Hospitality Business Toolkit Report: Financial, HR, and Legal Insights

This report analyzes the hospitality business toolkit, using Royal Lancaster London as a case study. It covers key principles of managing and monitoring financial performance, including financial arrangement, statement preparation, and expenditure management. The report demonstrates the double-entry bookkeeping system with examples of transactions and prepares a basic trial balance. It also explores the HR lifecycle, focusing on the recruitment of a housekeeping supervisor, performance management, and strategies to reduce negative behavior. Furthermore, the report examines relevant legislation, including employment, contract, and company law, and their impact on business decisions within the hospitality industry. Finally, it identifies different functional roles and methods of communication within the hospitality sector.

HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Principles of managing and monitoring financial performance........................................1
P2 Double entry bookkeeping system of debits and credits to record sales & purchase
transaction in general ledger...................................................................................................2
P3 Basic trial balance applying the use of balance off rule....................................................5
TASK 2............................................................................................................................................6
P4 Different stages of HR life cycle applied to specific hospitality job role and their
importance..............................................................................................................................6
P5 Prepare a performance management plan for specific job role along with measure to reduce
negative behaviour..................................................................................................................8
TASK 3..........................................................................................................................................10
P6 Specific legislation that a hospitality organisation has to comply and adhere................10
P7 How employment, contract and company law impacts on business decision making in
hospitality industry...............................................................................................................10
TASK 4..........................................................................................................................................11
P8 Different functional roles within hospitality sector.........................................................11
P9 Different method of coordination, monitoring and communication applied in a specific
hospitality sector ..................................................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality sector is a broad category within service industry which involves food, drink,
event planning, lodging, transportation, travelling, theme park along with other fields related to
hospitality industry. Main objective of this industry is to provide standardised service to its
customers so that their satisfaction level can reach maximisation (Jayawardena and et. al., 2013).
This assignment is based on Royal Lancaster London which is a Britain based hotel established
in 1967 and headquartered in London, England, UK. Hotel offers different kind of services to its
customers which are restaurant, Wi-Fi, room service, fitness centre, laundry, parking, bar etc.
This report is going to cover different principles of managing and monitoring financial
performance along with double entry bookkeeping system of debits and credits. Beside this, a
basic trial balance is carried out to complete ledger. Various stages related with HR life cycle is
mentioned along with performance management plan. Identification of specific legislation and
impact on decision making due to different laws is carried out. Beside this, different function
roles methods of communication within hospitality sector are mentioned.
TASK 1
P1 Principles of managing and monitoring financial performance
Royal Lancaster London is a renowned hotel which is situated in England. There are
different departments in hotel such as Finance, housekeeping, front desk and other departments.
This report is written on the basis of housekeeping department and its operations.
Principles are defined as the set of techniques and tools which is required to interpret and
analyse financial performance of a company. These rules and principles will help Royal
Lancaster London in enhancing and improving their performance. This assist in achievement of
organisational goals in a timely manner. Different principles of managing and monitoring
financial performance are given below:
 Arrangement of finance: It is essential for Royal Lancaster London to formulate better
plans in terms of finance as it will benefits the company in appropriate functioning of
business activities. If finance and budget of company will be maintained then it will
protect Royal Lancaster London from financial risks. Company can manage its finance
through banks and other financial institutions. As these institution will provide finance at
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low interest. Hence, taking help form them will be profitable for company (Jauhari,
2014).
 Preparation of financial statement: It is another important principle which is
associated with monitoring and managing financial performance. Financial statement will
benefits in preparing profit and loss account along with balance sheet in a chronological
order. It will help the firm in understanding their financial position for future.
 Expenditure management: It is essential for Royal Lancaster London to manage their
regular expenses in an organised way. As business organisation is going to enhance their
ability to take timely and strategic decision, appropriate management of expenditure is an
important aspect in this regard. Manager in Royal Lancaster London can chose a team of
professionals so that monthly and yearly expenditure of firm can be managed and
coordinated in a proper way.
These principle will benefits the concerned hotel in formulating proper guidelines. This
will allow the company to have an organised structure and funds of company will also get
managed desirably. Key performance indicators for restaurant are defined below:
 Food cost: Investment carried out in food and beverages is required to be managed in a
systematic way. Food consumption for each person can be acknowledged by calculating
profit margin for per customer of hotel.
 Kitchen labour: It can be evaluated by acknowledging the total food sale of company.
To identify the productivity of kitchen, performance indicator plan can be used
considerably (Hoboken and et. al., 2010).
P2 Double entry bookkeeping system of debits and credits to record sales & purchase transaction
in general ledger
Case scenario:
1st February, purchase goods from Jane’s enterprises (new food supplier, 30 days
credit) £5,000
buy room stuffs from Robert (our long-running drinks supplier, we have good credit) £29,552
 3rd Paid maintaince cost £3000
 6th February - pay off Jane’s account in full by bank transfer;
 10th February – end of week 2 – buying packaging stuffs £8,900 and cleaning
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material £9000
 14th February – Valentine’s party – private room hire and catering for Meganne
£2,000; £2000
14 received payment in full from her debit card same day; £25000
 17th February – end of week 3 - Collection received from finance departments £11,710
 22nd February – purchase for room stuffs JANE £7,013
Available cash balance as on 1st feb £22000
Available bank balance £15000
Double entry bookkeeping system: It is a system associated with bookkeeping in which
each entry to an account requires an opposite entry to some other account. There are two
corresponding and equal sides in double entry which are called as credit and debit. Left side is
called as debit and right-hand side is called as credit. Royal Lancaster London can use this
technique to record transactions so that they can acknowledge their loss and profits in a proper
manner (Maier and Hadrich, 2011).
Cash a/c
Date Particular Amount Date Particular Amount
01/Feb To balance b/d 22000 03/Feb By maintance 3000
14/Feb To party owner 25000 10/Feb By Packaging stuff 8900
17/Feb
To Finance
department 11710 10/Feb By Cleaning material 9000
14/Feb By Part arrangements 2000
28/Feb By balance c/d 35810
58710 58710
Cash a/c 25000
14/Feb
To party
owner 25000
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Cash a/c 11710
17/Feb
To finance
dp 11710
Bank A/c
To balance b/d 15000 06/Feb Jane 5000
28/Feb By balance c/d 10000
Purchase
A/C
Date Particular Amount Date Particular Amount
01/Feb To jane 5000
22/Feb To jane 7000 28/Feb By balance C/d 12000
Jane's a/c
Date Particular Amount Date Particular Amount
06/Feb To bank 5000 01/Feb By Purchase 5000
Maintance
cost
Date Particular Amount Date Particular Amount
03/Feb To Cash 3000 28/Feb By Balance c/d 3000
Packaging
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stuffs
10/Feb To cash 8900 28/Feb By balance c/d 8900
Cleaning material
10/Feb To cash 9000 28/Feb By balance c/d 9000
Party
arrangeme
nts
TO cash 2000 28/Feb By balance c/d 2000
Party
owner
14/Feb To balance c/d 25000 14/Feb By party owner 25000
Finance department
28/Feb To balance c/d 11710 17/Feb By cash 11710
Jane a/c £5,000
6th feb To bank £5,000
Packaging stuffs a/c £8900
10/Feb Claeaning material a/c £9000
To cash £17900
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Party arrangement a/c £2000
14th feb To cash £2000
Purchase a/c £7000
22nd feb To Jane £7000
P3 Basic trial balance applying the use of balance off rule
Balance off rule: As per this rule, when financial year is completed some accounts are
closed by company while some accounts are carry forward to the next tenure. Those accounts
which get obstructed are taken forward for next accounting year. This method is called as
balance off method. Main motive for using this method is to analyse the information and data
which is contained in ledger and journal of company. This is because it is not possible for
business organisations to close all accounts which are active for a particular year. Trial balance
for Royal Lancaster is mentioned below. Balance of this trial balance is matched after
completion of one year (Hayes and Miller, 2011). Different steps of preparing trial balance are
given below:
Trial balance is referred to the combination of different ledger accounts that are shown in
Ledger of business. It is mainly calculated after ledger accounts closing. Main purpose behind
calculation of trial balance is to acknowledge if the figures are accurate or not. Steps in this
regard are mentioned below:
 Closing balance of bank book and cash is needed after closing ledger account.
 Three columns will prepared on the working sheet that will be named as the account
name, credit and debit balance.
 Name of account will be placed along with credit and debit balance in respective column.
 Balance of both columns will calculated and it is essential that amount of both amounts
should be equal.
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 When the amount in credit and debit column is matched then trial balance is closed. If
amount on both side is not same, then it will became important to identify those error and
rectify it.
Trial balance
Cash 35810 -
Bank 10000 -
Purchase 12000 -
Maintance cost 3000 -
Packaging stuffs 8900 -
Cleaning material 9000 -
Party arrangements 2000 -
Party owner - 25000
Finance department - 11710
Capital - 44000
80710 80710
TASK 2
P4 Different stages of HR life cycle applied to specific hospitality job role and their importance
Human resource management is defined as the formal structure of a company that is
responsible for recruiting, managing and developing the workforce within an organisation. HR
activities are passes through different procedures which helps the company in attaining overall
development (Fyfe, Seaman and Bent, 2018). HR life cycle is referred to the concept which
define the stages of employee time along with responsibilities of HR department. At present,
there is vacancy of housekeeping supervisor in Royal Lancaster London, in order to recruit
suitable candidate, Stages of HR life cycle is required to be followed properly. In this context,
stages are mentioned below:
 Attraction: In order to became successful and sustain a strong position in market, it is
vital for Royal Lancaster London to attract right kind of talent so that achieving targets
and objectives will became an easy task. To attract large number of candidates for the
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vacancy of Housekeeping supervisor, company needs to provide them attractive
workplace benefits. Due to attractive benefits, candidate will prefer to retain in company
for long timespan.
 Recruitment: It is the most important stage for Royal Lancaster London because here,
company will chose the right candidate for the position of housekeeping supervisor. In
this stage, HR department is required to chose those applicant which are professionally
experiences so that business activities can be performed desirably even in complex
situations. Minimum requirement to be recruited is experience of 1 year in same field. If
candidate will be experienced, it will help them in retaining in company for long time due
to which their talent will develop further.
 On-boarding: In this stage, sessions are given to employees so that their skill, behaviour,
attitude and knowledge according to their job and designation can be enhanced. This will
benefits them in performing organisational work in a desired manner. After selection of
suitable candidate, proper training and development program must be given so that all
housekeeping activities can be performed desirably. Due to these on boarding sessions,
recruited candidate will be able to retain for a long time and their capabilities & talent
will enhance.
 Development: In order to maintain good quality of work along with enhanced
performance, concerned hotel is required to emphasize on professional development with
the help of learning initiatives. This will helps in updating the knowledge and skills of
employees as per business requirement. It will benefit housekeeping supervisor in
learning new methods of performing work due to which employee on the vacancy of
Housekeeping supervisor will be prefer to retain for a longer time period. (Foster and
Carver, 2018).
 Retention: During this stage, Royal Lancaster London is required to keep those
employees happy which are productive and benefits company in attaining their objectives
in a desired manner. If employee turnover will be high then it will negatively impact the
working of housekeeping supervisor that will result in reduction in overall productivity.
In this context, company can provide benefits, bonus and incentives to employees so that
housekeeping supervisor can retain for long time.
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 Separation: It is the last scale of HR life cycle in which workers have achieved their
goals by performing their work in a desired manner. This is called as a retirement stage in
which workers in Royal Lancaster London either retire or leave without impacting the
work of other employees. At this stage, Housekeeping supervisor will retire from its job
and leaves the company.
P5 Prepare a performance management plan for specific job role along with measure to reduce
negative behaviour
Performance management is defined as an ongoing procedure which involves continuous
interaction in subordinate and superior with the objective of aligning performance of worker as
per criteria of firm. It include guidance and supervision of workforce so that future objectives of
company can be attained properly. There are different steps which will included in performance
management plan. In context with Royal Lancaster London, these steps are stated beneath:
 Set performance objectives: In this step, HR department in hotel is required to examine
the work of newly recruited housekeeping supervisor so that area for improvement can be
determined. After this, smart objective must be formulated to set up target.
 Provide training: After identification of weaknesses, it is vital for HR department to
arrange training & development session so that these disadvantages can be transformed
into advantages in a short time span.
 Evaluate the performance: After appropriate training, next task of HR department is to
evaluate the performance of housekeeping supervisor so that effectiveness of learning
program can be acknowledged (Chapman, 2011).
 Compare actual performance with benchmark: After examining and evaluation of
current performance, next task is to compare it with the performance objective set by HR
department.
 Monitor & control: This is the last step in which improvement plan is prepared to
achieve those objective which are not attained previously. It will helps in reducing the
risk of same mistakes in future.
Objective Provide Training Review performance Monitoring &
control
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Developing
knowledge about
housekeeping and
supervision
Housekeeping
supervision is required
to given on the job
training session in
which they will be
given handbook and
other resources to
understand different
housekeeping
responsibilities.
Knowledge of accountant
will measured by the
superiors after 3 months.
This will support in
identifying the
improvements due to
learning and training
programs.
Skills and knowledge
of housekeeping
supervisor will be
controlled and
monitored on a regular
time period. Training
will be given to
improve those area
where modification is
needed.
Improving in data
managing skill
Housekeeping
supervisor is given
training from senior
staff which can guide
them to supervise
rooms and other areas
along with managing
data in a proper
manner.
Performance of
housekeeping supervisor
will be evaluated after 5
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.
TASK 3
P6 Specific legislation that a hospitality organisation has to comply and adhere
In order to effectively manage operation of company, it is vital for concerned hotel to
follow all regulations and laws. This will help in complying and adhering to legal laws. Certain
laws which can be followed by Royal Lancaster London are mentioned below:
 Alcohol Licensing Act, 2003: This law is related with supply and sale of alcohol for
entertainment & late night refreshment. As per this law, hotel management is required to
provide alcohol according to guidelines of government otherwise they have to pay taxes
and fine. For ex, it restrict Royal Lancaster London to provide alcohol to children and
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