Comprehensive Report: Hospitality Business Toolkit - Finance, HR, Law

This report provides a comprehensive overview of financial management, human resource strategies, and legal considerations within the hospitality industry, using Oakman Inns & Restaurants and InterContinental Hotels Group PLC as case studies. Part 1 focuses on financial performance, including financial statement preparation, inventory records, working capital management, and variance analysis, with practical application of double-entry bookkeeping. Part 2 delves into the HR lifecycle, emphasizing recruitment, onboarding, development, retention, and offboarding, with a specific performance management plan developed for a Catering Executive role. Part 3 addresses legislation, standards, and ethical considerations relevant to the hospitality sector. Finally, Part 4 explores the various functional roles within hospitality departments and their interrelations, along with communication methods. The report includes journal entries, ledger accounts, and a trial balance to illustrate financial concepts and concludes with key findings and references.

THE HOSPITALITY BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 Managing Finance and Transactions.................................................................................1
Investigating principles of
managing and monitoring
financial performance.................................................................................................................1
Applying double entry
book-keeping system for recording sales and purchase transactions in general ledger.............2
Producing basic trial balance......................................................................................................6
PART 2 Managing HR Life Cycle within Human Resource Strategy............................................7
Reviewing different stages
of the HR life cycle applying to job role and importance of retaining employees....................7
Developing performance
management plan for a job role and techniques for resolving issues in firm.............................8
PART 3 Legislation and Ethics in Hospitality Industry................................................................10
Identifying specific legislation that hospitality organisation has to adhere to 320...................10
Illustrating how company,
employment and contract law has impact on decision-making of business.............................10
PART 4 Hospitality Functions and Departments...........................................................................12
Exploring different functional roles within hospitality sector interrelate.................................12
Explaining different methods of communication, coordination and monitoring applied within
department.................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality sector is highest income-generating sector of UK. Present report deals with
hospitality firms such as Oakman Inns & Restaurants for part 1 and rest parts for Inter
Continental Hotels Group PLC. Report will discuss about the principles of monitoring
financial performance, along with preparation of journals, ledgers and trial balance. HR life
cycle and techniques for resolving issues among employees will be discussed. Performance
management plan will be made for Catering Executive job role. Legislation, standards and ethics
will be explained. Moreover, different functional roles of departments and its interrelation will
be enumerated along with communication methods.
PART 1 Managing Finance and Transactions
Investigating principles of
managing and monitoring
financial performance
The principles for monitoring and managing financial performance in Oakman Inns &
Restaurants are as follows-
Preparation of financials-
It is the basic need of hospitality firm to prepare financials in order to ascertain correct
position of business with ease. The balance sheet, income statements are prepared from
accounting records which are maintained by company quite effectually. Thus, financial health
can be analysed (Pacheco and Tavares, 2017).
Producing records of inventory-
Equipments, raw materials are heavily used in Oakman Inns & Restaurants. It is required
to keep records of items of inventories so that no wastage may be made and proper utilisation
takes place. Purchase and use of stocks can be evaluated through it.
Working capital management-
Periodic review of working capital is required so that quick conversion of assets may take
place into cash. The perfect ratio between current assets and current liabilities are required for
meeting daily operational requirements of firm.
1

Variance analysis-
The variance analysis is used for monitoring performance so that deviations if any of
actual performance with that of budgeted performance is found, improvements can be done in a
better manner.
Applying double entry
book-keeping system for recording sales and purchase transactions in general ledger
The transactions for Oakman Inns & Restaurants are as follows occurred on October
2018
 Oct 2 -Contribution of £50000 and computer costing £520500
 Oct 4 -Office supplies for £4000
 Oct 10 -Advertising obtained loan from bank at 12 % 4-year loan for £20000
 Oct 12 -Utility bills for £2750
 Oct 15 -Paid 3000 on account of purchase of office supplies on credit
 Oct 24 -Advertising services costing £18300
 Oct 27 -Payment received £5500 on advertising services
 Oct 30 -Personal usage by owner £6000
Journal entries
Date Particulars LF Dr Cr
02/10/18 Cash a/c Dr 50000
Computer a/c Dr 20500
To Capital a/c 70500
(Being business gets
additional capital)
04/10/18 Office Supplies Dr 4000
To Accounts Payable 4000
2

a/c
(Being purchases made
on credit)
10/10/18 Cash a/c Dr 20000
To Bank borrowings
a/c 20000
(Being loan taken from
bank)
12/10/18 Utility Bills a/c 2750
To Cash a/c 2750
(Being bills paid in
cash)
15/10/18
Accounts Payable a/c
Dr 3000
To Cash a/c 3000
(Being paid credit in
cash)
24/10/18
Accounts Receivable
a/c Dr 18300
To Advertising services 18300
(Being earned money
for services)
27/10/18 Cash a/c Dr 5500
To Accounts
Receivable a/c 5500
(Being cash received)
3

30/10/18 Drawings a/c Dr 6000
To Cash a/c 6000
(Being amount
withdrawn for personal
purpose)
130050 130050
Ledger accounts
Cash a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Capital a/c 50000 12/10/18
Utility Bills
a/c 2750
10/10/18
Bank
borrowings a/c 20000 15/10/18
Accounts
Payable a/c 3000
27/10/18
Accounts
Receivable a/c 5500 30/10/18 Drawings a/c 6000
Bal c/d 63750
75500 75500
01/11/18 Bal b/d 63750
Computer a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Capital a/c 20500
4

Bal c/d 20500
20500 20500
01/11/18 Bal b/d 20500
Capital a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Cash a/c 50000
02/10/18 Computer a/c 20500
Bal c/d 70500
70500 70500
01/11/18 Bal b/d 70500
Office supplies a/c
Date Particulars Amount Date Particulars Amount
04/10/18
Accounts
Payable a/c 4000
Bal c/d 4000
4000 4000
01/11/18 Bal b/d 4000
Accounts Payable a/c
Date Particulars Amount Date Particulars Amount
04/10/18 Cash a/c 3000 04/10/18 Office 4000
5

supplies a/c
Bal c/d 1000
4000 4000
01/11/18 Bal b/d 1000
Advertising services a/c
Date Particulars Amount Date Particulars Amount
24/10/18
Accounts
Receivable a/c 18300
Bal c/d 18300 18300
01/11/18 Bal b/d 18300
Bank borrowings a/c
Date Particulars Amount Date Particulars Amount
10/10/18 Cash a/c 20000
Bal c/d 20000 20000
01/11/18 Bal b/d 20000
Utility Bills a/c
Date Particulars Amount Date Particulars Amount
6

12/10/18 Cash a/c 2750
Bal c/d 2750
2750 2750
01/11/18 Bal b/d 2750
Accounts Receivable a/c
Date Particulars Amount Date Particulars Amount
24/10/18
Advertising
services a/c 18300 27/10/18 Cash a/c 5500
Bal c/d 12800
18300 18300
01/11/18 Bal b/d 12800
Drawings a/c
Date Particulars Amount Date Particulars Amount
30/10/18 Cash a/c 6000
Bal c/d 6000
6000 6000
01/11/18 Bal b/d 6000
Producing basic trial balance
Trial Balance
7

Particulars Dr Cr
Cash a/c 63750
Computer a/c 20500
Capital a/c 70500
Office Supplies 4000
Accounts Payable a/c 1000
Advertising services a/c 18300
Bank borrowings a/c 20000
Utility Bills a/c 2750
Accounts Receivable a/c 12800
Drawings a/c 6000
Total 109800 109800
PART 2 Managing HR Life Cycle within Human Resource Strategy
Reviewing different stages
of the HR life cycle applying to job role and importance of retaining employees
HR life cycle is termed to as an employees' journey starting from its recruiting to various
phases and his exit from firm. The stages of life cycle overlaps with that of HR responsibilities.
The stages of HR life cycle for the company are as follows-
Recruit-
It is the first stage of employee when he is recruited in firm and requires pre-screening of
employees by scheduling interviews so as to acquire talented candidates best suits for the profile.
Streamlining of hiring process needs to be done for hiring employees (What is employee life
cycle?. 2018).
Onboard-
It is arrived when employees who have accepted offer of placement becomes part of firm.
They are guided along with firm's policies, job duties to be performed and training process to be
undertaken.
8

Develop-
Feedback is being given to employees who become well-equipped with organisation so
that performance may be improved. Regular check-ins are made for up scaling performance of
Catering executive in Oakman Inns & Restaurants.
Retain-
Once employee has acquired necessary skills and then it is required to retain them for
continual development in job role. Evaluation, training and recognition are crucial for retaining
them in the firm.
Off-board-
This is the last stage where employee leave job due to being recruited at new job, lay-
offs, retirement, termination for violating rules of business etc (Filimonau and Mika, 2017).
Proper procedures need to be followed by HR of Oakman Inns & Restaurants regarding off-
boarding.
The significance of HR Life cycle is crucial for Oakman Inns & Restaurants as it deals
with valuable asset which are of its employees. It provides consistent series of steps throughout
employee's careers and employer is able to analyse data which employees give their opinions
during off-boarding from organisation leading to enhancement of HR policies. It is required for
retaining top-notch talents in firm so as to enhance productivity in a better manner.
Developing performance
management plan for a job role and techniques for resolving issues in firm
Performance Management Plan for Catering Executive
Target Area Concern for
performance
Expected
standard
Agreed
improveme
nt actions
Support Review Reviewing
notes
Expected date to
achieve
Difficulty in
maintaining
organisational
skills
Two deadlines
have been
missed.
Complaint
received by
Catering Head
who did not
To meet
deadlines,
manage
workload in
effective
manner.
Prioritising
Operating
To-do
check list
for
prioritising
work and to
respond to
Training
under the
senior
official in
catering
department
and to work
Reviewing
within 3
weeks.
Training
completed,
to-do check
lists prepared,
tasks are
prioritised
and
Standard
performance to
be achieved
within 7 weeks
of time period.
9

attained message
to an email sent.
tasks to keep
the food
quality
standard in
firm.
emails
within 2
business
days
under him
for getting
tasks
completed
in a timely
manner.
reviewing
within
stipulated
time.
Accuracy in
quality food
research
Inaccuracy is
being repeated
involving errors
in adhering to
food standards
To produce
accurate
data and
enable
meaningful
analysis
Double
checking of
work and
keeping
record of
research
and check
to provide
accuracy in
it
Training in
research for
producing
handful for
results and
time
managemen
t training.
To be
reviewed
within 4
weeks
Training
conducted
and attended,
daily analysis
of work and
data produced
for getting
desired
results.
Standard to be
accomplished
within 8 weeks.
The staffing issues can be resolved in firm are as follows-
Promoting equality and diversity-
The issues arise between co-workers should be treated in accordance to the viewpoints
being gathered. Proper analysis of viewpoints must be adhered so that equality and diversity can
be managed in a better manner (Lugosi and Jameson, 2017).
Managing multicultural team-
Multicultural team consists of employees from different culture, opinions, beliefs and
background. The difference in opinions leads to arouse of issues which needs to be managed in
company in order to enhance culture quite effectually.
PART 3 Legislation and Ethics in Hospitality Industry
Identifying specific legislation that hospitality organisation has to adhere to 320
There are various legislation which affects hospitality organisation up to a major extent
which are detailed below-
10

Liquor license (Licensing Act 1964)-
Inter Continental Hotels Group PLC is required to attain license for offering liquor its
customers. It is required as it limits and regulates sales of alcohol. The law states that customers
are responsible for consuming liquor on their own and to avoid undesirable circumstances if any
(Filimonau and Gherbin, 2017). This law also provides rule that satisfaction should be imparted
to customers who come for enjoying meals and adequate atmosphere must be presented to them.
This law reminds customers not to drink excessive alcohol as it is injurious to their health.
Management of hotel-
The hotel's management is vulnerable to legal issue. It involves license agreement of
hotel should be clearly stated in accordance to the law. This helps Inter Continental Hotels Group
PLC to monitor its worldwide branches quite effectively and business expansion can be made.
Safety and health at Work 1974-
The workers' health is to be prioritised as it will have direct impact on their productivity
as performance will go down up to a high extent. By adhering to regulations, business will be
able to satisfy customers in the best manner possible and as such, profits will get enhanced.
Data Protection Act 1998-
There are numerous transactions which takes into day-to-day basis in Inter Continental
Hotels Group PLC. The bills are paid by customers and personal type of data is stored which
needs to be protected as guests' confidential information should not be violated (Al-Najjar,
2017). This will provide higher level of satisfaction to customers as private information may not
be available to third party sources.
Illustrating how company,
employment and contract law has impact on decision-making of business
Company Law
Food Safety Act 1990
The act shows that there should be adequate food being available to people in England,
Wales and Scotland (Manning, 2018). Main responsibilities under the Food and Safety Act is to
ensure that food is labelled and advertised and imparted in a manner which is misleading to
11

customers. This impacts Inter Continental Hotels Group PLC as it proper labelling of products
need to be made and presented to people for enhancing level of satisfaction.
Environmental Act 1990-
This provides ways to limit upon and control upon pollution that arises because of
industrial and other related processes. It is required to be adhered to by which firm may be able
to initiate operational activities in a better manner. This impacts decision-making of organisation
as it needs to formulate strategies for attaining efficiency in a better manner.
Employment Law
Equality Act 2010-
This act says that equal opportunities should be made available at the workplace. In
simple words, no discrimination should take place in providing job roles to men and women
employees and also no difference in pay scale should be done (Williams and Horodnic, 2017).
Hence, equal opportunities must be provided to them so that employees may enhance their
productivity. It leads to benefit to firm as employee's becomes motivated.
Employer's Liability Act 1969
The act states that employer has the ability to provide complete insurance to workers. It is
inevitable that accidents happen in hotels. This becomes important area of hotel insurance which
should be provided to employees in event of any incident happens in Inter Continental Hotels
Group PLC. It is the liability of employer to insure its employees and display insurance hotel
inside hotel.
Contract Law
Breaches to contract
The contract is occurred simply between parties under an agreement in which money is
paid for services rendered by other party (Pira and Zylfijaj, 2017). It becomes legally binding
contract that is oral and written. In case of breach of contract, legal terms as furnished in contract
has not been performed leading to breach. When repudiatory breach of contract takes place,
innocent party secures right to terminate performance of contract and can claim damages of
suffered losses.
Ethical considerations
Business Ethics-
12

The business ethics means that firm is responsible for evaluating and adhering to changes
that might occur in business environment (Ariza-Montes and et.al., 2017). It should be adhered
by Inter Continental Hotels Group PLC so that company may be able to connect with
stakeholders in the best manner possible. The norms, values, ethical and unethical practices
should be followed and business must be able to enhance its connection with stakeholders.
Corporate Social Responsibility (CSR)-
CSR is the business responsibility which should be performed by firm so that business
must be socially accountable to stakeholders and general public. By following CSR, Inter
Continental Hotels Group PLC becomes able to get conscious of kind of impact, business will
have on social, economic and environment.
The above stated legislation, standards and ethical considerations clarifies that business
decision-making is impacted up to a high extent as it has to follow the rules and regulations for
meeting uninterrupted operational activities quite effectively.
PART 4 Hospitality Functions and Departments
Exploring different functional roles within hospitality sector interrelate
There are various functional departments which have roles and need to be followed up to
a major extent. The departments such as housekeeping, food and beverage service, kitchen and
front office department are some of operational departments of firm (Jauhari and Bharwani,
2017). In addition to this, secondary department which includes sales and marketing, personal
and human resources, accounting and finance, purchase and store, security and engineering etc.
Housekeeping keeping department is responsible for cleaning up of hotel rooms, public areas,
issuing and collecting of linens and maintenance of gardens etc. Food and beverage department
is responsible for rendering services to customers like preparation of food, beverages and
tobacco as per consumer demand.
Kitchen department is responsible for producing commodities as demanded by public.
Food is prepared according to the type of menu. Front office department has responsibilities to
meet and greet guests by checking them in hotel (Various departments of hotels. 2018).
Moreover, providing assistance to guests during their period of stay, accommodation facilities,
accounts and receives payment from them. While, secondary departments are interrelated to one
another as personal and human resource is responsible for hiring and recruiting employees.
Whereas, accounts and finance department is to monitor all financials of firm. It includes
13

handling of cash receipts, cash payments, processing of payrolls and preparation of internal
report suitable for management to rely upon (Sowamber, Ramkissoon and Mavondo, 2017).
Purchase and store department is interrelated and dependent on finance department to
effectively get funds needed for accomplish necessary raw materials to be purchased and
inventories to store in warehouse for meeting customer's demand. Security is another department
for providing safety to hotel guests, employees. It may include monitoring machineries,
patrolling hotel premises and ensuring entire security of hotel. Engineering for up-keeping
operations of heating, air conditioning and lighting in effective manner. Thus, it can be said that
all departments are interrelated to one another to accomplish desired goals of organisation.
Explaining different methods of communication, coordination and monitoring applied within
department
There are various methods of communication which are applied in front office
department of hotel are-
Verbal communication-
It is made to deliver the message with the usage of words which can be done through
one-on-one or in group settings.
Written communication-
The written communication is present in firm be it related to electronic documents,
letters, text chats, emails which form the part of written communication (Holdsworth and Apeh,
2017). Methods which are used in this communication are memos, handbooks and formal
business proposals etc.
Oral communication-
As the name suggests, it includes communication through face-to-face, voice chat, video
conferencing and spoken words which forms oral communication in the best manner possible.
Formal communications are prepared in relation to casual and informal basis up to a major
extent.
Face-to-face communication-
The face-to-face communication which are based on video conferencing and provide
communication with that of connection with staffs and firm is able to make strict communication
with staffs by which overlapping of work can be eradicated quite effectually.
14

Coordination and monitoring is required in front office department so that it may be able
to greet guests and welcome them in for pleasant stay in firm. It is recommended that for
strengthening value chain, performances should be monitored of the department so that it may be
able to attain profits quite effectively (Ramanathan and et.al., 2017). Streamlining of tasks must
be strengthened by which all necessary facilities must be provided to company in the best
manner possible. Thus, through coordination and monitoring, department may be able to
communicate with all units for attaining group goals with ease.
CONCLUSION
Hereby it can be concluded that hospitality sector needs to adhered to variety of rules and
regulations which are imparted by UK government with reference to Company law, Employment
law and Contract law. On the other hand, significance of HR life cycle in firm and retention of
staff is crucial for company so that profits may be attained with maximum operational efficiency.
Furthermore, methods of communication enhances flow of information to departments by which
functioning can be done with ease. Double-entry book keeping system and presentation of
ledgers and trial balance clarifies position of firm.
15

REFERENCES
Books and Journals
Al-Najjar, B., 2017. Corporate governance and CEO pay: Evidence from UK Travel and Leisure
listed firms. Tourism Management. 60. pp.9-14.
Ariza-Montes, A. and et.al., 2017. Incidence of workplace bullying among hospitality
employees. International Journal of Contemporary Hospitality Management. 29(4).
pp.1116-1132.
Filimonau, V. and Gherbin, A., 2017. An exploratory study of food waste management practices
in the UK grocery retail sector. Journal of Cleaner Production. 167. pp.1184-1194.
Filimonau, V. and Mika, M., 2017. Return labour migration: an exploratory study of Polish
migrant workers from the UK hospitality industry. Current Issues in Tourism. pp.1-22.
Holdsworth, J. and Apeh, E., 2017, September. An Effective Immersive Cyber Security
Awareness Learning Platform for Businesses in the Hospitality Sector. In 2017 IEEE 25th
International Requirements Engineering Conference Workshops (REW) (pp. 111-117).
IEEE.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing and
Consumer Behavior (pp. 159-185). Apple Academic Press.
Lugosi, P. and Jameson, S., 2017. Challenges in hospitality management education: Perspectives
from the United Kingdom. Journal of Hospitality and Tourism Management.31. pp.163-
172.
Manning, L., 2018. The value of food safety culture to the hospitality industry. Worldwide
Hospitality and Tourism Themes, (just-accepted). pp.00-00.
Pacheco, L. and Tavares, F., 2017. Capital structure determinants of hospitality sector
SMEs. Tourism Economics,23(1), pp.113-132.
Pira, B. and Zylfijaj, R., 2017. Assessment of critical success factors of TQM culture in
hospitality sector in Kosovo.International Journal of Research in Business and Social
Science (2147-4478). 6(1). pp.65-77.
16