The Hospitality Business Toolkit

This document provides an overview of the principles of managing and monitoring financial performance, double entry book-keeping system, HR life cycle, and specific legislation in the hospitality industry. It also discusses the impact of employment and contract law on business decision making. Find study material and solved assignments on Desklib.

Unit 4
The hospitality
business toolkit

Contents
INTRODUCTION........................................................................................................... 3
TASK 1......................................................................................................................... 3
Principles of monitoring as well as managing financial performance...........................................3
Double entry book-keeping system.................................................................................... 4
Trial balance by applying the use of balance off rule..............................................................5
TASK 2......................................................................................................................... 6
Stages of HR life cycle................................................................................................... 6
Performance management plan......................................................................................... 7
TASK 3......................................................................................................................... 8
Specific legislation that a hospitality organization has to adhere to.............................................8
How firm employment and contract law affect business decision making.....................................8
TASK 4....................................................................................................................... 10
Functional roles within hospitality sector..........................................................................10
Approaches of communication, coordination used within an enterprise.....................................10
CONCLUSION............................................................................................................. 11
REFERENCES............................................................................................................. 12

INTRODUCTION
In terms of hospitality business it is changing at a very fast scale and is a necessary as
well as significant aspect for each business organization to remain focused on market situations
so that all targets are achieved. There are various kinds of services which are provided like
lodging facilities, parking, accommodation services and many more. The report is based on
Accor hotel (Andreu and et.al, 2020). It is a French multinational hospitality company which
franchises hotels and resorts. They operate in around 100 countries and provide different
services. The report includes principles of managing and monitoring financial performance,
double entry book-keeping system, trial balance, HR life cycle, performance management plan,
and legislation imposed on Hospitality Company, impact on business decision making,
functional roles and different ways of communication, coordination within an organization.
TASK 1
Principles of monitoring as well as managing financial performance
It is essential for every company to accept all practices and principles in order to manage
and monitor financial performance on constant basis. In relation with Accor hotel, it is becoming
vital for them to implement a proper monitoring system to evaluate the performance financially.
There are different ways which are selected by taken hotel and it is further been explained as
below: -
 Record every transaction on regular basis: - In accordance with this principle the hotel
is to record each transaction in and out on continuous basis so that decision with respect
to expenses and finances are commenced properly.
 Understanding of market situations and risks: - In terms of this principle for managing
financial performance because through this it becomes easy for hotel to properly
understand about different situations and the occurrence of uncertain risks (Lobo and
Samaranayake, 2020).
Different business transactions in context with Accor hotel
Particulars Debit Credit
Bank loan 14000
Cash in hand 13950
Capital 15000
Rates 2000
Trade creditors 12200
Purchases 13000
Sales 14600
Sundry creditors 1450
Debtors 11000
Vehicles 6050

Bank loan interest 1300
Other expenses 10000
Total 57250 57250
From the above reflected information it is examined that principles of managing and monitoring
financial performance are necessary elements which helps business organizations to make
decisions and implement strategies accordingly.
Double entry book-keeping system
Book-keeping system refers to a double entry software system which is used by an
organization for recording financial data and transaction that are implemented within whole
business sector. There are various book-keeping systems like double entry or single entry. In
relation with ledger it is defined as an account which includes book-keeping entries in order to
prepare income statement transactions and balance sheet (Read and et.al, 2020). They both are
significant in context to debit and credit the amount so that all transactions are recorded
accurately. There are different principles being involved and is focused by Accor hotel. These
are being described as below: -
 Recording profits and expenses: - The recording of all the expenses as well as profit are
the top most priority principle in book-keeping system and is necessary because it
supports in managing all the costs which are associated and recorded within the business
and outside business activities.
 Principle of objectivity: - In context with this principle the accounts record only that
information of credentials which are confirmed and consistent (García-Rodríguez, Dorta-
Afonso and González-de-la-Rosa, 2020). Through this principle Accor hotel has the
capability of indulging with all the audiences easily.
From the above reflected information, it has been analyzed that the hotel should use book-
keeping system in terms of managing all recorded sales and buys the transactions which are an
advantage for achieving all goals and objectives.

Trial balance by applying the use of balance off rule
In accounting terms, trial balance means the recording and presentation of ledger
accounts in a systematic way by following right place and nature. So, to complete ledger it is
necessary for Accor hotel to prepare trial balance at initial stage. The trial balance and ledger are
combined with each other and in context with this all financial statements are prepared and
presented. It is been explained as below: -
Through the presented trial balance it becomes easy for a business organization to examine all
financial aptitudes in accurate manner so that hotel can make positive decisions.
Types of costs: -
 Fixed cost: - It refers to those cost that do not fluctuate with the level of output on the
basis of short term (Bowen, Erol and Scott, 2020). There are various kinds of fixed cost
which are available like in the form of insurance, depreciation and many more.
How to calculate: -
Fixed cost= Total production costs – (Variable cost per unit * Number of units
produced)
Effect on financial performance: -
The performance of business has a direct impact from fixed deposits of any hotel because
they make contribution in terms of better economy of scale. They are in relation with production
and within the company it also involves cost like rent and so on.
 Variable cost: - It is defined as those costs which change within the level of output and
also refers to the concept that total variable cost is dependent on the level of output
(Cenni and Goethals, 2021). There are various types of variable cost like direct labor and
so on.

How to calculate: -
Total variable cost = Total quantity of output * Variable cost per unit of output
Effect on financial performance
In terms of variable cost it creates an effect on financial performance of business
organization because when it diminishes gross profit margin also needs to increase.
 Balance off rule: - It means the matching of all facts and figures of debit and credit with
their amount and account gets moved to next year in terms of analyzing accounts
accurately ( Santamaría Molina, 2020). The main advantage of balance off rule is that it
helps in recording of data and overall information within the ledger trial balance and
other journals by Accor hotel.
Importance of recording transaction in context with accounting principles: -
It is necessary for each and every business organization to record transactions in terms of
accounting principles so that they have the capability of examining financial strengths and
weaknesses of a company and on the basis of these competitive strategies also get developed.
So, while preparing trial balance it helps organization to record whole transactions
through which the hotel is proficient of maintaining all the accounts in a proper manner.
Role of financial management: -
It is essential for business because it helps in controlling and monitoring all the activities
of business organizations in efficient way so that no consequences and conflict get arise
(Dyshkantiuk and et.al, 2020). The Accor hotel was also being suggested that they should check
all their financial activities in a proper manner in a systematic way.
TASK 2
Stages of HR life cycle
The reason behind the importance of human resource life cycle is that it helps front office
department as well as manager of Accor hotel to implement all roles and responsibilities with
proper considerations. There are different stages which are further been explained as below: -
 Attraction: - The initial stage of human resource life cycle is to attract talent and skilled
people towards the company by providing those different incentives, perks and many
more.
 Recruitment: - In accordance with the second stage the focus is on carrying out whole
recruitment procedure for the job role of front office senior manager. It is the

responsibility of them only to assure than the process of recruitment don’t involve much
time and is short in nature.
 On boarding: - At this stage both employee and employer enables a communal
understanding of relationship by signing out the contract of employment (Campiranon,
2021). In context with Accor hotel contract letter is offered to both employer and
employee with all documents.
 Enablement: - In context with this stage new workers get introduced to an organization
and they are also given the mission, vision and what are their roles and responsibilities.
 Development: - At this aspect the focus is towards development and enhancement of all
employees with regards to their long term goals that are tested and evaluated by all the
departments.
 Retention: - It is defined as the phase which helps all companies in examining their
employees and retains them for long period of time. Through this sustainability also get
increased.
 Separation: - It is the last stage of human resource life cycle which defines workers
retirement resignation at the time when they want to leave an organization. At this stage it
is assured by the management department that all policies are being appropriately
followed.
Performance management plan
Job role Time period Development
focus
Development
strength
Development
of need
Development
action
Senior
manager
June 2021-
October 2021
Improvement
and
enhancement
of skills of all
the employees
on daily basis
(Kirchgasler,
2020).
Interaction
abilities,
problem
solving skills
Ability to
deal with all
customers
and
identification
of demands
12 days
First line
manager
July 2021-
November
2021
Allocating
roles and
responsibilities
Providing
proper
training to all
staff members
Implementing
effective
decision
making
20 days
Recommendation: -
It was being suggested that Accor hotel should trail all happenings of management so that
it becomes easy for them to analyze what type of application is needed for all posts and whether
the skills associated with it is appropriate or not.

Importance of developing and retaining talent: - It is essential for every business organization to
retain their best skilled employees which helps to deal with all market situations and also
increase the level of sustainability for long period of time. In relation with Accor hotel it is the
liability of human resource department to develop talent so that all benefits which are associated
can be achieved.
TASK 3
Specific legislation that a hospitality organization has to adhere to
Legislation refers to various rules and regulations which should be followed by each and
every individual as well as an organization. Hospitality industry should focus on different
elements like in the form of corporate social responsibility, business ethics and many more. It is
further been explained below: -
 Health and safety act: - It is defined as an act which determines about managing and
maintaining the health of public by service industries (Chesterman and et.al, 2020). In
relation with Accor hotel they offer all facilities to staff members and people who have
completed 6months as per the employment contract.
 Food act: - It is a significant legislation which is essential to be efficiently followed by
Accor hotel because they deliver food and beverages to audiences at global level. In
accordance with this act the organization which provides food dishes then they need to
use both natural and organic resources including strong and healthy ingredients so that
each individual remains fit.
 Employment act: - It is also considered as an essential component which creates a direct
impact on hospitality industry. It defines about updating certain policies in employment
contract which are in association with all the subordinates like incentives, salaries and
many more.
As per the above information it has been examined that legislations are needed to be
properly analyzed within hospitality industry so that it is suitable for hotels to initiate all
the functions without any obstacles.
How firm employment and contract law affect business decision making
Each law in organization has an impact on corporation with regards to the workflow of
activities and the reason behind it is that it directly affects goals and objectives. Contract and
employment law are essential because without these laws no activity can be further administered
(Obozna and et.al, 2020). It is significant for Accor hotel to ensure that all the laws are followed
in an organized way. It is further been explained as below:-
 Company law: - It is defined as a law which administers how companies would be
getting informed and functioned. There are different approaches of contract law like one
Person Company and so on.

Impact: -
It is essential for Accor hotel because this law involves complete workflow and
procedures through which corporation can initiate their operations and all tasks. Besides this
it is also been examined that the taken hotel should follow this law so that they become
capable of monitoring and managing all the activities at a global level.
 Employment law: - It refers to the law which includes certain rules that are implemented
by government and also affect hotel industry because it involves policies which are
related with employee work roles, wages and salaries and so on.
Impact: -
Employment law also creates an impact of hospitality industry if it is not properly
followed then it can affect the relation between both employer and employee on large scale basis.
 Contract law: - It is applicable to those organizations on the basis of certain contracts by
buying and selling of goods and services on continuous basis (Al Mahameed and et.al,
2020). It is necessary for selected hotel to manage whole contract law so that no
consequences get arise by following the procedure.
Impact: -
It affects hotel industry when a contract is being implemented between two or more than
two parties through which it becomes easy to implement certain organizational functions by
having a mutual understanding.
Potential implications of regulations on standards by using examples
 Regulations create an impact and influence the standards because they provide certain
processes through which each activity that is across the hotel industry need to be carried
out and as per those standards are accepted.
 It also becomes easy for organizations to monitor regulations in a systematic way in order
to deal with all kind of government problems.
Impact of ethical issues of regulation, legislations and principle
 Regulations: - It is necessary for a hospitality organization because they help in
formulating all business activities ( Henama and Apleni, 2020). The ethical issues which
are in relation with regulations are the rise of action with regards to injustice.
 Legislations: - It is also crucial for community and the reason behind this is that without
legislations it is not easy for an organization to take decisions. It is essential for Accor
hotel also to follow all rules and regulations.

 Principles: - It is considered as those strategies which help in deciding how to initiate all
activities. The ethical issues also presented in the form of principles also in accordance
with both internal as well as external factors.
TASK 4
Functional roles within hospitality sector
There are various ways of functional role within hospitality sector which are accepted by
an organization in order to achieve all goals and objectives within the time period. It is been
explained as below: -
 Housekeeping and front office department: - In accordance with both these departments
they have an interrelation with each other because the staff members of both departments
directly face all customers (Bond and Barth, 2020). They both are accountable to manage
customer problems in an efficient way so that positive connection can be developed. In
terms of housekeeping department they provide essential information to front office desk
regarding the cleanliness and other tools.
 Food production and marketing department: - These departments also have an
interconnection with each other because in terms of food production sector they focus on
maintaining the quality of food within the production pathway and besides this they also
provide details to marketing division in order to attract all customers.
Approaches of communication, coordination used within an enterprise
There are different ways of communication which are used by Accor hotel and is being
explained as below: -
 Face-to-face communication: - It is the most active way of communicating with people
because two persons interact with each other face-to-face and whole procedure efficiently
gets carried out.
 Social media applications: - It is also considered as condition methods as hotels use
different kinds of social media applications like Instagram, Facebook and many more. As
per the current situation it is the most efficient way for hospitality organization.
 Benchmarking: - It is also an operative approach for communicating and monitoring all
the targets which are achieved by individuals as a group within the time period. At the
same point of time it is also beneficial for measuring the overall performance of business.
Levels of communication: -
 Upward: - In accordance with this level of communication the transformation of
information flows from low level to upper level. At this phase social media as well as
benchmarking is used.

 Downward: - In this the information is carried from upper level to lower staff members.
In this aspect emails are mostly used.
CONCLUSION
From the above report it has been determined that hospitality organization should always
be active in the marketplace so that it becomes easier for them to implement all necessary
activities and build up effective customer satisfaction. The financial performance of business
should be properly carried out with the help of certain principles so that no consequence get arise
in future. In hotel industry communication can take place with various methods like face-to-face,
social media and many more. While looking at the current phase social media is the best thing in
order to communicate with people. Hospitality organizations are at a very large scale so it
becomes important for them to manage everything in a systematic order. It is also been stated
that various decisions need to be taken so in accordance with this various laws and legislation are
there which should be proper carried out as with the help of those positive decisions all goals and
objectives would be achieved.
REFERENCES
Books and Journals

Al Mahameed, M., and et.al, 2020. Social accounting in the context of profound political, social
and economic crisis: the case of the Arab Spring. Accounting, Auditing & Accountability
Journal.
Andreu, L., and et.al, 2020. Airbnb research: an analysis in tourism and hospitality
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Bond, S. and Barth, J., 2020. Care-full and just: Making a difference through climate change
adaptation. Cities, 102, p.102734.
Bowen, E., Erol, R. and Scott, H., 2020. Insight, Inclusion, Impact Women's Involvement
Worker Toolkit: learning from experience at Anawim.
Campiranon, K., 2021. Redesigning Events in the Post COVID 19 Crisis A Design Thinking
Approach (Kom Campiranon).
Cenni, I. and Goethals, P., 2021. Business responses to positive reviews online: Face-work on
TripAdvisor. Journal of Pragmatics, 180, pp.38-50.
Chesterman, S., and et.al, 2020. Toolkit for Developing Skills and Capacity in Applying
Foresight to Climate Resilient Agricultural Development in the SADC Region. Module 2:
Understanding Trends and Multi-sectoral and Systems Linkages.
Dyshkantiuk, O., and et.al, 2020. Modern Hotel Business Management Tools. International
Journal of Advanced Research in Engineering and Technology, 11(6).
García-Rodríguez, F.J., Dorta-Afonso, D. and González-de-la-Rosa, M., 2020. Hospitality
diversity management and job satisfaction: The mediating role of organizational commitment
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Henama, U.S. and Apleni, L., 2020. Airbnb as a Tourism Supply Chain Champion for Small
Businesses: The Case of South Africa. In Strategies for Promoting Sustainable Hospitality and
Tourism Services (pp. 22-38). IGI Global.
Kirchgasler, C., 2020. The end (s) of inclusion: ungrounding globalization and ‘the migrant’in
dialogue with hospitality. Discourse: Studies in the Cultural Politics of Education, pp.1-17.
Lobo, S. and Samaranayake, P., 2020. An innovation management assessment
framework. Benchmarking: An International Journal.
Obozna, А., and et.al, 2020. The role of innovative marketing strategies in the hospitality
industry.

Read, G.J., and et.al, 2020. Interaction-centred design: an end user evaluation of road
intersection concepts developed using the cognitive work analysis design toolkit (CWA-
DT). Ergonomics, 63(10), pp.1221-1239.
Santamaría Molina, M., 2020. Circular Conference Toolkit. Case study ERSCP 2019 (Master's
thesis, Universitat Politècnica de Catalunya).