Hospitality Business Toolkit Report: One Aldwych Hotel Analysis

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on the operations of One Aldwych Hotel. It begins with an examination of financial performance, including principles of managing finance, double-entry bookkeeping, and the creation of a trial balance. The report then delves into the HR lifecycle, detailing each stage and its application to a specific hospitality job role. It explores performance management plans, relevant legislations, and the impact of employment and contract law on business decisions. Furthermore, the report examines the interrelation of functional roles within the hospitality sector and various methods of communication, coordination, and monitoring within specific departments. Financial ratios are calculated to analyze the company's performance. The report concludes by summarizing key findings and providing relevant references.

Hospitality Business
Toolkit

Table of Contents
Task 1...............................................................................................................................................4
P1 Principles of managing and monitoring financial performance.............................................4
P2 Double entry book keeping system of debits and credits to record sales and purchases........5
P3 Basic trial balance by applying the use of balance off rule to complete the ledger ..............6
Task 2.............................................................................................................................................10
P4 Different stages of HR life cycle applied to specific hospitality job role............................10
P5 Performance management plan for specific hospitality job role by applying technique .....11
Task 3.............................................................................................................................................12
P6 Specific legislations that a company uses ............................................................................12
P7 How employment and contract law has potential impact on business decision making......13
Task 4 ............................................................................................................................................14
P8 How different functional roles in hospitality sector interrelate............................................14
P9 Different methods of communication. Coordination and monitoring in specific department
....................................................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality business is consider as a field that is classified as wide industry and it offers
various services. Different services like theme parks, cruise, travelling, planning etc. are provides
provide hospital industry. It is important for organisation to understand the needs and wants of
customers that can make happy to them (Murillo and King, 2019). This is most growing and
developing industry who is contributing in economical development and economic prosperity.
This assignment based on One Aldwych Hotel that is London based Hotel specialised in
providing staying services, travelling, theme parks and healthy food to customers. Different
topics are covered in this report such as stages of HR life cycle for hospital industry,
performance management plan for a particular job role and legislations in relation to hospital
industry. Moreover, report covers importance of integration and coordination between various
departmental functions in this sector.
Task 1
P1 Principles of managing and monitoring financial performance
Finance is important for all organisation as well activities which helps to maintain the
good performance and profitability (Tuma and Sisson, 2019). For executing plans and
completing business activities finance is playing a significant role that helps to manage functions
and increase competition. In One Aldwych Hotel, all funds are managed by managers who are
performing significant role in organisation and helps to attaining the business goals.
Financial transaction – This is a agreement which is done between two people one is
buyer and second is purchase. It is carried out out for running business by payment and recording
all translations. Whenever a products and service is purchased by people then something is paid
by them is considered as financial transaction. In One Aldwych Hotel, customers who buys
hospitality services they pays something in return such as cash is considered as financial
transaction.
Bookkeeping – This is a document and accounting process which is used to provide
financial information by recording all transaction. The proper meaning of bookkeeping is to
recording all information and data accurately so, supportive document can be prepared in order
to improve the organisational profitability. In this, management of One Aldwych Hotel records
day to day transactions and make a statement that helps to show profitability ratio.

Principle and managing monitoring financial performance is used by management in
order to manage and monitor the financial performance. In One Aldwych Hotel all transactions
and financial information is managed by management which helps to manage activities and
increase productivity effectively. Different types of principles in relation to financial
management are as defined:
Principles of risk and return – This principle states that there is required to take risk if
organisation wants to get return. Risk is the main factor which is used to get higher returns and
increase image. This principle is used by One Aldwych Hotel management as they take risk in
business activities and earning higher profits. Moreover, this is used to manage the functions
effectively (Kundu and et. al., 2019).
Diversity principle – This is important principle in which portfolio containing many
different assets and kind of assets carries lower risk than a portfolio. In One Aldwych Hotel,
financial manager analysis the risky situation by using diversify principle that helps to address
the risk effectively.
Principle of double entry system and bookkeeping system – According to this system
double entry is managed by management on the debit and credit side that helps to manage the
activities effectively. Such entries shows double effects of transactions and manage performance.
On the other side, the principle of bookkeeping stated as a system which is used to record the
transaction in relation to finance that helps to prepare document and other statement in order to
know profits. One Aldwych Hotel is following this function in order to keep records and
maintaining performance.
P2 Double entry book keeping system of debits and credits to record sales and purchases
Double entry and book keeping system are stated as business transaction which is used to
record the amount in two accounts. This system records transaction in debit and credit side where
profitability of organisation can be increases by managing information properly. One Aldwych
Hotel is using double entry system by recoding sales and purchase as:
 The book keeping system involves appropriately tally of business and income
with the help of sales and purchase transactions.
 Classifying the expenses in to different categories such as capital, material,
advertising and promotion that occurred in organisation.

 To utilise the payment of bills within specified date by considering all expenses.
P3 Basic trial balance by applying the use of balance off rule to complete the ledger
Trial balance – This is consider as list of all general ledger accounts which are involved
in ledger of business. It is prepared with the help of all transactions and managing records
effectively. The main purpose of trial balance is to ensure all business activities are made in
organisation's ledger and they are properly balanced. In One Aldwych Hotel, management are
recording all information in order to create financial statement by involving all entries that helps
to know the profitability (Chang and et. al., Chen, 2019).
There are different steps which are used in preparing the trial balance that are as defined:
 Prepare a worksheet with three columns that covers tittles, debit and credit which
is used to manage all transactions in proper form.
 Fill in the account tittles and record their balance in appropriate form such as
debit and credit columns.
 Total the credit and debit columns that states how much there is difference
between them.
 Compare the total of columns and find out the errors where mistake has been
done.
Date Particulars Debit Credit
01/04/16 Cash a/c 180000
To capital a/c 180000
10/05/16 Purchase a/c 130000
To cash a/c 130000
15/06/16 Purchase a/c 6000
To cash a/c 6000

01/07/16 Cash a/c 8000
To sales a/c 8000
01/08/16 Purchase a/c 9000
To cash a/c 9000
01/09/16 Sundry expenses a/c 200
To Bank a/c 200
01/10//16 Cash a/c 17000
To sales a/c 17000
01/11/16 Wages a/c 2100
To cash a/c 2100
01/12/16 Postages cost a/c 300
To Bank a/c 300
Ledge accounts
Cash a/c
Date Particular Amount Date Particular Amount
01/04/16 To capital a/c 180000 10/05/16 By Purchase a/c 130000
01/07/16 To sales a/c 8000 15/06/16 By Purchase a/c 6000
01/10//16 To sales a/c 17000 01/08/16 By Purchase a/c 9000
01/11/16 By wages a/c 2100

31/03/17 By balance c/d 57900
205000 205000
Bank a/c
Date Particular Amount Date Particular Amount
31/03/17
To balance
b/d 500 01/09/16
By Sundry expenses
a/c 200
01/12/16 By Postages cost a/c 300
500 500
Purchase
a/c
Date Particular Amount Date Particular Amount
10/05/16 To cash a/c 130000 31/03/17 By balance c/d 145000
15/06/16 To cash a/c 6000
01/08/16 To cash a/c 9000
145000 145000
Sales a/c
Date Particular Amount Date Particular Amount
31/03/17
To balance
b/d 25000 01/07/16 By cash a/c 8000
01/10//16 By cash a/c 17000

25000 25000
Postage cost
a/c
Date Particular Amount Date Particular Amount
01/12/16 To Bank a/c 300 31/03/17 By balance c/d 300
300 300
Sundry
expenses
a/c
Date Particular Amount Date Particular Amount
01/09/16 To Bank a/c 200 31/03/17 By balance c/d 200
200 200
Wages a/c
Date Particular Amount Date Particular Amount
01/11/16 To cash a/c 2100 31/03/17 By balance c/d 2100
2100 2100
Capital a/c
Date Particular Amount Date Particular Amount
31/03/17 To balance 180000 01/04/16 By To cash a/c 180000

b/d
Trial Balance
Particular Debit Credit
Cash 57900
Sales 25000
Purchase 145000
Sundry expenses 200
Wages 2100
Postage cost 300
Bank 500
Capital 180000
205500 205500
Question 2
Ratio calculation
Current ratio = Current assets/Current liabilities
For 2014 = 4926/1508 = 3.26
For 2015 = 7700/5174 = 1.48
Operating profit margin = Operating income/Revenue
For 2014 = 914/9482*100 = 9.63%
For 2015 = 1042/11365*100 = 9.17%
Days trade receivable = Trade debtors/receivable*365
For 2014 = 2540/9482*365 = 97.77 days
For 2015 = 4280/11365*365 = 137.45 days
Sales revenue to capital employed = Sales/capital employed
For 2014 = 9482/8305 = 1.14
for 2015 = 11365/5094 = 2.23

Return on capital employed = EBIT/COE
For 2014 = 914/8305*100 = 11.005
for 2015 = 1042/5094*100 = 20.455
Task 2
P4 Different stages of HR life cycle applied to specific hospitality job role
HR life cycle considered as a concept in relation to Human resource management that
describes what are employees doing and how they can complete the task. Herein, task is
classified among different employees and performing well. HR department is responsible for all
functions and activities that can help to increase organisational productivity and profitability.
Every stages in relation to HR represents own challenges and opportunities that helps to run a
business effectively. In One Aldwych Hotel, management are using different HR life cycle
stages in their hospital industry in order to handle operations and managerial functions that are as
explained:
Attraction: This is first step where great number of employees are collected in order to
perform a job role. A procedure which is used to attracts number of people in order to fill the
vacancy and getting task complete is consider as attraction phase. One Aldwych Hotel is
applying this step to attracts employees and fill the vacancy that help to complete the task which
is assigned by management (Mitin and et. al., 2019).
Recruitment: Hiring the right people at right time is very important to the productivity
and growth of organisation. In One Aldwych Hotel, HR manager create a strategic staffing plan
by understand the position which is required to be filled. Many interviews round are conducted
by management that helps to choose the right person for right jobs.
On boarding: This is the process which is used to introduced the new employees in
business organisation. Through this process employees become member of One Aldwych Hotel
and start to learn new job duties, responsibilities and relationships that helps to perform well.
Various programmes are structured by management that increases business productivity and
profitability (Molfetas, 2019).
Enablement: This HR life cycle states orientating new employees and they are
introducing formally from the organisation's culture, mission, vision and employees. In One

Aldwych Hotel, managers introduce new employees to safety, health and any other policies
which are related to organisation and their welfare.
Development: Such stage is related to employees and human resource department that
helps to attain the long term career goals and increase organisational productivity. The
management of One Aldwych Hotel provides career development opportunities that is important
to keep employees engaged with organisation overtime.
Retention: Such stage is used to give the opportunity to employees by re energize,
thanks for their hard work and recognising as important assets of company that helps to retain
them for long period. In One Aldwych Hotel, management are evaluating employees
performance and give them benefits such as flexible work schedules, extra paid time off, gift
cards and incentives that satisfied them.
Separation: All cycles is required come to and end for instance employees get
retirement, leaves and switch the organisation after attaining goals. One Aldwych Hotel
management, manages separation by ensuring all policies and procedure are followed, removing
them from the system in smooth manner and giving retirement respectively that helps to improve
the operations and profitability of organisations (Kasemsap, 2019).
P5 Performance management plan for specific hospitality job role by applying technique
A plan or process which is used to managing, aligning, communicating and coordinating
the performance with the help of employees is considered as performance management plan. If
organisation is having good management plan then it can increase the productivity and
profitability of their business (Kichuk, Brown and Ladkin, 2019). By evaluating issues which are
faced by One Aldwych Hotel is reducing outcome and increasing employee turnover a
performance management plan is prepared by management that is discussed as under:
Plan: This is main step in which planning and strategic objectives are set by management
that helps to improve the organisational performance. To remove the conflicts, reducing
employees turnover and increasing outcome management One Aldwych Hotel make strategic
plan and share with employees that can help to perform well and improve profitability.
Monitor: This means to record and monitor the employees performance in order to
awarding and completing task effectively. In One Aldwych Hotel, after making strategic plan