Hospitality Business Toolkit Report: Financial, HR and Legal Aspects

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on financial management, human resources, and legal compliance within the context of the Radisson hotel chain. The report begins by investigating the principles of managing and monitoring financial performance, including the use of financial statements, cash flow analysis, and competitive analysis to optimize costs and increase profitability. It then delves into the double-entry bookkeeping system, demonstrating how to record sales and purchase transactions in a general ledger and produce a basic trial balance. The report further examines the HR life cycle, specifically focusing on recruitment, induction, development, retention, and separation strategies, and their impact on talent management. Finally, it identifies relevant legislation that hospitality organizations must adhere to, illustrating how company, employment, and contract law influence business decision-making. The report concludes with a summary of key findings and a list of references.

The Hospitality
Business Toolkit
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Table of Contents
Introduction:.....................................................................................................................................3
TASK 1............................................................................................................................................3
P1- Investigate the principles of managing and monitoring financial performance...................3
P2- Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger .................................................................................4
P3- Produce a basic trial balance applying the use of the balance off rule to complete the
ledger...........................................................................................................................................8
Task 2...............................................................................................................................................9
P4- Review the different stages of the HR life cycle applied to a specific hospitality job role
and their importance for retaining and developing talent...........................................................9
P5-Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention ...........11
Task 3.............................................................................................................................................12
P6 -Identify specific legislation that a hospitality organisation has to comply and adhere to. .12
P7- Using specific examples illustrate how company, employment and contract law has a
potential impact upon business decision making in the hospitality industry............................13
Conclusion ....................................................................................................................................15
References......................................................................................................................................16
Books and Journals ..................................................................................................................16
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Introduction:
Hospitality industry is large service industry that includes restaurants, hotels, bars, drink
and food service, theme parks, event planning and transportation. Every industry provides their
best services to customers which helps to increase the market reputation. In hospitality industry,
hotels and restaurants contribute their best for the development.(Zvereva.2019.)In the present
competitive time, every organisation understand that, business tools are the effective manner to
increase the profitability and growth rate. This report includes, management and monitoring
financial performance, general ledger for sales and purchase transaction, basic trail balance, and
HR strategies to achieve the targets, legal and ethical effects on hospitality business, importance
of departmental functions.
Radisson is a large chain of hospitality industry in the world, which founded in 1909, in
US. It is a big brand company, with large numbers of hotels in many countries like: Radisson
Blu, Radisson Red, Radisson Collection, Radisson Jass. It is an international hotel chain with
more than 1100 hotels around the world. Radisson provides the luxurious facility to its customer
and mainly focus on the security and safety of their customer and employees working with
organisation.
TASK 1
P1- Investigate the principles of managing and monitoring financial performance
Financial performance, is a practical analysis of how can an organisation use its assets to
generate the revenue. It identifies that how can a company manages its liability, assets, and
financial interest of its shareholders and others. (Filimonau and Delysia.2019.) Financial
statements shows the actual position of company and also helps an organisation to make
comparison of financial growth through past and present data. It also demonstrate, financial
health of an organisation in given time period.
Radisson can measure the financial performance through operating income, financial
statements, total revenue from operations. These statements shows an overview of the Radisson's
financial performance. It can be said that, every company monitor their financial performance by
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10 ways. In this manner company prepare some statements to measure financial growth, these
are-
 Cash flow and fund flow statement-
 Financial ratios and working capital statements
 Overheads analysis
 HR analysis
 Dashboard creation
 Key financial statements
 Inventory records
 Trial balance
 Competitive analysis
 Market expenses analysis
To prepare these statements, Radisson have to maintain proper stock and inventory. It
helps company to increase profitability by reducing the extra purchase of material, which is
ordered by company in lack of proper records. In financial statement report, company can
analyse the proper position through balance sheet and profit and loss through P&L account. In
this manner, company improve its performance for upcoming year.
By overhead analysation, company prepare itself to optimize expenses, which incurred
during servicing . (Higgins-Desbiolles, Moskwa and Wijesinghe 2019.)By preparing these
statements company can able to achieve the additional profits of competitive market. In this
manner Radisson achieve its target and goals in pre decided time frame. This company is always
make a powerful strategy to analyse the competitive market. Along with the help of financial
statements company also try to optimize cost and additional expenses in positive manner.
P2- Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger
Double entry bookkeeping system, is a basic system of keeping books in accounting
where, every entry which recorded in an account required a opposite and corresponding entry to
a several account. The two equal sides of accounting system known as Debit and Credit. The left
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side refers to Debit and right side refers to Credit. In accounting system these both sides should
be equal, if debit and credit sides are not equal at some point then it will indicate that, there is a
mistake which is need to be correct.
..Particulars...... Debit (DR.) Credit(CR.)
cash Account Dr. 28000
To capital.. Account 28000
Rent.. Account Dr. 2000
To Cash ..Account 2000
Purchase ...Account... Dr. 22000
To Cash ...Account... 12000
To Vendor ...Account... 10000
Prepaid Insurance Policy ...Account... Dr. 1500
To Cash ...Account... 1500
Purchase ...Account... Dr. 17000
To WH Adams Ltd ...Account... 17000
Laun Debity Fees ...Account... Dr. 500
To Cash ...Account... 500
Telephone and Internet
Expenses ...Account... Dr. 2500
To Cash ...Account... 2500
Water Charges ...Account... Dr. 1000
To Cash ...Account... 1000
Wages and Salary ...Account... Dr. 2550
To Cash ...Account... 2550
cash ...Account... Dr. 15000
To Sales ...Account... 15000
cash ...Account... Dr. 20000
To Sales ...Account... 20000
LEDGER-
Da
te ..Particulars......
J/
F
..Amo
unt.
Da
te ..Particulars......
J
/
F ..Amount.
To
Capital ...Accou
nt... 28000 By Rent ...Account... 2000
To
Sales ...Accoun
t... 15000 By Purchase ...Account... 22000
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To
Sales ...Account..
. 20000
By Prepaid Insurance
Policy ...Account... 1500
By Laun Debity
Fees ...Account... 500
By Telephone and
Internet expenses ...Account... 2500
By Water
Charges ...Account... 1000
By Wages and
Salary ...Account... 2550
By Balance c/d 30950
63000 63000
Capital ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To Balance c/d 28000
By
Cash ...Acco
unt... 28000
28000 28000
Rent ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 2000
By Balance
c/d 2000
2000 2000
Purchase ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 12000
By Balance
c/d 39000
To
Vendors ...Acco
10000
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unt...
To WH Adams
Ltd ...Account... 17000
39000 39000
Prepaid Insurance
Policy ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 1500
By Balance
c/d 1500
1500 1500
WH Adams
Ltd ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To Balance c/d 17000
By
Purchase ...A
ccount... 17000
17000 17000
LaunDebity
Fees ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 500
By Balance
c/d 500
500 500
Telephone and Internet
Expenses ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 2500
By Balance
c/d 2500
2500 2500
Water
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Charges ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 1000
By Balance
c/d 1000
1000 1000
Wages and
Salary ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To
Cash ...Account.
.. 2550
By Balance
c/d 2550
2550 2550
Sales ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Amo
unt.
To Balance c/d 35000
By
Cash ...Acco
unt... 15000
By
Cash ...Acco
unt... 20000
35000 35000
P3- Produce a basic trial balance applying the use of the balance off rule to complete the ledger
A Trial balance is a short statement of all ledgers that divided into three columns, the first
one is particulars, which shows the transaction summary, second column shows, debit balance
and the last column shows, credit balance of related transactions.(Arcana, Wiweka and
Quail .2018.) It also shows the total debit and credit balance of a company.
In this the total of debit side should be equal to credit side's total. The main purpose of
making a trial balance is to check the entries, which recorded into company's bookkeeping
system are correct or not correct mathematically. The balance off rule in accounting is refers to
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close the all ledger a/c and put these balances in trial balance to make an equal total of debit and
credit balance at the end of the year or financial year.
TRIAL BALANCE
..Particulars...... Debit(DR) Credit(CR)
Cash ...Account... 30950
Capital ...Account... 28000
Rent ...Account... 2000
Purchase ...Account... 39000
Prepaid insurance
Policy 1500
WH Adams
Ltd ...Account... 17000
LaunDebity
fees ...Account... 500
Telephone and Internet
expenses ...Account... 2500
Water
Charges ...Account... 1000
Wages and
salary ...Account... 2550
Sales ...Account... 35000
Total 80000 80000
Task 2
P4- Review the different stages of the HR life cycle applied to a specific hospitality job role and
their importance for retaining and developing talent
The HR life cycle is a continuous procedure of coordinated HR activities. The HR life
cycle is related with execution and creation of HR strategies. HR life cycle includes the the
combination of HR strategies, HR activities, recruiting, selecting, training and development. In
hospitality industries the role of HR is divided into two basic combination these are:
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Horizontal combination – This combination refers the related HR activities, includes HR
practice and high performance work system.
Vertical combination- This combination refers the HR activities, with HR strategy and
business strategy.
HR life cycle shows the journey of an organisation and its employees. In this way
Radisson is a large chain of international hotels, so the activities which is required to achieve the
goals like recruitment, selection and many more depends on HR. (Building BRYTMelissen and
Sauer. 2018.)It can be said that,there are five stages in HR cycle, which is required for each and
every organisation. It includes recruitment, induction, development, retention, separation.
Recruitment-
It is a process, which is required for every organisation. In this way, to select a capable
and skilled person for the company is the main object and target of HR, which supports
company to maintain the long term stability in the present competitive market. In this manner
HR of Redisson, select a person for the job very carefully.
Induction-
Once an organisation select a person or candidate for the job than the next procedure
begin with induction. It includes, organisational visions, values and proper guideline about the
work frame. It described that how can an employee perform their best and increase profitability
of the company.
Development-
This is the third stage in which, company can try to develop their employees through
training sessions. It is the main role of HR to develop the skill of selected employees with the
help of experts guidance. This process will helps an employee to complete the work in given
time period for organisational growth.
Retention-
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It is a power of management which retain its employees in the organisation by providing
them a efficient and friendly environment where they can discuss their problems and issues
freely and then it is the responsibility of HR to solve issues. (Mejia and Torres. 2018.)It is also
mandatory that every organisation should clear their expectations with employees and maintain
the transparency, which will help to maintain a efficient environment.
Separation-
This is an important and last stage of HR cycle, it includes, to identifies the actual
reasons of separation from the organisation because this the biggest loss of any kind of
organisation. If an employee want to leave an organisation than it will not good for the growth of
the company. But after hiring a skilled person it will be easy for company to approve the
resignation of employees because forcing a person to do continue is not good for company's
reputation, it also affect the environment of organisation.
In this manner, Radisson has follow above life cycle to maintain its growth in the
competitive environment. If the organisation not hire a skilled person so it will affect the growth
of organisation and customer service also.
P5-Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention
performance management plan is used in the development of new methods and
techniques to improve an employee performance. It is a plan, that increase an efficiency level in
employees regarding the work. This is an effective plan to enhance the profitability of company.
In this way main leader and coordinators of Radisson discuss and decide the standard
where, company wants to reach. (Gibson. 2017.)It includes all the expected results which the
organisation wants to achieve in future. There are some techniques, which have to followed by
the company to make an attractive performance management plan to resolve the issues of staff-
Planning – it is the base of each and every business. An organisation has make a effective plan
for success. In this manner, Radisson always try to include short term and long term goals to
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increase the profitability and to describe the organisational goals in front of employees. The
main object behind this kind of planning is to make an efficient environment where, employees
can work for achieving pre decided goals with the guideline.
Coaching- Radisson is always provide training or coaching timely to its employees, in this way
company provide proper guideline that, how to perform well in an organisation? How to improve
the quality? In this company provide a proper coaching or training that helps helps the
organisation to increase its reputation and revenue.
Action- It can be said that, every company try to achieve their targets with in the decided time
period, if company get success in this, than some rewards given by organisation to the
employees for motivation purpose.
Appraising- In this manner, company organised some effective appraisal programme for its
employees. Radisson always appraise the hard work of employees which, helpful for company to
achieve the targets.(Kiehne. 2018.) Appraising, by company can be in monetary form or other
forms like promotions which, motivate employees to perform their best.
In this manner, Radisson focus on the performance management for creating an effective
working environment, which reduce the risk of conflicts between employees. If employees are
satisfied with working environment, organisational policies and also with work than it will affect
company's growth in an positive manner.
Task 3
P6 -Identify specific legislation that a hospitality organisation has to comply and adhere to
Every kind of organisation has to follow some laws, which protect the organisation from
fraud and many more things. These laws decided by government for the basic purpose of
protection. There are some specific laws for hospitality industry, that Radisson has to follow for
maintain the growth in economy.
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