Hospitality Business Toolkit Report: Performance, Legal, and Roles

This report provides a comprehensive analysis of the hospitality business, encompassing various key aspects. It begins with an examination of final accounts, including journal entries, ledger accounts, and a trial balance. The report then delves into ratio analysis, specifically focusing on Derby Enterprise Ltd., interpreting financial performance indicators like profitability, current ratio, and debtor collection periods. Furthermore, the report outlines a performance management plan tailored for an HR practitioner, detailing the importance of development in areas like learning, planning, communication, and decision-making skills. The report also covers legal and regulatory aspects, specifying legislative requirements that hospitality organizations must adhere to, such as alcohol licensing, data protection, and workplace safety regulations. Finally, the report evaluates different functional roles within an organization and examines methods of communication within a specific department of a hospitality organization, concluding with a comprehensive overview of the hospitality business's operational, financial, and legal dimensions.

THE HOSPITALITY
BUSINESS TOOLKIT

LO1..................................................................................................................................................3
a. Final accounts..........................................................................................................................3
b. Ratio analysis of Derby Enterprise Ltd...................................................................................6
LO2..................................................................................................................................................7
5. Performance management plan to HR Practitioner.................................................................7
LO3................................................................................................................................................10
P6 Legislatures the hospitality organization has to comply with..............................................10
P7 Impact of contract, employment and company law on decision making of hospitality
industry......................................................................................................................................11
LO4................................................................................................................................................12
P8 Evaluating different functional roles and their interrelation in an organization..................12
P9 Methods of communication in a specific department of a hospitality organization.............13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
The present report is based on hospitality business which in today’s world is counted as
the leading and growing business in an entire industry. The actions that are taken by managers
has a direct impact on the other areas and this could affect an interrelationship with that of the
departments so it is very important to develop a better understanding about all such things and be
able in taking an informed and effective decisions. It is essential for every business to have a
clear understanding of the factors in order to drive for profitability and the success of brand. It
must make use of the tool like human resources, planning for recruiting and in retaining best
staff, interpreting and applying the key financial indicators in driving or gaining the large market
share. Furthermore, this report will provide an opportunity in developing its business acumen by
covering a large number of the different activities of the business within an industry. This
involve budgeting, forecasting, interpreting the financial results effectively in compliance with
the regulation and the legislation.
LO1.
a. Final accounts
1. Journal entries
Journal
Date Particulars Debit Credit
1/4/2016 Cash A/c Dr. 180000
To capital A/c 180000
10/5/2016 Property A/c Dr. 130000
To cash A/c 130000
15/6/2016 Purchase A/c Dr. 6000
To cash A/c 6000
1/7/2016 Cash A/c Dr. 8000
To Sales A/c 8000
1/8/2016 Purchase A/c Dr. 9000
To cash A/c 9000
1/9/2016
Sundry expense A/c
Dr. 200
To Bank A/c 200
1/10/2016 Cash A/c Dr. 17000
To Sales A/c 17000
1/11/2016 Wages A/c Dr. 2100

To cash A/c 2100
1/12/2016 Postage Cost A/c Dr. 300
To Bank A/c 300
352600 352600
2. Ledger accounts
Dr. Capital A/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
31/12/16 By bal c/d 180000 1/4/2016
By cash
A/c 180000
180000 180000
Dr. Property a/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
10/5/2016
To cash
a/c 130000 31/12/16 By bal c/d 130000
130000 130000
Dr. Purchase A/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
15/6/16
To cash
A/c 6000 31/12/16 By bal c/d 15000
1/8/2016
To cash
A/c 9000
15000 15000
Dr. Sales a/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
31/12/16 By bal c/d 25000 1/7/2016 By cash 8000

a/c
1/10/2016
By cash
a/c 17000
25000 25000
Dr. Sundry exp a/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
1/9/2016
To Bank
A/c 200 31/12/16 By bal c/d 200
200 200
Dr. Wages a/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
1/11/2016
To cash
a/c 2100 31/12/16 By bal c/d 2100
2100 2100
Dr. Postage a/c Cr.
Date
Particular
s Amount Date
Particular
s
Amoun
t
1/12/2016
To bank
a/c 300 31/12/16 By bal c/d 300
300 300
Dr.
Cash
A/c Cr.
Date Particulars
Amoun
t Date Particulars
Amoun
t
1/4/2016
To capital
A/c 180000 10/5/2016
By property
A/c 130000
1/7/2016
To Sales
A/c 8000 15/6/2016
By purchase
A/c 6000
1/10/2016
To Sales
A/c 17000 1/8/2016
By purchase
A/c 9000

1/11/2016 By wages A/c 2100
31/12/16 By bal c/d 57900
205000 205000
Dr. Bank A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/16 By bal c/d 500 1/9/2016
By Sundry exp.
A/c 200
1/12/2016 By postage A/c 300
500 500
3. Trial balance
Trial balance
Particulars Debit Credit
Capital 180000
Property 130000
Purchase 15000
Sales 25000
Sundry
expense 200
Wages 2100
Postage 300
Cash 57900
Bank overdraft 500
Total 205500 205500
b. Ratio analysis of Derby Enterprise Ltd.
Particulars Formula Amount
2014 2015
Net income 534 575

Total assets 12541 19117
Current liability 1508 5174
Capital employed Total assets-current liability 11033 13943
Return on capital Employed
Net income/capital
employed*100 5% 4%
Operating profit 914 1042
Net sales 9482 11365
Operating profit margin Operating profit/Net sales*100 10% 9%
Current assets 4926 7700
Current liability 1508 5174
Current ratio Current assets/Current liability 3.27 1.49
Debtors 2540 4280
Sales turnover 9482 11365
Debtors collection period Debtors/Sales turnover*360 96.44 135.57
Sales revenue 9482 11365
capital employed 11033 13943
Sales revenue to capital
employed Sales/ capital employed 309.4 293.4
Interpretation- The above results shows that profitability performance of the company
does not seems as good because its return on the capital employed and an operating margin is
declining and resulting a lower returns. Similarly the current ratio of the firm is also decreasing
that is from 3.27 in the year 2014 to 1.49 in 2015. This depicts that an entity is not making an
efficient or effective use of its current assets in order to meet its current obligations. Debtor
collection period of the firm is increasing over the year which means that company is providing
its goods on a credit basis for a longer term and collects its receivables after 135 days in the year
2015. Sales revenue to capital employed reflects an effective utilization of capital in order to
increase revenue. As the ratio of company is declining which means that the company’s revenue
is decreasing and the capital is not used in efficient manner. Overall the financial performance of
Derby enterprise is not good and sound so it must strive for developing appropriate strategies for
the purpose of improving its ratios and making its performance & position ore and more better so
that it could be able to achieve competitive edge against its competitors and can achieve a
leading position in an overall market.

LO2.
5. Performance management plan to HR Practitioner
Performance management is the procedure that companies use to align their worker
knowledge and resources to strategic objectives as well as priorities in order to assure that their
businesses short- and long-term goals are constantly met in efficient & effective manner (Ahmed
and et.al., 2016). Eventually, it is considered as system or process that every manager will use to
consistently to do their job perfectly. It will be implemented in company based on three elements
such as plan, monitor and review. Performance management plan is consistent centre on strategic
aims and progress of workers. It helps to enhance abilities of employees, improve their
performance and also enhance motivational level rather than before. In order to improve the
skills and knowledge of human resource practitioner, here, performance management plan is
developed which is quite beneficial for company as well.
Development
areas
Importance of development Strategies used for
development
Time
frame
Learning skills It is the term which describes
work including in learning,
time management and
reading effectively. The
development of learning
skills is essential for HR
practitioner as it help them to
resolve conflict, improve
workers performance and
solve issues in talent
retention. Learning skills
enhance the ability to think
and make strategic plan.
By being open to learn
effectively, HR practitioner
develop their skill, they need
to use self-testing method to
identify their learning
abilities. To adapt new
situations and motivate
workers to do their job
perfectly active listening skill
is important. By working with
top management and focusing
on their listening abilities the
development of this skill is
possible.
Planning skills The capability to think
successfully and about
Planning for talent acquisition
is extremely difficult, but by
14 days

manage activities, with the
support of available workers,
to achieve specific goal is
known as planning skills. In
role of HR practitioner
development of this skill is
very important as it help to
make plan of talent retention
and acquisition within
hospitality industry.
Development of planning
skills is vital as it helps in
efficient talent retention and
utilization of resources. As
practitioner engage in active
listening & make wiser
judgements, their ability to
plan smarter increases
exponentially.
developing planning skills it
is possible for HR practitioner
to make effective plan. To
develop this skill, practitioner
take advice of their senior
management and discuss with
them about how it will be
developed, the guidance is the
best way to develop this
ability. Development of this
ability, is beneficial for
Human resource practitioner.
Communication
skills
Communication skills are the
capabilities use by HR
practitioner to retain talented
applicants and within talent
acquisition. It is requisite for
success in HR practitioner
role so they can manage
talent acquisition. The
development of this skill is
very important as it help
solve issues in talent
retention and allow
Communication skills comes
to great use in recruiting
compelling job posts,
corresponding with workers
and engaging target skilled
people through different
channels. To develop
communication skills HR
practitioner must practice to
understand employees’
perspectives and identify their
needs that help to make
10 days

practitioner to identify the
cause of problems (Andzik,
Cannella-Malone and
Sigafoos, 2016). HR
practitioner deals with
number of workers day in
and day out which required
to have effective
communication ability.
effective communication. 65
percent of communication is
non-verbal, HR practitioner
watch for visual signs that
their workers understands and
agrees with message.
Decision
making skills
There is a lot of important
decision taking responsibility
included in role of Human
resource practitioner. The
development of this
decision-making skills is
crucial for HR practitioner
that help to take effective
judgement in relation of
talent acquisition problems
and other issue related to
workers. In talent retention
and acquisition this skill is
required a lot in order to
decide whether a candidate is
right fit for specific role or
not. While recognizing
skilled people decision
making skill is needed which
required experience and
strategy.
To develop decision making
skills, HR practitioner need to
analyse organization
requirement for talented
people that help to take better
decision. Before taking
decision for talent retention
human resource practitioner
conduct research and analyse
the organizational
requirements that contribute
to make effective decision and
enhance skill as well. This is
something an HR practitioner
must develop. Development
of decision-making abilities is
beneficial as it allows them
one to ascertain issues and
come up with a proper
solution that is suitable to
organization and their
workers. Human resource
18 days

practitioner should be sound
decision makers to help
critical organizational
activities and manage talent
acquisition.
LO3
P6 Legislatures the hospitality organization has to comply with
The key legislative requirements that a hospitality organization has to follow and comply
with are stated below.
Alcohol Licencing which is very important an in every hospitality organization alcohol is
a must so proper licencing of the sameis essential in case of providing accommodation which
incurs a charge and which also includes free alcohol.
Data Protection Act, which is another important law that is required to be followed, in
order to secure the personal information of the guest and staff of the organization.
Equality Act, the hospitality industry is required to strictly follow the equality act, in any
situation and in any respect such as in case of employees and guest aswell. Also, it is required to
adhere to the discrimination laws (Latest regulatory updates. 2020). This law states that any
unlawful activity against its employees or guest on the ground of disability, religion, belief, age,
race, gender etc.
Workplace safety regulation, this covers the surrounding in which employee is being
working, for instance, temperature, light space, other basic amenities etc.
Health Act, especially in case of smoking in public places. It is essential to have at least
one no smoking board which is visible to guests and staff.
Adventure Activities Licensing Regulations, this regulation provides safety measures
that are required to be taken which includes a systematic and organised approach to identifying
the risk and helps in ensuring that corrective actions are taken to control them.
Regulatory reformsfor fire safety, this regulation requires a suitable person to be
responsible for the taking care of safety of the organization in case of fire and knows the suitable
steps that is required to be taken.

Food safety Act, a hospitality organization is required to comply with the provisions of
food safety which includes drink also (Lake, 2018). This act will help in ensuring that food
provided is safe to eat. It also makes sure that chemicals are not stored where food is placed and
handled and people working there are
Other than the above stated laws, other important things that is required to be taken care
of are:
 Maintain proper guest registry is essential under the immigration order for the entire
hospitality industry.
 Reviewing the legislative requirements timely to ensure everything has been met.
 To maintain accurate records as per the requirement and guidelines which can be used in
future date.
 Ensuring that the key areas of improvement areidentified on time.
 Timely dealing with the issues that are raised by the inspection visits.
P7 Impact of contract, employment and company law on decision making of
hospitality industry
Company Law:It refers to the rules and regulations that allow businesses to rum their business
within the certain limits. It explains what is expected from them and also sets rule to be followed.
It also refrains government from interfering into the business if it is properly followed. The
company law provides guidance in every business. For example, if in the hospitality industry, the
Hilton hotel wants to start a new range of business services for special customers which will help
in attracting more touristand itrequires it to enter into deal with the third party service
providerthen it will have to abide by the company law. Also, it may result into a limited liability
company.
Employment law:This law deals with the employment of the employees of the organization
which states the rules and regulations that are required to be abide by the organization. It
includes some employee benefits plans (Tavitiyaman and et.al, 2019). For example, in Hilton the
front office manger is from European Union, and because of Brexit, the organization has
implemented a new policy which states that the organization will stop providing services to
people of European Union.This new policy has been brought to the notice of the legal team This
matter will affect the decision-making process of the organization and also that employee filea
case against the organization for not complying with the employment law. Another example is in
UK, as per the new employment legislation, a new entitlement is to be introduced in April, 2020
known as parental Bereavement leave. It provides a two week leave period to the employee
whose child has died below the age of 18. This leave is unpaid but it starts from the first day
when the person is employed. So, any changes in the law by the organization will be termed as
non-fulfilment of the duty. Thus, Hilton will require to take advice from its legal team before
taking any decision as it may result into intervention of government and my spoil the brand
image.

Contract law:A contract is a legal agreement between two or more parties where each party has
a legal obligation towards another. An organization enters into many contracts which includes
buying property, taking loan, signing employment related documents etc. the issues faced in
contract when one of the parties fails to perform their part of responsibility or liability.A written
contract can be used in court in case of trial. The contract law also affects the business decision
making in hospitality industry, for example, in Hilton hotel there is a policy to pay specific
amount of money to the employees family in case of death of the employee and if the
organization fails to do so or intentionally stops the payment then it will be termed as breach of
contract and in that situation the family of the deceased can file a court case against the Hilton
hotel. So, before taking any business decision it is required toconsult its legal team before taking
any action.
Thus, fulfilment of all the laws is very essential for the Hilton in order to maintain its
positive brand image and reputation.
LO4
P8 Evaluating different functional roles and their interrelation in an organization
There are different functional departments in a hospitality industry and all these
departments are interrelated to each other. A detailed description is given below.
Marketing and finance department:The marketing department carries out the complete
market research with respect to eth changing market trends, customers need and preferences
which help in implementing different activities or services that will attract tourist to visit in the
hotel. On the other hand, finance department, sets budget and cost analysis for the marketing
team to carry out its activity (Kargari, 2018). Also, marketing team in hotel, carries out sales and
promotion activities of the organization. Both the departments are interrelated.In Hilton hotel,
marketing department requires finance for money and conceptualization of data provided and
finance team requires marketing team to provide the relevant data on which analysis can be done
and they are properly coordinated.
Human Resource and other departments:The HR department is responsible for hiring,
providing training and development session to the employees. It also has the responsibility to
motivate the employees towards improving the performance and also handling their grievances
(Boellaand Goss-Turner, 2019). This department has gained importance because of the
increasing need to comply with the legislation.The other departments come with the need like to
recruitment new employee or train the existing ones. In Hilton hotel, the HR department along
with the team member of other department together prepares the job description for recruiting the
new employee. Thus, a proper coordination between HR and another department is very
essential.

Purchase and finance department:The purchase department in hotel isresponsible for
buying the raw material, equipment and other essentials required in a hospitality industry at the
competitive prices (Ionel, 2016).It has the responsibility to ensure that all the materials are in
best quality as per the standards.On the other hand, the finance department prepares the budget
for the same and also justify the items purchased with the receipt of it in order to record it
properly.Thus, both the departments are interrelated and effectively working in anHilton hotel.
Thus, from the above points it can eb said that different functional units in an hotel
industry are interrelated and should be properly coordinated for the effective andefficient
functioning of the Hilton hotel.
P9 Methods of communication in a specific department of a hospitality
organization
There are different methods of communication in an organization but its is essential to
identify the best and effective method of communication. There are two types of communication
formal and informal but in an organization formal communication should be used in order to
communicate work related information.A detailed description is given below.
Formal communication
It is acommunication system in which information is communicated througha proper
established channel of communication in an organization.Thee are four types of formal
communication.
Upward communication channel:In upward channel of communication, the
communication starts from the lower level, that is from the subordinates to convey their message
to the higher authorities (Tourish, 2020).The purpose of this channel to send messages related to
any complaint or appeal, giving feedback, ideas or suggestions. It is slow process and it includes
reports, letters or proposals. This method is participative in nature.
Downward communicational channel:In this form of communication, the message is
communicated from top authorities to the subordinates and other lower level of the organization
pertaining to the objectives and strategies (Brewster and et.al, 2017). It is a formal chain of
command with the main purpose to give orders and instruction or delegating responsibility. For
example, circulars and notices.It is method is directive and authoritative in nature.
Horizontal communication channel:In this channel of communication, information
flows between the persons on the same position or level (Cornwell, Howard-Grenvilleand
Hampel, 2018). The main purpose of it is to coordinate the activities effectively among various
departments and divisions. This method, has a high degree of informality and most part of
communication is done orally and message can be conveyed without any distortion.

Vertical communication channel:Under this, communication flows between the
subordinate and the superior. The purpose of it is to provide relevant or necessary information in
the form of orders, instruction or directives to the subordinates and also receiving feedbacks in
upward direction (Felipe Gómez and Dailey, 2017). In this, people from different departments
communicates with one another. This method is more formal than horizontal communication and
is done mostly in written form and goes through a long line of communication. There are
chances that message may not be communicated properly.
So, based on the above points the best mode of communication will be all the fourfor the
Hilton hotel. It can be applied to any functional department as each and every department is
interrelated.As the marketing department can easily communicate with another department on
the same level without any hazzle because of the informality present in the channel. Also, it can
convey its information to top management and visa versa. It will also help organization in pacing
responsibility and delegating work. The only important thing is that employees should be aware
of the communication structure for increasing its effectiveness. This result in effective
monitoring of the performance of eth organization separately and department wise.
Also, as all the departments will be working together closely adds value to the
organization. As employees will be more happy and feel motivated towards the achieving
organizational objectives which is because of the efforts put by the organization for the
betterment of the employees. A partnership is required to be created between the organization
and its various departments which will yield many benefits such as increase in market share,
positive brand image, improved services quality, better performance etc. So, all these factors
help Hilton hotel in strengthening its value chain.
CONCLUSION
It can be summarized from the above it takes a lot to manage the hospitality business.
There are various stages or HR life cycle a specific job role has to goes throughand reviewing
each stage to retain talent in the organization.Also, the various rules and regulations which are
essential to be followed by the hospitality organization and the impact of it on their decision-
making process.The interrelation between various functional units in hospitality industry and the
identifying the best communication methods for strengthening the value chain of the
organization.Thus, all these factors are essential for managing hospitality organizations.

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