Finance, HR, Legal & Departmental Integration in Hospitality Sector

This report provides a comprehensive analysis of key aspects within the hospitality sector, focusing on The Edinburgh Grand hotel as a case study. It investigates financial management practices, emphasizing cost minimization through effective transaction recording and adherence to accounting principles like consistency and double-entry bookkeeping. The report also assesses human resource management throughout the employee lifecycle, from recruitment and onboarding to retention and separation, highlighting the importance of performance management plans and strategic HR initiatives. Furthermore, it illustrates the impact of legal and ethical considerations on hospitality businesses and explains the crucial role of coordinating and integrating various departmental functions to ensure seamless operations and enhance overall performance. The analysis concludes with recommendations for improving recruitment processes and fostering a positive working environment.

The Hospitality Business
Toolkit

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
LO1: Investigate how to manage finance and record transactions to minimise
costs responsibly within the hospitality sector......................................................................3
CONCLUSION ...............................................................................................................6
PART B..................................................................................................................................8
LO2 :Assess how to manage the Human Resources lifecycle within the
context of HR strategy...........................................................................................................8
Performance Management Plan..............................................................................................9
LO3: Illustrate the potential impact of legal and ethical considerations on a
hospitality business..............................................................................................................10
LO4: Explain the importance of coordinating and integrating various
functions of departments within the hospitality sector........................................................11
Conclusion.....................................................................................................................................13
References .....................................................................................................................................14

Introduction
Hospitality industry is known as the broad category of fields that includes the several
service industry such as foods and drinks, event planning, lodging as well as tourism. The
mentioned industry provides the dedicated services to the people around the world. It plays the
vital role in influence the tourism in the economy. The respective industry generates the income
through several ways through which government earns the revenue from the mentioned industry.
In relation to this the respected report will include The Edinburgh Grand hotel for the further
discussion.
The Edinburgh grand hotel was built in the early 1800s, 42 St Andrew square. The
mentioned hotel is operated by cheval collection. The respective hotel is a five star property that
comprises 50 luxury apartment (Do, and Luu, 2020). They known for their best in class
hospitality services as well as jaw- dropping interior design. In relation to this the mentioned
report will highlight the practices through which finance and record transaction could be manage
in order to minimise the operational cost in the mentioned industry. Further the report will
evaluate the human resource cycle in the context of HR strategy. Moreover, the impact of legal
and ethical considerations on mentioned industry will also described in the mentioned report.
Furthermore, refereeing to the above context the importance of coordination and integration in
the various department of mentioned hotel will also evaluate in this report.
Main Body
PART A
LO1: Investigate how to manage finance and record transactions to minimise
costs responsibly within the hospitality sector
The mentioned hotel initiate the several financial transaction in their business operations.
These financial transactions occurred in the number of department. Majorly the hotel are rely on
these financial transactions. As it includes the purchases of raw material from several supplier
that includes the financial transaction. The transaction that made between the hotel and guest
also include in the financial transactions. Hence it is important for the hotel to manage all these
financial transaction deliberately in order to perform the effective and efficient operational
functions. To maintain the financial transaction and records the respective company annual

budgeting, financial reporting, accountability and many more. In addition to this below are the
some source documents that used by the respected hotel in their operations.
 Sales- The mentioned hotel provides the dedicated services to their customer through
food and beverages, accommodations and many more. All these activities incurred the
various financial transaction. As these transaction were secured by the sourced by the
date of transaction in order to maintain the bookkeeping (Dogru,and et. al., 2020).
 Purchase- The respective hotel initiate the several purchase transaction in their business
operations. As they have the number of supplier thorough which they purchase the raw
material, toiletries, food and beverages item and many more. These purchase orders were
completed by checks as well as maintain the receipts of these transaction in document
storage.
 Receipts- The receipt is the acknowledge document that provides to the customer,
supplier and other individual that involves in the financial transaction with the business.
 Payment- The payments are the transaction that received by the business in return of
their services. In instance to this the respective hotel receives the payment by their
customers for giving the services regard to accommodation, food and beverages. These
transaction are recorded in the accounting journal.
The principles of managing and monitoring
financial performance of The Edinburgh grand hotel
 Consistency- All the transaction that performed by the mentioned business handled in a
consistence manner. In order to perform the efficient function they have established the
polices to interpret the transaction in a routine manner.
 Timeliness- In order to maintain the books and journal effectively the respected hotel
handled all the transaction according to the determined time frame.
 Justification- To create the justified transaction in the business operation the mentioned
hotel written down the reason of performing the mentioned transaction. As it provides the
assistance to measure the organisation goal. By this activity they interpret the transaction
whether it helped them into achieve the decided goal or not (Horner, 2020).
 Documentation- sufficient document is essential To complete a transaction successfully.
These documents helpful in maintaining the bookkeeping. In regard to this the resected

hotel uses the receipts and other essential document whenever they perform any financial
transaction with their customers or suppliers.
 Certification- All the transaction must have valid signature and authorize by the
authority. It is helpful in maintain the transaction consistency as well as reduce the error
in the mentioned activity.
The principles of double entry bookkeeping system of debits and credits
 All the debit is written to the left and credit on Right.
 The debit side should always be equal to credit side. Hence, differentiate in the value can
manipulate the hotel books
 all the profits and benefits are written on the debit side as well as it is assigned by credit
side (Jung, and Yoon, 2018).
Trial balance
Trial balance
Particulars Dr. Cr.
Capital account 65,000
Cash account 76,070
Purchase account 18,000
Creditors 14,000
Sales 26,000
Bank overdraft 4,325
Insurance 75
Rent 150
Stationary 30
Debtor 12,000
Computer equipment 3,000
109,325 109,325
Type of cost
 Direct cost- Direct cost are determined as the cost that implied on the core business
activity of organisation. In relation to this raw material and labour cost as well as
expenses cost are some direct cost examples that implied on mentioned hotel.

 Indirect cost- These types of cost does not implied directly to the main business activity
of mentioned hotel. Hence, it is difficult to track these types of cost.
 Fixed cost- These types of cost are fixed in relation to carried out the business
operations. In relation to this employees salaries, interest on loan, telephone and internet
are some of the example of fixed cost.
 Variable cost- The variable cost keep changes as the level of other factors changes. The
mentioned cost based on the business activity. Hence any fluctuation in the operations
can fluctuate the overall cost. Taxes, operational expenses as well as commissions are
some of the example of above mentioned cost.
Profit margin derives the ratio of profit that remained after the deduction of all the expenses
from the business activity. The profit margin ratio can be calculated by subtracting all the
expenses incurred in the business from the total revenue earned by the business. For instance if
the respective business earns the 8000 euro in a month and the expenses incurred during the
month is 3000 euro. Hence, their remaining profit would be 5000 euro after deducting the
expenses from revenue (Kim, J., Kim, Lee, and Tang, 2020).
Importance of accurate recording of transactions in line with dedicated accounting
principle
Recording of transaction succours the businesses in several processes. Through the
systematic recording transaction business can easily look out all their financial transaction that
can helps them in order to reduce the business expenditure. In relation to this by the use of
GAAP that provides the dedicated methodology to business organisation for recording the
business transaction and events that influenced the financial position of organisation. By the use
of such accounting principle that respected company effectively maintain their transaction
records that makes their reporting more informative. It provides the better financial stability and
assist for improve performance (Magpili, and Pazos, 2018).
CONCLUSION
From the analysis of report it is clearly stated that financial management plays vital role
in the company operations. As discussed above it helped in order to maintain the records and
other financial transaction of the company. It provides the financial stability as well as gives the
advantage in order to improvise their financial activity. In instance the report derived the several
financial principles as well as principles of double entry. Moreover the report also derived the

types of cost that infused with the businesses. Therefore, all these practises creates the value in
respective business operations.

PART B
LO2 :Assess how to manage the Human Resources lifecycle within the
context of HR strategy
Human resource plays a vital role for changing the working culture of an organisation.
Their main role in organisation is to improve the efficiency of employee according to the
company operations. By their dedicated approaches and practises human resource recruit and
onboard as well as reinforce the value of firms in order to achieve the desired goal. Therefore ,
human resource helps the company into meeting their needs. In relation to this below are the
determined human resource cycle that derives the several stages;
 Attraction, recruitment, selection- The mentioned company has a strong brand image
in the operational market that attracts the number of candidate towards the mentioned
business. The respected business perform their operations in hospitality sector. Hence ,
it is important to recruit the good candidate according to the organisation recruitment.
Moreover, selection of employee determined through the pre decided selection process
that includes face to face interview (Malos, Lester, and Virick, 2018).
 Induction, orientation, on-boarding- In the second stage employer introduced the
employee with company operations. All the roles and activities of the new employee
were discussed in this mentioned stage. By this employee understand the working vulture
of organisation as well their roles and responsibility. Induction and orientation program
are conducted by business entity that derives the layout of exceptions.
 Career planning and development- After the employee establishment in the business
organisation, the next step that taken is to providing the opportunity to the employee to
grow. It includes performance appraisal, rewards the employee for their achievement. To
enhance their skills and knowledge dedicated development programs are organised by
which employee skills were improvised according to the organisation expectation
 Retention- The next stage that includes in the human resource cycle is retention.
Organisation invest the lot of money on each employee. Hence it is important to retain
these employee with organisation functions. The human resource ensures to retain these
talents by providing them healthy working environment as well as tools that needed in
performing the effective business functions.

 separation and termination phase- The mentioned stage includes the separation and
termination of employee with the organisation operations. The mentioned stage also
focuses on the identification of problem due to which employee leaving the organisation
functions. By performing such functions helps in order to rectify the issues and
challenges that faced by the workforce. Moreover, to develop the effective working
environment it is essential to focus on these factors and eliminate them for smooth
functioning.
Performance Management Plan
 Planning- The mentioned step plays a vital role. Through the planning the various areas
in the organisation can be improvise by strategic planning. In relation to this by creating
the effective development program in regard to the benefit of employee can help in
enhancing their performance. By the identification of real challenges and issues regard to
the employee performance. These issues can be cope up through efficient strategic
planning.
 On going feedback- The respective step includes the process in which honest feedbacks
in regard to the implication of new strategies.
 Reviewing- After the implication of the strategic the next and last step is to monitoring
the performance of mentioned strategy.
Recommendation
1. The right employee is needed for the success of every business organisation. In
relation to the above discussion the respective business organisation can improve
their recruitment process for the ideal employee. In relation to this by the
development of effective protocol for interviewing can improve the recruitment
process. It can include the set of test, active listening and communication test.
2. The employee must known their exact role in the company operation in order to
perform well. The mentioned process can be improved by the implementation of
buddy system in the training program. By such process the employee can ask the
question regard to their roles and responsibility in the business operations.
3. Due to lack of motivation and enthusiasm the turnover rate are higher in the initial
stage of the organisation. Hence to improve the productivity of employee it is

necessary for the HR department to praise their work by providing them
incentives. It could be free trips, parties and many other social activity through
which employee morale can be boost.
4. It is essential to recognise the employee achievement in order to improve the
employee retention rate in organisation operations. Hence in order to achieve such
milestone the mentioned HR can apprise the employee work by mouth celebration
of employee achievements. Moreover by giving them gift cards and time off could
also work for enhancing the employee retention rate.
5. By solving the workplace issues through the effective strategies can help out in
reduction of termination of efficient employee. By creating the open
communication as well as regular adhere the workplace culture can help them in
order to solve the issues.
LO3: Illustrate the potential impact of legal and ethical considerations on a
hospitality business
The hospitality industry is known as one of the vast industry. In relation to this there are
several laws and legislation that implies on the mentioned industry. Hence below are the brief
discussion of these laws and legislation that implies on the respective hotel (Peppard, 2020).
 Data protection act 1998: The data protection act gives the rights to the individual about
the access of their personal informations that held by an organisation. Hence, the use of
personal informations of individual without their concerns is known as illegal activity. As
the mentioned organisation performs their function in hospitality sector. Hence, they need
to follow the above mentioned act.
 Health and Safety at Work Act 1974: The mentioned act enforced the law in which an
organisation need to follow all the safety precipitation at their workplace in order to
safeguard their employees from any uncertainty. In relation to this safe working
environment conclude safe equipments,efficient training and other safety measures.
Hence, The respective hotel follow the mentioned act at their workplace in order to
safeguard individuals and customers.
 Working Time Regulations: The working time regulation limits the time duration for
jobs. Hence, organisation need to follow these regulation at their workplace. In relation to

this the respected company considered dual shift of employment in order to regulates
their business operations smoothly as well as eliminate the risk of lawsuits.
Impact of company employment and Contract Law upon business decision-making
Contract law gives the protection to the employee as well as employer. The mentioned
law was enforced by the government in order to facilitate the ethical activities in the organisation
functions as well as also safeguard the right of employee and employer in the organisation
culture. As these laws are Mandatory by the government. Hence any breaches in the mentioned
law can filed the lawsuits on mentioned business organisation.
Potential implication of legal regulation
 Data protection act 1998
In order to safeguard the customer and employee informations the respected company follows
the act.
 The respected organisation uses the dedicated software through in which they safely
stores the individual informations
 working time regulation
 The respected hotel has the number of employees in their business operations that
performs the functions in a dual shift
 The Edinburgh grand hotel also offers the extra pay to their employees in the case of
extra working hour.
Ethical issues
 employee theft: The mentioned issue is conclude as an unethical practice that incurred
when employee perform illegal activity in their business operations. In relation to this
stealing of owners property during their jobs is one of the ethical issue.
 Hygiene: Hygiene is one of the important practice in the hospitality industry. Hence not
maintaining the hygiene is also considered as one of the ethical issue that can arise in the
mentioned industry (Peters, and Kallmuenzer, 2018).
Recommendation
By the implication of respected laws and regulation at workplace can provides the
assistance in order to enhance the employee contract in between the various entities such as
employer and employee. The above mentioned practice deployed ethical approach that provides

the better assistance in order to initiate the efficient business activity. Through such functions
employee and employer rights were protect more effectively.
LO4: Explain the importance of coordinating and integrating various
functions of departments within the hospitality sector
Different functional role in hospitality industry
 Accommodation- The mentioned department provides the facility of rooms to the
customer according to their choice. The respective hotel has the 50 luxurious room with
all the essential facilities
 Food and beverages- The food and beverages department serves the food and beverages
to their customer. The respected hotel offers the multi cousins dishes as well as variety of
drinks to their customers.
 Maintenance- The mentioned department have the responsibility to maintain the hygiene
and maintenance of hotel. The mentioned hotel has the trained staff that focuses on
providing the dedicated services to their customers.
Modes of communication
 Formal communication- The mentioned method is used for the flow of official
informations by the use papers as well as predefined channels.
 Informal communication- The informal communication is the casual communication
that initiate between the co workers at workplace.
 Directional communication- The mentioned method includes the three types of
directional communication which is downward, upward, horizontal. The mode of
communication changed according to the position of department.
Coordination
To perform the effective functions in the organisation it is essential to have the
coordination between the workforce. Through the coordination between the employee can
developed the productive teamwork. By the implication of effective coordination at the
workplace organisation can achieve the desired goal in a minimal time period (Saltz, and Dewar,
2019).