The Hospitality Business Toolkit: Financial Transactions, HR Life Cycle, and Legal Compliance

This document discusses various aspects of the hospitality business, including financial transactions, managing financial performance, HR life cycle stages, talent retention, and legal compliance. It provides insights into the principles of managing and monitoring financial performance, the role of HR in supporting talent growth, and the legislations that hospitality companies need to comply with. The document is based on the case of The Savoy hotel, a luxurious hotel in Central London.

Unit-4 The Hospitality
Business Toolkit

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
About financial transactions through types of source documents along with recording
process........................................................................................................................................1
Principles of managing along with monitoring financial performance...............................1
Principles of double entry bookkeeping system of debits as well as credits from
operations...................................................................................................................................2
Trial balance with sample data................................................................................................3
Types of cost along with how they could be managed to influence financial performance
of business..................................................................................................................................3
Relevance of correct recording of transactions in line through accounting principles......4
Critical evaluation of role of financial management as well as monitoring in
accomplishing growth with recommendations.......................................................................4
TASK 2............................................................................................................................................5
Stages of HR life cycle...............................................................................................................5
Evaluation of stages of HR life cycle and relevance of HR plays in supporting, growing
as well as retaining talent applied............................................................................................5
Performance management plan...............................................................................................5
Valid judgement as well as recommendations on how processes at stage of HR life cycle.
.....................................................................................................................................................5
TASK 3............................................................................................................................................5
Legislations that hospitality company has to comply to transactions of business..............5

How company’s employment as well as contract law along with impact on business
decision making.........................................................................................................................6
Implications of regulations.......................................................................................................6
Critical reflection on impact of ethical issues of regulations, legislations along with
principles by determining ethical issues..................................................................................7
TASK 4............................................................................................................................................7
Functional roles along with how they interrelate...................................................................7
Various communication methods as well as levels of company............................................8
Review of coordination and integration in business..............................................................8
Effectiveness of communication methods along with how it could accomplish company’s
goals............................................................................................................................................9
Valid judgements and recommendations................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality sector is defined to a service sector that focuses on providing various services
which are associated with lodging, travelling, accommodation and so on. hospitality sector deals
in providing a sense of comfort along with welcoming their customers (Heenop, Munro and
Chmela-Jones, 2019). As main focus of hospitality sector is to enhance satisfaction level of
customers by increasing their experience. As hospitality sector is not only concerned through
providing different services to customers along with it consists of various activities as planning,
analysing as well as coordinating different operations in a effective manner. This report is based
on hospitality business toolkit where various operations of hotel is carried as it is based on The
Savoy hotel which is the luxurious hotel located in Central London. This report consists of
researching how to manage along with record various transaction to minimise cost, assessment of
how to manage human resource life cycle in terms of HR strategies, potential impact of legal and
ethical consideration, patterns of co-ordinate action and integration in different functions of
department in hospitality sector along with its conclusion.
MAIN BODY
TASK 1
About financial transactions through types of source documents along with recording
process.
Financial transactions refer to an agreement as well as communication which is carried
between a buyer as well as sailors in terms of exchanging of an asset for payments. It consists of
change in status in finance of two or more than two businesses (Martins, 2020). As buyers as
well as trailers are considered to be separate identities for creating out objective that consists
exchange of items of value such as information good services and money. Financial transactions
could be recorded in different source documents as double entry systems, balance sheet and so
on.
Principles of managing along with monitoring financial performance.
It basically refers to a level of performance that could have by company over a specific time
scale in order to have profit or loss. It is very essential to evaluate financial performance that
could allow companies to judge their financial position along with analysing their business
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strategies that could result in having active monetary terms. In terms of The Savoy hotel
principles of monitoring as well as managing financial performance of hotel that supports in
having effective business strategies are as follows:
 Preparation of inventory record: As this principle will be beneficial for Savoy hotel to
keep their records related in terms of inventory as well as other things which are
purchased by them. This principle is beneficial in identifying total wastage which is being
in curd while transaction is being made so that future wastage could be monitored and
minimised.
 Making of financial statements: As which principle helps in making basic report which
hotel should maintain in terms of balance sheet as well as profit and loss account as they
provide an overview of financial position within a specific year (Aprill and O’Neil,
2019). This principal is beneficial for Savoy hotel is it helps in identifying areas where
cost of business could be kept minimise by avoiding extra expenses.
 Analysis of overheads: There are various extra expenses that are not related to operations
which are carried by The Savoy hotel but it is needed to be paid. As by keeping record of
overhead Savoy hotel will be able to manage their funds so that more expenditures will
not be able to affect profitability of business.
Principles of double entry bookkeeping system of debits as well as credits from operations.
There are significant principles that are implemented in books is bookkeeping system
which are said to be separate entity concept by which company will be able to focus on their own
legal articles. In addition, principle which are associated with accounting equation are term to be
assets – liabilities= capital. Ban of double entry bookkeeping system helps in defining which
transaction that could impose as trait effect on other transaction that could be said to be a dual
effect.
Assets Amount Liabilities Amount
Insurance 1200 Current liabilities 15000
Current assets 52000 Fixed liabilities 54490
Fixed assets 94000 Capital: 30000
NP: 47710 77710
Total 147200 Total 147200
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On the basis of above given balance sheet of organisation, it is assessed that all principle
related to bookkeeping system must be followed by finance department. The organisation makes
sure to maintain balance sheet according to need and wants.
Trial balance with sample data.
Particulars Amount Particulars Amount
Rent 1000 capital 30000
Purchases 10000 Food supplies 2000
Insurance 1200 Sales 20000
Petty expenses 200 Sales of beverages 13000
Telephone and internet 2200
rates, water charges and
refuse 950
wages and salaries 1740
Net profit 47710
65000 65000
From trial balance all vouchers and receipts are determined in terms of different
transactions which are being recorded in journal books. All transactions should be tracked as
well as analysed in ledger book according to their nature of transaction (Mitchell, 2018). As
main motive of keeping trial balance is determined according method which is properly carried.
By having trial balance Savoy hotel could handle their all roles which are been carried as per
requirements of entity. As if total of both side should be equal then recording of transactions
could be identified as accurate that could be able to determine process of recording which are
systematically carried.
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Types of cost along with how they could be managed to influence financial performance of
business.
There are different types of cost which takes place in company e as a administration could
impose to track all transactions to explore various operations as well as functions of business
company in an efficient way. In terms of Savoy hotel company concentration on variable should
be fixed as well as semi variable cost. Therefore, all cost should be filtered as per nature along
with paying off according to needs and wants of company.
Net profit margin instance:
NP margin = NP / Sales revenue*100
= 25000/105000*100
= 23.80%
Gross profit margin example:
GP margin = GP / Sales revenue*100
= 18500/105000*100
= 17.61%
Relevance of correct recording of transactions in line through accounting principles.
It is essential for company to align or kinds of transaction which are to be adapted as
principles of accounting. As in addition principles of correct recording of process are basically
adapted as per debit and credit side which is equal in order to improve investment of company.
In terms of the Savoy hotel they should follow all kinds of principles that could result in
enhancing profit margin within a specific period of time.
Critical evaluation of role of financial management as well as monitoring in accomplishing
growth with recommendations.
It has been critically evaluated that finance is considered to be a necessary and indispensable
section of company. As it is crucial for company for having profit making as well as to sustain
themselves for keeping in a long run without having proper finances. In terms of The Savoy
hotel role of financial management along with monitoring in achieving their growth are as
follows:
 Making financial decision as well as making control.
 Having a proper cash flow management
 Keeping specific capital Management buy allocation as well as utilising
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In order to accomplish growth, it is recommended to Savoy hotel that they should accurate
and proper recording of transactions so that their decisions in terms of financial cost would be e
taken easily by checking out all the cost and financial position of company.
TASK 2
Stages of HR life cycle
As HR life cycle generally consists of various stages which every employees performs and
goes through (Bothun, 2019). As in terms of Savoy hotel various stages of life cycle that are used
in hotel consists of recruitment, education, analysing motivation of employees, evaluating
formation of employees that are working there and appraise them on their higher performance
that could boost their performance as well as moral in order to provide effective services to their
customers.
Evaluation of stages of HR life cycle and relevance of HR plays in supporting, growing as
well as retaining talent applied.
There are various stages that are involved in HR life cycle for having a job role in front office
manager in hospitality sector. In terms of hotel various stages of HR life cycle which are being
evaluated are as follows:
 Attraction: This stage relies on having level of family arity of individual that creates in
company as it takes of different shapes and sizes. It shows relevance of employee
branding which is affected by individual’s communication while working as an employer
and employer should be concerned with branding that could be also affected by former
employees of company in Savoy hotel.
 Recruitment: In this stage of HR life cycle for carrying out method of recruitment of job
duty of front office manager targeted of suitable and proper workforce is posted for
attracting skilled and talented employees for job role in Savoy Hotel.
 On boarding: This stage of HR life cycle is concerned where relationship among and
employee and employer is performed. In terms of Savoy hotel this is state is carried after
face of employment contract which is performed by person that could be applied for front
office manager as well as employer.
 Retention: As this stage in Savoy Hotel keeps inconsistency of employees by keeping
them motivated towards their work so that they could be able to increase their employee
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turnover by carrying out different tools in terms of technology as well as providing
effective culture.
 Development: This stage disease in developing opportunities that could be provided to
employees with the aim of improving their skills in terms of learning so that they could
be able to provide effective services to their customers.
As retention as well as development of talent of employees is very difficult as it motivates
individuals to perform their job with higher performance and when they are motivated towards
their work they will be able to serve Savoy hotel more efficiency and brand image could be
maintained in markets
Performance management plan
Performance management plan involves different objectives that are to be accomplished for
improving performance of a personnel. As being a front office manager performance
management plan has to carry and meet different objective that could be lead in defining
individual goals in terms of fulfilling their objectives of company. Ash when performance
management plan is being design it is very difficult to identify different issues which are
associated with negative behaviour as well as staff retention. As when different issues are
determined in company of hospitality sector next operation is to solve issues so that enhancement
could be carried by different tools. As in terms of Savoy hotel various ways to solve problems of
inappropriate behaviour as well as employee turnover are as follows:
 Control over work: As employee should be given a proper independence in order to take
initiative in various framework of policies as well as procedure. It leads to enhance its
moral of employees.
 Freedom to express views: As employees of Savoy Hotel should be provided with full
independence in order to take initiative in terms of framing out their policies as well as
procedures to perform their duties that could enhance their morale level of employees.
 Trust as well as respect: As an employee should be treated according to feelings of trust
along with respect as per an effort along with performance of company.
Valid judgement as well as recommendations on how processes at stage of HR life cycle.
It has been analysed that there are some of recommendations that could be used by a hotel in
order to enhance their HR life cycle (Santa, Ribeiro and de Andrade Guerra, 2019). As by
recruiting effective and skilled workers by using various HR practices such as recruitment, on
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boarding as well as attention along with development of customers could be beneficial for hotel
to enhance their working operations.
TASK 3
Legislations that hospitality company has to comply to transactions of business.
As for having effective management of operation it is important for Savoy hotel consider all
the laws as well as regulation in terms of functions which are wearing carrying out that could
help them in having free from any legal issues. In terms of Savoy Hotel some of legislation that
could be used by hotel are as follows:
 Alcohol licensing act 2003: As this law gives various guidelines to Hotel sectors which
are associated with sales as well as supply of alcohol for provision of late night parties as
well as entertainment. Breaching of these directions could lead to suffer from legal
compliances that would affect Goodwill of company. In terms of Savoy hotel, company
could restrict use of alcohol for teen age as well as children that is harmful for them. And
the support in giving out safety regulations which are associated with health or food to
children who visits their hotel before serving it.
 Management of health and safety at work regulation: This law should be ensuring by
Savoy hotel to have safety of their employees while carrying out their operations as well
as directions that are provided by law. As hotel should ensure that there are all
instruments as well as assets are to be performed in a correct way without harming
anything.
How company’s employment as well as contract law along with impact on business decision
making.
In terms of Savoy hotel there are some rules as well as regulations that could create an
impact on company and its employment along with contract laws in decision making in
hospitality sector which are as follows:
 Company law: As this legislation is related to standards as well as code of conduct which
should be followed by hospitality company in order to make decisions. As Savoy hotel
should use this law in their decision making process for considering their guidelines that
are provided by government in terms of carrying out various legal issues.
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 Employment law: As this legislation helps in regulating relations among employer as
well as employees by governing terms and conditions that are related to different work
activities which are carried out by Savoy hotel in terms of hiring new employees (Wang,
Li and Yuan, 2019).
 Contract law: This law mote in providing a legal framework for various parties that
consists of different agreements in order to solve their disputes as well as regulate their
obligations in terms of contract which is being carried by Savoy hotel.
Implications of regulations
There are various implications that could be faced by Hotel industries in terms of violating
various laws and regulations. In terms of Savoy hotel if any rules and regulations in terms of
company employment as well as contract law which has been piloted by carrying out for
practices it could be harmful for hotel for carrying out their business practices in corporate
markets. There are various fines and penalties which could be imposed on them by violating their
regulations.
Critical reflection on impact of ethical issues of regulations, legislations along with
principles by determining ethical issues.
It has been critically reflected that ethical issues of regulations along with legislation has
created and wide impact on hotel industries. As in terms of Savoy hotel there are various impact
which could be stated bye violating any ethical law. Some of ethical issues that could be
occurred in hotel along with dishonest cleaning practices that could be occurred in hotel in terms
of customers which are staying at Hotel. So it is necessary for hotel to resolve these issues on
ethical notes in order to make their customers satisfied. As by carrying out this legislation help
hotel in building out an enhance and effective workforce so that these issues could be resolved
when it occurs.
TASK 4
Functional roles along with how they interrelate.
As hospitality sector perform their operations towards having better services for
accomplishing better satisfaction of customers. So in order to provide effective as well as
satisfaction level of customers Savoy hotel should ensure that there should be a proper
interaction as well as interrelationship among various functional department is to be carried as
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due to operation of accommodation with catering services it is necessary for hotel to carry their
interrelationship with these departments.
 Finance as well as marketing: As both functional unit of Savoy Hotel are to be
interconnected before they carried their work in any action (Bhabha, 2018). As manager
of Marketing department should consult with finance section due to carrying out there
any activity e which is related to finance for performing out various transactions.
 Front office as well as housekeeping section: As Savoy Hotel should ensure that there
should be specific and systematic interaction which is to be carried among unit for having
improper communication that could affect quality of services. By keeping a proper
corporation in Siva Hotel company will be able to provide effective services and
experience to their customers by carrying out front office and housekeeping services such
as on boarding to checkout of customers.
Various communication methods as well as levels of company.
There is various communication method that could be used by company in order to have
effectiveness by performing out their desired performance standard by their employees of
company. as communication is referred to a method of exchanging information by writing, using
other channels as well as speaking out. Communication plays an important function in company
as it benefits hotels in keeping their employees aware about their activities which are to be
performed by them (Kim, Zheng and Schrier, 2018). In terms of savoy Hotel there are various
communication methods which could be adopted by hotel in order to make communication
which are as follows:
 Meetings: As by implementing meetings as a communication medium in marketing
taxation of hotels it could be able for them to communicate in terms of relating to their
promotional plans as well as other marketing task which are to be performed by hotel for
getting reviews as well as feedback about their services for having a positive brand
image.
 Emails: As this communication method is used by Savoy hotel for communicating with
other departments for carrying out their business operations in terms of decision making
or carrying out any task.
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Review of coordination and integration in business.
As coordination is referred to a method of synchronising as well as integrating of various
operations that could be able to accomplish positive outcomes in hospitality industry. As in terms
of Savoy hotel in order to achieve success in marketplace Hotel should ensure a proper and
effective coordination among their operations that could be performed and carried out by their
employees by different methods which are as follows:
 Effective communication: As this factor helps marketing section of hotel in order to
carry out coordination between employees to have effective communication as beneficial
for company to influence as well as keep their employees motivated towards working as a
team (Molefe, 2020).
 Sound planning: As by designing systematic planning as well as Marketing department
of Savoy hotel could be able to assign various performance of their employees by setting
out targets that could be beneficial for their marketing section to bring out coordination as
a team.
Effectiveness of communication methods along with how it could accomplish company’s
goals.
As by different methods which could be used by manager of a hotel that could be able to
make them systematic and accurate policies to carry out their business practices effectively.
Communication plays an important role in terms of coordinating of various operations that could
be followed by hotel terms of monitoring.
As monitoring is referred to a process of observing as well as checking out performance of
employees over a specific time scale. Various methods that are used by Savoy hotel in
monitoring which are as follows:
 Performance appraisal: As in this method marketing section of Savoy Hotel could
evaluate the performance of employees along with compare their planned performance to
the actual performance so that required changes could be carried.
 Formal surveys: As this method is basically focus on collecting data and information
from present employees in order to identify actual situation as well as factors of
performance difference of Hotel. As by identifying information in marketing section
Savoy Hotel could be able to determine their area of enhancement.
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Valid judgements and recommendations.
As in order to co-ordinate as well as integrate performance of Hotel it is necessary for
hospitality sector to have a better communication as well as coordination in their business
operations so that they could be able to achieve their desired objectives by providing effective
customer satisfaction to their customers (Sriprahastuti, 2018). In terms of Savoy hotel, it is
recommended to hotel to use proper coordination as well as communication methods in their
operation so that their work as well as job duties that are to be carried by employees are to be
performed well.
CONCLUSION
It has been concluded from above report that there are various stages of human resource life
cycle for creating out different job duties. And it consists of attraction, recruitment, on boarding,
retention as well as development. It is essential for company of hospitality sector to retain their
employees around with develop their skills to required talent. This report explains about various
activities which are used as a type of tool kit in order to perform various business activities by
developing performance management plan for resolving various challenges like negative
behaviour as well as staff retention. Report explains about different investigation of how to
manage financial resources along with managing transactions for minimising cost along with
impact of ethical as well as legal considerations that are to be taken care while running business
in hospitality sector.
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REFERENCES
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