Hospitality Business Financial and HR Report - Nelson College

This report provides a comprehensive overview of financial management and human resource strategies within the hospitality sector. Part A delves into financial transactions, including double-entry bookkeeping, trial balance creation, cost analysis, and the importance of accurate transaction rec...Read More

Hospitality Business Tool kit

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Introduction of financial transactions in hospitality business......................................................3
Ways to manage and monitor the financial performance of the business....................................4
Principles of double entry bookkeeping......................................................................................4
Producing trial balance................................................................................................................4
analysing costs and how they can influence financial performance ...........................................7
Importance of accurate recording of transactions........................................................................8
Conclusions and recommendations..............................................................................................8
PART B............................................................................................................................................8
Various HR life stages to a particular hospitality job role and their benefits for developing and
retaining talent.............................................................................................................................8
Performance management plan to support particular job role and techniques to solve positive
or negative behaviour and overcome this issues..........................................................................9
Legislation that the hospitality organization is complying with................................................11
Company employment and contract law have impact on business decision-making in the
industry......................................................................................................................................12
Functional roles in hospitality sector.........................................................................................13
Different communication methods and effectiveness of these methods....................................13
Review of integration and coordination within an organisation. .............................................14
recommendations.......................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality sector is the service sector that provide services which are related to
accommodation, travelling, food, transportation etc. it includes restaurant, hotels and bars. The
primary role of this sector is to satisfy their guests because for that only guests are paying to
them. Le meridian is the multinational hospitality company which have chains of hotels
worldwide. They are internationally known for the world-class services they provide. They have
swimming pools, gaming area, football courts etc. to entertain their guests. This report will
discuss the principles of managing and monitoring financial performance, applying double entry
book keeping system to record sales and purchase transaction in ledger. Will produce trial
balance by applying balance off rule. Further will discuss different stages of HR life cycle
applied to hospitality job role and role of HR for talent management and retaining workforce.
Developing performance management plan for the job role applying techniques to solve the
negative behaviour and issues of staff. This report will also identify legislation that the
organization comply and describe how company employment and contract law has impact on
decision-making.
PART A
Introduction of financial transactions in hospitality business
Hospitality sector is rapidly growing worldwide. Proper accounting system is very
important for the hospitality sector. If the organization want to grow then they need proper
financial management which is needed to record the sales, pay employee salary, recording daily
transaction, calculating business profits etc. accounting is important to this industry as it
improves the working of the industry (Nidamanuri and Hurt, Mastercard International Inc, 2017).
Le meridian accounting include:
Preparing all the month end accounts which include all daily transactions.
Budget preparation: under which company decide that what amount should allocated to which
resource.
Business planning: under which planning related to market and target customers etc. are done.
Making financial statements which include profit and loss and balance sheet.
Profit and loss: it is the statement which shows revenue and expenses. Room and food related
costs are the expenses.

Balance sheet: it tells the financial position of the business and contain assets and liabilities of
the business.
Ways to manage and monitor the financial performance of the business
Preparing financial statements: this is very important as it tells the financial position of the
organization, le meridian prepare it systematically so that performance can be measured
(Hendon, Powell and Wimmer, 2017).
Inventory records: company invest in equipments and raw materials so maintaining inventory
records is must.
Preparing financial ratios: this is helpful in getting the information about assets and liabilities
and which assets can be easily converted into cash.
Competitive analysis: le meridian compare their financial indicators with the competitors and
can come to know strategies which their competition is following, but they are not.
Principles of double entry bookkeeping
In the double entry system, every transaction have dual aspect as one party will be on debit side
and another on credit side and transactions which are in the form of money is recorded.
Transaction should have one receiver and one giver. It states that business is separate from the
owner and it is the separate entity (Albayati, Kim and Rho, 2020). In the double entry system
accounts are maintained through journal, ledger, trail balance and financial statements. This
system is helpful in determining profit and loss. It is easy to apply and use for future reference.
Producing trial balance
December 1 cash deposited in bank € 20,00,000
December 2 goods purchased for cash €6,00,000
December 3 machinery purchased for cash € 4,00,000.
December 5 computer purchased paid by cheque € 30,000
December 10 salary € 20,000 paid by cheque.
Journal entries
Date (December) particulars L.F. DR(€) CR(€)
1 Bank ac
to cash ac
(being cash
deposited in
2000000 2000000

bank)
2 Purchase ac
To cash ac
(being goods
purchase for cash)
600000 600000
3 Machinery ac
to cash ac
(being machinery
purchased for
cash)
400000 400000
5 Computer ac
to bank ac
(being computer
purchased by
cheque)
30000 30000
10 Salary ac
to bank ac
(being salary paid
by cheque)
20000 20000
Ledger
cash ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
1 By bank 2000000
2 By
purchase
600000
3 To balance 3000000 By 400000

c/d machinery
total 3000000 total 3000000
Bank ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
1 To cash 2000000 By
computer
30000
5 By salary 20000
10 by balance
c/d
1950000
total 2000000 total 2000000
Purchase ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
2 To cash 600000
by balance
c/d
600000
total 600000 total 600000
Machinery ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
To cash 400000
by balance
c/d
400000

total 400000 total 400000
Computer ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
5 To bank 30000
by balance
c/d
30000
total 30000 total 30000
Salary ac
Date particulars JF Amt(€)
DR
date particulars JF Amt(€)
CR
10 To bank 20000
by balance
c/d
20000
total 20000 total 20000
Trial balance
Name of acc LF Dr bal(€) Cr bal(€)
cash ac 3000000
Bank ac 1950000
Purchase ac 600000
Machinery ac 400000
Computer ac 30000
Salary ac 20000

total 3000000 3000000
Purpose of trial balance:
The main purpose of preparing trial balance is to make sure that entries which are made in the
ledger are balanced and it is also prepared to review error, draft financial statements etc.
analysing costs and how they can influence financial performance
Fixed costs: costs which remain fixed and does not change.
Variable costs: costs which fluctuates and depend on output.
Sales-€4 million
variable cost-10% of sales
fixed cost-€100000
EBIT= sales-variable costs-fixed cost
=4000000-400000-100000
=3500000
It is related to production and when it increases, variable cost also increases and it decrease
variable costs also decrease while fixed costs does not change it remains same no matter the
production changes (Gurskaya, Kuter and Bagdasaryan,2019).
Importance of accurate recording of transactions
It is important because it is helpful in making effective decisions and it the statement which
remind about the expenses and credit to the business.
Conclusions and recommendations
Financial management is helpful in achieving growth because it provides systematic arrangement
of transactions which can study easily and use in the future for the growth (UDEH,2017). Le
meridian should monitor the financial department timely so that any miss happening can be seen
at time and also improvisation should be made.
PART B
Various HR life stages to a particular hospitality job role and their benefits for developing and
retaining talent.
Human Resource is a continuous process of combined HR activities. It basically involves
strategies of HR creation and implementation of employment life cycle. Following are HR life
cycles to a hospitality job:
Attraction and Recruitment

Attraction at hospitality sector starts before it looking for a new talent. Attraction determines
brand of company and what shapes potential employees. Marketing of brand also plays huge role
in shaping perception of public and might act as a strong motivator. Attracting potential
candidates to a company is vital for its development. Company review its planning process and
compensation packages so that it attract and retain top talent (Goh and Okumus, 2020).
While recruitment helps Le Meridien in building a good management and make sure that
company has best people available for specific job role. Le Meridien constantly reviews roles
and responsibilities and keep that updated. As a result, it allows new employee to have clear
understanding of what is expected of them.
Career Development
Career development is considers a good technique to keep talented employee engaged. Le
Meridien discuss its goals in interview process so that company ensures that an individual's role
is realistic and will contribute in success of company. Once an employee is confirmed then
company provides an opportunity to grow so that it retain them for longer time. Le Meridien
offer individual or team bonuses or incentives for new goals its set (Chang and Busser, 2020).
Company always find new ways to enhance talent, boost productivity and increase revenues.
Hence, HR management need to work to acknowledge and identify specialists, skills an talents
that Le Meridien have within them. As they can use this information when looking for
employees and help them to grow.
Regular review of performance also benefits company as it allows employees aware of how
they are doing or whether they make progress or not. Many companies are facing an issue of
employee turnover. As having high turnover of employee may have serious impact on employee
morale, productivity and revenue of company (Krishnan and Scullion, 2017). HR must have
good insights to know why employees are leaving, how performance can be improved and
increase employees happiness.
Employee Recognition
HR team ensure that it keeps productive and loyal team for Le Meridien. Therefore, regular
review of performance help company to motivate a positive workflow for employees. Le
Maridien focus on providing bonuses and evaluations or positive reviews as they consider
excellent resource for employees to continue their career for longer time in company.
Recognition can be in various forms but what company approach should be more valuable areas

in which an individual can focus on. HR must implement accurate recognition program as it is
critical factor in giving a competitive edge to business. Employees also want to feel appreciated
for their smaller accomplishments throughout their life stage. Therefore, effective employees
rewards system help Le Maridien to encourage its employees.
Performance management plan to support particular job role and techniques to solve positive or
negative behaviour and overcome this issues.
Performance management plan is considered an essential tool in which it sets individual or
team goals in improving performance and align to a strategic goals of company. Performance
management helps to achieve goals and developing skills and abilities of people. Following
paragraph provide more detail about such plans at hospitality sector:
Goal setting
Goal setting is a crucial for company and it should be understood and meaningful. As
employees should know why these goals matter and how they collaborate with organisational
objectives. As new employees will involve more in job roles if they correctly understand about
how their job matters (Aguinis, and Burgi-Tian, 2021). Le Maridien focus more on team building
and realize employees potential by incorporating more meaningful conversations among
managers and employees.
Consult with Key Players
Successful implementation for performance management plan includes collaborative process
among overall management that include managers, employees and leaders. At Le Maridien, it is
essential to consult with other departmental units as it helps them to make more effective plans.
Make action plan
Company create action plan as per performance management strategies. Le Maridien clearly
define goals then break down into smaller units so that everyone identify its goals.
Techniques to solve positive or negative behaviour:
Effective leadership
Lack of leadership skills occurs in workplace that will overcome by some thoughtful action.
However, its quite difficult for companies to overcome such issues as it discouraged employees
when something is promised and then not delivered. Hence, company need not to promise with
staff something that is not possible (Yadav,,and et.al 2020).
Recognition

Lack of recognition is another issue that most of companies face. Salary is crucial factor in
retention. As it is possible that employees will leave company when not feel secure. This issue
can be curbed by company if its build a genuine culture and provides recognition for employees
contributions. Company must follow some guidelines that helps to maximize the effect of
employees recognition.
Building Trust
Lack of trust arise when a manger refuse to share information with others unless it is vital.
Every companies operate on a balance of trust among management. Many employees will leave
company just because of trust issues. Therefore, company need to increase transparency in
workplace (Weist, and et.al, 2018). There are many ways that company mitigate this issue like
manager or leader must share all informations to employees.
Legislation that the hospitality organization is complying with.
In the hospitality sector there are many legislation from which this sector is bound to
work with.
Licencing act 1964:
Licence is required to do various activities into the hotel like if the company wanted to sell
alcohol then for this the company need to have a licence for that. Licences are also of two types
premises and personal licence (Hotels Laws UK., 2021). Le meridian properly follow the laws
and does not buy alcohol from those wholesalers which are not registered.
Trade description act 1968 and marketing act:
When company do advertising and marketing campaigns or do update on their website such
information should not be provided which misguide the guests with the pricing by increasing the
price after the quotation because after the price is quoted to the guests then it is considered as
offence if prices are raised and hotel should give true information about the facilities which they
will provide and does not mislead.
Food and drink act:
Company have to follow all regulations regarding food safety and have to ensure that the
hygiene of food is maintained and it is duty of hotel to give information about the ingredients so
that the guests can get information about the ingredients, so they can avoid such food from which
they are allergetic with.
Health and safety act:

Fire is the risk which is seen in hospitality sector. So company should install fire extinguishers to
ensure the safety of their guests, proper exit signs and direction should be provided so that guests
can come to know that where is the exit point is case of fire. Proper gas safety should also be
maintained and gas boilers should timely done maintenance so that the chances of gas leakage
can be low.
Gambling act:
Gambling which include casinos, lottery, racing etc. and these all activities which are controlled
by legislation. So that fraud in the gambling can be prevented.
Environment act:
Legislation is there for waste control as businesses are responsible if they damage environment
which include land damage, water damage etc. from their activities. All hospitality sector of UK
are entitled to have recycling method for the waste.
Data protection act 1998:
The privacy of guests should be protected while doing payment of bill, hotels have credit card
information of guests, so hotels are not allowed to leak that information. It is the illegal act if
they do so. Le meridian make sure that personal information of guests are stored in private
software so that anyone cannot access it easily. Along with guests companies are also
responsible for the private information of their workforce as the confidential information of the
employees are not to be shared without the permission taken from staff.
Company employment and contract law have impact on business decision-making in the industry
Decision making impacted by the Employment law :
Discrimination is the issue which affect the productivity, employee engagement and loyalty of
employees in the organization (Martínez-Martínez and et.al., 2019). The treatment which the
employee get from the managers decide the level of motivation from which they provide services
to the customers. When the employees are motivated then that will increase their productivity
which will increase profit of the company. Le meridian while taking any decisions they take care
about the comfort level of their workforce as they know that without efficient workforce an
organization cannot work and if company take care about the needs of staff then it will be helpful
in reducing employee turnover and increase retaining of high performance employees. Company
has implemented human resource management policies under which the organization have to
treat fair and equal to every employee. There are several state laws which protect workers from

discrimination which occur on the basis of gender, age, caste, religion, colour etc. and give
employees rights which they can exercise if they face any discrimination. Company provide all
the facilities to their employees which are stated in the employment law and take employee
feedbacks timely so that improvement can be made. As human resource is the vital resource of
the company and without them company cannot survive so if they are happy and motivated then
only company can achieve higher growth. Under this, employees are entitled for compensation
and about the working hours, so when company decide about compensation then they keep in
mind the employment law and under this extra wage have to give to the employees for the
overtime (Boeger, 2017). Ensuring proper Health and safety of the workforce is the duty of the
management, providing such working environment where they are comfortable to work with.
Decision making impacted by the contract law :
Contact is an agreement which is done by two or more parties and which is enforceable by the
law. If the contract is made between the hotel and guests then it cannot break without any valid
reasons. Example if guest is booked a room in the hotel at the quoted rate and hotel also agrees
to book for them. In that case hotel is not allowed to give that room to anyone else or increase
the quoted price, if it does that then it is the offence. Le meridian ensure that while taking
decisions or framing any rule contract act is considered. Such decisions are not considered valid
if they go against the contract act. Failure of contact means breach of the contract act. Contract is
said to be legal only if both parties has given their consent.
Functional roles in hospitality sector
Marketing department:
Marketing department of hotel have many tasks to do like le meridian conduct market research to
understand the needs of customers and doing marketing campaigns for the promotion.
HR department:
This department give advertisement for the vacancy and hire right candidate for right position
and make sure that employee gets good working environment which motivates them (Henry and
et.al, 2018).
Finance department:
They are many activities to perform like recording transactions, budgeting, preparation of
financial statements, manage the payroll system etc.
Interrelation of finance and marketing:

Finance team make budget which is used by the marketing team to carry the marketing activities.
Interrelation of HR and marketing:
HR department hire effective candidates for marketing team which help in achieving company's
objectives.
Different communication methods and effectiveness of these methods
Formal communication:
It is the communication which happens in the formal organization and the sender and receiver
have official relations and flow from formal channels. This method is very useful in achieving
the objective as it facilitate flowing of formal information which results in growth. It is held
through meetings, conference, messages, company bulletins etc.
Informal communication:
It is opposite of the formal communication when in Le meridian there is no flow of formal
information then informal communication is used. When hotel want to collect information from
workers this method is used which can bring feedbacks and suggestion. It is effective because it
helps in the improvement by taking feedbacks and which takes company towards the success.
Downward communication:
When communication flow from managers to the subordinates and it is mostly used when
superior want to give instructions or informations to the juniors.
Upward communication:
It is the method of communication in which information travel from lower level to the upward
level (Bogaert, Ballings and Van den Poel, 2018). It is mostly used when workers on ground
level faced any issues while working in the organization, le meridian listen to every lower level
employees as they believe that every worker is important.
Verbal communication:
When communication is done between face to face between tow persons orally. It is effective as
both parties understand each other effectively because in this both can observe each other body
language also.
Non verbal communication:
When the conversation is not done by using words but is done by doing eye contact, gestures,
facial expressions etc.

Review of integration and coordination within an organisation.
Manager need to integrates overall activities that is referred as coordination. Coordination is
proper arrangement of team efforts to retain harmony among employees so that it accomplish
common objectives for company. Integration is a process when efforts all individual will help
company to achieve goals (Auschra,2018). It helps an organisation in achieving objective with
low issues and conflicts. Le Maridien centrally store and mange profiles of guests so it ensures a
maximum customer experience. Carefully analyse data and in meaningful ways and share it
across channels. Many hospitality sector know about their customers as it easier to deliver
personal service. Coordination provides quality of time and it is continuous process in which it
starts with planning and ends till controlling.
recommendations
Coordination is very important in improving the business performance because if every
employee coordinate with each other than only company can achieve its goals. Company should
do meetings on weekly basis so that workers can raise their problems and can get solution
quickly in the meeting itself.
CONCLUSION
Through this report it can be concluded that maintaining financial statements properly
can help the company in achieving success. This report has also shed light on bookkeeping and
trial balance and the importance of accounting principles. Report has reviewed stages of HR life
cycle and the importance on talent management. Development of performance management plan
which overcome staff issues. Identification of laws or legislation which are applied on hospitality
sector and report has also shown that how decision-making can be impacted by employment and
contract laws. Communication methods are identified and how integration and monitoring is
helpful in organization's success.

REFERENCES
Books and journals
Aguinis, H. and Burgi-Tian, J., 2021. Measuring performance during crises and beyond: The
Performance Promoter Score. Business Horizons. 64(1). pp.149-160.
Albayati, H., Kim, S.K. and Rho, J.J., 2020. Accepting financial transactions using blockchain
technology and cryptocurrency: A customer perspective approach. Technology in
Society. 62. p.101320.
Auschra, C., 2018. Barriers to the integration of care in inter-organisational settings: a literature
review. International journal of integrated care. 18(1).
Boeger, N., 2017. Reappraising the UK social value legislation. Public Money &
Management. 37(2). pp.113-120.
Bogaert, M., Ballings, M. and Van den Poel, D., 2018. Evaluating the importance of different
communication types in romantic tie prediction on social media. Annals of Operations
Research. 263(1). pp.501-527.
Chang, W. and Busser, J.A., 2020. Hospitality career retention: the role of contextual factors and
thriving at work. International Journal of Contemporary Hospitality Management.
Goh, E. and Okumus, F., 2020. Avoiding the hospitality workforce bubble: Strategies to attract
and retain generation Z talent in the hospitality workforce. Tourism Management
Perspectives. 33. p.100603.
Gurskaya, M., Kuter, M. and Bagdasaryan, R., 2019, May. The structure of the trial balance.
In International Conference on Integrated Science (pp. 103-116). Springer, Cham.
Hendon, M., Powell, L. and Wimmer, H., 2017. Emotional intelligence and communication
levels in information technology professionals. Computers in Human Behavior. 71.
pp.165-171.
Henry, P.S. and et.al, 2018. Method and apparatus for arranging communication sessions in a
communication system. U.S. Patent 9,866,276.
Krishnan, T.N. and Scullion, H., 2017. Talent management and dynamic view of talent in small
and medium enterprises. Human Resource Management Review. 27(3). pp.431-441.
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.
Nidamanuri, S. and Hurt, D.W., Mastercard International Inc, 2017. Systems and methods for
feeding a previous case action for a decision of confirming financial transactions. U.S.
Patent Application 14/931,587.
UDEH, S.N., 2017. THE TRIAL BALANCE.
Weist, M.D., and et.al 2018. Improving multitiered systems of support for students with
“internalizing” emotional/behavioral problems. Journal of Positive Behavior
Interventions. 20(3). pp.172-184.
Yadav, G.,and et.al 2020. A framework to overcome sustainable supply chain challenges through
solution measures of industry 4.0 and circular economy: An automotive case. Journal of
Cleaner Production, 254, p.120112.
Online
Hotels Laws UK., 2021. [Online]. Available through:
<https://www.assetsure.com/business/hotel-insurance/hotels-laws-uk/>
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