Hospitality Business Toolkit Report: Financial & HR Management

This report delves into the multifaceted aspects of the hospitality industry, focusing on financial management, human resources, and legal compliance, using the Club Quarter Hotel in the UK as a case study. The report begins with an introduction to financial transactions and source documents, exploring the principles of managing and monitoring financial performance, including double-entry bookkeeping and the creation of trial balance sheets. It then examines different types of costs relevant to the hospitality sector. The second task addresses talent acquisition and retention issues, detailing factors that specify hospitality jobs and relevant legislation, including its impact on decision-making processes. It also covers the HR cycle and performance management. The report concludes with recommendations and emphasizes the importance of coordination among departments for successful business operations. The report covers a wide range of topics, from financial transaction to HR and legal aspects of the industry.

HOSPITALITY BUSINESS
TOOLKIT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of financial transaction and source documents..................................................1
Principle of managing and monitoring financial performance...............................................1
Double entry bookkeeping system of debits and credits........................................................2
Basic trial balance sheet ........................................................................................................3
Types of cost...........................................................................................................................4
Conclusion and recommendation...........................................................................................5
TASK 2............................................................................................................................................5
Overview issue in talent acquisition and retention.................................................................5
Factors specifying hospitality job...........................................................................................5
Specific Legislation related to hospitality industry................................................................5
Potential impact of legal laws on decision making process...................................................6
Potential implications of regulations, legislation and standards............................................7
Different stages of HR cycle..................................................................................................7
Performance management Plan..............................................................................................8
Importance of HR life cycle...................................................................................................9
Recommendations..................................................................................................................9
TASK 3..........................................................................................................................................10
Enclosed in PPT...................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Businesses within hospitality sector adheres with various departments and activities.
There are number of considerations that any hospitality business need to assess before
conducting any action (Wiltshier, 2017). This business is highly based on activities of principle
departments and related activities. The study has undertaken Club Quarter hotel of UK to reflect
all mentioned tasks.
This report will cover basic description management of financial performance any
company. The report will focus upon the basic principles of double entry bookkeeping system. It
will also highlight significant laws and ethical considerations important for hospitality industry.
The study will also focus upon the importance of coordination and interrelationship exists among
every department within hospitality sector. It will include basic description to the
TASK 1
Introduction of financial transaction and source documents
Financial transaction within any business activity is the exchange of capitals or assets for
performing every significant activities of business related functions. Sales, purchase, payments
are some common financial transaction persists within organizations.
Source documents are helpful in maintaining and developing suitable financial
transaction reports. Maintenance of such reports and documents need to have effective workforce
within organizations. Payment slips, income statements of hotel, purchase and sales records etc.
are some important source documents with the help of which recording process within any
business can be easily performed. Cash slips given by customers can also be helpful in
developing supportive financial growth records within hotels.
Principle of managing and monitoring financial performance
For managing the financial performance of any business, there are specific principles that
must be recognized and emphasized. For hotels like Club Quarter hotel, its financial performance
is managed by number of application like preparing weekly reports of each and every transaction
within the business (Aubke, 2014). The finance manager of the hotel continuously keep a daily
record of budgets, cash flows and expenditure to manage stock and working capitals for future
consideration. Data entries, journals, ledgers, income statements are precisely maintained.
Financial management of hotel has adopted various policies and cross references aids to manage
any error introduced in between the calculations.
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For monitoring its financial performance, the company undergo for activities like
standardized auditing on monthly basis. The hotel undergo for reviewing its regular ledger
entries and related report with high accuracy. Monitoring procedures are based on the principles
of clarity, conciseness and maintaining detailed financial activities with proper inclusion of date
and time (Read and et.al., 2015). The financial management of hotel conduct different
assessments and train its staff to utilize advanced and effective monitoring systems. Authorities
responsibly reach to every minute error in systems or manually handled transaction at regular
basis.
Double entry bookkeeping system of debits and credits
Double entry bookkeeping system is basically a recording procedure of transactions that
need to be maintained in dual nature. This principle of duality is based on double entry of
transactions in terms of credits as well as debits. Both must have a balance or equal values
throughout overall entry (Yusupova and Pozdeeva, 2018). There are certain additional principles
for double bookkeeping systems that need to be kept in mind within each of the business activity.
For example, hotel Club Quarter has bought certain kitchen equipment, double entry
bookkeeping system can be entered by following ways-
Purchase of new kitchen equipment
Debit kitchen equipment £6540
Credit cash £6540
Food purchases
Debit food £7900
Credit cash £7900
Beverage purchase
Debit beverages £12970
Credit cash £1290
Purchase return
Debit cash £200.00
Credit goods return £200.00
Cash sales
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Debit cash £3350
Credit goods £3350
Credit card sales
Cash £14795
Credit cards £14795
Basic trial balance sheet
Trial Balance is a type of recording process related to entry of balances persists within
ledger account of the company. Trial balance sheet ensures an accurate balance between the
credit and debits. For production of every trail balance sheet, there are applied certain basic
principles that are universal by nature (Lub and et.al., 2016). The debits and credits both need to
be balanced off which means it has to be equal for both the entries. For any hotel like Club
Quarter, the trail balance is maintained within specific time period or just after a transaction
within any of its department. It is prepared by the finance staff members within a specific time
period three months as per the defined criteria.
Sales and purchase transaction
Name Debit (in pound) Credit (in pound)
Cash 11700
Bank loans 12000
Trade creditors 11200
Purchase 12400
Sales 14000
Sundry creditors 1620
Debtors 12000
Bank loan interest 1400
Other expenses 11020
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Vehicles 2020
Suspense account 34120
61740 61740
Types of cost
Type of costs
The basic inclusion of costs incurred within each and every business environment that
need to be managed and controlled are fixed cost, Variable cost and Semi variable cost. Based on
the hospitality sector or in context of selected hotel, variable cost need to be controlled to
maintain the financial performance of the hotel (Benckendorff and et.al., 2015). Within Club
Quarter hotel the expenses or costs may incurred during overall business functions.
Input costs
It is the amount of working capitals that is invested by companies or organizations in
construction, installations and similar functions for development of company's infrastructure
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Illustration 1: Types of costs within hospitality industry
(Source: Type of costs. 2018)

(Gursoy and Sandstrom, 2016). For Club Quarter hotel, all costs incurred in its constructional
work or development of any department falls under the category of input cost of the hotel.
Purchase cost
For hospitality industries these purchase costs vary with different activities. Selected
Hotel invest its capitals for purchasing the land, machinery and other facilitators for customers'
services this investment and cost is said to be the purchase cost for the hotel.
Conclusion and recommendation
Role of financial management and monitoring is highly linked with the type of tools and
systems that are being used by organizations. For Club Quarter hotel, financial management will
deliver high standards of accumulating required details of sales, purchasing. The specifications
related to bills, cash memo, receipts, vouchers need to be regulated based on defined principles
of accounting for gaining support for future budgeting and cost controlling measures. For smooth
financial functions it is necessary to adopt a proper auditing method and process to measure
financial performance of the organization. The systems can be integrated with advanced level of
security to safeguard all the financial statements of hotels and to reduce instances of thefts.
TASK 2
Overview issue in talent acquisition and retention
There are various issues in talent acquisition with in the food and beverages sector such
as attracting right candidates which should posses skills and experience related to food and
beverage sector. Another issue is choosing a proper source of attracting the employees for the
hotel. Apart from this, the candidate need to have sufficient knowledge regarding current and
upcoming food trends. The issues faced by the hotel in retention of employees in food and
beverages sector are monetary dissatisfaction is one of major reason as employees are offered
less salary with high working hours which results in the dissatisfaction of the employees another
issues is promotions and increments and other benefits etc.
Factors specifying hospitality job
For a specific job related to food and beverages sector, role of executive chef can be
considered. The post or job role is based on certain factors related to hotel environment. The
individual need to have knowledge regarding the food interests and trends increasing within
country. He must be able to inculcate all its functions based on the policies and applied legal
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frameworks. He need to be aware of various hygiene factors that have to be adopted within
kitchen premises. The job role need to adhere his action according to the objectives of hotels.
Specific Legislation related to hospitality industry
Legislation related to hospitality industries provide it certain advantages to perform all its
business activities in a specific manner and framework. Hotel Proprietors Act, 1956 has defined
number of guidelines under which the hotels are bound to act (Bergene, Boluk and Buckley,
2014). Under this act, the hotel keepers need to pay a specific sum of money if any loss or
damage to customers' luggage or goods take place within their property.
Company law affect hotel's decision making process in terms of various elements such as
formation of company, number of partners. Availability of employees etc. For hotel there must
be a proper provision regarding its registration, licensing measures. Since the hotel is a private
company is bound to follow the all legal considerations relate to its transactions, re- registration
process, alterations related to partnership and liability status.
Employment law within the selected hotel affect its framework of recruitment, talent
acquisition, pay structure, health and safety compliance of employees. Apart from this, Club
Quarter hotel need to apply its HR functions and need to adhere its policies with the
requirements of employees (Lewtas, 2018). As per the Working Time Regulation Act and
National Minimum Wage Act, human resource department need to design standard working
hours with respect to the laws itself and irrespective of workload. Club Quarter hotel required to
pay a fixed amount of salary to its employees, for this the company is required to plan suitable
pay structure that need not be affected by financial crises. Implication of Disability
discrimination Act and Equality Act, 2010 have delivered an issue to Club Quarter hotel in terms
of Talent acquisitions, recruitment and selection procedures.
Potential impact of legal laws on decision making process
Potential impact of legislation and standards on companies of UK is clearly visible on its
policies and decision making criteria. For example, the implication of suitable and applied laws
for hotels like Club Quarter have provided it adequate sustainable and secured framework to
implement each of its business activities or strategies. The health and safety act and food Safety
Act have delivered high standards of operations to the hotel (Wilson and Cole, 2015). Due to the
adoption of these act, Club Quarter hotel have attained provisions related to safety for its food
services and health of employees and customers as well. Along with this, human resource
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management of hotel has adopted legal framework to increase employees' and customers'
satisfaction. There are number of elementary laws that are applied within hospitality industries
such as Fire Precaution Act and Manual Handling Operations Regulations provide specific and
standardized protocols to control certain issues (Chung and Chung, 2018). Problems such as fire
accidents, injury to employees while handling any equipment or machinery and related issues
can be managed with ease by adopting these laws.
Potential implications of regulations, legislations and standards
Having a strong legal framework within organization. Deliver it highly secured and
sustainable environment for working staff as well as for the guests visiting to the hotel. Along
with it, these laws are has helped the hotel to develop and generate adequate competitive
advantages to the company. Through the implication of these legal laws, business activities such
as designing of pay structure, opting for any construction work can be done smoothly.
Different stages of HR cycle
Employee life cycle is a simple concept of human resource management which describes
the various stages of employee right from its recruitment to its exit interview (Rahman, 2018). A
Receptionist job role is selected which includes 9 stages and human resource department plays
an important role at each stage which can be described as follows:
1. A job of Receptionist is selected which is placed at the front office of Club Quarter hotel.
Receptionist is face of a company and has to perform important roles within the
organisation.
2. Interview- In this stage a candidate in interviewed by shortlisting by going through their
C.V's. By interviewing the candidate can motivate the employee for doing a particular job
within the organisation and thus helps in employee retention.
3. Good question- Explain the roles and responsibilities of a receptionist?
Bad question-What is your religious back ground?
4. Induction or on-boarding- induction is the process of introducing new employee about the
company, its place, job role etc which is to be performed by new employee within the
organization (Combs and et.al., 2018). It helps in setting up the employee within the
organization and it also covers employee and employer rights and terms and conditions of
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employment. As, employee gets familiar with its jobs and tasks he or she gets
comfortable within the organisation and can help in employee retention.
5. Performance reviews: It is the discussion about the employee's development and
performance. The main purpose of performance review is to provide useful feedback
about employee's performance in an organisation (Halvorson, 2018). With the help of
performance review it can help in growth and development of an employee.
6. Learning and development- Through learning and development an organisation can
improve their overall performance by achieving objectives. Learning and development
can help in growth and satisfaction of the employee's which helps in retention of the
employees.
7. Promotions- it is the advancement of the employee from one job position to another
position with higher responsibilities and duties (Banker and et.al., 2015). It is important
in motivation and employee morale.
8. Exit- Employee makes exit from the organisation by resigning from the company due to
any kind of dissatisfaction in the job. It can be prevented by meeting the basic needs of
the employees and keeping them motivated.
9. Exit interview- It is an interview which is conducted when an employee leave an
organisation basic question asked are- what is the reason for leaving a job?, How do you
describe the work culture of a company?, What are your suggestion for the company?.
Performance management Plan
Performance management plan for the post of receptionist is as follows:
Target Area Performance
Concern
Agreed improvement
actions
Support
Organisational skills-
Difficulty in managing
the workload of the
hotel on daily basis
(Gerasimov and
Gerasimov, 2015).
Not able handle the
customers complaints
and issues and missing
the deadlines.
To respond to the e-
mails and phone calls
of the customers on
regular basis. Making
the list and a diary
with in 6 working
days.
Provide training on
customer complaint
handling procedures.
Also providing
training on how to
respond to customers
through emails. How
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to priorities work
during work load.
There are various techniques to resolve negative behaviour and can overcome the issues
of staff retention are as follows:
Providing salary and benefits to the employees, it can resolve the negative behaviours as it is the
best way to resolve the negative behaviours of the employees and it can also help Club Quarter
Hotel in retention of the employees in an organisation (Collings, Wood and Szamosi, 2018).
 Grievance handling-Proper employee grievance handling system can used within the
organisation which will help in resolving the issue in the hotel due to will employees get
motivated which also helps in employee retention.
 Training and development- This technique also help in resolving the negative behaviour
of the employees through T&D employees are provided training in order to improve their
skills and knowledge which gives them a positive attitude and also motivates employees
which is an effective tool for employee retention.
Importance of HR life cycle
HR life is very important for Club Quarter Hotel because this cycle help in selecting a
suitable candidate for an organisation and also employees has to go through various stages which
result in the growth and development of an employee in an organisation through induction,
training and developmental programs etc which help in improving the employee performance in
an organisation (Moskalenko, 2018). Also it includes performance reviews of the employees but
if employees constantly fails to improve its performance this will result in the termination of the
employee thus with this an effective talent pool can be managed in the hotel. Hotel can come up
from the issue of staff retention by keeping employees motivated through training and
development, through proper succession planning, incentives etc.
Recommendations
HR process and documents can be improved by:
 Selecting a proper way of recruitment process
 Choosing a candidate for interview based upon their CV's and experience
 Selected a suitable source of interview
 Using proper documentation for training process and keeping the records of training.
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 Using effective ways of performance appraisals and providing regular feedbacks to
employees like online feedback system
 Keeping the records of X-employees of an organisation.
TASK 3
Enclosed in PPT
CONCLUSION
The report has focused upon the fact that organizations has gained high level of support
in assessing and monitoring its financial stability and performances. It has also described that
departments within hospitality industries are interlinked with each other and this interconnection
may provide its desired success by implication of effective communication among it.
Furthermore, the report has included that hotels has attained high standards of operations by
adopting applicable laws related to employees and customers. It has also reflected the need of
maintaining healthy employee life cycle that can be helpful in retaining key personnel of the
hotels. The study has concluded with the fact that hospitality industries and hotels are high based
upon the level of coordination which can be helpful in delivering strategic successful outcomes.
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