Hospitality Business Toolkit Report: Financials, HR, and Compliance

This report provides a comprehensive overview of the hospitality business toolkit, focusing on key aspects such as financial performance management, HR lifecycle stages, and legal compliance. It delves into the principles of monitoring financial performance, including the preparation of financial statements, inventory records, and overhead analysis within Marriott International. The report also explores the application of double-entry bookkeeping and the preparation of a trial balance. Furthermore, it examines the stages of the HR lifecycle, from attraction and recruitment to development and retention, with a specific focus on developing a performance management plan to address negative behaviors and improve employee retention. The report also addresses the relevant legislation that hospitality organizations must adhere to, including company, employment, and contract law, and how these laws impact business decision-making. Finally, it underscores the importance of coordination and communication among various functional departments within a hospitality organization.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Principles of monitoring and managing financial performance.......................................1
P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger.................................................................................................2
P3. Prepare trail balance.........................................................................................................3
TASK 2............................................................................................................................................3
P4. Review the stages of HR life cycle..................................................................................3
P5. Develop a Performance management plan and apply techniques to resolve negative
behaviour................................................................................................................................5
TASK 3............................................................................................................................................8
P6. Legislations that a hospitality organisation must comply and adhere to..........................8
P7. Potential impact of company, employment and contract law over business decision
making in hospitality sector....................................................................................................9
TASK 4..........................................................................................................................................10
P8. Interrelation between different functional role within hospitality sector.......................10
P9. Different methods of communication, coordination and monitoring within hospitality
organisation..........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality sector refers to a service sector which focuses on providing services related to
lodging, accommodation, cruise line, travelling, transportation, food and many more. Marriott
International Hotel is an American multinational diversified hospitality company which manages
a range of its hotel throughout the world. This report elaborates about the ways to manage
financial performance and recording transactions to minimise the cost within hospitality industry.
Further it explains about HR life-cycle and performance management plan along with techniques
to improve employees retention (Bowie and et. al., 2016). It also describes about various laws
that must be followed by hospitality industry and impact of company, contract and employment
law over it. At-last it explains the importance of coordination and integration among various
functional department.
TASK 1
P1. Principles of monitoring and managing financial performance
It refers to the level of performance a business have over a specific period of time in term
of either loss or profit. Being an account assistant it is very essential to evaluate the financial
performance which will allow Marriott international to judge the result of its business strategies
and activities result in monetary term. Following are the major principles that support in
managing and monitoring the financial performance of Marriott hotel:
 Preparation of key financial statement:- The basic report that Marriott hotel must
maintain are balance sheet and P&L account because they give overview of financial
position throughout the year (Foster and Carver, 2018). This help in determining the area
where the cost of business can be minimized by removing the extra expenses.
 Preparation of inventory record:-This principle will support Marriott International to
keeping record related to the inventory and other stuff that are purchase by them. This
help in determining the total wastage that incurred during this transaction so that in future
wastage can be monitor and minimized.
 Analysis of overhead:- There are certain extra expenses which are not related to
operations performed by Marriott hotel but are required to pay. By maintaining record of
this Marriott hotel will be able to manage the fund so that more expenses will not
incurred as it may affect the profitability of business.
1

P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger
Double entry book keeping refers to the system of accounting which allows businesses
transaction to involve two accounts for balancing the accounting equations (Fyfe, Seaman and
Bent, 2018). For example: the double entry book-keeping system of debits or credits for
recording purchase and sales transactions in general ledger as given as under:
Sales account
Particulars Amount Particulars Amount
To balance b/d 7500 By bank account 5000
By Mr. Joey account 2500
Total 7500 Total 7500
Purchases account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Mr. Joey account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Ms. Rachel account
Particulars Amount Particulars Amount
To balance b/d 500 By bank account 500
2

Total 500 Total 500
Bank account
Particulars Amount Particulars Amount
To Sales account 7500 By Purchases account 6500
By balance b/d 1000
Total 7500 Total 7500
P3. Prepare trail balance
Trial balance account refers to the book keeping report system which enlist the balances
of each general ledger account of organisation where debit balance is written over debit coloum
and credit balance is written over credit column and the total of two column must be identical.
Following trail balance represent the balances of above given ledger accounts:
Particulars Amount Particulars Amount
bank account 1000 sales account 7500
purchases account 6500
Total 7500 Total 7500
TASK 2
P4. Review the stages of HR life cycle
Human resource management refers to the formal structure of an organisation which is
responsible for managing, developing and recruiting the employees working within the company.
HR activities are generally undergoes through various phases that support a company in retaining
and development of employees working with an organisation (Jauhari, 2014). Currently there is
a vacancy for an accountant in Marriott hotel so in order to select a highly skilled and talent
candidate it must follow the HR life-cycle effectively.
3

(Source: six stages of the employee lifecycle, 2018)
Above given image depict about various stages that are involve in human resource life-
cycle which help in retaining and developing the talent among employees. These stages are
explained below:
 Attraction:- For becoming successful and maintaining its position in marketplace it is
very essential for Marriott international to attract right talent that support them in
achieving their targets as well as quality of work (Jayawardena and et. al., 2013). So in
order to attract highly skilled candidates for accountant job role it is very important for
Marriott hotel to offer attractive compensation along with other workplace benefit.
 Recruitment:- This is one of the most crucial stage for Marriott as being an operator of
global business it is very essential for them to place right person at the job of accountant.
Under this stage HR department must select a applicant having knowledge as well as
experience in the field of accountant so that selected candidate will be able to manage the
accounts and financial transactions effectively (Six Stages to Success with the Employee
Lifecycle, 2018).
 On-boarding:- This stage includes the process of developing knowledge, skills,
behaviour and attitude among employees as per their designation for ensuring smooth
running of operations (Jumah and Sulo, 2014). After selecting an candidate, Marriott
4
Illustration 1: six stages of the employee lifecycle

hotel must organise proper training & development programme for the candidate which
help in developing an understanding related to ways in which accounts and finance
related functions are performed.
 Development:- For maintaining the quality of work and performance of its employees,
Marriott hotel must focuses on encouraging professional development by organising
learning programs on regular bases in order to update the skills or knowledge of
employees (Kasemsap, 2017). This help newly appointed accountant to learn about new
methods of doing their work which support them in performing their task more
effectively.
 Retention:- Under this step Marriott hotel must try to keep its top performers happy and
satisfied with their job by providing them a positive company culture. The cost of
replacing employees is very high as it not only affect the performance of the company but
also disturb the work of other departments. Because accounts department is consider as
the heart of company through which all the fund flow and recorder
 Separation:- This is the final stage of HR life-cycle where employees has come to a
point where they have performed all their duties and now ready for retire. Under this
stage Marriott International hotel that employees must leave or get retire from their job
without disrupting the functioning of others.
P5. Develop a Performance management plan and apply techniques to resolve negative
behaviour
Performance management refers to an ongoing process that involve continuous
interaction between superior and subordinates with an aim to align the performance of
employees as per the decided criteria (Legrand, Chen, and Sloan, 2013). This include regular
supervision and guidance to workers in order improve their current performance to achieve
future objectives. Marriott international must work toward regularly managing its employees in
order to eliminate negative behaviour which in turn will result in maximum employee retention.
Following steps of performance management plan will support Marriott hotel to achieve this:
 Set performance objectives:- Under this step the HR department of Marriott hotel must
try to examine the work performed of newly appointed accountant in order to determine
the area of improvement. After identifying performance they must set SMART
5

performance objectives in order to set up targets related to performance required at this
job role.
 Provide training:- After determining the weaker area it is essential for HR department to
organise training and other learning program that help newly appointed accountant to
sharp up their skills as required for their job role (Messner, 2015). This help them in
performing operations in an most efficient and effective manner.
 Evaluate the performance:- After providing training, next step to be perform by HR
department of Marriott international is to evaluate the performance of accountant after
going through learning programme.
 Compare actual performance with benchmark:- After examining and evaluating the
current performance of newly appointed accountant, next step is to compare it with
performance objective that are set by HR department. This help in determining the gap
between the actual and planned performance which further support in taking up
appropriate action for removing those gaps.
 Monitor & control:- After determining the gaps between the actual and planned
performance next step is to develop an improvement plan for removing those gap. By
implementing this improvement plan, superiors must constantly monitor the action
performed by accountant in order to guide them over their mistake so that it will not
repeat in future.
Following table describe about performance management plan for a newly appoint
accountant within the Marriott hotel:
Objective Provide
Training
Review performance Monitoring & control
Develop
knowledge about
general
accounting
Accountant must
be provided with
on the job
training where
they are provided
with handbooks
and other material
related to the
The knowledge of
accountant will be
evaluated by superiors
after 2 months. This
support in determining that
how much accountant has
learned from the material
that has been provided to
After identifying the
weaknesses that a newly
hired accountant have after
checking up their current
performance further training
as well as information
material is provided by
focusing over particular area
6

information about
financial terms
that are used
within Marriott
hotel.
them. those are required to
improve.
Improvement in
data handling
skill
Accountants are
assigned to the
existing senior
staff member who
support or guide
them about the
methods of
analysing and
handling the
financial data for
making an
appropriate
financial
statement.
The accountant
performance will be
evaluated by superiors
after 6 months by
determining whether they
are able to analyse or
handle data effectively or
not. This can be done by
comparing actual work
with planned performance
to determine the gaps
between them.
Once the performance gap
as well as area of
improvement can be
determine proper guidance
as well as training must be
provided for removing those
weaknesses.
Techniques to resolve negative behaviour and staff turnover
It is very essential for Marriott International hotels to remove the negative behaviour of
worker as it is the main cause behind increasing employees turnover (Nickson, 2013). This help
in retaining employees for longer duration as turnover or switching employees increase the cost
of company and also affects its performance. Following are the techniques of resolving these
issues:
 Create the right culture:- It must be the top priority of Marriott International to create a
positive culture where employees' issues are heard and their views are also consider while
taking any decision. These practices will support in keeping employees happy, satisfied
and dedicated for their work. It help in getting rid of employee turnover issues so the
workers can be retain for longer period of time. For instance, Marriott hotel must try to
7

maintain a culture of mutual contribution, transparent communication and shared
accountability. Through this Marriott hotel can invite innovate ideas or suggestions from
employees which further help in keeping them happy with management and workplace.
Hence support in eliminating negative behaviour.
 Offer training:- Sometimes the reason behind turnover and negative behaviour of
employees is they are not able to work or understand their job properly. So in order to
retain its employees, Marriott International must conduct training on regular bases for its
employees that help keeping them satisfied with their working environment and job. For
instance: Marriott hotel must analyse the training & development requirement of people
working in order to develop an effective team and providing them equal opportunity. This
support in eliminating the negative behaviour or conflicts among employees.
TASK 3
P6. Legislations that a hospitality organisation must comply and adhere to
For effective management of its operations it is very essential for Marriott Internationals
to consider all the laws and regulations regarding the functions performed by them as it help in
keeping the organisation free from legal compliances (Pirani and Arafat, 2016). Following are
certain laws that Marriott International must adhere to:
 Alcohol Licensing Act, 2003:- This law provide guidelines to hospitality sector related
to the sale and supply of alcohol for the provision of late night refreshment and
entertainment. According to this Law Marriott International must ensure that alcohol
should served as per the guidelines provided by government of UK. As breaching of
these guidelines may lead organisation to suffer from legal compliances that may affect
their goodwill. For example:- By applying this law, Marriott hotel can restrict the use to
alcohol for children or teenage which is harmful for those. This support in providing
safety regarding health as well as food to the children who visit hotel and ask to have
alcohol. This support Marriott hotel to enhance their brand image within the market.
 Management of Health and safety at Work Regulation, 1999:- According to this law
Marriott International must ensure the safety of its employees while working and must
adhere to guidelines that are provided this law. For instance, Marriott hotel must check all
8

the instruments or assets that are used for performing operations. They must not be
harmful and if it is dangerous to use than, either it must be avoided or training should be
provided to use it effectively. Breaching of this law may create legal and other
employment issues such as staff turnover, circulation of negative image outside the
organisation etc. For example:- By applying this law, Marriott hotel can provide health
and safety assurance to its employees. This can be done either by providing insurance
over any injury that may be faced by an employee during their working hour or by
providing proper training to them for using harms tools effectively that can eliminate the
chance of injury.
P7. Potential impact of company, employment and contract law over business decision making in
hospitality sector
The law and regulations that a particular region follows left an huge impact over the
decision taken by a company related to its operations (Schwager, Decker and Kaltenegger,
2016). Business decisions are largely affected by the company, employment and contract law as
on the bases of these employment as well as business practices are decided and performed.
Following points describe about the impact of these laws over decision making of Marriott
International Hotel:
 Company Law:- This legislation describe about the standards and code of conduct that a
company must follow in order to perform its operations in an ethical manner. The
decision making process of Marriott International highly influence by Company Law, as
they have to consider the guidelines provided by government under this Act (Silverstein,
Samuel and DeCarlo, 2013). This help them in deciding what activities can be performed
in particular area and in which manner without getting involve in legal issues. For
instance, before formulating policies related to performance of its operation Marriott
International have to consider the standards or guidelines that are given under Company
Law.
 Employment Law:- This legislation regulates the relation between employer and
employees by governing the terms and conditions related to recruitment, holidays,
working environment and many more activities that are related with the operations
performed by employees. The Marriott international have to consider all the guidelines
before making any policies and workforce plan. Therefore employment law affects the
9

decision making process of Marriott International for instance, organisation must
consider the employment law guidelines before formulating selection strategies related to
recruitment.
 Contract Law:- This law aims toward providing an effective legal framework for the
parties involve in agreement to resolve their disputes and regulate their obligations
related to contract. This law affect the decision making process of Marriott International
as it have to consider all the obligations while taking decisions or making changes to any
policies. For instance, if Marriott hotel want to change working policies and procedures
followed by it employees then they have to consider all the obligations to perform which
is written under employment contract.
TASK 4
P8. Interrelation between different functional role within hospitality sector
Hospitality sector work toward providing better services in order to achieve better
customer satisfaction but this can't be possible to achieve solely . Therefore in order to provide
effective and satisfactory services to its customer Marriott international hotels must ensure
proper interaction and inter relationship between its functional department. Because it is
operating accommodation along with catering services. Following points describe about the
interrelations between various functional department and their role:
 Financial and Marketing department:- Both the functional unit of Down-town hotel
are inter connected as before performing any action the manager of marketing department
have to consult with finance department. Because this department work toward the
management of all the finance related transactions performed within the organisation. So
by maintaining proper interaction with finance department, marketing unit will be able to
get fund easily for executing its operation in an efficient and timely manner (Weinstein
and Morritt, 2012).
 Front office and housekeeping department:- Marriott International hotel must ensure
proper interaction between both the units as improper coordination may affect the quality
of services. By maintaining proper cooperation Marriott International hotel will be able to
provide a better service experience to its customers. For instance, front office may
provide regular information related to housekeeping department related to check in of
10

customers. This help them in managing the room and other stuff ready for servicing
customer which support them in providing better services.
 Human resource and Food & beverages department:- HR unit is responsible for the
management of people working within an organisation as well as ensuring proper
execution of operations. Therefore it is very essential for the manager of Food &
Beverages department of Marriott International hotel to proper coordinate with HR
department related to its requirement of employees. For instance, Food & beverage
department may communicate with HR manager related to the vacancy or number of
employees required to perform operations effectively. This will help them in recruiting
the skilled and competent staff that are required to manage the operations effectively.
P9. Different methods of communication, coordination and monitoring within hospitality
organisation
There are three major factors such as communication, coordination and monitoring that
must be managed effectively in order to achieve desired performance standard from the
operations performed by employees (Yusupova, and Pozdeeva, 2018. Following are the methods
that can be used by Marriott International hotels in order to improve the performance of
marketing department which strengthen its value chain:
Communication:- It refers to the process of exchanging information through writing,
speaking or by using some other medium. Communication plays an essential role with in
organisation as it help in keeping employees aware about the operations performed by them.
Following are the methods that can be adopted by Marriott International hotel in communication:
 Email:- It is a type of written communication where the marketing manager of Marriott
International hotel can communicate with other departments and collect information
regarding the services that help them in formulating an effective promotional plan.
 Meetings:- By using this communicational medium, marketing department can
communicate about its promotional plan and other market activities in order to get
feedback from other departments so that a positive image of Marriott International hotel
can be present among target market.
Coordination:- It refers to the process of synchronizing and integration of activities in
order to achieve positive result. For achieving success in marketplace Marriott International hotel
11

must ensure proper coordination among the operations performed by employees. Following
methods can be used for achieving coordination:
 Sound planning:- By formulating proper planning, marketing department of Marriott
International hotel will be able to align the performance of its employees with set targets.
This help marketing department to bring coordination by teaming up people for achieving
the targets which further support in improving the value chain.
 Effective communication:- Another major factor that help marketing department to
bring coordination among its employees is effective communication as it help in
influencing and keeping employees motivated toward working as a team (Silverstein,
Samuel and DeCarlo, 2013).
Monitoring:- It refers to the process of observing and checking the performance of
employees over a specific period of time. Following are the methods that can be used by
marketing department of Marriott International hotel:
 Performance appraisal:- Under this method marketing department of Marriott
International hotel evaluate the performance of employees and compare it with planned
criteria in order to determine the gap and reason behind that in order guide employees for
avoiding such mistakes in future. This
 Formal survey:- This approach focuses on collecting information from existing
employees for determining the actual condition and factors behind performance gap. By
determining this information marketing department will be able to determine the area that
require monitoring for performance enhancement which further improve value chain.
CONCLUSION
From the above given report it has been concluded that functions department of
hospitality industry are interlinked with one other as it aim toward combining the effort of
employees toward providing the better service experience to its customer. In order to achieve this
hospitality industry follows various methods of communication, coordination and monitoring for
aligning the performance of employees with overall objective. But in order to perform its
operations effectively it is very essential for hospitality organisation to adhere to all the laws and
regulations that are related to this sector which provides the guidelines for performing operations
in an ethical manner.
12

13

REFERENCES
Books & Journals
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
Fyfe, J., Seaman, C. and Bent, R., 2018. Business Internet Use in Small, Family Owned and
Managed Hotels in Scotland. International Journal of Business and Globalisation.
Jauhari, V. ed., 2014. Managing sustainability in the Hospitality and Tourism Industry:
Paradigms and Directions for the Future. CRC Press.
Jayawardena, C. and et. al., 2013. Trends and sustainability in the Canadian tourism and
hospitality industry. Worldwide Hospitality and Tourism Themes. 5(2). pp.132-150.
Jumah, L. and Sulo, T., 2014. Influence of Job Assignment on Employee Turnover in Selected
Medium Sized Hotels in Kisumu City. African Journal of Education, Science and
Technology. 2(1). pp.39-45.
Kasemsap, K., 2017. Mastering social media in the modern business world. In Social media
listening and monitoring for business applications (pp. 18-44). IGI Global.
Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Messner, S. F., 2015. When west meets east: Generalizing theory and expanding the conceptual
toolkit of criminology. Asian journal of criminology. 10(2). pp.117-129.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Pirani, S. I. and Arafat, H. A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production. 132. pp.129-145.
Schwager, P., Decker, N. and Kaltenegger, I., 2016. Exploring green chemistry, sustainable
chemistry and innovative business models such as chemical leasing in the context of
international policy discussions. Current Opinion in Green and Sustainable Chemistry.
1. pp.18-21.
Silverstein, D., Samuel, P. and DeCarlo, N., 2013. The innovator's toolkit: 50+ techniques for
predictable and sustainable organic growth. John Wiley & Sons.
Weinstein, A. and Morritt, R., 2012. Segmentation strategies for hospitality managers: Target
marketing for competitive advantage. Routledge.
Yusupova, S. and Pozdeeva, S., 2018, June. Controlling the functioning of the hotel business. In
Financial and Economic Tools Used in the World Hospitality Industry: Proceedings of
the 5th International Conference on Management and Technology in Knowledge,
Service, Tourism & Hospitality 2017 (SERVE 2017), 21-22 October 2017 & 30
November 2017, Bali, Indonesia & Moscow, Russia (p. 253). CRC Press.
Online
Six Stages to Success with the Employee Lifecycle. 2018. [Online] Available
through<https://inside.6q.io/six-stages-to-success-with-the-employee-lifecycle/>./
14