The Langham Hotel: Business Toolkit Report - Financial and HR Analysis

This report provides a comprehensive analysis of The Langham, London, examining various aspects of its business operations. The report begins with an overview of financial transactions, including source documents, recording processes, and principles of financial management, along with a double-entry bookkeeping system and trial balance. It then delves into cost management, profit margin calculations, and the importance of accurate transaction recording, culminating in recommendations for financial management. The second part of the report focuses on human resource management, covering the HR life cycle stages, the role of HR, developing a performance management plan, and recommendations for improvement. The report also analyzes relevant legislation, including environmental and food safety acts, and their impact on business decision-making, while also addressing ethical issues and providing recommendations for employment contracts. The report concludes with an examination of functional roles within the hospitality sector, interrelations, communication methods, and recommendations for enhancing business performance.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1.....................................................................................................................................1
Introduction of financial transactions...........................................................................1
Types of source documents and the recording processes.............................................2
Principles of managing and monitoring financial performance....................................2
Double entry bookkeeping system of the Hotel............................................................2
Produce a basic Trial balance of the Hotel...................................................................3
Purpose of the Trial Balance.........................................................................................4
Types of cost.................................................................................................................4
How cost can be managed to influence the financial performance...............................4
How profit margins can be calculated by showing the process....................................5
Importance of accurate recording of transactions in line..............................................5
Role of financial management and recommendations..................................................5
Task 2.....................................................................................................................................6
Stages of the HR life cycle in talent acquisition and retention.....................................6
Importance of HR plays in a specific job role..............................................................6
Developing performance management plan for a specific job role..............................7
Recommendations to improve the each stage of HR life cycle....................................7
Task 3.....................................................................................................................................7
Legislation that hospitality organisations has to comply..............................................7
Impact of employment and contract law on business decision-making........................8
Implications of Two of the regulations.........................................................................8
Identify two ethical issues and it's impact on business.................................................9
Recommendations on improvement of employment contract......................................9
Task 4.....................................................................................................................................9

Functional roles within the hospitality sector...............................................................9
Interrelation of roles....................................................................................................10
Communication methods and levels used in an organisation.....................................10
Reviewing coordination and Integration within a business........................................11
Effectiveness of communication methods on integration of functions.......................11
Recommendations in enhancement of business performance.....................................11
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................13

INTRODUCTION
Hospitality business is defined as the business organisation which primarily concerns
with the restaurants and hotels. It dwells various kinds of departments which are needed to be
managed such as human resource, research and development, information technology, finance,
marketing, production and many more so that functioning can be more smoothly in a market
place (Alananzeh, Jawabreh, Alhalabi and Keswani, 2019).
Organization chosen here is the The Langham, London, it is one of the leading five star
hotel based in London, UK. It chiefly renders services like pool, spa, free Wi-Fi, air
conditioning, restaurant, bar, room services, breakfast, payment methods, hot tub, child friendly,
baggage storage, laundry, gift shop, fitness centre, business centre, pets allowed and many more.
The following discussions are made on the financial proceedings, double entry book
keeping, trial balance, cost types, profits, human resource life cycle, performance management,
laws, legislations, ethics, methods and functions of communication with an appropriate
recommendations, findings, conclusion and judgements in context of The Langham, London
Hotel.
MAIN BODY
Task 1
Introduction of financial transactions
 Financial transaction is outlined as the fiscal or money proceedings in a business
organisation to conduct the buy and marketing actions in the company.
 It's administration is based on the size of the firm which states that if the institution is big
with ample of revenues then they will require huge awareness of fiscal establishment
resources and vice versa (Buhalis and Leung, 2018).
 In context of The Langham, London, they pull off their financial proceedings on a big
scale by measuring manlike as well as technological resources in order to approximate
and understand the funds in the company.
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Types of source documents and the recording processes
 There are different kinds of source documents utilised by The Langham, London in
command to make fiscal dealings more favourable and precious such as checks, invoices,
receipts, credit memos, employee time cards, deposit slips and purchase orders.
 They primarily consist the transaction date, total amount of the transactions, transaction
description, one or more signatures of authorities and many more according to the needs
and requirements of the hotel.
 Recoding process utilized by the hotel is that they record three entries in which two are
the transactions related and one is for the transaction description.
Principles of managing and monitoring financial performance
The Langham, London uses five leading rules of carrying off and observing it's fiscal
execution such as:
 Consistency which means that dealings must be managed in a regular or daily way in a
great consistency.
 Timeliness means that the dealings must be managed for a specific period of time for
particular group of transactions for more effectiveness.
 Justification means that the explanation must be proper for recording the transaction.
 Documentation means that there must be adequate written documents to demonstrate the
transactions happenings.
 Certification means that the dealings must be sanctioned which principally carries the
signatures of the top management of the hotel with accessed authorization (Cunill, Salvá,
Gonzalez and Mulet-Forteza, 2019).
Double entry bookkeeping system of the Hotel
Profit and loss statement of The Langham hotel for March 2020
Particulars Amount Particulars
To Opening Inventory 17000 By Sales 145000
To Purchase 63000 Less : Return Inward -3200
Less : Return Outward -1800 61200 By Closing Inventory
To Gross Profit 84600
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Total 162800 Total
To Administration Cost 33000 By Gross Profit
TO Distribution Cost 30500
To Depreciation 9000
To Finance Cost 1600
To Tax 2100
To Net Profit 8400
Total 84600 Total
Produce a basic Trial balance of the Hotel
Trial Balance for The Langham hotel
Particulars Debit Credit
Storage Cost 500
Purchase 10500
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
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Salaries 5000
Business Rates 1480
Capital 397060
Total 440830 440830
Purpose of the Trial Balance
The Langham, London using trial balance for numerous intentions in management of
their hotel operations such as:
 They utilise it to generate comfortableness in recording casual or complex adjustments
 It aids in auditing of the proceedings so that reviewing could be processed in a more
favourable mode
 It also serves the credibility for the hotel because if any debt or loan are condemned or
given by the hotel then it can easily display on records
 It comprises arithmetical quality, bird's eye view and renders helps in setting up fiscal
statements (Franco, Caroli, Cappa and Del Chiappa, 2020).
Types of cost
The Langham, London functions using several cost which assist them to scale up the
expenditure and investment funds done on the hotel such as:
 Fixed cost which does not change on a regular basis like legal bills, rent and insurance
 Variable cost which change regularly like operating expenses, cost of raw materials and
many more
 Explicit cost which is displayed in the accountancy records like variable or fixed cost
 Implicit cost which cannot be displayed in accountancy records like donations
 Sunk cost which cannot be cured and are transcribed as the bad debts in accountancy
entries (García-Lillo, Claver-Cortes, Ubeda-Garcia and Zaragoza-Sáez, 2018).
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How cost can be managed to influence the financial performance
 The Langham, London pull off it's cost to enhance it's fiscal presentation by firstly
approximating the cost, secondly by budgeting the cost and thirdly by controlling the
cost.
 There are primarily three elements that influences the cost administration such as thriving
information technology, international and domestic competition and flourishing service
and manufacturing industries.
 Therefore, there are assorted methods adoptive by the hotel to carry off it's cost such as
exploitation on technology, governance of time, administration of inventory, outsourcing,
market knowledge must be upgraded and headcount must be harnessed.
How profit margins can be calculated by showing the process
The Langham, London measures it's profit edges in primarily three various ways in state
to get certainty and quality for the same such as:
 Firstly by net income margin which is calculated as net income / revenue * 100 where
net income is calculated as revenue - COGS - operating expenses - other expenses -
interest – taxes.
 Secondly, gross profit margin which is calculated as total revenue - cost of goods sold /
total revenue * 100.
 Thirdly, operating profit margin which is calculated as operating income / revenue *
100 (García-Rodríguez, Dorta-Afonso and González-de-la-Rosa, 2020).
Importance of accurate recording of transactions in line
The Langham, London has achieved many benefits by qualitative recording of
transactions such as:
 The administration can keep record of all the fiscal activities occurrences in the company
and can examine the optimistic and destructive consequence on the profits and in
accordance clear them out.
 Hotel has met the lawful stimulation by pursuing up the accurate transcription of
dealings.
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 Moreover, financial gains are being recognised by the hotel due to quality recording of
transactions.
 It aids them to amend and develop enterprise possibly and utilisation of time in a more
effective manner.
Role of financial management and recommendations
It is recommended that it is crucial for The Langham, London to carry off it's fiscal
resources because it get advantage in numerous ways due to the beneficial roles of fiscal
governance such as fiscal judgements and control, fiscal preparation, capital administration,
allotment and usage of fiscal resources, currency rate management, disposal of surplus, fiscal
coverage and hazard administration (Gupta, 2019).
Task 2
Stages of the HR life cycle in talent acquisition and retention
The Langham, London has opted the six leading steps in the life cycle of human resource
and staff management such as:
 First is attracting candidates towards an organization in state to acquire expert people to
work for the hotel
 Second is recruitment which includes reaching out the nominees for interviews and
selecting them for the hotel for different job positions
 Third is on-boarding of selected people which states that finishing all the joining and
documentation formalities
 Fourth is training and development of new employees
 Fifth is retention of the staff to decrease the workers ratio
 Sixth is separation procedure if employee desires to resign the job from the hotel
(Kandampully, Zhang and Jaakkola, 2018).
Importance of HR plays in a specific job role
The Langham, London has human resource department which has a leading function in
holding out the properness in the hotel in it's management such as:
 By recruiting correct candidates for the correct job at the correct instance
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 They manages the entire procedure of payroll of the employees
 They are accountable for the disciplinary actions
 They upgrade policies, holds records of the staff, conduct welfare investigation and
grooming and improvement to employees by giving them the private as well as professed
occupation development which finally welfares the hotel also.
Developing performance management plan for a specific job role
The Langham, London has formulated the performance management program to scale up
the actions of each and every worker so that it can be known that whom to give grooming and
whom to encourage as per their executions. Their program involves the composition such as:
 They have formulated the performance dependent targets which includes assumptions
edges so as to specify the criterion of measurement
 They have characterized the professional improvement program for the employees in
order to give them the manner or course to move on
 Finally they talk with employees on a regular basis to determine the advancement and
troubles developing in carrying out the same (Koseoglu, 2019).
Recommendations to improve the each stage of HR life cycle
It is recommended that the hotel must amend the phases of human resource life cycle so
that improvement could take place in in the company in a more finer form such as:
 Communication of employers and employees, among employers and among employees
must be developed to deflect misconception among them
 There must be the well outlined regulations so that every worker can proceed that to
keep discipline in the hotel at the working time
 Reducing the stress measurement must be initiated so that hotel faces fewer staff
turnover as achievable by taking such scaling up to apply and implement the same
Task 3
Legislation that hospitality organisations has to comply
There are different legislations acts which are connected with The Langham, London
such as:
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 Environmental Legislation act, 1974 which means that there must be the minimal loss
of food and other raw materials so that surroundings can experience to the lowest degree
harm as accomplish-able
 Food Safety Legislation act, 1990 which means that the food which is being rendered to
the consumers must be healthful and harmless that must not comprise any food toxic
condition
 Consumer Legislation act, 2019 which means that the hotel must guarantee that any
enactment by them could not hurt any feeling or anything of the consumers otherwise
they can record a lawsuit against and organization (Köseoglu, Okumus, Dogan and Law,
2019).
Impact of employment and contract law on business decision-making
There is a large consequence of the employment and contract laws on The Langham's,
London decision making because:
 Employment laws impacts the relations between the employees and the employers in
context of remuneration, activeness, work status, working time period and many more
 Contract laws impacts the rules and regulations of the hotel to hold the lawfulness of the
company
 Therefore, jointly it impacts the decision making procedures because pursuing up all such
legislations and laws can affect the devising up of the plan of action and processes
accordingly.
Implications of Two of the regulations
There are different regulations acts which alleviates and renders implications to The
Langham, London such as:
 Employment Relation Act provides benefits to the employers, employees and the hotel
itself. Because it aids in holding back the relations among them so that operations could
be done in a very effectual and economical mode due to the relations management in the
hotel
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 Equality and Diversity Act means that there must be a balanced management between
each and every worker in the hotel by ignoring their caste, colour, religion, gender and
many more inequity forms (Litvin, Goldsmith and Pan, 2018).
Identify two ethical issues and it's impact on business
The Langham, London faces several moral issues and two of them are:
 Depreciating the superiority of food in order to gain the net income edges which is a
wrongful conduct by the hotel because they are ignoring the wellness terms of the
consumers, this has affected the hotel in depreciating of the consumer's faithfulness
 Secondly, hotel is inadequate in giving respect to their employees and appreciation
which they expect for hard work, this has affected the hotel in more worker decreasing
ratio (Lugosi, 2019).
Recommendations on improvement of employment contract
It is recommended that The Langham, London must take computation to enhance the
management such as:
 By following the methods like total quality management, inventory management, just in
time management, capacity management and many more techniques so that they could
increase the quality of food and even they can gain the profit margins by pursuing
methods of operations
 They must render an appropriate grooming and improvement sessions to their workers
so that they can be capable to pull off themselves with another employees in rendering
and receiving respect from each other so that worker turnover rate can be decreased
 Therefore, they must purely pursue the enactments and acts like employee relation act
and food safety legislation act
Task 4
Functional roles within the hospitality sector
There are several structural functions that are associated or comes under The Langham,
London such as:
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 House keeping and front office which means that the employees which are employed in
such type of a role has purposes and duties such as they are needed to provide consumers
the foremost service and experience so that they visit repeatedly
 It also dwells the receptionist function which have the door-to-door connection with the
consumers by amusing them at the instance of arriving of them
 Food and beverages services and food production department means that the workers
which are employed in these roles has responsibilities such as they are accountable for
the restaurant servicing and guarantees the superiority while carrying off the qualitative
production in the hotel (Murillo and King, 2019).
Interrelation of roles
 Various functional responsibilities in The Langham, London are dependent on each other
to make their roles improved in the company such as human resource, finance, marketing,
production, information technology, front desk, customer servicing and many more are
interconnected with each other in order to pay attention on their specific portions with
efficiency and efficaciously
 The explanation behind such relations is that it is essential to work together so that HR
can employ, capitalist can plan funds, sales group can promote their hotel, production
group can pull off the superiority, IT group can set up advanced technology, front desk
group can address consumers in an very prospective way by working collectively towards
one another
Communication methods and levels used in an organisation
The Langham, London utilises both kinds of communication forms such as verbal and
non verbal communication
 Verbal communication is performed either in a meeting room by administering a
conference with each and every worker or seminars performed by the topmost
administration in order to give some information
 Non verbal communication is performed through mails, circulars, notices or many more
forms. Moreover, there are another levels of communication as well which are utilised by
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the hotel such as carnal communication, audible, emotive and physical (Okumus,
Koseoglu and Ma, 2018).
Reviewing coordination and Integration within a business
The Langham, London has executed the role of coordination and integration on workers
which means:
 Each and every staff member in the company must be groomed in such a manner that
they must follow this role of coordination and integration
 Reason behind pursuing such role is that it guarantees that how much jointly they are
working with one another at minimum conflicts against one another
 This assist the hotel in holding back the cooperation between employees towards one
another, societal relations and professional relations also
 Through this they can aid and help one another which finally welfares the hotel in it's
transactions and governance.
Effectiveness of communication methods on integration of functions
The Langham, London has accomplished different merits by following the various
communication forms such as:
 Together executing the organizational targets
 It sets the basic form for any act in the hotel
 It alleviates the preparation procedures
 It renders coordination among employees
 It assist in judgement devising
 It furnishes affectivity in leaders
 It helps in encouragement of morale among workers of the hotel
 It gives clearness, adequateness and consistence, networking, feedback and integrating in
an organization (Yu, Xu, Li and Shi, 2020).
Recommendations in enhancement of business performance
It is recommended that The Langham, London must follow different approaches to better
hotel's performances in numerous ways such as:
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 Functional information which states that the hotel must negotiate it's information for
reading and approximating procedure to polish and furnish it's execution in an expected
manner
 Hotel should direct on their consumers in terms of servicing and rendering hygiene to
them in an economical manner
 Hiring program must be strategical so that expert group can get employed for the hotel
in a very effectual way
 Therefore, The Langham, London can amend and improve it's performance by pursuing
up or by computing for development and improvement in the hotel.
CONCLUSION
It is concluded that hospitality sector has management kindred to the other sectors as well
in terms of procedures, departments, operations and functions. Therefore, in order to increase
real time cognition and acquisition of the business, it is significant to identify the concept of
financial proceedings, it is necessary to determine the source written materials and recording
procedures, it is essential to examine the double entry book keeping method and trial balance, it
is important to analyse the cost, profits edges and fiscal performance, it is significant to identify
the phases and the value of HR life cycle and performance management, it is necessary to
determine the several laws, legislations and ethics of occupation in an enterprise, it is essential to
examine the structural roles in a company and it is important to analyse the communication
techniques and it's affectivity. Hence, this report covers all such areas to better realize the idea of
the hospitality administration with a proper observations, recommendations, judgements and
justifications.
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References:
Books and Journals
Alananzeh, O., Jawabreh, O., Alhalabi, R. and Keswani, F., 2019. The association among
employees' communication skills, image formation and tourist behaviour: perceptions
of hospitality management students in Jordan. International Journal of Culture,
Tourism and Hospitality Research.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management, 71, pp.41-50.
Cunill, O.M., Salvá, A.S., Gonzalez, L.O. and Mulet-Forteza, C., 2019. Thirty-fifth anniversary
of the International Journal of Hospitality Management: A bibliometric
overview. International Journal of Hospitality Management, 78, pp.89-101.
Franco, S., Caroli, M.G., Cappa, F. and Del Chiappa, G., 2020. Are you good enough? CSR,
quality management and corporate financial performance in the hospitality
industry. International Journal of Hospitality Management, 88, p.102395.
García-Lillo, F., Claver-Cortes, E., Ubeda-Garcia, M. and Zaragoza-Sáez, P.C., 2018. Mapping
the “intellectual structure” of research on human resources in the “tourism and
hospitality management scientific domain”. International Journal of Contemporary
Hospitality Management.
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 across individual differences. International Journal of Hospitality
Management, 91, p.102698.
Gupta, V., 2019. Talent management dimensions and their relationship with retention of
Generation-Y employees in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Koseoglu, M.A., 2019. Evolution of the social structure of hospitality management literature:
1960-2016. International Journal of Contemporary Hospitality Management.
Köseoglu, M.A., Okumus, F., Dogan, I.C. and Law, R., 2019. Intellectual structure of strategic
management research in the hospitality management field: A co-citation
analysis. International Journal of Hospitality Management, 78, pp.234-250.
Litvin, S.W., Goldsmith, R.E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management.
Lugosi, P., 2019. Deviance, deviant behaviour and hospitality management: Sources, forms and
drivers. Tourism Management, 74, pp.81-98.
Murillo, E. and King, C., 2019. Why do employees respond to hospitality talent
management. International Journal of Contemporary Hospitality Management.
Okumus, B., Koseoglu, M.A. and Ma, F., 2018. Food and gastronomy research in tourism and
hospitality: A bibliometric analysis. International Journal of Hospitality
Management, 73, pp.64-74.
Yu, Y., Xu, S., Li, G. and Shi, D., 2020. Applications of the experience sampling method: A
research agenda for hospitality management. International Journal of Contemporary
Hospitality Management.
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