Hotel Ritz: Managing Finance, HR, and Legal Aspects in Hospitality

This report provides a comprehensive analysis of the hospitality business, focusing on key areas such as financial management, human resource lifecycle, and legal and ethical considerations. The report uses Hotel Ritz as a case study, examining how to manage finances, record transactions to minimize costs, and apply accounting principles like the double-entry bookkeeping system. It explores the stages of the HR lifecycle, from attraction and recruitment to retention and separation, emphasizing the importance of employee development, career opportunities, and appraisals for employee retention. The report also highlights the potential impacts of legal and ethical considerations on the hospitality business and stresses the importance of coordinating and integrating various departmental functions. The conclusion emphasizes the critical role of financial managers and the benefits of implementing a well-defined HR lifecycle to enhance business performance and achieve long-term goals. The report also provides recommendations for Hotel Ritz to improve its practices.

The hospitality business
toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Managing finance and recording transaction to minimise cost responsibility.............................1
Task 2...............................................................................................................................................4
How to manage the Human resource life cycle within the context of HR strategy.....................4
Task 3...............................................................................................................................................8
Potential impacts of legal and ethical considerations on hospitality business ............................8
Task 4...............................................................................................................................................9
Importance of coordinating and integrating functions of department (Covered in PPT)............9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality business is related different activities which are required to be managed in
order to increase the organisational productivity and profitability. It is composed of different
fields in hospitality sector that covers planning, lodging, hotel service, transportation, theme
parks, travelling etc. that attracts customers to buy services. This is important for organisation to
understand the needs of its targeted customers and provide hospitality services accordingly. In
business environment there are many industries who are providing hospitality services to people
in order to increase productivity (Adie, 2019). Hospitality is fast growing industry that attracts
people by providing different types of facility and entertainment services. The development of
such sector depends on income level and interest of people which helps to make right decision.
This report is based on Hotel Ritz which is established in London, UK. This is specialism in
salads, blended juices and smoothies that make happy to customers. Different topics are covered
in this report such as ways of managing finance and recording transactions to minimise cost,
stages of HR lifecycle, potential impacts of legal and ethical considerations on hospitality
business and importance of various functions and their integrations.
Task 1
Managing finance and recording transaction to minimise cost responsibility
Finance is important in business organisation which is used to operate business activities
and run business effectively. For instance Healthy Qila is a restaurant which is recently opened
to provide the healthy drink to individuals which helps to increase the trade of organisation. In
context to Healthy Qila, providing healthy salads, juices and smoothies which attracts customers
and increasing sale of organisation (Boshnakova and Goldblatt,2017). The finance manager of
such organisation are managing finance and control activities by using such information:
Financial transaction: This consider as agreement and communication which is carried
out between buyer and seller to exchanging assets for payment. This is the monetary transaction
which arises between buyer and seller to exchange their assets. Such as in Healthy Qila the
financial transaction for buyer is food and staying facility for which it make payment. And for
seller is selling its quality food and services that attracts customers. For this the important source
document is bookkeeping and accounting process that provide evidence of financial transaction.
In this document manager can record day to day transaction and them make a statement.

Principle and managing and monitoring financial performance: The management of
Healthy Qila is using such principles to manage and monitor financial performance such as:
Principle of risk and return: This principle assist Healthy Qila management and its
investor to make the decision of investment after analysing risk and return of business project
that help to manage finance and returns (Canavor, 2018).
Diversity principle: This principle is used by management of Healthy Qila in order to
minimize the risk through maintaining portfolio. In this financial manager analyse risky situation
that can arise in future and make plans to address them effectively.
Application of double entry bookkeeping system and credit and debit card for operations
Principle of double entry bookkeeping system: This is a system which is used by
accountant in organisation to record the transactions and shows double effect of such transaction.
The base of this principle is two way entry such as debit and credit which helps to maintain all
information. The formula is Assets = Liabilities + Equity
Trial balance and its steps
Trial balance – This is list of all general ledger accounts which are involves in ledger of
business. This involves name of each nominal ledger account and value of ledger balance that
gives good results and maintain the financial information. The purpose of trial balance is to
ensure that all business activities are made in company's ledger and are properly balanced. This
is used to create the financial statement by using all entries (Cetindamar, Phaal and Probert,
2016).
Trial balance of Healthy Qila by involving income and expenses

Steps to be followed while preparing trial balance
 To prepare a worksheet with three columns one is for titles, one is for credit and
other is for debit.
 To sill in all account titles and recording their balances properly.
 To get the total of debit and credit columns.
 And last compare the column totals.
Calculation of profit and loss

Importance of accurate recording of transactions
Accurate recording of transaction is important as it make habit of recording their business
transaction every day. This assist management to informed, efficient and take precise decision at
any time. Moreover, accurate recording transactions are used to remind the credits and expenses
which arises in organisation (Cunningham, 2019). According to accepted accounting principles
(AAP) there are many principle such as cost principle, double entry system, full discloser, going
concern, matching concept, revenue recognition etc. that is used to record the transaction
appropriately.
Conclusion: It has critically evaluated financial manager is playing important role in
organisation as it records all transaction, monitor perfromancer and take corrective action as per
accounting principles whuich helps to prepare income statement and develop profits. In context
to Healthy Qila the financial management is playing key role as recording transaction,
preparing trial balance under accepted accounting principle, and make income statement which
monitor the finance in organisation and increases business growth.
Task 2
How to manage the Human resource life cycle within the context of HR strategy
Human resources management is the important part of business organisation who is
playing different role and managing all functions effectively (HR life cycle stages, 2019). In

context to Hotel Ritz, there are different stages of HR life cycle which supports food and
beverage managers to talent acquisition and retention with the organisation. The stages of HR
life cycle is defined as:
Stage 1 Attraction – This is first step of HR life cycle where HR manager identify the
vacant position and place the advertisement at different places such as portals, websites,
newspaper etc. that helps to select the best candidates. As Hotel Ritz is looking for food and
beverage manager which provide food to customers so managers uses different sources to
provide the information about vacant post in such organisation. This organisation is facing a
issue to recruit the right candidate for such responsible position so it is using different sources to
attract people and encourage them to apply for job (Dixit, ed., 2019).
Stage 2 Recruitment – To hire the right people is crucial for business organisation that
may limits growth and productivity of business. In context to Hotel Ritz, managers are recruiting
the food and beverage manager by taking interviews and technical round which can help to
improve the business performance (Elshaer, 2019). Herein, organisation faces issue such as some
time they recruit wrong person for vacant position as lack of skills and talent which can affect
the business production and profitability negatively.
Stage 3 On boarding – This process is related to employees where they introduced
themselves within the organisation. Employees after recruitment become member of company
and learn new job duties and responsibilities which can develop and increase participation (Ford
and Sturman, 2018). In this stage, the food and beverage manager who is recruited by manager
in food and beverage department get involves in business activities with company's workforce
and learns new duties and responsibilities which can help to make good performance. Company
is facing issue relation to training and skills of employees as they are not recognised from culture
and activities of business so they do not get ready to work easily.
Stage 4 Enablement – The HR life cycle included this stages to entail the new recruiters
and introducing them in organisation with its culture, vision, mission and values. This is done by
management in conference style where it provide information to new hires by using presentation,
programme and question & answer sessions. Such as the management of Hotel Ritz are using
presentation and event programme in which it greet food and beverage managers and explain
their roles and responsibilities to complete the vision on organisation. Some time employees get
confuse and irritate from their jobs because of unclear roles and responsibility resulting they

make decision to leave the organisation that may be issue for business. Therefore, selected
company is providing proper training and good culture which make feel them more connected
and support transitions (Hanrahan, ed., 2017).
Stage 5 Development – This box of HR life cycle states that HRM resource department
should workout for its long term goals and objectives of company. As employees wants their
own development and career opportunities which helps to engaged the employees more with
organisation overtime and increase professional development. Such as the HR manager of Hotel
Ritz uses this stage to determine the better career options of food and beverage manager by
engaging them in business activities and accomplishment of visions that develop their
professional skills and improve learnings. In this, food and beverage manager seek to
professional growth and training to get ready for greater responsibility. In absent of this stage
organisation faces issue to employee turn over and not retaining them due to not providing
growth opportunities and career development opportunities which may influence performance
negatively. Therefore organisation should provide career opportunities and promotions which
can help to acquire and retain them effectively.
Stage 6 Retention – This stage is used by business organisation for giving the
opportunity to re energize their staff , recognize as important assets and give thank for their hard
work. This is important for business organisation to retain their employees by appraisals, extra
paid time and gift cards which make happy. The HR manager uses this strategy to re energize
and retain its recruited food and beverage manager within organisation. So it monitor their
performance and give them appreciations through various benefits such as gift cards, flexible
works schedules and extra pay for overtime which helps to retain and groom them efficaciously.
The issue which are facing by company that is employees switch the organisation if they are not
feeling appreciation for their work then they make decision to discontinue this work which
creates problem for organisation. Therefore, organisation should appraise their employees for
their good performance which helps to retain them for long period (McGuire, 2016).
Stage 7 Separation – This is consider as ending stage which includes retirement and
leaving the organisation for more pay, benefits, family responsibilities and strategic reasons. This
step is used to manage the transition and separation of employees by making strategic plans
effectively. The HR manager of Ritz hotel is using this step to manage the employees and their
separation. This helps to use new technology and run business smoothly and effectively.

Moreover HR manager conduct the exit interview that can help to know the reason behind the
exit decision that is beneficial for retaining them.
Recommendations: From the all above stages it has been recommended that the
management of Hotel Ritz should follow HR life cycle that help to recruit right employees,
increase their learning, provide them career opportunities, appraise them and find out reason
behind separation for the purpose of acquiring and retaining them in organisation for long period
(Nour, 2017).
Importance of HR life cycle
HR life cycle is useful for organisation as it helps to identify the right employees for right
position and give information to retain them with organisation. With the helps of this HR
manager identify the issues which are facing by companies in their business activities and make
efforts to overcome the problems (Olsen and Karanja, 2018). Such as HR life cycle is important
for Hotel Ritz where it identify the vacancy of food and beverage manager, recruits, provide
training and, give appraisal for their hard work and retain them for long term that gives high
productivity and profitability. This is also important for developing their skills and adding value
to their organisation effectively.
The importance of HR for supporting, growing and retaining talent is defined as:
 This is important who formulate policies and implement within organisation in
order to attract employees, recruiting them and getting things dome in certain
period of time (Smilansky, 2017).
 HR uses recruitment process to identify food and beverage manager vacancy
which helps to save time and cost of HR by posting advertisement and other
sources.
 The HR manager provide run training and development programme for food and
beverage manager which supports them to work effectively by understand their
role and responsibilities (Smith, 2017).
 HR manager of hotel Ritz assign the work to food and beverage manager and
evaluate their performance which helps to appraise and growing them.
 Moreover, development and retention stage is used by HR manager in which it
promote and provide benefits which leads to supporting, growing and retaining
the employees effectively.

Performance management plan
This is a plan which is prepared by management to managing the organisational as well
as employees performance. In context to Hotel Ritz, HR manager is preparing performance
management plan in order to managing the performance of food and beverage manager such as:
Plan Monitor Review
Herein, manager of Hotel Ritz
need to assess the priorities
and expectation of its food and
beverage manager, provide
them training and time period
to complete the work that
support them to work
effectively.
In this, manager communicate
with food and beverage
manager and get the problem
which they are facing while
their activities. They monitor
the performance of such
person and provide them
solution that help to complete
the work.
This process is used to look
forward and improve the
performance. In this, manager
need to review and measure
the performance which helps
to complete the goals in certain
period of time (Performance
management plan, 2020).
Task 3
Potential impacts of legal and ethical considerations on hospitality business
This is important for business organisation to follow the legislations and regulatory
framework which can help to promote the employee engagement, retention and professional
development. In context to Hotel Ritz, food and beverage server role is required under food and
beverage department for promoting employee relation and retention by applying legal and ethical
consideration such as:
Minimum Wages Act, 1998 – This legislation is related with minimum wages which
states organisation should provided minimum wages to its employees that increases
effectiveness. In Hotel Ritz, all Food and beverages server are getting minimum wages which is
decided by government that promotes employees engagement. By providing minimum wages
employees feel good and they make decision to retain for the long period. Moreover, this helps to
increase the professional development as employees works together by coordination and
communication that impacts positively on decision making (Sniukas, Lee and Morasky, 2016).

Health and Safety Work Act, 1974 – This consider as ethical consideration which is
required to provide by employer to its employees for the purpose of providing them safety.if
employees feels good health and safety then only they works good and retain in organisation. In
Hotel Ritz, employees are getting different facility and protection standards that protects them
harm and injuries. By following this act employees take decision to work at same organisation
and develop their skills (Van der Wagen and White, 2018).
Data protection act: This is also important and ethical legislation where employer
belives employees that their data and personal information is secure. This activities limits the
leaking of personal information of employees and getting things done effectively. In context to
Hotel Ritz, Food and beverage server are enjoying this right as employer protect their data
which leads professional development, employee engagement and retention for long term
(Wiltshier and Griffiths, 2019).
From the above it has reflected that organisation should focus on employees legislation
and ethical consideration where it engage employees in business activities, retain them and
increase the professional development. If organisation does not follow such legislation then
employees cannot maintain coordination which may increases conflicts between them and cannot
work effectively. In the absence of health and safety, equality and data protection act employees
contracts might become ineffective and reduces organisation performance. Therefore, it has
recommended to Hotel Ritz to follow legal and ethical consideration that helps to promote
employee engagement, professional development and retention.
Task 4
Importance of coordinating and integrating functions of department (Covered in PPT)
CONCLUSION
From the above it can be concluded that hospitality business is related with different
activities in organisation that covers various activities to increase the organisation productivity.
This is important for organisation to use HR life cycle in order to recruit right person for right
job effectively and then should be provide training to them which helps to retain for long period.
Financial transaction are related to organisation which helps to know the organisational
profitability by involving all income and expenses. There are different HR legislation which are
important to follow and this increases effectiveness.