Hospitality Business Toolkit

This assignment focuses on the indispensable toolkits of hospitality by highlighting several necessary functions of an organization. It covers topics such as financial transactions, managing and monitoring financial performance, double entry bookkeeping system, trial balance, types of cost, accurate recording of transactions, HR life cycle stages, legislations, and more.

Hospitality
Business Toolkit

INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1. Introduction of financial transactions.................................................................................1
2. Principles or methods of managing and monitoring financial performance of business. . .2
3. Principles of double entry bookkeeping system.................................................................3
4. Produce basic Trial balance, its steps and purpose.............................................................4
5. Types of cost and how it can be managed for influencing financial performance.............4
6. Importance of accurate recording transactions...................................................................5
7. Conclusion for evaluating role of financial management and recommendations..............6
ACTIVITY 2....................................................................................................................................6
1. Review of stages of HR life cycle......................................................................................6
2. Evaluation of every stage of HR life cycle and importance of HR plays in supporting....7
3. Performance management plan for supporting specific job role........................................8
4. Recommendations on improvement of HR life cycle stages..............................................9
ACTIVITY 3....................................................................................................................................9
1. Legislation which is adhere in daily business transactions................................................9
2. Impact of organizational employment and contract law in business decision making......9
3. Potential implications of any two regulations on standards.............................................10
4. Critical reflection on impact of ethical issues of regulations, legislations and principles by
determine two ethical issues and make valid judgments or suggestion...............................10
ACTIVITY 4..................................................................................................................................11
Covered in PPT.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry is indulged in wider categories of departments which includes;
lodging, food, event planning, theme parks, transportation, travelling, aviation and many more
fields within tourism sector. Their main objective is serve consumer with best service by
providing necessary accommodation at the time of need in order to fulfil their essential
requirements. Simply, hospitality is a kind of assistance which is offered by hotel staff members
for facilitating the purchase of end users (Sriprahastuti, 2018). Along with this, also incorporates
a bundle of hotel efforts to ensuring that pleasant customer experience can achieved for guests.
Therefore, this assignment is going to focussed on indispensable toolkits of hospitality by
highlighting several necessary functions of an organization. Initially, project will explain
necessary elements of financial department for understanding the key factors of accounting
which is used by hotels for capital management. Furthermore, report will also review the HR life
cycle stages, legislations, standards and communication method which is used by firms for
smooth functioning of operational activities. Hence, main objective of this assignment is to
revolve around business resources which is important for hospitality industry to perform
operational activities.
ACTIVITY 1
1. Introduction of financial transactions
According to the given case study, firm which is located in Moorgate, London is
specialised in making innovative healthy salads with blended juices and smoothies. Recently,
one gymnasium has also opened nearby business which really brings additional benefits to the
organization. As a result, enterprise wanted to come up with more creative ideas for maximizing
their sales by adding alcoholic spirits in juices and smoothies for creating healthy options to wine
bar. Therefore, for adding things in business, thriving enterprise need sufficient amount of funds
as well as essential to get aware about various kinds of financial transactions by considering
relevant materials. This will help in controlling the probabilities of future loss which might
incurred due to the mismanagement of capital (Bowie and et. Al., 2016). However, numerous
kinds of financial transactions can take place in day-to-day business from which some are
important one such as;
 Sales- As per this element, thriving firm needs to record the sales of healthy salads and
juices either cash or credit. All the amount of selling is going to mention under this
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transaction so that company can estimate the per day sales and make corrective
calculations.
 Purchase- This concept shows that amount which is buying by any person or business
will fall under this transaction. Therefore, all the purchasing of materials such as;
thriving firm requisite to purchase vegetables, fruits for making salads, milk for
preparing juice and various other items then that amount need to record under this
transaction. However, source document which is used in purchase for transactions
recordings is said to be as invoice.
 Receipts and payments- It is also one of the major type of organizational transaction
which is fully rely on summary of genuine cash receipts and payment. Although, these
amounts are going to be extracted from cash book over definite time frame.
Moreover, it has been analysed that IAS regulation which is design by legal and
government bodies is essential for consolidated financial statements of firm. Additionally, FRC
(Financial reporting council) is liable for designing a specific accounting standards in order to
minimize the probabilities of minutes or major errors during transactions recording (Martinez,
2010).
2. Principles or methods of managing and monitoring financial performance of business
Monitoring of financial performance means that firm wanted to improve their short and long
term decisions by creating things more certain or specific. In fact, it encourages business towards
healthier and fastest growth rate by analysing the existing presentation of an organization in
order to take immediate steps accordingly. Therefore, as per the scenario, thriving enterprise or
overall hospitality industry needs to identify the method for monitoring business performance for
taking further steps. Thus, some of the useful and appropriate tools for managing as well as
monitoring financial performance of entity are described as follows-
 KPI (Key performance indicator)- This method is a most utilized tool in hospitality
industry because it performs as a rule to identify key financial drivers like; foods &
beverages or any other amenities. As per the given circumstances, firm requisite to
calculate, assess and evaluate the situations for acquiring success opportunities by
implementing changes in their business operations (Nelson, 2018).
 Cost-to-profit ratios- This factor can measure via selling cost which is charged on based
time 100. Basically, main target of firm is to convert the overall selling cost into
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maximum profit. This will guide the firm for acquiring adequate amount of profit by
selling delightful and healthy drinks to the customers.
 Return on investment (ROI)- It’s a most used factor for determine business financial
performance and easy to calculate too. This shows the primary ratios or initial investment
of business which aids in measuring the existing performance of entity. Simply, it
measures the return value on initial investment by comparing these two factors with each
other.
Consequently, these above elements are very much helpful in understanding the current
performance of an organization by calculating various values such as; business returns on
investments, per day sale and so on.
3. Principles of double entry bookkeeping system
According to accounting standards, double entry bookkeeping is a system where each
entry which has been done requisite corresponding or it can be an opposite entry in a different
account. Basically, double- entry is having a two same as well as equivalent sides which are
known as debit and credit. Left hand side is for debit and right hand side is for credit in that debit
maximizes the overall quantity of financial value whereas credit minimizes the value during
asset account. On contrary to this, if there is a liability account then credit side will increase the
value of account whereas debits is responsible to decrease it. Therefore, corresponding entry is a
major principle of double entry bookkeeping that needs to be considered by an organization
while handling financial statements (Foster and Carver, 2018).
One of the major basic principle is Assets= Liabilities + equity.
Sale- According to this set rules, every transaction in accounting is having an equal and
opposite influence on two different accounts. Therefore, sales which has been done via credit are
mentioned in income statements as well as balance sheet too.
Debtor A/c…………. Dr
Receivable A/c………Dr
To sales A/c…….CR
Cash receipts- Its really indispensable to post reference column which is going to utilized for
entering into subsidiary account or any general account book to that entry is related. Mainly, in
hospitality industry, received cash needs to be recorded in accounting books such as; debited
amount is requisite to post as a cash in the value of currency received.
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4. Produce basic Trial balance, its steps and purpose
Trial balance is a list of every general ledger accounts which covers both revenue and
capital too. Basically, this list included the name of every nominal ledger account as well as
value of same nominal ledger balance. Every account of nominal ledger is holding either balance
of debit or credit (Silverstein, Samuel and DeCarlo, 2013).
Trail balance
Particular Debt Credit
Cash 22500
Inventory 25000
Rent 1500
Wage expense 750
supplier expense 500
Long term liabilities 20000
Account payable 14500
Common stock 10000
Revenue 5750
50250 50250
According to the financial standards, accounting section follows an appropriate step for
designing a trial balance such as-
 Initially, it’s important to design a workbook which bifurcated into a three column.
 Further, it’s time to put titles of account for recording the balance in both the sides; credit
and debit.
 Now add the amount of debit and credit.
 Lastly, it’s time for comparing the both whether its equal or not.
Consequently, main purpose of designing trial balance is to ensure that entries associated
with accounting are done in general ledger needs to be precise balanced. This can help an
association by assisting towards rectification in order to pass a new journal for providing
accurate debit and credit to original accounts. Additionally, it’s really significant to cancel the
influence of wrong debit through reverse process (Kennedy-Glans and Schulz, 2010).
5. Types of cost and how it can be managed for influencing financial performance
Cost accounting is type of process which is used in finance for calculating various kinds
of costs which are linked with business that includes both fixed and variable. Basically, main
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motive of accounting related with cost is to guide managerial team while decision making
process. Some of the major costs which are included in accounting are described as below-
 Direct costs- These are associated with producing products and services which include
raw materials, human labour and expenses like; distribution of items. These prices are
simply traced via product, sections or project such as; thriving enterprise is preparing a
healthy salads then direct cost which is liked to this are salary paid to worker who is
making and expense of materials which are used (Fairley and Zipp, 2010).
 Indirect costs- These are not linked with producing of goods and it’s really hard to trace
these expenses such as; amount of electricity used by worker for preparing the healthy
juices with smoothies.
 Fixed costs- These expenses never changed with the change in other items such as;
amount of rent.
 Variable cost- These expenses always change according to fluctuation in other element or
level of production output.
Therefore, entrepreneur of an organization need to compare the original financial result with
budgeted or estimated one for taking immediate actions in case of any fluctuations as this will
surely affect the business performance.
Calculation of Profit margin
Particular Amount
Revenue 50000
Cost of goods sold 29000
Gross profit 21000
Gross profit margin
21000/50000 0.42
Profit margin
0.42*100 42
6. Importance of accurate recording transactions
Journal entry is all about recording financial happenings or transactions into a journal
such as; details of transactions which has been incurred in business as well as making the notes
of affecting one. However, it’s important for owners to record regular transactions of their
business for reducing the probabilities of future errors as it will help during decision making
process. Along with this, recordings are also maintaining as a reminder of an individual’s
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deductible expenses or credits. As per the GAAP accounting standard, it is essential for investors
to make corrective judgments wherever investments have been taken place by maintaining
consistent recordings of incurred cash inflow or outflow (Brotherton, 2015).
7. Conclusion for evaluating role of financial management and recommendations
In a given scenario, thriving enterprise wanted to extend their undertaking by introducing
creative ideas in their healthy juices for seeking the mind of desired users. Thus, it is essential for
firm to acquire support from financial management for establishing their strong brand image at
marketplace. Mainly, information regarding finance aids an association during decision making
process as firm come to know about the bifurcation of statements related with accounting and
forecast things in a very positive way. As a result, this will surely improve the firm performance
by effective monitoring of every situation. Additionally, stocktaking is a one of the most
significant physical verification tool which are useful for inventory and aids association in
transferring audit of existing stock (Fettermann and et. Al., 2017).
ACTIVITY 2
1. Review of stages of HR life cycle
Human resource is a most indispensable element for hospitality industry because all the
business activities are accomplished by employees from which company get succeeded in
attaining their set targets in a defined time. According to the given scenario, it is essential to
focus on employee involvement because Radisson is a very well-repudiated firm by having large
number of chain in hospitality industry. In fact, this firm is famous for its services and goodwill
at global market due to which it is important to concentrate on employee development for
maintaining a smooth functioning at workplace. HR life cycle is a concept in personnel
management which highlights the different phases of employee’s duration in an entity and
describes the liabilities of employee at every stage (Duarte Alonso and et. Al., 2013). Therefore,
various stages of HR life cycle are discussed as follows-
 Recruitment- It’s an initial phase where recruitment team is searching for qualified and
eligible candidates for filling the position of Radisson. Thus, HR department has
designed different strategy for seeking the mind of eligible candidates such as; use of
social media, attracting with events, parties and so on.
 Selection- In the second phase, it’s time to select the best candidate for specific position
at workplace by considering relevant factors like; qualification, experience, capability,
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communication style, eligibility, personality and so on. Therefore, candidate is going to
entirely scrutinize in this stage because firm is offering best things to the employee then
expectation is must.
 Orientation- It’s time to get familiar with business environment and know about the
culture of Radisson for shaping employee as per existing surrounding. This stage
introduces an employee in front of entire staff members for getting involved with them.
 Retention- In this stage, employee need some change and firm is going through
additional cost such as; Radisson believes in offering best amenities and services to their
long term employees and so on. Additionally, an organization also need to conduct some
motivational programmes in specific time for encouraging previous employees towards
long term relationship (Nayak and Taylor, 2018).
 Exit- At the end, either an employee can leave the job or accepted the situations with full
of additional benefits. In maximum stages, newly hired employee leave the job as gaining
experience is a major reason behind joining or there might be learning too because
candidates join in hotel as an intern also.
2. Evaluation of every stage of HR life cycle and importance of HR plays in supporting
Human resource life cycle is a phase which shows the entire overview of an employee
from beginning till end with a firm. Main objective of life cycle is to highlight the things from
which an employee has gone and what are the things he/she has learned, gained, faces challenges
or many more. Although, it’s not easy to mention it entirely but things have been mentioned in a
short phrase which describe the behaviour of a person, way of communication, nature towards
other colleagues, friend circle and many more. It means that every stage is having its own
importance and effectiveness towards employee.
Every firm wants to attract right person for a right job so that operational activities can be
accomplished in corrective manner. As a result, first stage of employee take place in which
company is trying to grabbing the mind of candidate with their best offerings such as; high
salary, leaves, additional benefits, medical facilities and so on. By this stage, company and
candidate both come to know about each other for taking corrective steps. After that, firm needs
to conduct a professional method for selecting a right employee for right place by analysing in
360-degree mode. It helps in understanding candidate and firm that they are suitable for each
other or not so that correct decision will came out whether it’s positive or negative. Then, after
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placing a right people, it’s time for orientation in which first day introduction is taking place so
that existing employee can meet with new one and try to get involved. Now, employee demands
for a change in order to continue long term relationship with firm by acquiring more benefits.
This stage consume heavy range of expense as employee is demanding this time and at the end if
he/she get convinced then stay with firm or not then leave it for acquiring further experience. As
number of candidate join hotels for completing their 45 internship or summer camp or so on due
to which it’s really hard to understand the consistency of employees (Sipe, 2013).
All the above activities are possible due to the significant role of HR as this department is
responsible for supporting, monitoring and helping employees in different situations. Along with
this, organize number of activities for staff members in order to maintain a healthy environment
at workplace. HR gives a corrective feedback to the employee so that they can change it
accordingly.
3. Performance management plan for supporting specific job role
Table of clarity
Results in
percentage
Job satisfaction (Role clarity, conflict and
content)
Role clarity 60.00
Clashes 52.00
Content 50.00
Performance feedback
Complication 52.00
reversibility 20.00
Time of
communication 56.00
Employee perception on the basis of their
performance
Role play 20.00
Animation 20.00
According to the tabular representation, it has been understood that reviews which is
done yearly for employee’s performance are really beneficial because this help in enhancing the
capabilities. Along with this, an individual can learn numerous of things via review by
identifying own strength and weakness as tries to overcome it by taking corrective steps. As a
result, new plans will design for more improvement and try to reduce the issues of employees for
encouraging them towards future growth (Melissen and Sauer, 2018).
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4. Recommendations on improvement of HR life cycle stages
HR life cycle stage is most appropriate tool for improving the performance of employees
because it helps in identifying hidden success obstacles and make sure that all the weakness is
going to overcome in a minimum duration. Therefore, it’s important to impose some legal laws
at workplace for managing employee issue such as-
 Grievance issues- Number of nuisance has come out in hospitality industry which needs
to improve via legal norms.
 Fair labour standard act 1938- It’s a significant legitimate act which prevent staff
members from various types of workstation issues like; minimal pay or security and
many more.
ACTIVITY 3
1. Legislation which is adhere in daily business transactions
Legal bodies are responsible for enacting distinct legitimate laws and provisions for
smooth functioning of hospitality regular transactions. There are some of rules that needs to
followed by company for reducing the chances of mistakes are-
 Keeping consumers safe- There are some food and security laws are enacted by legal
bodies in context with hospitality industry. Its main objective is to support users with
immediate need and follow every rules in order to firm can free from lawsuits and fines.
Therefore, it is essential for hospitality sector to offer hygiene food to the users for
controlling the probabilities of life taking disease.
 Record keeping- One of the most significant task which is prescribed by legal bodies,
financial departments and standards as well as various other factors to maintain the
record of regular transactions for reducing the chances of confusion that might incurred
due to too much information.
 Environment legislation- Hospitality industry is going through various paths from which
surrounding get affected that resultant in very dangerous disease. Therefore, hospitality
firm requisite to engage with issues for solving it as soon as possible (Melissen and
Sauer, 2018).
2. Impact of organizational employment and contract law in business decision making
Legal bodies involved in amending several legal norms, provisions, rules responsibilities
for protecting employees, employers and entire firm. Mainly, legislation always tries to prevent
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employees from getting exploited at regular basis. Some of the essential legislation and its
impact on organization is described as follows-
 Data protection Act 2018- According to this provision, an organization is responsible to
protect the information of employees from getting misused and need not required to share
the data with others.
 Confidentiality- This helps in establishing the dignity for those members whose are
performing job role for health and social services. For example; Health records of 1990
offers some certain rights for employees whose data are confidential protection that if any
misused can happen then the person can claim.
 Equal opportunity act 1972- This provision offers an equal success and growth
opportunity to the employees whose are performing at workplace.
3. Potential implications of any two regulations on standards
According to IT protection provision, agent who is having a confidential information
need to make sure that preciseness of data must maintained and tries to protect employees from
harmful effect. In hospitality industry, online network is a top most priority because it helps in
accomplishing activities in much better manner. For example; online shopping with the use of
online application through digital network but at the same time possibilities of hacking has also
been increased due to which legal bodies have enacted Cybersecurity law. As per the IT act
2000, information safety and security of employees or customers must have maintained (Moeti,
2016).
4. Critical reflection on impact of ethical issues of regulations, legislations and principles by
determine two ethical issues and make valid judgments or suggestion
Business ethics shows the honesty of an organization through which firm is performing
their business activities without harming any other people at marketplace. Therefore, it’s a kind
of moral principles and ethics that needs to be followed by firm as well as human being too for
controlling the chances of wrongful activities. As a result, every company is applying business
ethics for smooth working. There are number of ethical issues has raised but two of them are;
shortage of skilled employees and security issues. Thus, it is essential for hospitality enterprise to
come up with safety measures for minimizing the negative influence of issues. Legal bodies
enact all the rules, regulations, legislation and principles so that an organization can run their
business entity without much more exploitation or problem (Beard, 2010).
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ACTIVITY 4
Covered in PPT
CONCLUSION
From the above report, it has been summarized that hospitality industry becoming too
much successful in coming era with their proper coordination, integration and attentiveness
towards every aspects of business. This project states that hotels are trying to follow every
essential factors for attaining their set targets in a given time period. For example; understanding
financial department, types of costs, HR policies, legal laws and communication tools. All these
aids hospitality firm in gaining competitive advantage by offering best quality to the end users.
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REFERENCES
Books and Journals:
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CENTER-CORPORATE SOCIAL RESPONSIBILITY: CASE STUDY ON
HOSPITALITY BUSINESS SECTOR IN INDONESIA. In Proceedings of The
International Conference on Social Sciences (ICSS) (Vol. 1, No. 1).
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 Martinez, J., 2010. Doing it your way: the industrial engineering toolkit can build
profitable, hospitable foodservice sites. Industrial Engineer, 42(3), pp.28-34.
 Nelson, G.S., 2018. The analytics lifecycle toolkit: A practical guide for an effective
analytics capability. John Wiley & Sons.
 Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education, 16(2), pp.143-153.
 Silverstein, D., Samuel, P. and DeCarlo, N., 2013. The innovator's toolkit: 50+
techniques for predictable and sustainable organic growth. John Wiley & Sons.
 Kennedy-Glans, D. and Schulz, R., 2010. Corporate integrity: a toolkit for managing
beyond compliance. John Wiley & Sons.
 Fairley, S.G. and Zipp, W., 2010. The Business Coaching Toolkit: Top 10 Strategies for
Solving the Toughest Dilemmas Facing Organizations. John Wiley & Sons.
 Brotherton, B., 2015. Researching hospitality and tourism. Sage.
 Fettermann, D.C and et. Al., 2017. The benchmarking of the use of toolkit for mass
customization in the automobile industry. Benchmarking: An International Journal.
 Duarte Alonso, A and et. Al., 2013. Website and social media usage: Implications for the
further development of wine tourism, hospitality, and the wine sector. Tourism Planning
& Development, 10(3), pp.229-248.
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 Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’
perspective. Worldwide Hospitality and Tourism Themes.
 Sipe, L.J., 2013. Leadership for innovation in the memories business: A mixed methods
study of a hospitality and tourism marketplace. University of San Diego.
 Melissen, F. and Sauer, L., 2018. Improving sustainability in the hospitality industry.
Routledge.
 Morritt, R. and Weinstein, A., 2012. Segmentation strategies for hospitality managers:
Target marketing for competitive advantage. Routledge.
 Moeti, M.E., 2016. The development of a business social responsibility (BSR) model to
promote the long-term sustainability of hospitality SMMEs in the Free State
region (Doctoral dissertation, Bloemfontein: Central University of Technology, Free
State).
 Beard, C., 2010. The experiential learning toolkit: Blending practice with concepts.
Kogan Page Publishers.
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