.

Unit 4 : The Hospitality
Business Toolkit

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Principles of managing and monitoring financial performance...................................................3
Application of double entry book keeping for recording transactions........................................3
Preparation of trial Balance.........................................................................................................7
Types of cost and its impact over the financial performance......................................................7
Importance of accurate recording of transactions along with accepting the accounting
principles......................................................................................................................................8
Critically evaluating the role of financial management...............................................................8
PART 2............................................................................................................................................9
Different stages of HR cycle and importance for retaining and developing talent......................9
Performance management plan for overcoming issues in negative behaviour staff retention. .10
Legislation to be adhered by hospitality organisations..............................................................11
Impact of employment law and contract law on business decision making..............................11
Interrelationship of various functional roles within hospitality sector......................................12
Methods of communication, coordination and monitoring for strengthening value chain........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
The human resources management is the centre part of organization which helps in
carrying out the business activities in a better way. Hospitality industry is the biggest contributor
to the growth of the UK economy, therefore, it becomes imperative to study the role of HR in
handling the business. This report is on Marriott hotel, UK, which is having a wide range of
hotels and resorts, having business globally. This report presents about the various stages of HR
life cycle, relevance of retaining employees along with the creation of performance management
plan for a particular job role. In addition, it covers the impact of legal and ethical factors over the
hospitality business and the impact of the various laws on the business decision-making process.
In addition to this, it incorporates aspects for effectively managing the finances.
PART A
Principles of managing and monitoring financial performance
On an overall basis, there are mainly 5 core principles which helps in managing and
monitoring of the financial performance of the organization within hospitality industry. A
detailed description is given below.
Consistency: This principle states that the transaction of the business should be handled
in a consistent manner. Thus, policies and procedures should be build up in order to address the
routine business transaction effectively.
Timeliness: The business transaction should be managed within a reasonable time frame
which is being outlined by the organization.
Justification: Every transaction which is being recorded should be having proper
justification which will provide assistance under the situation of the audit or legal cases (FIVE
PRINCIPLES OF FINANCIAL TRANSACTIONS MANAGEMENT. 2020).
Documentation: It states that proper and sufficient documentation should be maintained
for the purpose of supporting the transactions that exist. Such documentation is needed to be
retained and organized enough in order to carry out the audit in an effective way.
Verified: The transaction must be approved by the authorized personnel along with the
authorizing signatures. This can be considered as a valid transaction.
Application of double entry book keeping for recording transactions
Principles of double entry system

The Principe of Double entry system is that the every debit will be having a
corresponding credit which will result into having both debit and credit side equal (Double Entry
System: Defined, Features & Principle Explained. 2020.). In other words, every business
transaction will affect the 2 accounts. For instance, machinery purchased on cash of $5000,
under this case, machinery account is debited while the cash account is credited with the same
amount. It helps in meeting arithmetical accuracy which can be checked by creating trial balance.
Date Transaction
01/03/21
MR starts business as a sole proprietor with $20,000 in
Cash
02/03/21 Pays $15,000 cash into a business bank account
04/03/21 Purchases goods (food supplies) on credit from JM for $2,000
10/03/21 Pays rent by cheque $80
12/03/21 Sells goods for cash $210
16/03/21 Buys furniture for $1,500 paying by cheque
19/03/21 Sells goods on credit to SP for $580
27/03/21 Receives part payment from SP of $330 by cheque
28/03/21 Pays advertising by cheque $25
31/03/21 Sells goods for cash $890
Recording of transactions
Date Accounts Debit Credit
01/03/21 Cash A/c 20000
To Capital A/c 20000
02/03/21 Bank A/c 15000
To cash A/c 15000
04/03/21 Purchase A/c 2000
To JM A/c 2000
10/03/21 Rent A/c 80

To Bank A/c 80
12/03/21 Cash A/c 210
To sales A/c 210
16/03/21 Furniture A/c 1500
To Bank A/c 1500
19/03/21 SP A/c 580
To sales A/c 580
27/03/21 Bank A/c 330
To SP A/c 330
28/03/21 Advertising expenses A/c 25
To Bank A/c 25
31/03/21 Cash A/c 890
To sales A/c 890
Ledger Accounts
Capital Account
Date Particulars Amount Date Particulars Amount
31/03/21 To balance c/d 20000 01/03/21 Cash a/c 20000
20000 20000
Cash Account
Date Particulars Amount Date Particulars Amount
01/03/21 Capital 20000 02/03/21 Bank 15000

12/03/21 Sales 210 31/03/21 By balance c/d 6100
31/03/21 Sales 890
21100 21100
Bank Account
Date Particulars Amount Date Particulars Amount
02/03/21 Cash 15000 10/03/21 Rent 80
27/03/21 SP 330 16/03/21 Furniture 1500
28/03/21
Advertising
expense 25
31/03/21 By balance c/d 13725
15330 15330

Purchase Account
Date Particulars Amount Date Particulars Amount
04/03/21 JM 2000 31/03/21 By balance c/d 2000
2000 2000
JM Account
Date Particulars Amount Date Particulars Amount
31/03/21 To balance c/d 2000 04/03/21 Purchase 2000
2000 2000
Rent Account
Date Particulars Amount Date Particulars Amount
10/03/21 Bank 80 31/03/21 By balance c/d 80
80 80
Sales Account
Date Particulars Amount Date Particulars Amount
31/03/21 To balance c/d 1680 12/03/21 Cash 210
19/03/21 SP 580
31/03/21 Cash 890
1680 1680
Furniture Account
Date Particulars Amount Date Particulars Amount
16/03/21 Bank 1500 31/03/21 By balance c/d 1500
1500 1500

SP Account
Date Particulars Amount Date Particulars Amount
19/03/21 Sales 580 27/03/21 Bank 330
31/03/21 By balance c/d 250
580 580
Advertising expense Account
Date Particulars Amount Date Particulars Amount
28/03/21 Bank 25 31/03/21 By balance c/d 25
25 25
Preparation of trial Balance
Steps creating trial balance
1. Determining the closing balance of each of the ledger accounts.
2. Recording the debit or credit balances in trial balance.
3. Calculating the total of both debit and credit side.
4. Checking whether the total of both side are equal or not.
Purpose of trial balance
The purpose of trial balance is to check the arithmetical accuracy of the transactions
recorded into the various ledgers accounts. It is an important tool as its help in determining the
final position of all the ledger accounts and is useful in creation of the financial statements of the
company.
Particulars Debit Credit
Cash Account 6100
Bank Account 13725
Purchase Account 2000
JM Account 2000
Rent Account 80

Sales Account 1680
Furniture Account 1500
Capital Account 20000
SP Account 250
Advertising expense Account 25
Total 23680 23680
Types of cost and its impact over the financial performance
There are mainly two types of cost from the financial prospective which are – fixed cost
and variable cost. The fixed cost is the cost which remains same irrespective of the change in the
sales within a specific limit. It is includes the rent, interest on debts, insurance, rent and overhead
expenses (Fixed and Variable Expenses: How Cost Structure Determines Your Profitability.
2020). On the other hand, is the variable cost which involves inventory, production cost,
shipping expenses. It changes in direct relation to the sales, if sales increase, the variable cost
increase and vice-versa.
High operating leverage Low operating leverage
Sales 500000 100.00% 500000 100.00%
Variable cost 100000 20.00% 100000 20.00%
Contribution 400000 80.00% 400000 80.00%
Fixed costs 300000 60.00% 50000 10.00%
Net profit 100000 20.00% 350000 70.00%
The Above example, shows the impact of fixed cost over the performance and
profitability of the company. The first case depicts when the company is having higher operating
leverage like debt which is a part of fixed cost. It shows, the net profit is just 20% of its sales
affecting its profit margin. In comparison to the other case, having low leverage resulted into
having fixed cost just 50000, resulted into generating higher profit which is 70% of the sales.
In this way, the different types of cost affect the financial performance of the company.
Thus, it is important for the company like Marriott Hotel to implement strategies which will help

in reducing its cost which will result into positively impacting its performance and profit
margins.
Importance of accurate recording of transactions along with accepting the accounting principles
It is important to keep the accounts accurate and complying with the accounting
principles as it helps in effectively meeting up with the business requirements. Through this, it
helps the organization in effectively tracking down the expenses, debts and creditors of the
company (Teru, Idoku and Ndeyati, 2017). When all the transactions are recorded clearly and
accurately, then this results into making the comparison of the financial statements of the
company with its previous year reports and with the other companies within the same industry.
In addition to this, it helps in avoiding any errors and preparation of the accounting records based
on the accounting principles will bring consistency and better and comparable outcomes.
Critically evaluating the role of financial management
The financial management is useful in effectively analysing the financial structure of the
company and based on which helps in determining through which source additional funds should
be taken. It assists in effectively meeting up with the obligation of the business by way of
maintaining the required level of cash and liquidity (Al Breiki and Nobanee, 2019). Financial
management supports in taking decision pertaining to the investment and in analysing the risk
which is being involved in the investment options available. In this way, the role of financial
management is very important in order to ensure that the company is working in an effective way
which results into accomplishing the desired goals and objectives which consequently leads to
attaining growth. Therefore, it is highly recommended to Marriott Hotel, that it is having
experienced and skilled personnel with the ability to handle the financials of the organization.
This will help it is managing and monitoring the financials of the company based upon which the
right decision can be taken in order to accomplish higher growth.
PART 2
Different stages of HR cycle and importance for retaining and developing talent
The various stages of HR cycle can be analysed on bias of fundamental scale operational
efficiency where human resource department aims to employ best skilled diverse scope to hire
best talents. Marriott hotel as one of the fastest growing hospitality brand aims to keep workforce
competently creative, innovative business minded and also use best methods for stronger
detainment within working scenarios

 Recruitment: At the first step recruitment of best talent based on various competencies,
skills required in hospitality organisations are worked on which raises functional scope
for bringing on diversity among workforce (Montagnon and et.al, 2021). Orientation: New employees hired at above step are introduced at this phase, where
varied aspects of fundamental training is planned on which shapes new competencies
actively within workforce. Career planning: Further, career planning is worked on by heading on towards new
range of professional and commercial acumen to bring on wider competent efficacy on
further working scenarios. Retention: Employees are retained at this step of HR cycle, where detainment ensures
new scale fundamental role to productively keep workforce retained for longer periods.
This factor heads on advance focus as one of the main factor to develop talent in wider
time period, goodwill rise which further brings on brand value.
 Separation: The last step being separation brings on focus towards proper separation of
workforce from company formally, which also has been analysed as factor which
enriches brand goodwill actively (A Guide to the HR Lifecycle, 2018.).
Importance of retaining and developing talent has been analysed as crucial aspect which
profoundly raises up working efficacy horizons towards diverse fundamentals. Workforce
detainment ensures functional scope to keep up with motivation horizons, leverage new profound
growth towards untapped scenarios which adds to brand value actively.
Performance management plan for overcoming issues in negative behaviour staff retention
The performance management plan for an employee working within housing department,
at Marriot can be understood as crucial aspect to bring on reduction in issues within negative
behaviour retention and strengthening competent surging efficacy among departments. Staff
retention plays significant role to yield on stringent focus towards functional domains for wider
scale operatives towards new innovative business goals. HR professionals have specific role to
play in strengthening new ideas actively by training employees with best expertise, professional
and commercial acumen which raises up profound keen goals connectivity actively. Planning: At this step evaluation of various skills which needs to be further developed
among individual working within production department will be analysed, planning done
towards bringing on wider training specialisation (Mother and Nguyen-This, 2021).

 Coaching: Best hospitality skills and competencies are being trained and worked on
within this step, where it will also enhance staff retention by positively motivating them.
Coaching also significantly boosts morale imperatively towards new directions horizons,
where there is diverse scope for Marriot, hospitality sector. Reviewing: Further, reviews will be analysed which will reduce negative behaviour
actively on diverse horizons for keeping up active goals developed on dynamic pathways.
By reviewing all skills development new range of efficacy parameters can be shaped on
wider domains in professional job role.
 Action: The last step being action will make sure employees detainment is done
strategically by reducing negative behaviour issues among employees within
departments.
Marriot aims to keep workforce motivated by developing fundamental scope for bringing on best
training sessions for employees, which also further raises up brand value and goodwill.
Strategies for overcoming negative behaviour among workforce and to enrich new scale
development in staff retention plays crucial role for yielding towards productive diversity
aspects actively. Marriot needs to adhere wider scale functional efficacy within competent
development, where talent management and profound growth towards vision oriented aspects
should be worked on. This factor also specialises new range of connectivity among employees
and within company legal laws compliances, towards functional growth synergies to keep up
efficacy horizons active and also develop variable efficacy scope actively.
Legislation to be adhered by hospitality organisations
There are various range of legal laws which needs to be adhered by hospitality
organisations within business parameters, where employees safety and clients preferences needs
to be adhered on for bringing functional growth. Marriot hotel follows legislations which are as
follows, to bring on best hospitality parameters goodwill actively by which there is diversity of
operations ethically developed. Laws and legal obligations plays crucial role in bringing on
wider scale connectivity within hospitality parameters informatively, strengthening vision
oriented goals and to bring on competent innovation within longer time frame. Employee welfare: Marriot hotel to bring on best fundamental rise on best employees
commitment among workforce, needs to adhere towards wider scale competent efficacy
horizons to provide them with best facilities. This also brings on focus towards legal

safety standards where employee welfare enriches fundamental scale diversity actively
and shapes new strength efficacy to keep legal strength maintained. Legal compliance: Laws to keep up with best guest relationships maintenance and public
healthcare within food hygiene standards is essential where services must be adhered as
per legal laws requirements. The service providers within hospitality sector brings on
varied scope for imperative high scale functional goodwill rise, towards diverse domains
to bring on further effective connectivity.
 Client food and safety services: The customer should be served with best hygienic and
safety standards practices, by also adhering to functional laws of best hospitality
standards among business domains. Marriot aims further scale operative goals to be
worked on by keeping best food facilities with full focus on hygiene, and also for
strengthening new range of performance horizons competitively.
Marriot by heading on legal legislations within hospitality sector will be able to generate
strengthened performance goals towards determining functional scenarios which further
enhances competitive revenue profitability.
Impact of employment law and contract law on business decision making
The impact of employment laws and contract laws on business decision making horizons
is huge , within hospitality businesses in sector plays strong role to further enhance
competitively, keen fundamental rise towards innovative business designs. Employment laws
adherence plays significant role to bring on potential strength in business decisions making,
which further innovative y generate profound connective horizons towards new directive goals
(10 best innovative HR practices from 2020 you need to know, 2021).
 Employment laws and contract laws on business decision making has profound role to
bring on enrichment within brand value actively, which also informatively raises up
competent efficacy horizons. The employment laws and contract laws used in business
decision making brings on uniform connectivity within latest hospitality industry aspects
where Marriot heads on towards fundamental scope for diversity. By keeping best
employment laws and contract laws worked, business decision making is actively
synchronized with best functional synergies towards keeping wider scale targets. This
also brings on wider productivity towards diverse scope goals for leveraging new range

of efficacy parameters, keen strength to yield on diverse horizons which also brings on
commitment among workforce.
 Employment laws such as best safety standards maintenance, wider scale permissive
aspects adhered to best food facilities enhances new range of profound commitment
among employees which also brings on stronger rise towards wider functional growth.
Impact on business decision making is ideally crucial for strengthening innovation and
bringing on profound strength in brand value where hospitality sector is dynamically
competitive towards new innovative businesses development. This can be also analysed
that Marriot aims to keep fundamental scope growth active towards untapped scenarios,
which impacts on decision making goals and technically rise up goodwill (Kumar, 2021
Top 6 HR Trends in 2020 – Transforming the Future of Work, 2019)
Marriot by heading on best employment laws and contract laws will be able to adhere towards
best decision making aspects, legally strengthen business parameters and also competitively
bring on wider new range of efficacies. This can be also analysed as main crucial scenario white
employment laws, contract laws compliance keenly bring on best commitment towards profound
higher roles of efficacy, towards innovative business horizons.
Interrelationship of various functional roles within hospitality sector
The interrelationship within various functional roles in hospitality sector can be analysed
as highly crucial where Marriot aims to keep imperative focus towards best resource planning,
management goals for promoting best ideologies actively. Marriot as one of the top prominent
brand within hospitality sector has wide focus towards varied functional roles, creating
coordination among fundamental scenarios and to enrich productivity towards wider business
domains (Martin, Nguyen-THz and Mother, 2021) Marketing and sales : Interrelationship between marketing and sales departments bring
on fundamental focus on investments, which are being put in marketing and best scale
revenue sales which are being returned. By heading on correlation between these
functional roles Marriot aims to keep hospitality standards active as per latest scenarios
and also bring on fundamental rise towards new competitive sales targets for wider
profitability goals. Finance and production: The correlation between finance and production departments
within functional roles of hospitality sector brings on wider commitment towards using

best budgets to enhance new range of services. Also Mariota as one of the top hospitality
brand aims wider scale goodwill among new range of target customers, by serving them
with premium services (Jiang, Zheng and Lu, 2021).
 HRM and marketing: Interrelationship between HRM and marketing can be analysed as
widely crucial for recruiting best talents, high scale marketing expertise and professionals
which furthermore produces best marketing. This aspect explains hiring best marketers
come under functional role of HRM, which further brings on leveraging pace in
marketing growth and also potentially builds on brand goodwill.
The above analysed aspects of interrelationship within functions in hospitality business scenarios
have explained fundamental role of keeping up with best technical strength operative goals,
towards attaining best revenue targets.
Methods of communication, coordination and monitoring for strengthening value chain
The value chain development plays specific advanced role to bring on active growth
towards untapped scenarios, higher range of communication
 Verbal communication is one of the best method which synchronizes efficiency in
strengthening value chain among companies fundamental role, leveraging competent
domains towards broader connectivity (Elsharnouby and Elbanna, 2021) This can be
understood as crucial aspect where verbal communication significantly grows towards
new range of advancement among employees, within management which furthermore
brings on rise towards efficiency horizons.
 Monitoring plays crucial role in strengthening value chain effectively, where technical
monitoring, functional monitoring and business process monitoring are some of the best
techniques for imperative productive growth. Marriot aims to keep up with best targets
for delivering high scale hospitality standards, fundamental scope for yielding towards
new range of efficacy horizons to keep up with connective targets.
 Verbal communication, monitoring plays crucial role for bringing on new range of
connectivity towards diverse domains which also strengthens vision oriented goals into
untapped quest aspects. Strengthening value chain will also bring on commitment
towards productive key domains where employee’s connectivity, higher rise towards
leveraged horizons strengthen goodwill actively.

Marriot hotel by bringing on new range of communication, coordination and
monitoring will be able to strengthen value chain among various departments where aspects
of keeping up with benchmarks generate new range of innovation towards new scale
horizons. There are varied factors within strengthened value chain domains which further
connect wider scale operatives towards bringing effective varied scale strength in brand
value (Hayes, D.K., 2021).
CONCLUSION
From the above researched report it has been concluded management of finance,
recording transactions are some of the most vital aspects where Marriot aims to keep best
fundamental growth. The report has concluded importance of recording transactions, in line
with accounting principles, which has evaluated financial management to achieve stronger
growth in business. Human resource is the most essential department, to keep workforce
skills retained for longer time period, where report has concluded HR cycle stages which
are recruitment, induction, career planning and development, retention, separation and
termination. Study has also concluded performance management plan steps to bring on
further rise on skills in employees within production department, where retention strategies
and talent management have been discussed. Study further concluded legal and ethical
considerations have strong impact on hospitality sector businesses, where risk exposure and
employee welfare along with legal compliance are some of the most specific arenas. Report
further concluded importance of verbal communication, technical monitoring as essential
skills which enhances coordination actively.

REFERENCES
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Hayes, D.K., 2021. Human-Resource Management in the Hospitality Industry.
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