The Hospitality Business Toolkit

This document provides an overview of the hospitality business industry, focusing on the principles of overseeing and monitoring financial performance, HR life cycle, performance management plan, and legislation. It includes case studies and practical examples from The Connaught Hotel. Find study material and solved assignments on Desklib.

The Hospitality Business
Toolkit

INTRODUCTION
Hospitality sector is a dynamic business industry which is changing rapidly and is affected
by sectors as accommodation, lodging, event planning and many more. For the completion of
this current assessment, The Connaught Hotel is considered. It is a five star hotel which is having
presence in London and situated on the corner of Carlos Place and Mount Street in Mayfair,
London. The hotel possessed and administrated by Melbourne Hotel Group (Chung and Cakmak,
2018). There are several actions which are fraction of this account and consider aspects like
principles of administration, double entry system. It considers several phases of a HR life cycle
and a performance management plan has been designed. There is recognition of laws and contact
of employment law on working of an establishment. Different practical roles have been defined
and processes of organization & communication are functional in the trade.
Activity 1: Part A
Investigate the principles of overseeing and monitoring financial presentation
There are some principles that must be utilized for motive of organization of monetary
execution of an establishment as defined as under:
 Consistency- As per this standard, all procedure and polices must be recognized
accordance with similar dealings which are taking place in administration.
 Timeliness- Transaction should be managed in a provided time frame.
 Justification- There should always be a some cause which is enabling aims of a scheme
and devotion to provided direction.
 Documentation- It is accountability of firm to offer on time justification of all the papers
designed. It includes retention and administration of all such passes designed by
investment division of The Connaught Hotel.
 Certification- In this phase, all transitions have to be authorized so that all such
documents are appropriately preserved for long term time.
In The Connaught Hotel, above mentioned principle of financial performance have to be
effectively and on time executed to assure proper and smooth functioning of company (Epuran,
Chițu and Ivasciuc, 2019).
Financial transaction is a conformity which carried out among buyer and seller to make
replace an asset for payment. These dealings consider a change in the status of the finances of
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two or more individuals. In context of The Connaught Hotel, these transactions take place when
the goods are exchanged at one time and the finance at another.
 Recording process: Within it, the hospitality sector makes control and administration on
journals where all accounts and entries are managed in effective form (Chung and
Cakmak, 2018). It support in collecting information and data in systematic manner that is
easy in performing process so they can avoid and minimise deviation with efficiency.
 Documents sources: It begin from consideration of actual data which are recorded in
transactions management in balanced form. Hospitality sector’s division record needed
data and managed which to administrate appropriate responsibility with flexibility in
sustainable form are beneficial in. Hotel utilise several sources in appropriate manners
that are sales notes and credit, cheques received, cash vouchers, debit notes, journal
vouchers and others. Organisation assembles information in documentation so that it is
sustained long term.
Ledger accounts: Ledger accounts are those within several financial records are established
in the name of the individual who is permitted to it. Ledger accounts are of three kinds such as
common, purchaser and sales. With the support of ledger, trail balance and economic statement
are prepared and all the business associated with organisation is recorded in appropriate form
(Kim and Im, 2018). Ledger accounts enable the company to manage all the dealings as separate
explanation so that all the information as well as data is stored in appropriate manner and order.
The key issue with ledger is that it is unsafe as anyone or third party can contact the information
and accounts in easier form. Apart from this, the key benefit of ledger is that it supports the
establishment to analyse the expenditures and profits and is scheduled as income and defeat
account. So, when utilising ledger an appropriate centre is to be preserve so that possibilities of
mistakes are reduced and decreased.
The double entry book keeping scheme of debits and credits to record sales and purchaser
transactions in a general ledger
Double entry book keeping system states that each financial transaction of a corporation is
evidenced with an entry into at least two of its general ledger accounts.
Profit and loss statement of Dorchester hotel for march 2020
Profit and loss statement of The Dorchester hotel for March 2020
Particulars Amount Particulars Amount
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To Opening Inventory 17000 By Sales 145000
To Purchase 63000 Less : Return Inward -3200 141800
Less : Return Outward -1800 61200 By Closing Inventory 21000
To Gross Profit 84600
Total 162800 Total 162800
To Administration Cost 33000 By Gross Profit 84600
TO Distribution Cost 30500
To Depreciation 9000
To Finance Cost 1600
To Tax 2100
To Net Profit 8400
Total 84600 Total 84600
4: Basic trial balance
Trial balance: It is method within all amounts of withdrawal as well as credits are
determined and sum is equivalent of both sides. Company consider trial balance so that all the
accounts are established and any kind of issues in the ledger is analysed in appropriate form.
With the support of trail balance, final accounts are is also designed and scheduled. Finance and
accounting group of the company are accountable to manage and manage all the transactions that
arise in commerce. Trail balance requires time and concentration so that all accounts from ledger
are located in adequate and appropriate manner. Within this, it does not analyse all the mistakes
and also replicating of accounts is also assessed in effective form. So trail balance enables the
business administration and assists them to determine their fiscal ability (Liang and Wong,
2020). A trail balance is a book keeping worksheet within the equilibrium of all ledgers is
submitted in to debit credit account column totals which are equivalent. An organisation prepares
a trial balance episodically, basically at the end of every exposure period. The basic aim of
designing a trial equilibrium is to balance is to make sure the entry in an organisation’s book
keeping system are mathematically appropriate.
Trial Balance for Dorchester hotel
Particulars Debit Credit
Storage Cost 500
Purchase 10500
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Sales 14600
Moter
Expenses 530
Cash at Bank 54000
Cash in Hand 18700
Payables 29100
Premises 250000
Van 52250
Fixtures 8350
Inventory 23200
Receivables 15420
Sales Return 900
Purchase
Return 70
Salaries 5000
Business Rates 1480
Capital 397060
Total 440830 440830
Different types of costs
Direct costs- It is associated to manufacturing a good and facility. A direct cost considers
raw materials, labour and expenses or allocation costs linked with creating a commodity as well
as service. The cost can effortlessly be traced to a manufactured goods, division and project.
Indirect costs- This cost is expenses unrelated to manufacturing a product and service. An
roundabout cost cannot be traced to a good, division, action and scheme in easier manner.
Fixed costs- It does not vary with the number of goods or services an organisation produces
over the short term (MAS, 2019). This cost remains constant for a particular time period.
Variable costs- It fluctuates as the scale of manufacture output changes, contrary to a
permanent price. This sort of cost varies depending on the number of merchandise an
establishment manufactures.
Operating costs- It is expenditures related with day to day business actions but are not
traced back to one manufactured goods Operating costs can base variable or fixed.
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An efficient system of book keeping considers managing suitable accounting system that is
record business transactions (Epuran, Chițu and Ivasciuc, 2019). Keep all required expenses bills
and receipts on behalf of hotel sector. There are several significances of actual reasons of
recording that are defined as under in context of The Connaught Hotel:
 In support in saving tax by managing actual records.
 It will enables in avoiding and minimising interest and extra penalties because it makes
easier to pay right amount of tax at particular time.
 It will help the respective hospitality form in managing all backups of income and
expenses that are found in audits at right time frame.
 It assist in offering data and information to owner about their position of finance with
the firm that are supports in further planning and development of strategies.
Activity 2: Part B
Different stages of HR life cycle applied to a specific hospitality job role
Human resource life cycle is utilised for facilitation to growth of accepting that is an
outcomes of several phases that are associated to workers in each business venture. The
description of this HR cycle is context of The Connaught Hotel and for this there is a need to
conduct a life cycle phases of human resource. This cycle have five stages as defined under:
Recruiting: It is the primary phase of HR life cycle. In this stage, different role and
accountabilities that have to be executed by administrators have to be found out, in case of hiring
workforce, it is needed to deem that most reliable worker is assorted on basis of their knowledge
and needed skills. HR manager, in The Connaught Hotel, has to execute all such duties to
support all their administrators in executing allotted roles and responsibilities (Fotiadis,
Mombeuil and Valek, 2018). For recruitment of candidates, there will be diverse sources that
have to be found out like different employment exchanges and advertisements will be placed on
print media and online sources on job requirement sites will be placed to approach different
potential applicants looking for employment.
Orientation & Career planning: This phase, workers are made more comfortable in their
working environment. In The Connaught Hotel, there are several kinds of orientation session that
have been conducted with the aim of introduction of worker to their new place of work. Efforts
are completed to provide an optimistic and temperate welcome to the new workforce that can
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assist them in getting more comfy to execute their responsibilities. After from the above
identified sources there will be range of candidates and among all of those by utilise of personal
interviewer as a selection tool there will be selection of the talented and knowledgeable applicant
for vacant posts of particular role (Hung, 2019). It is going to further lead to fulfilment of the
vacancy in the company. Now, there will be offer letter deliver to the workers and they will have
to be present on the particular joining date. After that there will be orientation session that will be
organised by the management of the firm for the assorted applicants for a period of one week in
The Connaught Hotel to make them comfortable as well as aware about the rule, policies and
ways of working of the enterprise.
Career development: In each establishment, it is most significance that workers have to
involve appropriately so that they are retained for long term. Human resource manager in The
Connaught Hotel has the accountability of find out such options and then help in individual
development. There is training sessions are organised by administrators in time so that workforce
can be qualified in those regions where they are missing their abilities.
Termination: It is the last phase within HR has the accountability of administrating the
departure of workers. In this phase, several process and polices have to be developed in context
of changeover and termination of manpower. HR administrator in The Connaught Hotel will be
framing such strategies which are correlated to departure of the workforce and assorted for
particular role of employees.
Develop a performance management plan for specific job role
Performance management plan is explained as the flexible method which is used for
enhancing and developing employee’s performance. It is also acknowledged as performance
plan. For example, The Connaught Hotel is facing the problems that their waiters are not pleased
with work conditions as results they do not desire to assist with administrator (Nguyen, 2020).
The performance management plan of respective firm is defined as under:
Plan- It is the collection of different rules and regulations that permits them for
accomplishing organisational aims effectively. Regarding “The Connaught Hotel”, they must
endeavour to position them into complete commerce functions and allot them to each employees
so that task can be performing consequently. It aids its employees to work with full possible
regarding allotted work.
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Evaluate- After implementing the plan, performance assessment phase take place because
it permits them to expand effective choices. In context of The Connaught Hotel, they have to
scrutinize employees work and develop its execution for acquiring rivalry benefits. Therefore, it
permits their manpower to find out its capability and included adequate action for improving its
weaknesses.
Feedbacks- Once evaluation is completed, the next phase of performance management
plan occur. In it, company offers services to guest for facilitating responses towards
organisational execution (Szende, Bagnera and Cole, 2020). Within The Connaught Hotel, chef
undertake the guests’ feedbacks as well as take actions quickly to accomplish pre analysed aims.
Thus, it develop positive behaviour between staff regarding hotel that develop their brand images
and position in the market as well as manage staff turnover.
Outline specific legislation that a hospitality firm has to comply and adhere to
Legislation is explained as the development of rules by leading body its law creation
processes. Some legislation that The Connaught Hotel can conform and stay to is defined as
under:
Employment act, 2002- It is the legislation that considers new laws on leave and pay
acceptance, paternity and changes to the tribunal scheme in UK. Furthermore, it supports The
Connaught Hotel to take care of their workers fairly to minimise issues and conflicts. This is
accepted by particular hospitality firm because it helps their administrator to expand optimistic
relation with workers for gaining more profitability.
Food and safety Act, 1990- The key objective of this law is to make sure that foodstuff
have to be make easy to appropriate excellence to keep guest cleanliness and develop
productivity as well as earnings of The Connaught Hotel. Furthermore, it permits them in
endorsing their facilities ethically that develop guest fulfilment and its confidence (Gaur and
Afaq, 2020). However, particular hotel consider this legislation as this aids them to offer
qualitative facilities at affordable expenditure in context of achieve business objectives in
amended manner.
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business decision making
There are diverse laws which are effective to govern efficient commerce performance. These
laws play essential purpose to accomplish the accomplishment. Corporation law are included as
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the governing bodies which define venture bodies. Employment laws are described as the
legislation in to area which defines the relation between workforce and staff. All this include the
decisions manufacture of company. For particular illustration are explained as under:
 Warburtons was stimulating penalty of £1.9m to violate the stipulation and administer
equipment within rule act 1998 (£1.9M FINE MARKS SECOND MAJOR 2017
PENALTY FOR WARBURTONS. 2021). Performing the employment development, the
manager engaged slight applicants near equipment space.
So, regarding hospitality sector, different laws are governed which are important for entire
hotel to comply The Connaught Hotel develops staff and employees’ enthusiasm by adopting
many laws for developing brand image and staff fulfilment (Antonio, de Almeida and Nunes,
2019). By including effective decisions or purpose, the respective firm gain rivalry benefits.
Interrelation among diverse functions and roles within the hospitality sector
Within hospitality industry, there are diverse functions so some interrelation between
different functions is defined as under:
Housekeeping and front office section- Both functions are important aspects of
hospitality sector. As housekeeping division is focused regarding visitor room cleaning and also
the community areas. Apart from this, front office section conveys maintenance to keep the
rooms dirt-free and prepared for other guests and customers. Within The Connaught Hotel front
office department converse message to housekeeping division towards consumers entering and
leaving, it support them to stay rooms clean for after that visitors as this expand their brand
image.
Food production and F&B service division- Both purposes play an important function
into welcome industry. Food and drink occupation is focused make easy to ready dish to visitor
where as foodstuff manufacturing division get ready dish according to consumers need (Youssef
and Zeqiri, 2020). In The Connaught Hotel, both functions are interrelated like food production
department prepare eating dishes and F&B function serve that to its guest in appropriate manner.
Different communication method, coordination and monitoring in the department
The description of different communication methods is as under which are considered by
The Connaught Hotel:
Conference- This kind of communication method is basically used at the time of meeting
with senior ability as well as boards members. With the assistance of it, schemes and plans
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related to execution of food and beverage division can be urbanized as well as effective choice
may be improved. This can also be completed with the help of video conferencing.
Email- This is included as official process for conversing importance information into
company. Efficient data is communicating though mails within organisation. The administrator
of F&B can share appropriate data with the aids of this specific message scheme.
Importance of methods of strengthen value chain
With the use and consideration of this system The Connaught Hotel will capable to frame
rules for further course of action. Because of this, important data can be conversed in methodical
way. Problems and errors within communication processes can be minimised and target can be
hit in expected manner (Kansakar, Munir and Shabani, 2018). Therefore, The Connaught Hotel
organization will encourage its employees for developing efficiency. The aims of company will
be achieved in simple way as value chain will be administrated and synchronized efficiently. In
value chain, top management can lead its subordinate through budding appropriate plans for
division and company as well.
CONCLUSION
This has been concluded from the above defined information that within hospitality industry,
there are diverse aspects which are considered by different hospitality ventures. Each firm has to
contract with different confront as administrating their human resources. It is the accountability
for administration to develop a performance management plan that can assist them in
administrating their workers execution and preservation of a healthy surroundings for entire
performance of company. Also, different forms of communication and monitoring have been
used for providing satisfaction of staff of different departments.
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REFERENCES
Books & Journals
Chung, M.J.Y. and Cakmak, M., 2018, August. “How was Your Stay?”: Exploring the Use of
Robots for Gathering Customer Feedback in the Hospitality Industry. In 2018 27th
IEEE International Symposium on Robot and Human Interactive Communication (RO-
MAN) (pp. 947-954). IEEE.
Epuran, G., Chițu, I.B. and Ivasciuc, S., 2019. The Augmented Reality Technologies in Tourism:
A State of Art. Risk in Contemporary Economy, pp.501-505.
Kim, J. and Im, J., 2018. Proposing a missing data method for hospitality research on online
customer reviews. International Journal of Contemporary Hospitality Management.
Liang, T.C. and Wong, E.S.F., 2020. Sustainable development: an adaptive re-use solution for
the hospitality industry. Worldwide Hospitality and Tourism Themes.
MAS, E.G., 2019. Thoughts on Adding Information Assurance Education in an Online
Hospitality Program. In Proceedings of the International Conference on e-Learning, e-
Business, Enterprise Information Systems, and e-Government (EEE) (pp. 23-28). The
Steering Committee of The World Congress in Computer Science, Computer
Engineering and Applied Computing (WorldComp).
Fotiadis, A., Mombeuil, C. and Valek, N.S., 2018. Designing and implementing a marketing
plan. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and
Hospitality. Emerald Publishing Limited.
Hung, C.L., 2019. Innovating and diffusing Internet commerce through user engagement: an
empirical study of massively multiplayer online games. Innovation, 21(2), pp.317-335.
Nguyen, Y., 2020. Talent Management in Hospitality Operations: Case Company X.
Szende, P., Bagnera, S.M. and Cole, D.C., 2020. Human Resource Management in Hospitality
Cases. Routledge.
Gaur, L. and Afaq, A., 2020. Metamorphosis of CRM: Incorporation of Social Media to
Customer Relationship Management in the Hospitality Industry. In Handbook of
Research on Engineering Innovations and Technology Management in
Organizations (pp. 1-23). IGI Global.
Antonio, N., de Almeida, A. and Nunes, L., 2019. An automated machine learning based
decision support system to predict hotel booking cancellations. An automated machine
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learning based decision support system to predict hotel booking cancellations, (1),
pp.1-20.
Youssef, A.B. and Zeqiri, A., 2020. Hospitality Industry 4.0 and Climate Change. Groupe de
REcherche en Droit, Economie, Gestion (GREDEG CNRS), (2020-23), pp.121-124.
Kansakar, P., Munir, A. and Shabani, N., 2018, December. A fog-assisted architecture to support
an evolving hospitality industry in smart cities. In 2018 International Conference on
Frontiers of Information Technology (FIT) (pp. 59-64). IEEE.
Online
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%20to%20Warburtons%20this%20year.>.
FIVE PRINCIPLES OF FINANCIAL TRANSACTIONS MANAGEMENT. 2020. [Online].
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transactionsManagement/>.
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