Hospitality Business Toolkit: Managing Financial Performance, HR Life Cycle, and Performance Management

This toolkit provides insights into managing financial performance, HR life cycle, and performance management in the hospitality industry. Learn about principles of financial management, double entry bookkeeping, trial balance, HR life cycle stages, and performance management plan.

The hospitality
business toolkit

Contents
INTRODUCTION........................................................................................................... 3
TASK 1......................................................................................................................... 3
P1 Principles of managing and monitoring financial performance..............................................3
P2 Principles of double entry bookkeeping system.................................................................4
P3 Trial balance by applying balance off rule.......................................................................5
TASK 2......................................................................................................................... 7
P4 HR life cycle........................................................................................................... 7
P5 Performance management plan.....................................................................................8
TASK 3......................................................................................................................... 9
P6 Identification of specific legislation within an organization..................................................9
P7 How organization, employment and contract law create an impact on business decision making. .10
TASK 4....................................................................................................................... 11
P8 How various functional roles within hospitality enterprise interconnect.................................11
P9 Approaches of communication, monitoring and coordination used within the corporation..........11
CONCLUSION............................................................................................................. 12
REFERENCES............................................................................................................. 13

INTRODUCTION
The hospital business is an industry which includes food and drink service, lodging
facilities, travel and tourism and many more. It involves tourism industries, restaurants, hotels
and so on. The main focus of every industry is on building up guest satisfaction level. It is a very
broad area which includes all the operational as well as commercial tasks of organizations. It is
very crucial in hospitality service industry to do some various to manage all the operations really
well so that in future no conflict get arise with guests. The report is based on hotel Travelodge. It
is situated in London, United Kingdom (Nisar and et.al, 2021). They have around 80 restaurants
in central as well as greater London. The report involves how to manage finances and record
transactions, how to manage human resource life cycle, potential impact of legal and ethical
considerations and importance of coordinating and integrating various functions.
TASK 1
P1 Principles of managing and monitoring financial performance
In hospitality industries financial transactions are very much important role while
carrying out all the business operations. It is mainly referred to as the exchange of asset for
payment. In all organizations it is significant to keep record of each transaction that is happening
in the hotel. In relation with service industry these transactions are considered as an evidence that
for what purpose business activities are been used. There are different kinds of financial
transactions like in context with sales, receipt and so on. In terms of hotel Travelodge, London
they implements the financial transaction so that all business tasks and activities are done in an
efficient way.
Principles of monitoring financial performance of business organization: -
In an organization it is crucial to follow all principles and processes in a proper way so
that all goals and objectives can be achieved. Principles are necessary in a company as through
this guidelines are received about what is right and wrong to do in business. The human resource
department of a company assures that all rules and duties are been followed in efficient way. In
context with hotel Travelodge they also follow the principles in their industry and in a systematic
way by following all the guidelines (McIntosh and Cockburn-Wootten, 2021). In business it is
been used to maintain discipline in the company and with regard to all goals and objectives they
are also achieved and enable a proper efficiency. It is further been explained as below: -
 Maintaining inventory records: - With respect an organization it is very significant to
maintain proper record of inventory. In accordance with this principle the business
inventory like raw materials, tools and equipment need to be recorded by every company
and should be analyzed in an efficient way. In relation with inventory records they are
necessary in business as it helps in evaluating a finance structure. In context with hotel
Travelodge, London the finance team used to keep records of each financial transaction

that happens in the firm. So, with respect to this principle it helps the company in
evaluating whether the resources are being used in an efficient way or not.
 Staff and food cost principle: - In accordance with this principle of staff and food cost it
is also a crucial principle for the company. Financial performance of an organization
keeps on changing by nature so with respect to this it should be in proper control and they
should always keep an eye on the financial status of a company (Chen and DeSalvo,
2021). In accordance with hotel Travelodge, London they always keep their staff
members, food and labor cost at average rate and with regard to this their sales revenue
does not get affected by all the costs.
P2 Principles of double entry bookkeeping system
With respect to accounting of an organization transactions recorded at different levels and
various accounts are being used. In relation to book keeping system it is defined as maintaining
and recording of regular financial transactions and tasks in an efficient way. In terms of book
keeping there are different types of accounts like in relation with payroll expenses, account
receivables and many more. Organizations use the way of book keeping system so that all data
can be properly recorded and don’t get misrepresented by third party. In terms of hotel
Travelodge, it is been explained as below: -
 Recording expenses: - In every business firm all expenses are done on daily basis and it
is significant for company to properly record all the expenses on continuous basis. In
context with this principle organizations are able to maintain as well as control whole
expenses. In hotel Travelodge they record each transaction which is in relation with all
the overheads in efficient way.
 Principle of objectivity: - In context with this principle of book keeping it means that
businesses would use only that data and information which is verified in nature. In
accounting qualitative information is not used and only verified one is being used (Santos
and et.al, 2021). With respect to this it assures that both evidence and output is consistent.
In accordance with hotel Travelodge, they followed the principle of objectivity by taking
the help of market research team.
The presentation of journal entries into ledger: -
Cash account: -
Particulars Amount Particulars Amount
To capital account 20000 By washers and
dryers
12000
To sales account 20000 By store rent 8000
To sales account 15000 By laundry account 500
By wages and salaries 1500
By balance c/d 33000
Total 55000 55000

Sales account
Particulars Amount Particulars Amount
To balance b/d 35000 By cash account 20000
By cash account 15000
Total 35000 Total 35000
Wages and salary account
Particulars Amount Particulars Amount
To cash account 1500 By balance c/d 1500
Total 1500 Total 1500
Laundry account
Particulars Amount Particulars Amount
To cash account 500 By balance c/d 500
Total 500 Total 500
Washers and dryers account
Particulars Amount Particulars Amount
To cash account 12000 By balance c/d 12000
Total 12000 Total 12000
Store rent account
Particulars Amount Particulars Amount
To cash account 8000 By balance c/d 8000
Total 8000 Total 8000
From the above statements it has been evaluated that it is important for hotel Travelodge to apply
book-keeping system so that all records can be managed well through which goals and objectives
can be achieved (Seraphin, 2021).
P3 Trial balance by applying balance off rule
In context with the term accounting trial balance is defined as recording as well as
presentation of all ledger accounts in proper systematic order in accordance with the right place
and nature. To complete a ledger it is necessary for hotel Travelodge to prepare proper trial

balance. Both balance ledger as well as trial balance is indulged with each other and with regards
to this financial statements are prepared. So, trial balance is further been explained as below: -
Through the preparation of trial balance it becomes easy for an organization to evaluate all the
financial capabilities in a systematic manner and with the help of this organizations take proper
positive decisions.
Types of costs: -
 Fixed cost: - It refers to those costs that do not fluctuate with the output level on the short
term basis (Luo and Xu, 2021). There are various types of fixed cost like insurance,
depreciation, salaries and many more.
How to calculate:-
Fixed costs= Total production cost- (Variable cost per unit * Number of units which are
produced)
Effect on business financial performance: -
On the business performance there is a direct impact of fixed deposit and the reason
behind it is that they make contribution in order to make better economies of scale (Okumus,
2021). They are linked with all production costs and within the hotel Travelodge also it includes
cost like direct labor.
 Variable cost: - It is defined as a cost which fluctuates in context with the level of output
and besides this it also means that total variable cost is fully dependent on output level.
There are various types of variable cost like direct labor, raw materials and many more.
How to calculate: -
Total variable cost= Total quantity of output * Variable cost per unit of output
Effect on the business performance: -

In accordance with this type of cost it creates an impact on the financial performance of
business and the reason behind it is that when in a situation it decreases gross profit margin also
needs to increase.
Balance off rule: -
It is defined as matching all the statistics of both debit and credit with their account and
amount are transferred to next year in relation with analyzing all the accounts in an accurate way
( WIWATREUNGDECH, 2021). The main advantage of balance off rule is that it helps in
recording of all data and information within the ledger, trial balance as well as other journals
which is chosen by hotel Travelodge.
Importance of recording transactions: -
It is necessary for each business to record dealings in accordance with all accounting
principles so that they are proficient of defining financial strengths as well as weaknesses of a
company and on the basis of this all competitive strategies gets implemented.
It also determines that by preparing the trial balance it helps businesses in recording all
the transactions and with respect to this hotel Travelodge they are also capable to maintain all the
accounts in a systematic manner.
Role of financial management: -
In context with the role of financial management it is essential to be applied because it
helps in determining all tasks and activities of business organizations which also leads in
decreasing conflicts. It is suggested to hotel Travelodge also that they should properly check all
financial management happenings that are being carried out.
TASK 2
P4 HR life cycle
Human resource life cycle is significant while determining all the financial transactions
because it helps front office department of hotel Travelodge to accomplish all roles and
responsibilities in a proper manner. There is different stage of HR life cycle which is further
been explained as below: -

 Attraction: - It is the first stage of human resource life cycle which defines skilled as well
as talented people towards the organization by providing them high level of profits,
bonuses and many more (Akpinar and Ozer-Caylan, 2021). With respect to this stage all
candidates take interest in gathering the information about company.
 Recruitment: - In context with second stage which is recruitment the main focus of
human resource is assessing whole recruitment procedure for the job role of senior
manager. It is the role and responsibility of management team to assure that every
procedure is summarized and is not time consuming.
 On boarding: - In this stage both employer as well as employee creates a mutual
understanding of relationship in terms of building a contract of employment. In context
with hotel Travelodge a contract letter is being provided to employer and employee in
terms of all the documents.
 Enablement: - It is considered as a stage in which all new workers gets introduced to the
organization and their overall culture and vision and also whole overview is provided
with respect to their roles and responsibilities.
 Development: - In this phase the focus is towards development of an employee in a
company in accordance with long term goals and mission in career which are being
examined by all the departments in an efficient way.
 Retention: - It is defined as the phase which helps companies in evaluating and
recognizing their employees and maintains them for long period of time and through this
sustainability gets increase (Okafor, Khalid and Adeola, 2021).
 Separation: - It is the last stage which defines the phase regarding employee’s
resignation at the time when they want to leave the organization. At this stage human
resource department assures that all policies as well as process are properly followed.
P5 Performance management plan
Job role Time Development
strength
Development
focus
Development
of needs
Development
action

Senior
manager
June 2021 to
August 2021
Efficient
communication
skills
Improvement
of all weak
areas and
development of
skills of
employees on
continuous
basis
Ability to deal
with all
audiences and
identification
of demands in
the market
place.
20 days
First level
manager
July 2021 to
September
2021
Giving proper
training to all
staff members
Providing roles
and
responsibilities
to members
(Bagherzadeh
and et.al,
2021).
Effective
understanding
of decision
making
30 days
Recommendation: -
It was being suggested that hotel Travelodge should track out all the activities of
management department so that it becomes easy to evaluate what type of applications are needed
for different type of requirements and whether skills and abilities are appropriate or not.
Importance of retaining and talent development: - It is essential for business to preserve all
their talented employees so that effective competition can be built up and ultimately result into
effective period of sustainability for a long period of time. With respect to hotel, it is the
responsibility of human resource manager to maintain and preserve all talented employees and
assure that long terms benefits are being achieved.
TASK 3
P6 Identification of specific legislation within an organization
The term legislation refers to different rules and guidelines which are needed to be
followed by each person and an organization. There are various elements which are focused by
hospitality industry like corporate social responsibility, business ethics and so on which require
legislation and certain guidelines to be followed (Zarei, Behboud and Jafari, 2021). There are
different types of registration which is been explained as below and can create an impact on hotel
Travelodge.
 Food act, 1990: - It is a crucial legislation which is needed to be properly assessed and
followed by hotel because they provide different kind of services with respect to food and
beverages to all audiences. In accordance with this food act the industries which provide
food and beverages they should use natural and organic substances with healthy
constituents.

 Employment act: - It is an essential legislation that creates an impact on hotel industry. It
was initiated in the year 2002. It defines upgrading all rules and regulation in context
with employment contract, incentives, wages and many more.
 Health and safety act: - It is defined as an act which considers maintaining the health of
society and all audiences through service industries. I accordance with hotel Travelodge
they provide all the accommodations to staff members who work in the hotel and has
completed 8 months as per the employment contract.
P7 How organization, employment and contract law create an impact on business decision
making
Employment and contract law are essential for an organization because without these
tasks and activities can’t be further proceed and being carried out with full level of efficiency. It
is significant for hotel Travelodge to guarantee that all laws and regulations is being properly
assessed and followed in a logical way. It is further being explained as below: -
 Contract law: - It is defined as a law which is supported by an organization that
administers how companies to be get informed and functioned ( Home, 2021). There are
various types of contract law like registered companies, one person firm and many more.
Impact: -
It used by hotel as it involve overall workflow and procedures through which an
organization can initiate all their operations. Along with this it is also being considered that
hotel should follow this law in order to manage all the activities.
 Employment law: - It refers to a law which involves certain rules and regulations which
are executed by government and creates an impact on hospitality industry on the basis of
different policies like wages and salaries.
Impact: -
Hotel industry also get affected by employment law when it is not properly followed then
it creates an impact on the relation between both employee as well as employer on large
basis.
Potential impact: -
 Rules regulations have a direct effect on standards because on the basis of this they
provide different processes through which an activity within the hotel needs to be carried
out on the basis of all standards.
 It also becomes easier for enterprises to follow principles in a systematic manner and deal
with all government problems while in context with standards positive relations are being
maintained.

Impact of ethical issues of regulations, principle and legislations: -
 Legislations: - These are significant for communities because without these it is not easy
to apply certain decisions. Besides this it was important for hotel also in order to follow
all the regulations.
 Regulations: - It is necessary for hotel industries because with the help of all regulations
and guidelines they carry out all business activities.
 Principles: - Through these guidelines corporations get to know about how they should
implement and carry out the activities.
TASK 4
P8 How various functional roles within hospitality enterprise interconnect
There are various types of functional roles in hospitality corporations which are used by
them in order to achieve all goals and objectives. It is further being explained as below: -
 Housekeeping and front office department: - Both the departments are interconnected
with each other and the reason behind it is that front office and housekeeping department
directly connects with all the customers ( Antchak, Lück and Pernecky, 2021). They both
are responsible for managing customer issues, obstacles in efficient way that helps them
in achieving all the goals.
 Food production and marketing department: - With reference to these divisions they are
engaged with each other because the focus of food production is on maintaining the
quality of food and provide all the details about food and related procedures that is used
by marketing department.
P9 Approaches of communication, monitoring and coordination used within the corporation
 Face-to-face communication: - It is a significant way of interacting with people because
in this two way communication is done as they face each other and whole process is
carried out.
 Social media applications: - In this different type of social media applications are being
used like Facebook, You Tube and so on and through these applications interaction is
being done at large level.
 Benchmarking: - It is considered as an efficient approach of communicating and
coordinating with all the targets which are achieved and besides this it is also beneficial
in identifying the overall performance of business.
Levels of communication: -
 Upward: - In context with this broadcast of information is followed from low level
management to upper level. At this level of communication, both benchmarking and
social media is used and in certain situations face to face communication is also used.

 Downward: - In this exchange of information is done from top level to low level
members. Social media applications as well as e-mails are used.
CONCLUSION
From the above report it has been concluded that hotel industry should always take
effective decisions so that customer satisfaction can be built up. There are different types of
principles in order to manage financial performance, human resource life cycle, book-keeping
system, legislations and many more. As hotel industry is a very wide concept so effective
communication need to done like with the help of social media applications, face-to-face and so
on.
REFERENCES
Books and Journals

Akpinar, H. and Ozer-Caylan, D., 2021. Managing complexity in maritime business:
understanding the smart changes of globalization. Competitiveness Review: An International
Business Journal.
Antchak, V., Lück, M. and Pernecky, T., 2021. Understanding the core elements of event
portfolio strategy: lessons from Auckland and Dunedin. International Journal of Contemporary
Hospitality Management.
Bagherzadeh, S., and et.al, 2021. A generalizable sentiment analysis method for creating a hotel
dictionary: using big data on TripAdvisor hotel reviews. Journal of Hospitality and Tourism
Technology.
Chen, H.S. and DeSalvo, D., 2021. The Effect of Message Framing and Focus on Reducing Food
Waste. Journal of Quality Assurance in Hospitality & Tourism, pp.1-19.
Home, R., 2021, Urban law and resilience challenges of climate change for the MENA region.
In Climate Change Law and Policy in the Middle East and North Africa Region (pp. 153-168).
Routledge.
Luo, Y. and Xu, X., 2021. Comparative study of deep learning models for analyzing online
restaurant reviews in the era of the COVID-19 pandemic. International Journal of Hospitality
Management, 94, p.102849.
McIntosh, A. and Cockburn-Wootten, C., 2021. Uncovering absences and gaps: Using Ketso in
qualitative research for accessible tourism. Journal of Qualitative Research in Tourism, 2(1),
pp.1-19.
Nisar, Q.A., and et.al, 2021. Green Human Resource Management Practices and Environmental
Performance in Malaysian Green Hotels: The role of Green Intellectual Capital and Pro-
Environmental Behavior. Journal of Cleaner Production, p.127504.
Okafor, L.E., Khalid, U. and Adeola, O., 2021. The Effect of Regional Trade Agreements on
International Tourist Flows in the Middle East and Africa. New Frontiers in Hospitality and
Tourism Management in Africa.
Okumus, B., 2021. Norovirus and Coronavirus Risks in Food Service Settings: A Systematic
Review for Future Research. Journal of Culinary Science & Technology, pp.1-28.
Santos, V., and et.al, 2021. Emotions and involvement in tourism settings. Current Issues in
Tourism, pp.1-6.

Seraphin, H., 2021. COVID-19 and the acknowledgement of children as stakeholders of the
tourism industry. Anatolia, 32(1), pp.152-156.
WIWATREUNGDECH, U., 2021. MANAGING SPA BUSINESS AFTER THE COVID-19
CRISIS THROUGH MCKINSEY’S 7-S FRAMEWORK (Doctoral dissertation, มหาวิทยาลัย
มหิดล).
Zarei, A., Behboud, R. and Jafari, T., 2021. Mapping the New Engineering Service Development
services in project consulting firms with systemic perspective. Modern Research in Decision
Making, 6(1), pp.1-20.