Report: Financial Management and HR Cycle Analysis at Dorchester Hotel

This report provides a comprehensive analysis of The Dorchester Hotel's financial transactions and human resources cycle. Part A delves into financial aspects, including financial transactions, principles of managing and monitoring performance, double-entry bookkeeping, trial balance, cost management, and the importance of accurate transaction recording. Part B explores the HR cycle, covering recruitment, performance management, legislation, employment law, functional roles, communication methods, and coordination. The report examines the implications of regulations, ethical considerations, and provides recommendations for improving financial and HR practices within the hotel. It highlights the significance of financial management and HR strategies in achieving business success and long-term sustainability.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART A...........................................................................................................................................1
1: Introduction on financial transaction......................................................................................1
2: Research about principles of managing and monitoring performance of finance..................2
3: Explain principles of double entry bookkeeping system of credits and debits.......................3
4: Basic trial balance...................................................................................................................3
5: Examine types of cost and how they can be managed to influence performance of financial
.....................................................................................................................................................4
6: Importance of actual recording of transaction in line with accounting principles.................5
7: Conclusion..............................................................................................................................5
PART B............................................................................................................................................6
1:Review of various steps of HR cycle.......................................................................................6
2:Evaluate every step of HR cycle..............................................................................................6
3:Develop management performance plan..................................................................................7
4:Valid judgements and recommendations.................................................................................8
5:Identify particular legislation...................................................................................................8
6:Explain how firm's employment and contract law affect on decision making of business.....9
7:Analyse potential implications of two regulations...................................................................9
8:Critically reflects on affect of ethical problems of regulations, legislation and principles......9
9:Exploration of various functional roles....................................................................................9
10:Communication methods and levels....................................................................................10
11:Review of coordination and integration...............................................................................10
12:Effectiveness of communication methods, integration and monitoring with specific
department.................................................................................................................................10
13:Valid judgements and recommendations.............................................................................11

CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality business defines to wider concept of particular fields with in service industry
that include luxury accommodations, beverages and food quality, transportation, planning of
events, luxury resorts and etc. Hospitality industries have major role in success rate of country
and raising GDP. This sector's main focus on consumer's services and meet their needs and
desires. effective tourism of nation assist in better growth for an hospitality sector. Report is
based on The Dorchester hotel which is situated in United Kingdom and based on five star
hospitality sector and founded in 1930 (Broussard, 2019). Owner of hotel is Brunei investment
agency. They also offer classic car services for specific special entrance at special events and
relaxing spa facilities. Below report consider financial transaction, principles of managing and
controlling performance, principles of double entry bookkeeping systems, trial balance, types of
cost, importance of accurate recording transactions conclusion. In part B, review of HR cycle,
measure HR cycle and its importance, performance management plan, judgements and
recommendations, specific legislation and employment and contract law impact. Implications of
two regulations, ethical issues of regulations and legislation impact, functional roles,
communication methods, coordination and integration, effectiveness of communication methods
and valid judgements and recommendations.
MAIN BODY
PART A
1: Introduction on financial transaction
Financial transaction defines one of which where some sort of activities that
modifications in value of liabilities, assets and equity of owners of industry. It is also a
agreement or communication and carried out between a seller and buyer to exchange payment of
assets. It includes a status changes of finances of two or more individuals or industries. It is assist
in controlling and managing finances flow in organisation (Chen, Hung and Ma, 2020). In
context of Dorchester hotel, department who handle all financial activities they take acre about
transactions of debit and credit and also manage them to measure profitability and productivity.
For actual financial transactions company need suitable data and informations of activities of
finances, which are explained below as;
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 Recording process: In this process Dorchester industry manage and control journals
where all accounts and entries are managed in appropriate way (de Kock, 2020). It assist
in gather information and data in way of chronological which is easy in performing
process so they can avoid and reduce divergence with effectiveness.
 Documents sources: It start from consist of actual data and information that are recorded
in transactions maintaining in balanced way. Dorchester industry's department record
required data and administered which are useful in to manage effective accountability
with flexibility in way of sustainable. Hotel use different sources in adequate ways that
are sales notes and credit, cheques received, cash vouchers, debit notes, journal vouchers
and many more. Company collect data in documentation so that it is sustained for long
time of period by administration.
2: Research about principles of managing and monitoring performance of finance
There are different principles which are required by hotel to transaction manage of
financial activities that are provide different support through which easy management is
processed in Dorchester and principles explained below as;
 Times lines: Dorchester hotel and their management manage entire processed
transactions with different reasonable and activities are outlined in right time which is
restricted by agencies. It assist to complete business activities and task in allotted time
period of occurrent as with this entire business objectives and requirements are get on
time basis.
 Consistency: In this capable transactions is manage and control in suitable consistency
and different policies and process are established by industry as with this all financial
transactions are identified in regular manner (Dolan, 2020). It assist in measure and
identify performance of financial activities in management and also ending profitability
is prepared in optimised way.
 Documentations: It is and essential prominent from various principles that assist in
transactions which are perform within industry. Dorchester hotel and its administration
departments assure to retain, manage and complete appropriate audits for future
transactions in hotel.
 Justification: Administration of Dorchester hotel get about there should be valid reason
for each transactions in both terms credit and debit but is processes with assistance of
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business task's goals and objectives. It take correspond to transactions outlines with help
of agencies ad its major focus is to manage decision making process in right manner.
 Certification: In this Dorchester ensure to approved financial transaction which are
carry out in way of authorized and for this procedures and policies are framed by top
level authority.
3: Explain principles of double entry bookkeeping system of credits and debits
Double entry system of bookkeeping refers to basic concept that every financial
transactions in accounting impact finances activities in business in two aspects. One is left hand
side which is debit side and another one is credit side (Kraus, 2019). This is based on simple
principles that are for every debit and it is important to balance equal sides of credit also. In this
profit and loss account is involved;
profit margin and its calculation
profit margin is the simplest and the widely use of the financial ratios used in the
corporate finance. The company's profit is calculated on the three levels that is income statement,
starting with the most basics of the gross profit. Every three level of the corresponding margins
is calculated by their divisions of the profit by revenue and multiplying by 100. profit margin
always explains the relation of the profitability in a firm or the business by finding the cost that is
involved in the producing and selling goods.
Calculation of the profit- gross profit =net sales- cost of goods sold/net sales. By using t
Profit and loss statement of Dorchester hotel for march 2020
Profit and loss statement of The Dorchester 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
Total 162800 Total
To Administration Cost 33000 By Gross Profit
TO Distribution Cost 30500
To Depreciation 9000
To Finance Cost 1600
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To Tax 2100
To Net Profit 8400
Total 84600 Total
4: Basic trial balance
Trial balance refers to list of entire general accounts of ledger which is consider both
capital and revenue contained in account of ledger of industry. List includes names of each
nominal account of ledger and values. In this account will retain either debit and credit
balance. It assist in continuous checking all bookkeeping systems. As the trial balance is the
heart of the business. This is the system or indicator of the financial business and health. If any
company want to invest the shares of the company. This helps in the multiple entries in the
several accounts, that represents the summary of the business activities. Further steps of the trial
balance for the use of rectification of errors is as follows- Error of omissions- the transaction is recorded in the journal and the ledger account, this
process is called the error of omission. Errors of commissions- the figures that have recorded incorrect in figures and posting
the same amount of the ledger account is called commissions of ledger.
 Errors of misposting- posting the entry from the journal to the ledger account indirectly,
if the sums are equal on the correct sides of the correct side of the incorrect account is
called misposting.
Trial Balance for Dorchester 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
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Van 52250
Fixtures 8350
Inventory 23200
Receivables 15420
Sales Return 900
Purchase
Return 70
Salaries 5000
Business Rates 1480
Capital 397060
Total 440830 440830
5: Examine types of cost and how they can be managed to influence performance of financial
Cost refers to values of monetary of an expenditure for labours, product, equipments,
tools, services, supplies, resources and many more (Lemarchand, 2020). Those accounts that are
records as an expenditure in system of bookkeeping.
There are various types of cost that are utilized by Dorchester industry's administration
that are explained below as;
 Variable cost: This type of cost fluctuates as per situations with various levels of
outcomes changes of productions process. It is interdependent on number of goods and
services which are produce by hotel. Dorchester manage this cost through planning of
resources as per requirements of work scope and resources for future time.
 Fixed cost: This cost not change with an increasing and decreasing in numbers of
services and goods are sold or produced by industry. It is an expenditure which have to
be paid by hotel and self retain of specific activities of business like expense of building,
rent and many other.
 Operating cost: This cost refers to expenditures that are linked with regular activities of
business. It consider expense of products and some operating expenses. Dorchester
manage this by associate business task on regular basis and they maintain each record of
this expenses.
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6: Importance of actual recording of transaction in line with accounting principles
An effective system of bookkeeping includes managing suitable accounting system which
are record business transactions (Lim, Seet and Rahman, 2020). Keep all necessary expenses
bills and receipts on behalf of hotel industry. There are different importances of actual reasons of
recording that are explained below in terms of Dorchester hotel;
 It helps in saving tax by maintaining actual records.
 It will helps in avoiding and reducing interest and extra penalties as it creates easy to
pay right amount of tax at specific time.
 It will helps to Dorchester hotel in maintaining all backups of income and expenses
which are found in audits at right time period.
 It assist in provide information to owner or director about their position of finance with
organisation that are helps in further planning of strategies.
7: Conclusion
Management of finances and its procedures of monitoring is play huge role in hotel as it
helps in maintaining right position of finances and provide scope for effective growth or success.
It play crucial role in decision making process in finance and exercises of control over funds and
finances of hotel. It estimate needed capital for functioning smoothly of operations of business. It
ensure that finances are invested effectually in aspects of get revenue profit, sustainable and
viable for long term.
PART B
1:Review of various steps of HR cycle
HR life cycle defines to regular process of group action activities which are related to
human resources. It is linked with integration of human resources strategies making and it is
implementation with entire work-force's life cycle. This is consider five steps that are described
below in context to Dorchester hotel;
 Selection and recruitment: This procedure linked with individual recruiting at vacant
job positions in specific job role. Selecting candidates on the basis of their skills and
qualifications (Lipianin-Zontek and Szewczyk, 2019). Dorchester hotel's manager use
various steps to hire talented people for food and beverages departments.
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 Orientation and induction: In this programs are executed for employees so that the can
understand job responsibilities and roles. Dorchester industry offer attractive working
environment to staff.
 Career development and planning: This is basically focus on providing best
opportunities related to career to grow with organisation. Dorchester industry's manager
offering appraisal on the basis performance and more facilities for motivation towards
business activities.
 Retention: It defines to abilities of firm to hold employees for this managers are focus on
providing latest techniques and tools. Managers offering better facilities in monetary and
non profit terms to retain existing workforces for long time.
 Separation and termination: In this employees of hotel take retirement from their job.
Dorchester industry's manager use entire process related to termination and separation
policies.
2:Evaluate every step of HR cycle
HR life cycle have hug role in helping to employees, retaining them, provide direction for
better growth of staff and organisation and talented employees in hotel so that quality of
outcomes increased and productivity also (Orfanoudaki and Tousi, 2020). Evaluation of cycle is
described below as;
 Selection and recruitment, in this Dorchester industry hire talented people so that
their work-force's quality cab be improved and business performance also.
 Orientation and induction assist in understanding work or business activities
patterns and role of job. Workforce can get knowledge about organisation's
working environment of Dorchester.
 Career development and planning assist in providing extra skills for hotel's
growth and employee's also.
 Retention helps in holding talented people by providing various facilities in terms
or monetary and non monetary also facilities for their business tasks
(Sangaramoorthy and Kroeger, 2020). Managers give motivations to staff for
increasing business performance.
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 Termination and separation promotes effective environment of business and hotel
provide scope of job profile to new people. Hotel also offer some separation
facilities who take retirement.
(Source: HR Cycle<https://www.analyticsinhr.com/blog/people-analytics-cycle/>)
3:Develop management performance plan
Performance management plan refers to collaborative process that are use to recognize
various activities and business task which are straight with employees and contribution of efforts
towards accomplish goals. Dorchester industry's manager executing plan to measure and control
activities and performance of employees and give right guidance towards common goals. Hotel's
major focus on quality of beverages or food and luxury accommodation to provide customer
satisfaction (Santamaría Molina, 2020). Performance management plan described below as;
 Planning: In this manager make plans about performance management plan and execute
plan. Dorchester hotel plan first about task, resources and etc.
 Set goals and objectives: Dorchester hotel's manager set objectives and goals that are the
wants to achieve.
 Consult with skilled employees: Make team or group and consult talented staff to
perform and contribute efforts in implementing plans.
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 Create an action plan: Hotel's manager make an action plan which they follow for plan
and meet business objectives.
 Execute plan: At this step manager and their team execute plan with effective strategies.
 Keep track progress: After implementation of plans managers track performance and
measure effectiveness.
 Evaluate effectiveness: After measure effectiveness manager evaluate plans.
 Review: after all steps of performance management plan manager review about outcomes
and performance of plan.
4:Valid judgements and recommendations
As per above points, Dorchester hotel is use HR life cycle which assist in retaining
existing workforce and growing organisation in right direction. Performance management plan
assist in create a plan of specific task and evaluate effectualness to control performance. To
improve HR cycle in hotel they need to explore more locations to hire more people and adopting
different cultures is important to increase growth in better manner. For performance management
plan they require effective tools and techniques which are trendy in market.
5:Identify particular legislation
It is process which refers to various laws, rules and regulation which are imposed by
government in UK (Smith-Tran, 2019). It includes organisation developing laws with the help of
legislative body due to maintaining rules and procedures. It is essential for employees in order to
providing healthy working environment in order to effectively performing business function and
activity. It is laws and regulation are adhered to follow due to providing best product and
services. In relevance of Dorchester hotel, it is essential for organisation in order to attracting
large numbers of customers. There are ample numbers of legislation which are discussed below.
Environment legislation Act,1974-: It is an act which refers to organisation managing resources
effectively as well as waste material recycled due to not harmful for the environment. In context
of organisation, it is essential to reducing waste in order to protection environment.
Food safety legislation act, 1990-: It is act which are focusing on quality products and
services in an organisation. Organisation developing proper quality and quantity of food in order
to satisfying the need and wants of customers.
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