Hospitality Business Toolkit: Financial, HR, and Legal Analysis

This report provides a comprehensive analysis of the hospitality business, focusing on financial transactions, human resource management, and legal considerations, using the Ritz Hotel as a case study. Part A explores financial transactions, source documents, recording processes, principles of financial management, double-entry bookkeeping, trial balance, cost analysis, and the importance of accurate accounting. Part B reviews the HR life cycle, talent acquisition, and retention within the food and beverage sector. Part C examines the impact of employment and contract law on business decision-making. The report covers topics such as financial performance, HR practices, legal compliance, and strategic recommendations for growth within the hospitality industry. It provides practical insights into managing finances, human resources, and legal frameworks to ensure the success of a hospitality business.

Hospitality business toolkit

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
An introduction to the financial transactions of your hospitality business by identifying the
types of source documents and the recording processes you follow..........................................1
Investigate the principles of managing and monitoring financial performance of your
business.......................................................................................................................................2
Explain the principles of double entry bookkeeping system of debits and credits, using a
standard data from your operations. ...........................................................................................3
Addition to computer software to record financial data together with information. .....................3
Produce a basic Trial balance using a sample data, stating the steps used and purpose of the
Trial Balance...............................................................................................................................4
Analyse types of cost and how they can be managed to influence the financial performance...5
Discuss the importance of accurate recording of transactions in line with accepted accounting
principles.....................................................................................................................................5
Critically evaluates the role of financial management and monitoring in achieving growth in
your business; include your own recommendations...................................................................6
PART B............................................................................................................................................6
A review the different stages of the HR life cycle as applied issues in talent acquisition and
retention within the food and beverage sector.................................................................................6
PART 3............................................................................................................................................8
Illustration of how the company’s employment and contract law impact on business decision-
making. .......................................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is one of the most major revenue generated industry. This industry is
providing high class services, which is related with leisure and stay to their consumers. This
industry gives superior services to the guests, which gives the proper customer satisfaction. The
industry is working for increasing customer satisfaction, expansion their business as well as
objectives can be dealing with needs of consumers. There is one of the outstanding goal of
industry is associated with giving quality with in services so that value to consumer can be
increased and this could lead in attaining high advantage to the consumer along with organisation
(Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2019). It industry is trying to give best
and appropriate services to their customers and for this various activities are being performed
through them such as planning, organising and analysis. These are activities which are having
straight alignment with aims and objectives which could be earned. This report including major
aspects of industry in the background of the Ritz which higher class or luxurious hotel situated
in London , UK. Hotel was founded in the year of 1906 and in current time Ritz managing their
hotels with high degree of innovation and quality standards. This report is also including
financial performance and information related to trial balance. All laws and regulation which are
required to be followed through industry. On the other side Human resources life cycle which is
looking forward to be followed through Ritz and communication methods are also added in this
report.
PART A
An introduction to the financial transactions of your hospitality business by identifying the types
of source documents and the recording processes you follow.
Introduction about financial transaction
Financial transaction is an agreement or communication which is carried out between a
buyer and seller to exchange an asset for payment. It includes the states of finances of two or
more business or individuals. In the relation of Ritz, accounting is playing important role in order
to assure conformity of statutory laws and to give safety to their investors so they are able to do
invest in the hospitality industry in appropriate manner(An, A. and Quail, S., 2018).
Source documents: This document known as initial document in which all various types
of data are being recorded in the context of business transaction. It gives documents in which all
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the information associated with books of accounts are recorded. There are various source of
representation for Ritz which are petty cash voucher, cheques received, journal vouchers, sales
credit notes, purchase credit notes or many others. The data from source representation is
recorded in original books of accounts in order to hold it for longer period of time.
Recording process: Ritz hotel managing accounts and entries. This is very beneficial for
the hotel management to keep record of all their transactions in chronological manner, which
increase easiness in standard deviation, it is measure of how much investment return can vary
from its average return. (Ma, E., Cheng, M. and Hsiao, A., 2018).
Investigate the principles of managing and monitoring financial performance of your business.
The principle of managing and monitoring financial performance of Ritz hotel which is
given below:
Consistency: It is a principle that states that adopt an accounting principle or method,
continue to follow it consistently in upcoming accounting periods so that the outcomes reported
from time to time comparable
Justification: As per the principle all justifications related to books of accounts and
records. For managing financial outcome, the major focus of Ritz is associated with analysing
actual data and making efficient decision.
Timelines: This principle is associated with higher authorities and their projects in such a
way that they meet with all the requirements in significant manner. According to accounting
professional of Ritz hotel is using this principle so that to adjust their transaction or recordings
with task given.
Documentation: This principle is legal principle, which is associated with Ritz and
could be helpful for them in managing financial outcome. Managers are guiding, they can keep
all those transactions in elusive way, which they can manage overall functions during in
particular year(Melissen, F. and Sauer, L., 2018).
Explain the principles of double entry bookkeeping system of debits and credits, using a standard
data from your operations.
Profit and loss statement: Profit and loss statement is known as income statement which
is one of the financial statement of an organisation and shows the company revenue and
expenses during a particular time. The double entry system of accounting or bookkeeping means
that for every business transaction, amount must be recorded in a minimum of two accounts. It
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also requires that for all transactions, the amount entered as debit must be equal to the amount
entered as credit.
Recording of debit and credit: The procedure of transaction in which debit and credit
entries are recorded. These recording are classified in rules of journal entries. These recordings
are helpful in managing data in ethical manner, which that suitable presentation can be done.
Produce a basic Trial balance using a sample data, stating the steps used and purpose of the Trial
Balance.
Trial balance it is a list of general ledger accounts contained in the ledger of a busines. It
contain the name of each nominal ledger accounts and the value of that nominal ledger accounts
and the value of the basic ledger balance. In which preparation and formation of credit and debit
account is made. It is prepared just to check the airthmatical accuracy, which can be done at any
point of time in year. This can be said that all the accounts are to be proportionate at the end of
each accounting period (Nayak, and et .al.,2018).
Trial Balance for The Ritz
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Illustration 2: THE RITZ-CARLTON SARASOTA RESORTBALANCE SHEETDECEMBER 31,
2017

Analyse types of cost and how they can be managed to influence the financial performance
Fixed cost and variable cost: The fixed cost is connected with those expenses, which
are fixed and doesn't fluctuate with variation of sales or production. There are few costs which
are fixed for Ritz hotel such as: rent, salaries and wages. The variable cost are those cost which
are varying as per the level of output or production. In the addition of Ritz, the higher variable
expenses are direct material, overheads and labour ( Nayak, R. and Taylor, J.Z., 2018).
Discuss the importance of accurate recording of transactions in line with accepted accounting
principles.
If every financial transaction that ever took place was correctly recorded every
accountant authority or executive was completely honest and knowledgeable of the accounting
principles that went into recording transactions. Financial statement could be prepared and used
with 100% certanity. An inaptitude and dishonesty will always negatively impact reliability of
financial statement. Analysing the human disposition for prevailing ignorance of accounting
methods and guidelines.
Critically evaluates the role of financial management and monitoring in achieving growth in your
business; include your own recommendations.
The role of financial management and monitoring in achieving growth in hospitality
industry, it includes the chain to market room availability to customer, which are likely to
experience flight cancellation, forecasting demand, controlling expenses and adjust room rates
helped the chain capitalize on around 10% gain during the on season. It enhances the overall of
an organisation which provides economic stability, encourages employee to save money, which
helps them in personal financial planning. It also include applying management principle to the
financial assests of an organisation. It has been recommended in acheving growth hospitality
business such as:
 Have a clear business plan.
 Monitor your financial position
 Ensure customer pay on time.
 Know day to day costs.
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 Keep up to date accounting records.
 Meet tax deadlines.
 Tackle difficulties when they arise.
PART B
A review the different stages of the HR life cycle as applied issues in talent acquisition and
retention within the food and beverage sector.
The HR manger is implementing respective policies and structure with in the business so
that to inspire high edge efficiency and to align aims and objectives in ethical manner (Bilro,
R.G., Loureiro, S.M.C. and Guerreiro, J., 2019).
HR life cycle: This is defined as positions are followed through employees in order to
perform in excellent manner with in organisation. The HR manager of Ritz is observing over
increasing internal factor of their employees, so that they can deal with marketplace complexities
in ethical manner Elaboration of life cycle is given below:
Recruitment: This is the process , which filling the vacant position with in job area or
some particular job role. The HR manger of The Ritz is using this step in order to recruit proper
people for job roles such as reception, housekeeping and food production (Zopiatis, A. and
Theocharous, A.L., 2018). before recruiting the candidate for food and bevrage sector, it is
important to analyse their needs and wants so they are avble to do work effectively in acquiring
business goals.
Selection: In this process suitable candidates are selected over the job role with their
qualification and job requirement. The HR manager of Ritz is required to acknowledge
appropriate candidate for their vacant job role by taking help of interviews so that they can
perform given task in ethical manner. At the time of selection process employee must be excelent
in food and bevrage department, they have best knowledge about alcoholic drinks(Benson, T.,
and et .al 2020).
Education: In this stage, all the necessary information is given to an employees also
analyse thee area for training and provide them appropiate learning employee can be fully used
in their operational area. Employee should be famaliar with the culture of organisation so they
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can work effectively and efficiently. Information will be given to the new employees so that they
can understand there roles and responsibilities.
On boarding orientation: This is the process which consent from individuals, so that to
prepare them for their job role and designation with optimal qualities and appropriateness. The
HR manger of concern organisation give value to their employees so that to render in positivity
with in working atmosphere of organisation( García-Rodríguez, and et.al., 2020).
Development: In this process organisation must be responsible for giving the traning and
development program to the employees, which involves the types of services, a proper method of
various services. In which they are able to do work in significant manner.
Exit and transition: This proves includes the, employee leave the company through
voluntary and compulsion movement and get conclusion from their responsibilities and
authorities. The HR manger of this organisation using this procedure in order to give retirement
to their existing individuals so that new skills can be accepted (Van der Wagen, L. and White, L.,
2018).
Develop a performance management plan to support the specific job role
Performance Management Plan
This plan is defined as the procedure which recognise the different activities those are
aligned with the individuals and their efforts and goal attainment towards business organisation.
The HR manger of Ritz is implementing this plan to control outcome of their employees and
directing them towards acquiring organisation aims and objectives. The major role of food and
beverage is looking forward to manage the quality of food and beverage which is serve by the
organisation. These services are very beneficial in attracting consumer and giving luxurious
service to customer, and give the proper customer satisfaction(Goodall, J., 2018).
Plan: In this process, making of decision so that the decrease different challenges and
acquire aims and objectives. The higher authority of food and beverage department of Ritz is
looking forward to find out faced issue through the customer and use appropriate measures. This
thing helps in managing consumer attention and retention for longer period of time.
Review: The performed activities are being reviewed so that requirements of clients may
be met to their level of expectation. The department of food and beverage workforce is playing
effective role in order to understand needs, demands of their consumers. According to above
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performance administration that is clear that adverse behaviour of employees are negatively
impacting enterprises objectives where as by putting additional efforts target can be acquired by
employees more efficiently and effectively. Through managing team from multi culture Ritz can
take higher succession opportunities.
PART 3
Identify specific legislation(s) that hospitality organizations has to comply and adhere toin the
daily transaction of business using examples to explain where applicable.
Legislation defined as statutory laws which are governed through different regulations
and governments of UK. These are imposed in order to give safety and protection to individuals
working. In the organisation of hospitality different legislations related to health and safety are
used that to give proper assistance and consumer satisfaction to them. Implication of legislation
may lead to face various challenges such as cyber theft, data protection and various others. There
are some appropriate legislation which is given below:
Environmental Legislation Act, 1974: The issue which are raising due to industrial
waste and impact air, water and environment. The hotel is using such business practices by
which waste can be decrease and lesser harm can be give to atmosphere.
Food Safety Legislation Act, 1990: This legislation having major responsibility of
managing food service and quality of food. This is assuring that food is made with best making
standards and contains suitable quality measures(Jelassi, T. and Martínez-López, F.J., 2020).
Consumer legislation Act, 2019: This act in which right of consumer can be protected in
some way that problem with in business can be decreased. The enterprise manager of Ritz is
adopting or implementing this law, so that to remove any delay in customer satisfaction and goal
accomplishment.
Illustration of how the company’s employment and contract law impact on business decision-
making.
There are different potential impacts on their strategic decision making approach by the
different legislation and law governed. These law are in place to ensure continue control over
enterprise activities and confine any kind of illegal and unlawful operations with the reason of
fulfil their business goals. Other companies, Ritz hotels supposed to implemented various law to
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restrict any harmful functions through society and man power while focusing on its major
objectives. There are some laws which is given below:
Employment Law:- The regulate relationship of individuals and employer and different
laws are define to regulate the whole hiring and employment process. This law affects the policy
of hiring their personnel and heir activities. The higher authority of concern organisation has
implemented this law in their organisation to assure the healthy employee and employer
relationships and comply with different employment laws.
Company Law: This law obligatory with view of directing and controlling organisations
and ensure that they legal and lawful characteristics and path to acquire those goals with in
motive of increasing profit. The manger of hotel has followed this law since it is compulsory
requirement along with safety, welfare and health of employee and society to motivate them to
stand with the company.
Contract Law:- This law carries the business activities between more than two parties
and enter into agreement. The higher authorities of hotel have formulated or implemented these
to ensure every document proofs in accordance with government terms and conditions.
An exploration of the different functional roles within the hospitality sector and how they
interrelate using an organization chart.
Organisational Structure of Hotel:
Organisational Structure of Carnival Cooperation Plc :
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Organisational Structure of Theme Park:
Organisational structure of hotel :
Hospitality industry includes different business such as hotels, restaurant, theme park,
tourist agencies etc. Each business has their own roles, structure and culture which are
interconnected to each other. Some of the interconnected department functions are given below:
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