Hospitality Business Toolkit Report: Financial, HR, Legal Aspects

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on the Premier Inn case study. It begins with an investigation of financial performance, including principles of managing and monitoring financial aspects, and the application of double-entry bookkeeping in a general ledger. The report then explores the HR life cycle, examining its stages and their importance for talent retention and development, along with a performance management plan. Furthermore, the report identifies specific legislation that hospitality organizations must adhere to, and illustrates the impact of company, employment, and contract law on business decision-making. The report also discusses interrelated business functions like communication and coordination within the value chain. The report concludes by highlighting the importance of financial management, HR strategies, and legal compliance in the hospitality sector.

HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Investigate the principles of managing and monitoring financial performance.....................3
Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger..............................................................................4
Produce a basic trial balance applying the use of the balance off rule to complete the ledger..8
TASK 2............................................................................................................................................8
Review the different stages of the HR life cycle applied to a specific hospitality job role and
their importance for retaining and developing talent.............................................................8
Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.......10
TASK 3..........................................................................................................................................11
Identify specific legislation that a hospitality organisation has to comply and adhere to....11
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business decision making in the hospitality industry......................................12
TASK 4..........................................................................................................................................12
Interrelated business functions.............................................................................................12
Communication, Coordination and monitoring importance in strengthening value chain. 13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
This report is based on the hospitality industry and focuses on the services provided by
the industry to satisfy their consumers as it helps industry in boosting their revenues. Hospitality
industry contributes in the economy of the country and this industry consists of various areas
such as theme parks, hotel , restaurant etc. This report helps in understanding about the
importance of finance in the hospitality sector and how it helps in development of the
organisation. This report also includes about the impact of HR strategy on the industry and how
adequate work power helps in achieving the goals and objectives of organisation. This is report is
based on the Premier Inn Ltd. which provides wide range of services to their consumers and
how issues such as finance and HR strategies helps in satisfying the consumers (Anser, and et.
al., 2020).
TASK 1
Investigate the principles of managing and monitoring financial performance
Financial performance is explained as analysing the assets of the organisation which can
help in boosting their revenues and helps in implementing the changes which are required to
improve their overall performance. Premier Inn focuses on maintaining the records of the stock
and the receipts of the transaction made by the organisation as it helps in understanding the
demand and analysing the resources of the organisation. Financial performance helps in
analysing the utilisation of financial resources of the organisation and helps in formulating and
implementing the strategies for the effective and efficient use of resources. There are various
principles which is used by Premier Inn to manage and monitor the financial performance which
are mentioned below:
Maintain proper records of stock
This principle focuses on maintaining the records of stock which is going in and utilised by the
organisation as it helps Premier Inn in analysing the purchases made by them. Records also helps
in analysing the wastage of the resources and the cost incurred in the storage of the resources
(Chen and et. al., 2017).
Preparing financial reports
This principle focuses on preparing the report of the transactions made by the organisation.
Managers of Premier Inn prepares this report in order to analyse their loss and profit. Financial

reports helps in analysing the development of the organisation by the use of financial resources
and helps in improving performance of the organisation.
Evaluating overhead cost
This principle helps in analysing the additional cost incurred by the organisation in their
operations process. Premier Inn uses this principle to monitor their operating cost and reduce the
cost in order to make operations process effective and efficient.
Apply the double entry bookkeeping system of debits and credits to record sales and purchases
transactions in a general ledger
Premier Inn uses general ledger to analyse their business performance and ledger also
helps in maintaining the list of asset, liabilities and capital. Ledger also includes the information
about their debit and credit as left side is credit and right side is debit. This system helps in
matching the account entry to the opposite account entry (Costa, Silva and Paula, 2020).

Ledgers:
Cash a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
04/03/
20
To capital a/c 30000 05/03/2
0
By rent a/c 1000
18/03/
20
To sales a/c 20000 06/3/20 By purchase a/c 10000
20/03/
20
To sales a/c 13000 07/03/2
0
By Prepaid
insurance policy a/c
1200
11/03/2
0
By Laundry fees a/c 200
15/03/2
0
By Telephone and
internet expense a/c
2220
15/03/2
0
By Water charges
a/c
950
16/03/2
0
By Wages and
salary a/c
31/03/2
0
By balance c/d 47430
63000 63000
Capital a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
31/03/
20
To balance c/d 30000 04/03/2
0
By cash a/c 30000
30000 30000
Rent a/c
DR
CR

Date Particulars J
F
Amount Date Particulars J
F
Amount
05/03/
20
To cash a/c 1000 31/03/2
0
By balance c/d 1000
1000 1000
Purchase/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
06/03/
20
To cash a/c 10000 31/03/2
0
By balance c/d 40000
06/03/
20
To vendor a/c 15000
09/03/
20
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
07/03/
20
To cash 1200 31/03/2
0
By balance c/d 1200
1200 1200
WH Adams Ltd a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
31/03/
20
To balance c/d 15000 09/03/2
0
By purchase a/c 15000
15000 15000

Laundry fees a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
11/03/
20
To cash a/c 200 31/03/2
0
By balance c/d 200
200 200
Telephone and internet expense a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/
20
To cash a/c 2220 31/03/2
0
By balance c/d 2220
2220 2220
Water charges a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/
20
To cash a/c 950 31/03/2
0
By balance c/d 950
950
Wages and salary a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
16/03/2
0
To cash a/c 1740 31/03/2
0
By balance c/d 1740
1740 1740

Sales a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
31/03/
20
To balance c/d 33000 18/3/2
0
By cash a/c 20000
20/3/2
0
By cash a/c 13000
33000 33000
Produce a basic trial balance applying the use of the balance off rule to complete the ledger
Trial balance
TASK 2
Review the different stages of the HR life cycle applied to a specific hospitality job role and their
importance for retaining and developing talent
Human resource plays vital role in the success of any organisation as it helps organisation
in recruiting individual which are best fit for the organisation. Human resource department
focuses on hiring skilled employees in the organisation. Human resource department focuses on

attracting the individual which are suitable for the profile and which can help organisation in
achieving its goals and objectives effectively and efficiently. Premier Inn focuses on hiring the
employees which can understand their roles and responsibilities and helps organisation in
maximizing its productivity and profitability. There are five different stages of HR life cycle
which are mentioned below:
Recruitment
This stage comprises of attracting employees to the organisation and focuses on screening of the
employees. Organisation uses different talent acquisition software to appropriate candidate for
the job (Elfimova and Radishauskas, 2018). Recruitment is explained as the process which
includes the entire hiring process from attracting employees to their joining to the organisation.
Premier Inn focuses on implementing effectively recruitment process in the organisation and
finding candidates which are best fit for the job and understand the goals and objectives of
organisation.
Onboarding
Onboarding is explained as the process of joining of employee in the organisation and
familiarizing employee with the organisation norms and values. In this stage HR department uses
different system to enroll employee as member of organisation and different orientation
programmes are planned for the employees. Orientation programme helps new employees in
understanding mission and vision of organisation. Premier Inn managers makes sure that every
employee should understand the mission and vision of the organisation and contributes in the
growth of the organisation.
Development
In this stage organisation focuses on the development of the employees in order to make them
effective and efficient. Development of employees includes development of skill and knowledge
and of employees which helps them in achieving the goals and objectives. Premier Inn makes
sure that their employees should be well trained because in the hospitality industry consumer
satisfaction is important and employee development helps in maximizing the productivity of
organisation (Fissi, Romolini and Gori, 2020).
Retain
In this stage organisation focuses on retaining their best employees by providing them incentives
or by promoting them. Organisation makes sure that their best employees should be retained by

organisation by providing them suitable benefits. Retention helps organisation in maintaining the
performance of the organisation and these days skilled employees are considered as asset to an
organisation. Premier Inn manager focuses on retaining their employees as it helps in
maximizing the performance and helps in gaining competitor advantage over competitors (Hán,
Petříček and Chalupa, 2020).
Offboard
This stage involves the retirement of the employee from the organisation. Premier Inn makes
sure that employee gets all the benefits and remaining pay from the organisation and there should
be no disruption between employee and organisation.
Develop a performance management plan for a specific hospitality job role applying techniques
to resolve both negative behaviour and overcome issues of staff retention
Performance management is explained as analysing the performance of the employees in
the organisation to make sure that goals and objectives should be achieved effectively and
efficiently. Performance management helps in analysing the gap in the organisation and
implementing the changes in the organisation to boost the performance of the employees.
Premier Inn focuses on improving the performance of the employees in order to meet the
organisational needs and this possible by formulating performance management plan. There are
different stages in the performance management plan which are mentioned below:
Performance Objective
In this stage Premier Inn focuses on identifying the gap in the current performance and desired
performance of employees. Managers focuses on making the objectives which should be
specific, measurable, accurate, reliable and timely.
Training of employees
In this stage Premier Inn focuses on providing training to the employees in order to achieve the
level of performance which is desired by the organisation and it helps in enhancing skills and
knowledge of employees. Appropriate training helps in achieving goals and objectives
effectively and efficiently (Kasemsap, 2020).
Employee performance evaluation
Evaluation of employee performance helps in analysing the performance of employees. Premier
Inn managers focuses on analysing the performance of employee as it helps in determining the
effectiveness of training programmes and helps in analysing efficiency of employees.

Analysing current performance
Premier Inn managers focuses on analysing the performance of employees with the desired
performance as it helps in filling the performance gap.
Monitoring and controlling
Monitoring and controlling helps in implementing the plan to fill the performance gap and
managers of Premier Inn makes sure that resources should be utilised effectively and to control
the outcome (Konovalova and et. al., 2018).
Issues
identification
Employees
involvement
Set clear
objectives
Training
programmed
Performance
review
Issue related to
hiring of
appropriate
employee
Managers should
involve HR
department for
the briefing to
understand the
need of the
employee and
the skill which is
needed.
Objectives is to
hire skilful and
knowledgeable
employee.
Training given
by the mentor of
apprentice to
help new
employees in
understanding
their roles and
responsibilities
Employee
performance
will be reviewed
every month.
TASK 3
Identify specific legislation that a hospitality organisation has to comply and adhere to
Every organisation have to focus on following the rules and regulations in order to
operate its business in the market. These legislation makes sure that no illegal practices are used
by the organisation to conduct its business. Premier Inn makes sure that all the rules and
regulations are followed effectively by the organisation and no illegal practices should be used
by them. There are some legislation which is followed by Premier Inn are mentioned below:
Licensing Act, 1964
This license helps hotel and restaurants in serving liquor to the consumers. This act helps
Premier Inn in providing license to its consumer to serve liquor. This act states that liquor should
be served in clean glasses and hotel should maintain the proper hygiene before serving liquor.
Premier Inn makes sure that alcohol should be served in the public room and Premier Inn should
need a feature license when serving alcohol with the meals (Martínez-Martínez and et. al., 2019).

Health and Safety Act, 1974
This law states that health of employees is important and organisation should follow all the
minimum standard for the safety of employees. Premier Inn makes sure that their employees
should feel safe in the organisation and it helps employees in working effectively and efficiently.
Liquor Control Act, 2003
This law is proposed by the United Kingdom Parliament. This law states that single license is
issued to the hotels and restaurant which sell or supply alcohol and serves alcohol in parties. This
type of license helps in taking permission for all the activities related to alcohol and it eliminates
complicated process (Papaioannou and et. al., 2018).
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business decision making in the hospitality industry
Company, employment and contract law have their impact on the business decision and it
helps managers in implementing changes in the organisation related to legislation. Impact of
these laws on the organisation decisions is mentioned below:
Contract law
This law is explained as the agreement between two or more organisation in order to boost their
profits and helps in expansion. This law helps in abiding the organisation with the terms and
conditions which are mentioned in the contract. Premier Inn managers makes sure that before
making any decision regarding their business organisation have to abide by the contract.
Company law
This law is explained as the standards of the organisation in which every organisation should
maintain the standards in the organisation which are proposed in the law. Premier Inn makes sure
that they should maintain the standards which are stated in the law and focus on making the
significant business decision by following all the mandatory guidelines under the law.
Employment law
This law is explained as the policies and procedures related to health and safety of the employees
and to make sure that all the safety guidelines are followed by the organisation. Premier Inn
managers makes sure that environment for employees is healthy and safe as it helps in boosting
their performance (Rambe, 2018).

TASK 4
Interrelated business functions
Business functions helps in making the business decisions effective and efficient.
Business functions helps in planning the utilisation of resources and helps in creating the
goodwill of the organisation in the market. In hospitality sector, consumer satisfaction is
important as it helps in attracting consumers and boosting profits. There are different functional
department in the Premier Inn and their role are mentioned below:
Human resource department
Human resource department helps Premier Inn in recruiting employees according to need of
organisation and it also helps in developing the skills and knowledge of employees by providing
them appropriate training.
Marketing and finance department
Marketing and finance department helps Premier Inn in planning the resources for utilisation and
assists in developing the plan for the marketing of the organisation. Both department helps in
reducing the cost of operational activities in the organisation.
Communication, Coordination and monitoring importance in strengthening value chain
Communication, coordination and monitoring helps organisation in implementing
changes in the organisation effectively and also helps in making the operational activities
efficient. Premier Inn managers makes sure that these three points are effectively used in the
organisation as it helps in improving the performance of employees and organisation. These
three points helps in strengthening value chain of organisation and these three points are
mentioned below:
Communication
Effective communication helps in exchanging the information effectively and helps in sharing
the information among employees. Communication helps employees in understanding the goals
and objectives of organisation and it also helps them in understanding their roles and
responsibilities. Premier Inn makes sure that there should be no communication barrier in the
organisation as it affects the performance of organisation and employees. Effective
communication makes Premier Inn operations process effective and efficient (Stylos and
Zwiegelaar, 2019).

Coordination
Coordination helps employees in working as a team because every organisation efficiency
depends on the coordination of employees as they can makes the process smooth and effective.
Premier Inn as as hotel chain is dependent on the coordination among its employees such as
coordination between housekeeping and front office as it helps in delivering the information
regarding status of rooms and cleanliness of rooms.
Monitoring
Monitoring helps in analysing the performance of employees and implementing the changes in
the organisation to fill the gap. Premier Inn focuses on reviewing the performance of employees
and organisation as it helps in analysing the barriers in success of hotel and helps in
implementing changes in the organisation to overcome those barriers.
CONCLUSION
This report concludes about the importance of financial performance in the organisation
and how resources of organisation can be utilised effectively and efficiently to enhance the
productivity and profitability of the organisation. This report includes importance of skilled staff
in the hospitality sector as employees are the ones which helps in creating the impression on the
consumer. This report also concludes about the impact of laws on the organisation and how these
laws helps increasing the productivity and profitability of the organisation.

REFERENCES
Books and Journals
Anser, M.K., and et. al., 2020. Towards strategic business performance of the hospitality sector:
Nexus of ICT, E-marketing and organizational readiness. Sustainability. 12(4), p.1346.
Chen, J.S., and et. al., 2017. Business co-creation for service innovation in the hospitality and
tourism industry. International Journal of Contemporary Hospitality Management.
Costa, V., Silva, L. and Paula, L., 2020. Intellectual capital and its impact on business
performance: An empirical study of Portuguese hospitality and tourism sector. Intangible
Capital. 16(2), pp.78-89.
Elfimova, Y. and Radishauskas, T., 2018. Management of innovative activity in the field of
hospitality. In Sustainable development of tourism market: international practices and
Russian experience (pp. 57-59).
Fissi, S., Romolini, A. and Gori, E., 2020. Building a business model for a new form of
hospitality: the albergo diffuso. International Journal of Contemporary Hospitality
Management.
Hán, J., Petříček, M. and Chalupa, Š., 2020. Business Process Management Approach in the
Hospitality Industry. In Sustainable Hospitality Management. Emerald Publishing
Limited.
Kasemsap, K., 2020. Facilitating hospitality and tourism management in global business. In
Foreign Direct Investments: Concepts, Methodologies, Tools, and Applications (pp.
1314-1337). IGI Global.
Konovalova, and et. al., 2018. Forming approaches to strategic management and development of
tourism and hospitality industry in the regions. Journal of Environmental Management &
Tourism. 9(2 (26)), pp.241-247.
Martínez-Martínez, A., and et. al., 2019. Knowledge agents as drivers of environmental
sustainability and business performance in the hospitality sector. Tourism Management.
70. pp.381-389.
Papaioannou, A., and et. al., 2018. Customer oriented strategy and business performance in
tourism and hospitality industry. In Innovative Approaches to Tourism and Leisure (pp.
417-432). Springer, Cham.
Rambe, P., 2018. Reconciling business social responsibility goals, activities and practices in
hospitality SMMES in an emerging economy.
Stylos, N. and Zwiegelaar, J., 2019. Big data as a game changer: How does it shape business
intelligence within a tourism and hospitality industry context?. In Big data and
innovation in tourism, travel, and hospitality (pp. 163-181). Springer, Singapore.