Hospitality Business Toolkit Report: Financial, HR Analysis, Expansion

This report examines a hospitality business toolkit, focusing on a small family-run boutique hotel in Central London planning to expand. It delves into key performance indicators for financial management, including ROI and cost analysis, and provides journal entries, ledger accounts, and a trial balance using Sage accounting software. The report outlines an HR strategy for the expansion, encompassing recruitment, selection, training, and retention, emphasizing the importance of the HR lifecycle and addressing potential workforce issues. Recommendations are provided to improve HR processes and documentation. The report also covers relevant legislation, such as the Food Safety Act 1990, Data Protection Act 2018, and Health and Safety at Workplace Act 1974, and discusses methods of communication and coordination within the hotel, including a performance management plan. The report concludes by summarizing the interrelation of different roles within the hotel.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1.Identifying the principles of managing and monitoring financial performance.......................1
2. Preparation of Journal entries, ledger accounts and Trial balance. Discussion regarding
hotel's accounting system software .............................................................................................1
3. HR strategy for new proposed business project.......................................................................4
4. Importance of HR life cycle.....................................................................................................5
5. Recommendations regarding how HR processes and documents can be improved for
effective workforce planning.......................................................................................................6
ACTIVITY 2....................................................................................................................................7
1. Specific legislation which the hospitality business needs to aware of ....................................7
2. How company, contract and employment law affects the decision making of Hotel
regarding its expansion................................................................................................................8
3. Analysing and evaluating different methods of communication and coordination for
enhancing the value chain of the organisation.............................................................................9
4. Interrelation of different roles within the hotel......................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry is one of the most challenging industry wherein the management of
human resources is very crucial because its staff of a hospitality organisation through which the
services of a hotel is delivered to a customer. The present report is about a small family run
boutique hotel in Central London which is wishing to expand its business. The report will
highlight the principles of managing and monitoring financial performance, double entry system,
HR life cycle, a performance management plan. Further, it will also include legislations which
HR managers needs to be aware of and methods of coordination, communication and monitoring
is applied in a specific department of the hotel.
ACTIVITY 1
1.Identifying the principles of managing and monitoring financial performance
Key performance indicators are the tools which evaluates the success of a company or its
any aspect. Boutique hotel is expanding its business for which it has estimated its annual costs
not exceeding £ 200000 and return on investment £ 700000. Hotel can evaluate its success on the
basis of ROI which is one of the KPI and can keep a check on its annual costs estimation for
monitoring and managing the financial performance.
2. Preparation of Journal entries, ledger accounts and Trial balance. Discussion regarding hotel's
accounting system software
Journal entries
S.No Particulars Dr. Cr.
1 Bank a/c 700000
To capital a/c 700000
2 lease a/c 200000
To bank a/c 200000
3 Furniture a/c 30000
To bank a/c 30000
4 F&B a/c 45000
To bank a/c 45000
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5 Business travellers booking a/c 600000
Wedding booking a/c 1200000
To bank a/c 1800000
6 wages a/c 150000
maintenance a/c 45000
House keeping a/c 60000
F*B a/c 55000
Sage software a/c 10000
professional fees a/c 10000
Insurance a/c 15000
To bank a/c 345000
LEDGER ACCOUNTS
Bank a/c
amount amount
To Wedding booking a/c 1200000 By wages a/c 150000
To Business travellers
booking a/c 600000 By maintenance a/c 45000
To capital a/c 700000 By House keeping a/c 60000
By F*B a/c 45000
By Sage software a/c 10000
By F*B a/c 55000
By professional fees a/c 10000
By Insurance a/c 15000
By lease a/c 200000
By Furniture a/c 30000
By balance b/d 1880000
2500000 2500000
Wage a/c
To bank a/c 150000 By balance b/d 150000
Furniture a/c
To bank a/c 30000 By balance b/d 30000
Maintenance a/c
To bank a/c 45000 By balance b/d 45000
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Capital a/c
To balance b/d 700000 by bank a/c 700000
Business Booking a/c
To balance b/d 600000 by bank a/c 600000
Wedding booking a/c
To balance b/d 1200000 by bank a/c 1200000
F&B A/C
To bank a/c 100000 By balance b/d 100000
Professional fees a/c
To bank a/c 10000 By balance b/d 10000
Insurance a/c
To bank a/c 15000 By balance b/d 15000
House keeping a/c
To bank a/c 60000 By balance b/d 60000
Lease a/c
To bank a/c 200000 By balance b/d 200000
Sage software a/c
To bank a/c 10000 By balance b/d 10000
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TRIAL BALANCE
Particulars Dr Cr
Bank 1880000
Capital 700000
lease 200000
wages 150000
maintenance 45000
house keeping 60000
professional fees 10000
furniture 30000
F&B 100000
Insurance 15000
Sage software 10000
Business travellers Bookings 600000
Wedding bookings 1200000
TOTAL 2500000 2500000
The hotel is using sage accounting system software which is concerned with recording of
financial transactions of the business and is also used for the purpose of payroll. It is best suited
for Small and medium enterprises (Bratton and Watson, 2018). This system is in line with the
accounting principles and the best services which this software provides are preparation of
financial report, tax processing, international payments and keeps the business updated with
latest financial legislation. This software is designed in such a way that all the necessary
principles of accounting are followed in the process of recording and summarising the
transactions of financial nature.
3. HR strategy for new proposed business project
The HR strategy for the new project involves following aspects :
Planing :
For the proposed project, the HR manager would assess the requirement of human capital
by the way of workforce planning. The identified job roles will then filled through proper
recruitment and selection strategy (Bennett, 2017).
Recruitment and selection :
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Recruitment is the process of searching and attracting the potential candidates for filling
up the vacancies for intended expansion project of hotel. The HR would apply external sources
for recruitment through online job portals. Selection is the process of choosing the candidate
based on experiences, technical knowledge and qualification. Behavioural tests are the selection
strategy of HR of Hotel.
Training and development :
After the people are recruited and placed, they will be provided further trainings for
performing their duties with much more efficiency. Growth and development opportunities will
be provided to them by facilitating them higher positions and increased responsibilities (Ahammad
and et.al., 2016).
Retention :
Retaining the workforce is necessary for maintaining and improving the productivity of
the Hotel. Motivational factors such as incentives, flexible working hours, job enrichment,
rewards & recognition etc., would assist in retaining the workforce.
Performance appraisal :
Performances of the employees are evaluated and appraised by comparing the standards
set in advance with the actual performances. Management by objective is the strategy which
would be applied by the HR manager for evaluating and measuring the performances.
4. Importance of HR life cycle
HR life cycle is important because it is this process which does the work of assessing the
need of people requiring in the business and providing the most suitable candidate for the various
job roles (Barreda and et.al., 2016). Training and development of the employees is a significant
stage in the cycel which is one of the reason why people either leave or stay in a company. If
there are no development and growth opportunity, employee will not be motivated to continue
their services in Hotel and search for better organisation.
Issues in retaining workforce
 Unpleasant working environment
 Odd timings/ shifts
 Low wages (Prowse, 2018)
 Less growth and development opportunities
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For overcoming these issues, HR manager needs to create a friendly and soothing
working environment which is safe, anti-discriminatory, free of dirty politics. Employees must
be provided some flexible working hours and appropriate wages through which they can enhance
their living standards (Anitha, 2016). Growth and developmental opportunities by the way of
higher positions would help in motivating the employees and providing them a reason to stay in
the Boutique Hotel.
Specific Job roles for new expansion:
 Housekeeping staff
 Executive chef for handling F&B Department
 Front desk staff for attending customers
 Sales executive and mangers for handling sales department (Gibson, 2016)
 General manager for looking the overall work of the hotel
5. Recommendations regarding how HR processes and documents can be improved for effective
workforce planning
Improvement in documentation
 Preparing a checklist relating to HR processes would help in improving the
documentation. Creation of forms relating to date, signs of employees, details of
conversations can assist in making the documentations consistent (Gupta, 2017).
 Proper file management such as being consistent regarding how the files are arranged and
where are they kept could provide effective results. Digital files must be protected from
any unauthorised access and must be kept on shared device.
These are some ways through which HR manager of Boutique Hotel can make
improvement in its HR processes, which in turn would lead to better and quick access to
information regarding employees as and when needed.
Improvement in HR processes
Use of technologies in the HR processes can significantly improve the efficiency and
effectiveness of HRM in Boutique Hotel. Managing of the bulk data related to employees can be
very efficiently managed by system software. Personalisation the employee experience can result
into employee satisfaction and can lower employee turnover in the hotel (7 Ways Technology is
Improving HR Processes,2019)
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Performance Management Plan
HR manager can evaluate and manage the performance of its employees in the following
ways through which it can train and evaluate and develop them for the future. They are :
Taking feedbacks from employees : Manager can take feedbacks from the employees
and asking them regarding any problem they are facing with their job roles (Patiar and et.al.,
2017). This would facilitate the manager in knowing where the employee is lagging behind and
can accordingly arrange training sessions through which they can learn more skills for
performing their duties more conveniently and efficiently.
Setting a benchmark : Manager can set standards against which it can compare the
actual performances of the employees. Through this it will be able to determine the variation in
the performances and can easily determine the areas where the employees needs improvement.
Manager can act upon this and can provide guidance and training for overcoming the deviation
in the performance (Rajini, 2016).
This will not only help in increasing the productivity of company but it will also provided
development opportunity to the employees where employees will feel that they are being valued
and there is a scope of growth & development in the Hotel. The ultimate result of this will
employee retention.
PERFROMANCE IMPROVEMENT PLAN
Behaviour/skills
to be improved
Action to be
taken
Development
opportunities
Date to be
completed
Success
Measure
Communication
skills
Arranging group
discussions
activities and
providing
training relating
how to be active
listeners
It could be
developed
through
attending
training sessions
and indulging in
more group
discussions.
10/07/2019 Feedback and
reviews from
colleagues and
seniors
Team Training and Concentrating at 25/07/2019 Bench marking
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management
skills
guidance from
seniors to the
employees
regarding how
they can
prioritize their
work and
avoiding too
many
distractions at
work.
work and not
wasting time in
unnecessary
discussions at
work, prioritizing
the work, setting
guidelines &
deadlines for
completing the
work on time.
ACTIVITY 2
1. Specific legislation which the hospitality business needs to aware of ..
The HR manager of the Boutique hotel must be aware of the following legislations and
must comply with all of them to avoid any legal interferences in its operations. They are :
Food Safety Act 1990: This law is concerned with the statutory obligations of food
producers to treat and process the food which is intended for human consumption in a controlled
manner. The act provides that food must be in accordance with the standards mentioned in the
act in terms of quality, substance and nature demanded and along with this, it must be in
accordance with the customers demand. Food Standards Agency is the body in UK which is
responsible for public health and provides regulations related to food safety (Hotels Laws UK,
2019).
Data Protection Act 2018 : This act is related with processing of data by the data storage
companies. This act is in accordance with European Union's General Data Protection Regulation
(GDPR). This act is concerned with the procurement, processing and disclosure of personal data
only with the consent of the data controller. Various penalties violation of data protection are
provided in the act. Boutique hotel's HR management must adhere to this legislation for avoiding
such penalties.
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Health and Safety at Workplace Act 1974 : This act of British Parliament stipulates
different employers' duties. It is the foremost duty of an employer to ensure that its employees
gets the safe working environment which is free of any potential life risking hazards. The act
lays down the duties of employees, contractors, suppliers regarding the safe working
environment. The main purpose of this act is to ensure the security of all the people at work and
protecting people other than employees against the risk relating health that could arise due to the
activities of employees at work (What is the Health and Safety at Work Act, 2019).
It is the duty of Hotel's HR manager to formulate policies and procedures which makes
sure that employees and customers are safe at work so that all the requirements of this legislation
is duly met.
Equality Act 2010 : This act is related to the protection of employees and other people
from getting discriminated on any bases. Minimum wages, maternity leave, flexible working
hours, discrimination on the basis of caste, colour, religion or disability etc. HR Manager of
Boutique Hotel must have a policies which prohibits any such discrimination at the workplace.
Such things helps in creating a good image of the employer in the market.
2. How company, contract and employment law affects the decision making of Hotel regarding
its expansion
Contract law : Contract can be defined as an agreement between two or more parties. It
is voluntary in nature and is enforceable by law. For terming a contract valid there are certain
conditions that are to be followed such as offer & acceptance, lawful object & consideration,
mutual & free consent and possibility of the performance of contract. If any of the essentiality is
not fulfilled, it could render the contract as void (Contracts, 2019).
Breach of contract results into rescission of the contract and also provides the aggrieved
party to claim for the damages.
HR manager has to keep in mind all of these considerations while forming any decision
regarding the expansion of business. For example, Employment contract is one of the area
where HR needs to look into. While hiring additional staff for the expansion purpose, essentials
of valid contract has to be kept in mind as this document serves as conclusive evidence between
employee and employer. If any breach occurs, then employee or employer can claim damages on
the basis of this document.
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Company law : It is also known by the names such as business law or company law. This
provides the framework for governing the activities of a company in the terms of creation of a
company, registration, capital raising, functioning, appointment of directors, winding up etc.
Companies Act 2006 is the specific legislation which governs the company law in UK (Talbot,
2015).
Hotel's decision making will rely on the provisions of companies law largely because it
is going to open a new hotel for which license, registration etc., will be required and this law
provides provisions for the same. Companies Act provides for the separate legal entity of
business through which a company can have its own assets, signature, capacity of entering into
contracts etc.
Employment law : In general, employment law is defined as the collection of all
regulations, rules, provisions which regulates employer -employee relationship. It involves,
safety laws, minimum wages, flexible working system within the organisation, discriminatory
laws at the workplace, redundancy law, employees' rights etc (Rose and Busby, 2017).
While expanding the business, HR will have to closely consider the rules and regulations
of different employment laws. For example, while recruiting and hiring the workforce for new
hotel, the HR manager of Boutique Hotel have to ensure that all the processes of in recruitment
and selection are fair & honest and no one is discriminated on any nine characteristics as
provided in Equality Act 2010. Further, the terms and conditions set in the employment contract
must be in accordance with the minimum standards for them. Say for wages or remuneration, the
minimum wages for the hospitality industry must be in line with the minimum wages set by the
specific act of British Parliament.
3. Analysing and evaluating different methods of communication and coordination for enhancing
the value chain of the organisation
Communication refers to the activity of sharing the information in the form of idea,
thought, etc. There are many methods through which employees in the company communicates.
The HR manager for the purpose of enhancing the value chain of Hotel, it desires of creating an
effective communication and coordination system (Tajeddini, Altinay and Ratten, 2017).
Integrated Management system through out the company : Employing management
information will enhance the communication system of the hotel and will also aid in managing
the activities of both existing and proposed Hotel.
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Emails : This is one of the formal method of communicating at the professional level.
HR manager if creates a policy of emailing the information, it would help the management in
communicating effectively where the information is material and is not distort. Also, by this
means flow of information takes place really quick which facilitates quick decision making.
HR manager can obtain coordination for enhancing the value chain through :
 establishment of clear and concise structure such as chain of command will facilitate the
proper coordination at levels of Hotel's management.
 Proper planning can create a great coordination within the Hotel through well designed
plan, procedures and polices where everyone is aware of what they have to do for
achieving organisational goals.
Effective communication and coordination would facilitate better control at the activities
of Hotel and will contribute in value addition process of Boutique Hotel.
4. Interrelation of different roles within the hotel
Various trends are emerging in the hospitality industry such as digital technologies like
mobile app bookings, digital payments, growth in international customers and for the purpose of
meeting the requirements of customers, interrelation is required amongst the different
departments of the Hotel.
Marketing & sales : Marketing department is responsible for creating awareness of
brand and to communicate the information about the products and services of Hotel. For
example, Recent trend in hospitality sector are digital marketing and bookings on online
platforms. These departments have to interrelated and to be in coordination for serving the
customers effectively.
Sales and IT department : Because Hotels are providing their services on internet
through advanced booking, digital payments etc., the IT and sales department have to be in
coordination for avoiding any confusion relating to sales orders (Baggott and McFadden,
Clustertruck Holdings , 2018).
Housekeeping and Food & Beverage Department: Housekeeping and F&B
department's interrelation is primarily concerned with linen and uniform. Housekeeping is
concerned with stock of clean napery, sheets etc., for meeting the demand of F&B department.
The coordination and interrelation is necessary for providing the best quality services to
customers that are capable of meeting their requirements and preferences.
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CONCLUSION
From the above project report, it can be summarised that hospitality industry is full of
challenges along with abundant expansion opportunities. Human capital is one major aspect of a
Hotel that affects its functioning significantly. In the report, it was seen that employment law
such as equality act, minimum wage act etc., are to be considered while taking the decision
regarding business expansion. Further, it was concluded that proper coordination and
communication is required for delivering the highest quality services to the customers.
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REFERENCES
Books and Journals
Bratton, J. and Watson, S., 2018. Talent management, emotional labour and the role of line
managers in the Scottish hospitality industry: A roundtable discussion. Worldwide
Hospitality and Tourism Themes. 10(1). pp.57-68.
Rajini, G., 2016. Fostering employee engagement: Factors contributing to quality of services in
hospitality sector.
Patiar and et.al., 2017. Hospitality Management Students’ Expectation and Perception of a
Virtual Field Trip Web Site: An Australian Case Study Using Importance–Performance
Analysis. Journal of Hospitality & Tourism Education. 29(1). pp.1-12.
Barreda, A.A and et.al., 2016. Online branding: Development of hotel branding through
interactivity theory. Tourism Management. 57. pp.180-192.
Prowse, P., 2018. Introduction to the Low Pay and theRealLiving Wage.
Gibson, S., 2016. ‘Abusing Our Hospitality’: Inhospitableness and the politics of deterrence.
In Mobilizing Hospitality (pp. 159-175). Routledge.
Bennett, B., 2017. Health law's kaleidoscope: Health law rights in a global age. Routledge.
Rose, E. and Busby, N., 2017. Power Relations in Employment Disputes. Journal of Law and
Society. 44(4). pp.674-701.
Talbot, L., 2015. Critical company law. Routledge.
Tajeddini, K., Altinay, L. and Ratten, V., 2017. Service innovativeness and the structuring of
organizations: The moderating roles of learning orientation and inter-functional
coordination. International Journal of Hospitality Management. 65. pp.100-114.\
Baggott, C. and McFadden, D., Clustertruck Holdings LLC, 2018. System and Method for
Communication Routing, Transportation Coordination and Product Creation. U.S. Patent
Application 15/986,625.
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Gupta, S., 2017. Overview of HR Analytics-Past, Present and Future. A Journal of research
articles in management science and allied areas (refereed). 10(2). pp.1-6.
Ahammad, M. F and et.al., 2016. Knowledge transfer and cross-border acquisition performance:
The impact of cultural distance and employee retention. International business
review. 25(1). pp.66-75.
Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
Retention. ASBM Journal of Management.9(1).
Online
Hotels Laws UK.2019. [online]. Available through <https://www.assetsure.com/business/hotel-
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<https://worksmart.org.uk/health-advice/health-and-safety/employer-duties/what-health-
and-safety-work-act>
Contracts.2019. [online]. Available through <https://www.inbrief.co.uk/contract-law/contracts/>
7 Ways Technology is Improving HR Processes.2019. [online]. Available through
<https://www.neocasesoftware.com/business-process-automation-posts/7-ways-
technology-improving-hr-processes/>
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