Hospitality Business and Process Review - GBS, Hospitality Management

This report provides a comprehensive review of a hospitality business, addressing key areas such as financial management, human resources, legal and ethical considerations, and departmental coordination. The financial section explores principles of financial management, including budgeting and monitoring, and demonstrates the application of the double-entry bookkeeping system to record transactions in a general ledger, culminating in the production of a trial balance. The human resources section examines the HR lifecycle, focusing on recruitment, onboarding, career development, and performance management, with a focus on talent retention and development. The report also investigates the impact of legal and ethical considerations on business decision-making, including compliance with relevant legislation. Finally, the report analyzes the importance of coordinating and integrating various functions of departments within the hospitality sector, exploring methods of communication, coordination, and monitoring to strengthen the value chain and achieve organizational objectives.

Hospitality Business and Process Review

Table of Contents
LO1. Investigate how to manage finance and record transactions to minimize costs responsibly
within the hospitality sector.............................................................................................................4
P1. Investigate the principles of managing and monitoring financial performance....................4
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...........................................................................................................................................7
LO2 Assess how to manage the Human Resources life cycle within the context of HR strategy. .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 behavior and overcome issues of staff retention..............10
M2 Evaluate the Importance of the HR life cycle in relation to strategic talent management
and overcoming issues of staff retention...................................................................................12
D2 Make valid judgements and recommendations on how HR processes and documents can be
improved for effective talent planning throughout the HR life cycle........................................13
LO3. Illustrate the potential impact of legal and ethical considerations on a hospitality business
.......................................................................................................................................................14
P6. Identify specific legislation that a hospitality organization has to comply and adhere to...14
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P7. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business decision making in the hospitality industry.............................15
LO4 Explain the importance of coordinating and integrating various functions of departments
within the hospitality sector...........................................................................................................17
P8 Explore how different functional roles within the hospitality sector interrelate..................17
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organization to strengthen the value chain.........17
M4 Analyze how different methods of communication, coordination and monitoring within a
specific department of a hospitality organization achieves organizational objectives and
strengthens the value chain........................................................................................................18
D4 Critically analyses different methods of communication, coordination and monitoring
within a specific department of a hospitality organization and make justified recommendations
...................................................................................................................................................19
References......................................................................................................................................21
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LO1. Investigate how to manage finance and record transactions to minimize costs
responsibly within the hospitality sector
P1. Investigate the principles of managing and monitoring financial performance
It has been observed that it is important for the hotel manager to understand the financial issues
and the way it is performing. There are certain principles that are needed to be followed.
According to the first principle, the hotel needs to establish its budget for defining a new tool. In
addition to this, the second principle states that the budget needs to be reasonable, attainable and
realistic (Mayne, 2017). Depending on the goals and the purposes of the hotel, the budget should
be made. Along with this, the hotel management also needs to follow the financial results for
comparing the budget. This will help in measuring the financial performance of the new hotel.
Another principle is also considered where the problem is identified and the solution is provided.
Along with this, expenditures are also controlled and in addition to this, the costs and the benefits
will be identified. This also helps in understanding the planning and budgeting factors that are
related to the new hotel. The hotel manager needs to focus on such issues for analyzing their
financial statement and performance. In this way, the new hotel in the Lake District will be able
to manage and monitor financial performance.
P2. Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger
A business needs to use the double entry bookkeeping for maintaining its book of accounts so
that it can keep a record of the various factors of income and expenses for the business. It is to be
further stated that when the business is in a context of expansion like in the current scenario it
needs to factorize the effective use of the bookkeeping. The annual cost for the business was
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supposed to be not more than £100000 and also that the expansion investment for the new hotel
was supposed to be £500000. The annual cost has been taken into the general account for the
new hotel. The company is using quick books so that they can record the various transactions for
the business as per the principles of the accounting.
General Ledger(for the investment of £ 500,000.00)
Date Description Transaction Balance(cash)
Dr C
r
Dr Cr
£ 500,000.00
10.01.1
9
Building cost £
225,000.00
£ 275,000.00
12.01.1
9
Satellite TV £
15,000.00
£ 260,000.00
05.02.1
9
Single Beds £
25,000.00
£ 235,000.00
15.02.1
9
Double beds(30Pic) £
35,000.00
£ 200,000.00
19.02.1
9
Modern Reservation System £
17,000.00
£ 183,000.00
23.03.1
9
Digital Phones £
3,500.00
£ 179,500.00
19.04.1 Fax and computers £ £ 154,500.00
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9 25,000.00
05.05.1
9
Lights £
40,000.00
£ 114,500.00
06.06.1
9
Furniture £
85,000.00
£ 29,500.00
07.07.1
9
Carpets £
20,000.00
£
9,500.00
Total £
490,500.00
£
9,500.00
The above general ledger has been computed for the expenses that occurred for setting up the
rooms in the hotel. The hotel was supposed to be completed with the investment of 500000
pounds which the brothers did with an effective cost of 490,500. The payment to the landlord is
not taken into the expansion project as it is to be treated separately and the general account for
the first year is presented below for the Hotel after it has been operational (Nastase, Calin and
Margina, 2016).
The general ledger is not supposed to have crossed the annual cost of 100000 for the business by
maintaining a 20% return on the investment by the brothers. The general ledger for the business
has been prepared below as per the budget of 100000 pounds during the first year of operation.
General Ledger
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Date Description Transaction Balance(cash)
Dr Cr Dr Cr
£
100,000.00
15.07.1
9
Electricity expenses £
7,500.00
£
92,500.00
19.07.1
9
labor cost £
1,900.00
£
90,600.00
25.07.1
9
Maintenance Cost £
2,500.00
£
88,100.00
12.08.1
9
Salaries to Staff £
18,000.00
£
70,100.00
22.08.1
9
Rooms booked for 45
Days
£
32,000.00
£
102,100.00
01.09.1
9
Delivery cost £
19,000.00
£
83,100.00
15.09.1
9
Drinks £
3,200.00
£
79,900.00
02.10.1
9
Foodservice £
25,000.00
£
54,900.00
11.10.1
9
Cleaning and Washing £
12,000.00
£
42,900.00
10.11.1 Salaries to Staff £ £
7

9 15,500.00 27,400.00
30.12.1
9
Equipment £
22,000.00
£
5,400.00
Total £
126,600.00
£
32,000.00
£
5,400.00
P3. Produce a basic trial balance applying the use of the balance of rule to complete the
ledger
The trial balance has been prepared after taking into consideration the various expenses that the
brothers have incurred during the first year, after recording the various transactions of the
purchase and the sales in nature the business organization will take into consideration of how it
will be reflected in the trial balance of the business. The flowing trial balance is prepared for the
year ended and has taken into consideration of only the expenses that incurred within the 100000
pounds that was allocated and the other balance, which is the investment of the 500000 pound,
has not been taken into consideration while preparing the trial balance for the current year
(Kieso, Weygandt and Warfield, 2016).
Trial Balance as at 31.12.19
Particulars Dr Cr
Electricity expenses £ 7,500.00
Cleaning and Washing £ 12,000.00
Salaries to Staff £ 15,500.00
Drinks £ 3,200.00
Rooms booked for 15 Days £ 32,000.00
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Delivery cost £ 19,000.00
labor cost £ 1,900.00
Maintenance Cost £ 2,500.00
Salaries to Staff £ 18,000.00
Food service £ 25,000.00
Capital £ 94,600.00
Equipment £ 22,000.00
Total £ 126,600.00 £ 126,600.00
The above trial balance has been prepared accordingly as per the capital that was introduced by
the brothers as to the booking that was received by the business for 45 days. It is to be further
taken into consideration that the Hotel had numerous expenses for its day to day purpose which
has been stated in the Trial Balance above so that the hotel can get a better idea of its financial
position and the capital was used for the new business project. The business did not operate for
the whole year as it can be seen that the official operation started in July 2019. Moreover, the
annual cost did not cross the mark of 100000 pounds that was provided. The Hotel will use its
operation effectively to maintain its Return on investment of 20% as stated earlier so that the
brothers can benefit from the project.
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LO2 Assess how to manage the Human Resources life cycle within the context of HR
strategy
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 employee’s life cycle is a notion in the management of human resources which acknowledge
the stages of employee’s time period with that of specified company and the role of department
of human resources playing at each of the stages. The employees experience main stages during
the time of employment which includes recruitment and onboarding, orientation and career
planning, career development, termination or transition.
Recruiting and onboarding: Recruiting is the process to hire new employees. The role of the
human resources department in this stage is to help in the hiring process. Since this hotel is small
so the owner will be performing this duty but HR person can assist the owners in a supportive
role. Onboarding is the process of receiving the applicants and its set up in the system as new
employees (Bratton and Gold, 2012).
Orientation and career planning: Orientation is the process which helps the employees to
become a member of the company by learning new job duties, making a relationship with co-
workers and monitoring the work. On the other hand, career planning is that stage wherein
employees and supervisors work in long-term career goals. Taking into consideration of this case
of a hotel, the human resources department should use personality profile testing which could
help the employees in choosing the best career options within the hotel.
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Career development: After the employee establishes themselves at the company and regulate
long-term career objectives, the human resources departments need to help the employees to
meet their goals. Professional growth and training are needed in the hotel industry as employees
need to prepare themselves for the responsible position in the company (Bratton and Gold,
2012).
Termination or Transition: Since the small hotel in the case study is new so no retirement
often will be arriving in the first years but the transition could be possible where employees
could move to achieve new opportunities. The role of the HR is to manage the transition by
evaluating if all of the policies and procedures are followed and carried out during the time of the
exit interview.
P5 Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behavior and overcome issues of staff retention
The HR performance management plan consists of different HR stages which can help the new
hotel to identify the gaps in the present HR behaviors and will also review the strategies to
enhance the performance.
Establishment of the objective: The first part of the performance management plan is to review
as well as evaluate the outcomes achieved with respect to the previous goals. Since, the new
small hotel in the case has already had one old hotel, so assessing the results of the old hotel
could be helpful and will act as a springboard for the next part of the plan. This part of the plan
could help the hotel to establish the objective as per the performance of the human resources.
Analysis of the workforce: It is necessary for the hotel to analyses the workforce capability and
also its shortage or surplus to achieve its goal. By taking into consideration the vacant position of
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the human resources, turnover, retirement, etc. the present workforce and its abilities to adapt to
the trends of the future could be analyzed. Since, the hotel is aiming to install a modern
reservation system with internet connection for online booking so there is a requirement of a
workforce who is fully trained in IT sectors (Evans, 2006).
Gap analysis: Gap analysis is termed as an important part of the performance management plan
as it reviews the ability of human resources. It is essential for the hotel industry to investigate the
gaps in employees and apply effective strategies to overcome those gaps. This could help the
hotel to meet its desired organization goal.
Strategies: Becoming SMART regarding goal-setting, providing regular feedbacks prioritize
rewards and recognition, encouraging advancement and development are the strategies which
can be assistant in minimizing the negative behavior and preventing the issues of staff retention.
It can further assist in enhancing the employee’s turnover intention towards the organization
(Hwang & et.al., 2014).
M2 Evaluate the Importance of the HR life cycle in relation to strategic talent management
and overcoming issues of staff retention
HR life cycle management is termed as crucial for the management of the HR departments of
Hotel as it helps in dealing with one of the most valuable assets of an organization which is
employees. It helps in managing talents in an effective manner. Talent management is a business
strategy which can help this hotel to retain its topmost talents and skilled employees. For an
instance, since talent management lifecycle possess recruitment, employment, onboarding,
training and development, performance management and succession planning which is similar to
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