Hospitality Business Toolkit Report: Rosewood London Analysis

This report delves into the core components of a hospitality business toolkit, using Rosewood London as a case study. It begins by investigating the principles of managing and monitoring financial performance, including the preparation of financial statements and the identification of financial risks. The report then applies the double-entry bookkeeping system to record transactions and produce a trial balance. A significant portion of the report is dedicated to the HR life cycle, exploring its stages and their importance for retaining and developing talent, with a focus on performance management plans to address negative behaviors and staff retention issues. The report also identifies relevant legislation that hospitality organizations must adhere to and illustrates the impact of employment and contract law on business decisions. Finally, it explores the interrelation of functional roles within the hospitality sector and different communication methods to strengthen the value chain. The report provides a comprehensive overview of key operational and strategic aspects in the hospitality industry.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Investigate the principles of managing and monitoring financial performance................3
P2 Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..............................................................................5
P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger
................................................................................................................................................7
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.......................................................8
P5 Develop a performance management plan for a specific hospitality job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention...........10
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
..............................................................................................................................................11
P7 Using specific examples, illustrate how company employment and contract law has a
potential impact on business decision-making in the hospitality industry...........................12
P8 Explore how different functional roles within the hospitality sector interrelate.............13
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organisation to strengthen the value chain....14
CONCLUSION..............................................................................................................................16

REFERENCES..............................................................................................................................17
INTRODUCTION
Hospitality management is the process of managing the hotels and resorts that comes
under the hospitality sector. The manager of the hotel look after the management and make sure
that the hospitality provided to the customer must provide them with warmth and make their
guest feel welcoming (Etherton‐Beer and et. al., 2021). Hospitality management oversee various
task like housekeeping, room service, front desk, spa, guest service etc. The present report will
cover the Rosewood London hotel a hospitality service based in London England, UK. The
company was formerly known as Chancery Court opened in 2013. The company is owned by the
Rosewood hotel group. The hotel consist of 7 floors with 262 rooms. The following report
outlines the principles of monitoring financial performance along with its ledger and trail
balance. Different stages of HR life cycle and the importance for retaining and developing talent
of employees is mentioned in the report. The legal legislations related to hospitality sector that
rosewood should comply is discussed within the report. Different functional role and methods of
communication, coordination and monitoring are discussed in the report.
MAIN BODY
P1 Investigate the principles of managing and monitoring financial performance
Finance is the lifeblood of the organisation without which the no industry can operate its
activities. The term financial performance depicts that how efficiently the organisation is using
its asset in order to earn higher profits (Barik, Prusti and Mohapatra, 2020). Rosewood London
hotel regularly tends to manage and monitor its financial performance to improve their financial
shortfall zones and to generate higher revenue and profits. The below mentioned are the
principles of managing and monitoring financial organisation used by Rosewood London Hotel:
Preparation of funds and cash flow statements
For every organisation including hospitality industry it is mandatory to prepare their
yearly cash flow statements on the basis of each month. Preparing Fund flow statements are
essential for Rosewood London Hotel to recognise the liquid cash within the firm. The accurate
fund flow and cash flow statements yield the cash management of the company.

Preparation of key financial statements
The key financial statements of the organisation include balance sheet and P&L account
that is mandatory for every organisation to produce. These two helps in mo0nitoring the financial
health of the Rosewood over the whole years and also helps in comparison with previous year.
This gives better decision making power in investing money. The key financial statements of the
Rosewood include summarising, reporting and analysing the financial statement.
To attain the long term objectives and to manage the streamlined flow of cash in the Rosewood
organisation there are the principles of managing and monitoring financial performance that are
discussed below:
Identify and understand risk: the first principle is understanding and identifies the risk
associated regarding the financial performance of the firm. It is very essential for the Rosewood
London Hotel to control and managed the finance in order to mitigate the risk of loss. The
manager of the organisation is required to identify the risk which can influence the performance
of the finance of the organisation. In order to face the challenges regarding the risk of the finance
the manager of the organisation use the stocks and bonds as they provide them with the higher
returns.
Attention to the taxes: Paying taxes is not only mandatory factor but also an essential factor in
order to manage and monitor the financial performance of the organisation. The manager of the
Rosewood London hotel has to consider and pay attention towards it takes is that a required to be
paid by the organisation timely as it might influence negatively on the reputation or the brand
image of the organisation. For this company can hire the chartered accountant that will analyse
and manage all the tax related information of the organisation or install the financial planning
software that will be helpful in getting the taxes related data.
Categorize the finance: Principle of managing and monitoring finance of the organisation
include the categorising organising the finance of the organisation which includes break out of
the capital into the different areas such as in bank accounts, loans of the firms, brokerage
accounts etc. Organisation and by installing the software is related to the budgeting that will
solve the problem regarding the maintenance of the accounts. It is the role of the manager of the
financial department to manage all the financial performance of the organisation.

P2 Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger
 The double entry book-keeping system helps in recording the transaction of debits and
credits. Where the Assets= liabilities + owner's equity.
 The double entry book keeping is the system that useful for Rosewood London to
improve the accounting process and the also to detect error in the financial statements of
the company.
 With the help of the double entry bookkeeping system the ledger are updated with the
data record in the journals related to the sales and purchase.
 Sales, purchase account, stock and other items can be recorded and can be compared with
different years and the profit and loss can be measured.

P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger
The trail balance is prepared by every organisation periodically mainly at the end of the
year to record all the debit and credit transaction and to ensure all the entries within the
company's book keeping record are balanced and correct (McClanahan, Goorley and Auxier,
2021). This is done with the use of balancing off rule which means comparing and matching the
value of the debit and credit. Hence, the trail balance is used to complete the ledger with
accuracy to match the both sides of the ledger debit and credit side.

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
HR life cycle: The HR life cycle is the combination of the HR activities. It includes both HR
strategic planning and implementation in employee’s life cycle. The HR life cycle is designed to
ensure that all the facilities are provided to employees for their better performance and higher
productivity (Barik, Prusti and Mohapatra, 2020). The HR life cycle defines the various stages
through which employee goes and HR manager plays role in each task. The different stages of
HR life cycle are:

(Source: The HR life cycle, 2021)
 Recruit: It is very important to attract the skilled and talented employees towards the
organisation and then hire and recruit them deliberately (Kavanaugh and Lavallee, 2020).
The Rosewood London should conduct proper recruitment process to select potential
employees by viewing their resume, and conduct interview strategies. The HR manager
of the rosewood will outsource the talent for the vacancy in the hotel.
 Educate: the second stage of the HR life cycle is to educate the employees and other staff
related to the task and job they are required to perform consistently. The HR manger can
use on-boarding process to educate their employees. The Rosewood London hotel
manager and higher authorities at this stage must provide the new interns and employees
a brief about the workflow of their hotel another education related to hospitality service. Development: Some employees are satisfied in minimum efforts. But the large portion of
the employees is always expecting that their work is been appraised, recognised and
valued by the organisation (McAvoy and Butler, 2018). The HR manager of the
Rosewood London hotel at this stage will come up with organised plan to keep their
Illustration 1: The HR life cycle, 2021

employees motivated and encouraged and also conduct the training and development
session to satisfy their personal development in the organisation. The organisation can
also provide incentive to develop morale of the employees. Departure: There are many reasons behind the employees quitting their job some for
good reasons and some for bad. The HR life cycle come to end at this stage. The
departure can be retirement, resign or termination. But it is the role of HR manager at this
stage to always end up the employees and employer relationship harmoniously. The
Rosewood should also have proper departure pattern to maintain the life cycle healthy. Evolution: everything require a change for good, the same thing is for HR life cycle it
must be evolve and updated as per the current habits of employees. This must be the
priority of the manager to apply new method and techniques in HR life cycle to
encourage employees towards the goals of company and to make them more adaptable to
change in organisation.
Importance for retaining and developing talent
 The continuous education of the employees in the HR life cycle makes the employees
more skilled and also develops new skills in them.
 The development stage helps the talent to sharpen up their existing talent and learn new
developing techniques. This stage also motivate the employees and employers are able to
retain their best employees for long run (Brooks, Mosier and Bassett, 2020).
 With organised development and education the employees trust their employers that the
will be giving opportunity to develop and enhance which brings more retention rate and
also employees work performance if improved.
 The prioritize evolution make talent more adaptable to changes which automatically
develop their mindset and thinking abilities and also the employees love the new changes
that support their growth.
P5 Develop a performance management plan for a specific hospitality job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention
A performance management is the difficult process where the performance of the
employees is measured and improved by setting the goals and objectives that are required to be
achieved within specific period of time (Abokifa and et. al., 2020). The performance
management including overall organising an planning that is required in retaining and enhancing

the employees skills, talent, knowledge and abilities. This resolve the negative behaviour of
employees and also retain the employees by overcoming any issue related to performance of
employees. This is all done with performance management plan which is discussed beneath in
context of Rosewood London hotel of UK hospitality sector. The three stages of performance
management plan are :
Plan: In the first stage the HR manager must plan the good and effective strategies to maintain
and improve the performance of the employees for the better working of the organisation. This is
duty of the HR manager of the organisation to plan each and every activity and evaluate the
performance on that basis. The best way to implement performance management is to propose
the opportunities with benefits to the employees to encourage them to work with their full
potential to attain company’s objectives.
Monitor: Monitoring includes regular testing and evaluation of the performance of the
employees which will in the end direct to achievement of goals of the Rosewood London hotel
(de Castro Mendes, Cavenaghi and Marques, 2021). The triumph of monitoring a performance is
to check the occupation regularly and to conduct meetings with the employees. In terms of
Rosewood London hotel, the major duty is to check whether the staff is performing their duties
and working according to the expectations. Regular feedback and motivations increases the
morale of staff which gives them honest feedback. The manager of Rosewood London hotel can
also monitor their performance by communicating with other team members.
Review: Review is the last stage where the hotel manager of Rosewood London hotel
measures the performance of employees according to their duties. The HR manager of Rosewood
London hotel focuses on their in progress work as well as on forward looking purpose. They
reviewer the performance of the employees and when any workers performance is considered
good they are rewarded with the incentives and those persons who are unable to perform the
tasks are trained and guided by mentors. The HR manager must give honest reviews to the
employees as well as to the hotel manager so that they can work efficiently.
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
It is important for the organisation to have full knowledge about the hospitality laws so they can
provide employee welfare ,adequate services to guests and to maintain compliance of rules Every
hotel industry has to comply with these rules otherwise it would result in fine and fall in
goodwill of the hotel industry chain. By following such laws the hotels signify that they give

priority to their customers and honours all the agreements which the state makes for them (Chan,
2019).. Some legislations are mentioned below in context with the Rosewood London hotels-
Health and safety at work act, 1974: This act determines the duty of every individual to
managers, employees and owners to maintain health and safety in the hotels. The act explains
that effective training must be provided to the staffs and to managers so that they would be able
to understand all the rules. It also explains that safe working environment must be provided to
the staff so they can work effectively. This act is basically provided to ensure the safety and
health of the staff. Rosewood London Hotel follows this law with the motive to provide safety to
the employees and staff.
Food safety act, 1990: Food safety act was made to ensure that no consumer should eat
anything which can be harmful for their health. Any business which is engaged with food has to
follow this act (Sharma and et. al., 2020). Hotel industry provides food to their consumers so
they have to follow this legislation. The Rosewood London hotel follow this act in which they
does not serve anything which will be harmful for the health of consumers and provide guarantee
that all clean and hygiene practices are carried out. The hotel also ensures that food management
system is followed with correct training and with correct labelling.
P7 Using specific examples, illustrate how company employment and contract law has a
potential impact on business decision-making in the hospitality industry
Government imposes various rules and regulations to the hospitality industry which is sometimes
beneficial but sometimes difficult for the industry to follow them. The hotels have to follow
these rules otherwise they have to suffer heavy fines on the industry (Tormey, Hardebolle
and Isaac, 2020). The impact of such laws in context with the intercontinental hotels are
mentioned below-
Company law: Any change in the company laws might affect the functioning of the hotel
because taxation policies charging VAT and also changes the employer employee relations.
This is because the employer might want to develop certain relations with their employees
but because following such laws might impact the procedure of the industry. Managing the
safety of employees is also other point which has to be followed by the manager. Company
law has to make sure that the ethics and good health is also provided within the hotel

because with such laws the manager has to make changes. The company law has potential
impact on the decision making of the hospitality of the Rosewood London hotel as the law
helps in taking the decision related to the health and ethics within the staff of the hotel.
Employment law: Employment law impacts the businesses in larger way. It changes every
aspect of business whether it is hiring or providing wages and benefits to the workers. The
hr manager has to keep in mind the employment law while recruiting any individual. As this
law covers the wages and providing benefits to the individual the manager has to make
decisions for such factors. The employment law provides information about who are eligible
in receiving such benefits because of which the hotel industry has to make decision
according to it, taking into account all the perspectives.
Contract law: Contract means the terms and conditions which has been decided between
the suppliers of food and also in some cases with the employees. The main purpose is to
provide every detail in very concise manner about all the financial agreements or official
records. The contracts which are already being set up by the industry also surrounds them
with difficulty as they have to make decisions according to that and has to make efficient
decisions which should not harm any party. The contract law helps the hotel in making
decision during the negotiation process with the stakeholders as the contract has all the
essential terms and conditions in written format which makes easier for the company to take
decisions in the favour of both the parties.
P8 Explore how different functional roles within the hospitality sector interrelate
Every hospitality sector has to perform various tasks regularly because of which they have
to make different departments which helps in regulating the functions. The main objective of the
functional departments is to ensure that activities of each and every department are interrelated
with the aim of directing the efforts towards the common objective. In general there are
numerous departments such as Hr department, marketing department, accounting and finance
which performs daily functions of the hotel-
Interrelation between Human resource and Finance department- Both the departments
works for same objective which is performance and effectiveness. In case of Hr, the
manager is responsible for employee welfare which is used to create competitive advantage.
While the hotel performance is always measured in financial terms which create
interrelations as the hr department have to make direct communication with the finance.

Also, the hr manager has to recruit employees considering the finance and cost of recruiting
new individuals. The finance department determines the cost for providing incentives and
benefits which the hr manager has to consider. Both works in different areas but
understanding each other functions could help in improving the productivity and
performance of the hotel.
Interrelation between sales and marketing department- Hotel industry has to do
marketing about their hotel which helps in increasing the sales. When these two departments
work together it helps the hotel chain to stay ahead in the competition. Marketers understand
the needs of customers and identify the level of competition in the market. And the sales
department works after the marketing department have performed its activities. Marketing
section designs the strategies to create awareness among consumers and sales department
performs the activities by selling rooms to consumers (Smith-Tran, 2019). Thus, sales and
marketing department are equally proportionate with each other where the efficiency of
marketing department will increase the sale and inefficiency will decline the productivity of
sales department.
Importance of coordinating and integrating various functions of departments within the
hospitality sector
 The kitchen and food and beverage department are interlinked and coordinated to each
other to provide the customers with efficient quality food service.
 The housekeeping department is linked with the marketing department of the hotel as if
the housekeeping will not be effective and up to the mark then the hotel won’t be able to
market its service in the market.
 The reception department is linked with each department such as kitchen, housekeeping
as they have to answer the questions of the consumers related to any department for
which it is important to have the proper coordination and integration between these
departments.
P9 Explain the different methods of communication, coordination and monitoring applied within
a specific department of a hospitality organisation to strengthen the value chain
For the streamline flow of the of hospitality department it is very important to incorporate
the various methods of communication, coordination and monitoring within the hospitality
organisation the good communication and coordination helps the employees of the higher level

and the lower level in sharing their ideas and work without conflicts. This results in the effective
performance and productivity of the various departments of the Rosewood London hotel. The
consistent monitoring of the departments of the hospitality will improve the performance of the
employees as well as the service of the hospitality organisation like Rosewood London hotel.
The various methods of communication are:
Verbal communication: Every hospitality organisation must have the proper method for the
verbal communication for the interaction between the various employees and the guest. It is very
important for the organisation that their employees must share their thoughts and ideas and to
have the conversation between each other in order to maintain the healthy relationship for their
better performance and also to increase productivity in an organisation. Good method of verbal
communication will also attract the guest in the Rosewood London hotel, as a polite and the
delicate verbal communication with their guest develops good relationship and make them feel
welcoming and warmth towards the organisation.
Written communication: every hospitality organisation must maintain a written communication
with their employees in the form of the emails or written document to make them responsible
and accountable for their duties and responsibilities towards your organisation. There should also
be a written communication with the guest while registration for the booking of the products of
the services that are offered by the organisation as this maintains legal and responsible
relationship between the organisation and consumers. A good written communication method is
always a appropriate way of communicating as this builds up the trust and also avoids any
miscommunication between the two individuals.
It is analysed from the above communication methods that in the hotel industry it is very to have
effective and efficient communication between the employees to manage the different functions
properly without making their customers and guest wait. It is recommended to the rosewood
London hotel to train their employee’s good sign language and verbal communication to create
good impact on the consumers experience and also make the communication within the
departments faster and easier. It is also recommended to the Rosewood London hotel to maintain
the written records of the customers, inventories and all the essential things for the better
understanding for which employees must be trained with good written communication skills

CONCLUSION
It can be concluded from the above report on the hospitality Business toolkit that hotels,
restaurants and resorts operating in the hospitality sector are required to have the hospitality
management in their organisation to manage the staff and employees for the better performance.
Manager plays the very important role in managing the employees and the various administrative
tasks that are included in the hospitality management. It is also analysed from the above report
that for the hospitality management managing employees is not only enough there is also the
need of managing and monitoring the financial performance of the hotel and resort in order to
maintain the flow of resources within an organisation. Under the hospital management there is a
performance management which includes the planning monitoring and the action the review of
the performance of the employees so that the guest of the resort so the hotels can have a
outstanding service and experience when they leave the hotel. It is also important for the
hospitality industry to follow some of the legal rules and legislations that are crafted for the
hospitality organisation.

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