Financial, HR, and Legal Analysis of the Hospitality Business Toolkit

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on financial management, human resources, and legal considerations within the context of the Nadler Victoria hotel's expansion. The report delves into the principles of financial management, including budgeting, cost analysis, and financial performance evaluation. It also explores the application of double-entry bookkeeping. The HR section examines the employee lifecycle, from recruitment and selection to exit strategies, emphasizing the significance of talent retention and development. The report further investigates performance management plans, addressing methods to overcome negative staff behavior and improve employee retention, including incentive schemes and training programs. The legal aspects cover relevant laws and legislations impacting the hospitality industry, such as licensing, data protection, and employment law. It discusses the effects of these laws on business decision-making, including company and contract laws. Finally, the report outlines various serviceable roles in a hotel and discusses monitoring, communication, and coordination methods within specific departments.

THE HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Investigating the principles of financial management and performance..........................1
P2. Applying the book-keeping system under double entry of debit and credits to record sales
and purchases..........................................................................................................................2
P3. Developing a basic trail balance.......................................................................................4
LO 2.................................................................................................................................................5
P4. Various phase of Human Resource life-cycle and the significance for holding and
developing talent....................................................................................................................5
P5. Performance management plan and various methods in order to overcome negative
behaviour of staff and problems with employee retention.....................................................6
LO 3.................................................................................................................................................7
P6. Laws and legislations for the hospitality industry............................................................7
P7. Affects on business decision-making in the hospitality sector through employment,
compnay and contract laws....................................................................................................8
LO 4.................................................................................................................................................9
P8. Various serviceable roles in the hotel..............................................................................9
P9. Various methods of monitoring, communication and coordinating in the particular unit9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There are various tool-kits in the hospitality industry is essential such as; Human
Resource Toolkit, Finance Toolkit. The HR toolkit for managing people and to measure,
motivate and manage the staff. Similarly, finance is the essential toolkit for the effective run in
the company that ensures the success as well as survival of the new business as well as existing
industry. The present study is based on The Nadler Victoria, a boutique hotel established in
London. The study will provide the details about how the industry can manage the finance and
record transaction to understate the cost. Along with it, the study will also cover an
understanding of how to manage Human resource life-cycle and elaborate likely impact of
judicial and ethical consideration on the business in hospitality. Lastly, the report will state the
value of coordinating and integrating different functions of the specific department.
LO 1
P1. Investigating the principles of financial management and performance
The new expansion of Nadler Victoria's hotel is required to manage the finance of the
business with purpose to confront any future financial loss and also to enhance the fiscal
execution of the organisation (Foster and Carver, 2018). There are various principles of
management of financial performance in Hospitality sector are;
 Manager of The Nadler Victoria's hotel is required to prepare a budget, this is the very
first principle.
 Second principle stated that the setted budget should be attainable, practical and
reasonable.
 Third, Manager need to do analysis of the mission, goal and objective of the hotel before
developing budget.
 Fourth principles is to detect further changes in the business circumstances and this
principle states that the actual outcome regarding finance are required to be compared
with budget on regular basis (Filimonau and Delysia, 2019).
 Fifth principles mentioned that manager of The Nadler Victoria's hotel need to determine
the reason that bring variation between budgeted and actual cost, identify the activity and
take corrective action.
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 All the unit in the hotel are required to operate their respective actions within the budget,
in which each justification is needed for exceed in expenses.
 All the expense should comply with the rules, regulations and policies.
 Each department of the hotel must investigate financial consequences.
 All the department must ensure that the benefit should higher than the cost.
 Each functional unit in the hotel should render competent and systematic precaution for
protecting against the failure.
P2. Applying the book-keeping system under double entry of debit and credits to record sales
and purchases
Double entry book-keeping system
2

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P3. Developing a basic trail balance
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LO 2
P4. Various phase of Human Resource life-cycle and the significance for holding and developing
talent
The life-cycle of HR contains various stages that are essential to consider by the
manager. Following are some key phases of rotating cycle of HR;
Recruitment and Selection: Under this stage, recruiting and selection process is done of
new employee (Hsu and Stanworth, 2018). The function of HR is to help the hiring through
various job ads and select the best suitable candidate amongst all those through conducting
interview that fit best in the hotel to meet the objective of successful expansion. There are
various method of recruitment such as internal recruitment and external recruitment and selection
method include; face to face interview, screening, etc.
On boarding and orientation: In this phase the main duty of HR in the hotel is to make
the staff familiar with the environment, policies and regulations of the company and also HR is
responsible to define the job duty clearly to the employee. Performance should be managed by
the HR. the expansion plan and along with it, the mission, vision and objective should be clearly
mentioned to each and every staff of the hotel.
Exit and transaction: Lastly when the employees will leave hotel through retirement
subsequently a successful and long career (Van der Wagen and White, 2018). HR responsible to
manage the exit by guarantee that all the line of reasoning and process are followed, conducting
exit interrogation. After serving, if employee want to leave the hotel proper documentation
should be done by the Human resource of the hotel.
Significance of phenomenon of HR stages for retain and develop talent
In the context of The Nadler Victoria's hotel, the phase of the phenomenon assist HR to
contain and developing the talent of the staff through managing their performance. Providing
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them training help in improve the skills to achieve business objective successfully. But HR is
required to consider the necessary key legislation such as promote equality and diversity.
Challenges and strategies to overcome in staff retention
There are many challenges faced by the manager regarding staff retention. The major
reason faced by the manager is monetary dissatisfaction. Thus, it required taking care of the
interest of the staff and fulfil their basic need (Whalen, 2018). Staff or labour turnover is also a
major issue in staff retention due to employees are not satisfied with their job. This can be
eliminated by re-looking at the job role by the manager and communicate it clearly to the staff.
Moreover, to enhance the satisfaction level, training will help a lot, bonuses and other incentive
schemes also encourage staff and increase their engagement with the job and with the company.
There are various jobs categorised in four major parts;
 Hotel management- general and spa manager of the hotel and sales manager
 Event designing- event planner, wedding coordinator and manager of the event
 Food operation- food and beverage manager, chefs or cooks
 Front of the house- front desk, concierge, bellhop
P5. Performance management plan and various methods in order to overcome negative
behaviour of staff and problems with employee retention
Employee performance administration can be characterized as the framework for
managing the execution of the industry's strategy (McCabe and et. al., 2019). The plan also can
refers to the planning of HR department with the aim to increase the performance of workforce
and this assist in manage the people within the hotel effectively. The hotel is facing issues related
to their staff including waiters. In the context of The Nadler Victoria's expansion plan and
execution administration of the hotel manager ensures the successful expansion with all the
required strategies. HR process and documentation might be enhanced for efficient planning
related to talent by selecting the best recruitment and selection strategy to attract and select the
right person for the accurate post. To enhance the retention of the employees, hotel manager is
required to look upon the motivational factor as well as provide them proper training and
development that increase their retention.
Performance
objective
Actions that has
to be taken
Purpose Required
resources
Time-frame
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To enhance the
productivity
Proper training
should be provide
to the employees
Incentive scheme
is also beneficial
Increase the job
performance
Expert team that
provide training,
hall
Within 3 months
To increase
motivation
Reward should
provide to the
employees
fulfilment of
basic needs of the
employees also
help in motivating
them
Encourages
retention
Tangible and
intangible
rewards, leader
and manager of
the hotel
Within a month
LO 3
P6. Laws and legislations for the hospitality industry
In the expansion of the hotel in new market, company is required to consider various laws
and legislations (Wizniuk and Kumar, 2018). As being managing director assistant, it is required
that the new business follow all the necessary laws and legislations;
License act 2001: According to this norm, hotels that sells alcohol or use alcohol in the
preparation of nutrient is needed to acquire the permit. In the environment of the Nadler
Victoria's hotel new premise, if they want to use alcohol or sell they should obtain the license.
Data protection law: As per this act, any information collected by the hotel of the
potential consumers should manage the confidentiality. Similarly, hotel is required to maintain
the confidentiality of the information provided by the staff.
Act of Food and Safety: This is the necessary law that is must require by the industry to
follow. The staff is required to take care of the food that is going to be serve to the guests (Holt
and Allen, 2015). The food should free from contamination and hygiene level should be maintain
by the chefs.
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Equality act 2002: As per this act, the manager should ensure that employees do not
suffer from any kind of discrimination in the new premise regarding culture, caste, race, colour,
etc. and all the people should treated equally.
If the hotel fails in any of the above laws, then have to face judicial issues.
P7. Affects on business decision-making in the hospitality sector through employment, compnay
and contract laws
The laws and legislations should affect the hotel and decisions taken by the manager. The
current standard of decision making in the hotel set by the managing director. All the legislation
and law regarding contract, employees and organisation has potential impact on the enterprise
decision-making towards the new expansion in West London.
Company law such as; licence act limits the operation of the edifice in the new market.
As the hotel is planning to expand the business in West London, the registration process of
licensing is required (Holt and Allen, 2015). The company law also affect the ethical
consideration and business ethics. It also has been identified that before entering into new
market, the hotel is required to consider the laws and should registered.
Employment law covers all the protection law for the employee's right and that is required
to consider by the HR of the hotel while recruiting or for developing policies for the employees
that are working in the hotel. For example; staff of old Nadler Victoria's hotel is a small family
run business and once the company dismissed one of the staff member without providing any
proper justification (Wizniuk and Kumar, 2018). The employee filed a law suit against the
company and they had faced legal issues. Thus, for the new premise they are strictly required to
fairly treat the staff.
Contract law affect the business and the relationship that are build through contracts. If
company wants to operate in West London with being in partnership with any organisation they
should consider the legal requirements and make legal agreements. Along with it, managing
director also required to consider that any contract does not breach. The decisions taken by the
company regarding the marketing the new business should comply with agreement of one or
more parties that are being with them under contract (McCabe and et. al., 2019). If staff is also in
contract with the firm that comes under the rules of contract law.
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LO 4
P8. Various serviceable roles in the hotel
There are various department in the new hotel and all the unit have their own functions
and obligations and they are somewhere related with each other.
Role of front office and house keeping department: Role of House-keeping division in
Nadler Victoria's hotel is to manage the inventory and managing the room cleaning and ensure
that all the necessities are available in the rooms, whereas, the front office are responsible for
providing information to the housekeeping office about the filled room and who is going to
check out. The coordination and communication is essential between the departments that ensure
the desired outcome.
Role of HR and marketing: Human resource department responsible for hiring potential
employee that fits perfectly in the required position and the marketing department is responsible
for promote the products and services as well as of the new premises in the West London
(Whalen, 2018). Along with it, marketing also promote the vacant position in the hotel. The
interrelation is if the marketing department promote the vacant position of the hotel then HR
enables to hire the best candidates. Similarly, HR role is to hire the best suitable candidate for the
marketing department that effectively promote the hotel that success of the business.
P9. Various methods of monitoring, communication and coordinating in the particular unit
Communication, coordination is essential for the success of the new hotel in the new
market and the method is required (Van der Wagen and White, 2018). There are various
techniques of communication, co-ordination that assist in enhance and fortify the value chain of
the company.
Methods of communication: There are various techniques of interaction that follow in
the F&B unit of Nadler Victoria's hotel. Especially oral and written both are effective
communication method. Verbal communication involve various methods such as; oral
conversation, face to face interaction, group meeting, one-on-one oral communication, etc. This
will assist in reducing any misunderstanding and confusion. On the other hand, written
communication in the hotel include; email, faxes, letter, etc. This method of communication help
in avoiding language barriers and easy to understand. Along with it, it is time effective and
maintain the hierarchy in the hotel (Hsu and Stanworth, 2018).
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