Hospitality Business Toolkit: Financial and HR Management Report

This report provides a detailed analysis of financial and human resource management within the hospitality sector, using Elcot Park Hotel as a case study. It begins by investigating the principles of managing and monitoring financial performance, including the application of the double-entry bookkeeping system, the use of ledgers, and the production of a trial balance. The report then assesses the management of the human resource lifecycle, focusing on HR strategies, developing performance management plans, and addressing potential impacts of legal and ethical considerations. The report examines how company, employment, and contract law impact decision-making in the context of Elcot Park Hotel. Key topics include financial record-keeping, HR lifecycle management, performance planning, and ethical considerations relevant to the hospitality industry.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Investigating principles of managing and monitoring financial performances......................1
Application of Double entry Book-keeping system...............................................................4
................................................................................................................................................5
Ledgers:..................................................................................................................................6
Producing basic Trial balance................................................................................................9
Trial Balance........................................................................................................................10
ACTIVITY 2..................................................................................................................................10
Assessment of managing Human resource Life cycle in context of HR strategy................10
Developing Performance management plan.........................................................................13
Potential impacts of legal and ethical considerations on Elcot Park Hotel..........................15
How Company, Employment and Contract law impacts decision-making in Elcot Park Hotel
..............................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Hospitality sector is one of the most integrated sector of business with the social life of
people in modern world. People make use of Hotels and its services occasionally, professionally
as well as regularly. Also, the business have developed and making continuous development in
order to cater all the demands of users and also tries forecasting demands of future so they can
make developments in advance. Through this way it harbours needs of society and is engaged in
making their moments of life, like Tour and Trips, marriages, functions etc. more delightful and
enjoyable. While fulfilling these purposes, the Hospitality industry have thus becomes a full-
fledged business in itself and have acquired various gradings, types and classification (Buhalis
and Leung, 2018).
Through this report it have been tried to comprehend different business operations and
dimensions involved in Hospitality sector. And for the purpose of bringing more clarity a case
study on Elcot Park Hotel is carried out.
The report first discusses about how Elcot Park Hotel manages and carry their Financial
recordings, what tools and methods its uses, what are its source documents and their principles of
monitoring financial performance. Secondly, a discussion on the role of Human resource
manager is made. The report discusses about Human resource lifecycle as part of HR strategy,
importance of retaining and developing talent followed by understanding and developing
performance management plan. Followed in the report discussion are various ethical and legal
issues which are confronted by Hospitality sector.
ACTIVITY 1
Investigating principles of managing and monitoring financial performances
Financial performance of any business deals with the organisational efficiency to cater,
retain, manage and grow their financial sources. Financial sources includes those sources that
helps any business to raise funds, it can be business's own capital, money of Shareholders,
outsourced borrowings from financial institutes, debentures, bonds etc. and gains from
investments. In order to keep a track record of every financial sources, what is its cost for
business and to identify its profitability a business must keep a proper record of these sources
and all the transactions pertaining to it (Camilleri, 2020). Likewise, in case of Elcot Park Hotel,
the business maintains its financial records in a complete process and defined order, that includes
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knowing basics from daily receipts and vouchers of all transactions taking place of different
business operations, recoding them over a ledger and accounting transactions of each component
in their respective accounts. Further, the process of recording follows maintaining Trial balances
from ledger and finally preparing Cash flow statements (tracking inflow and outflow of cash in a
business cycle) and analytical accounts, to know actual performance of business. While carrying
out this complete process, that nearly takes one business cycle, Elcot Park Hotel follows a set of
principles that helps it to not only maintain records but also manage its financial performance
very efficiently (Chang, 2018). These principles are:
Consistency- This principles states that there should be a standard manner of identifying,
recording and analysing the business transactions in the organisation as seen in the case of Elcot
Park Hotel that there is a specified process from receipts and vouchers to final analytical
accounts. This specified path helps organisation to monitor the transactions efficiently and draw
conclusion thereon.
Timeliness- Under this principle it is observed that the transactions should be recorded within a
reasonable time frame. For example if any guest in the hotel checks-in in September and leaves
the hotel within a week, but its records of bills payment, food orders etc. are made in November,
then this fault will affect all other transactions from September to November be it regarding cash
flow, food, use of telephonic facilities, Internet service etc. and the complete financial picture
will be disturbed for Elcot Park Hotel.
Justification- The principle mention that, there must be good and clear justification or
explanation about happening of any transaction at the time it actually took place supported by
business goals. This helps Elcot Park Hotel in avoiding vague and useless transactions in the
business records (Filimonau and Delysia, 2019). Vague transactions are those which do not
provide clear picture of what actually in a particular event. Avoiding vague transaction is helped
by maintenance of proper, clear and separate accounts supported by effective classification of
accounts.
Documentation- The principle states that every transaction takes place shall be properly
documented in a specified manner and under specific procedure of business organisation. This
principle is an aid to the justification principle and together both of these principles helps Elcot
Park Hotel to lay out clear picture from their financial transactions.
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Certification- Principle of Certification mentions that all documents and records of transactions
in the business must be certified by proper authorities with in as well as outside the business, and
contain signature of necessarily authorized persons. This principle will help Elcot Park Hotel to
project reliability of their financial data (Gnanapala, 2017).
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Application of Double entry Book-keeping system
Double entry book keeping system is a process of recording financial transactions in a
business organisation or any other organisation under which transactions are recorded in two
way manner. That means for every transaction entries shall be made in two accounts. In this
process there are two sided, one is Debit side and the other is credit side, shown in left and right
side of each account respectively. This system is followed by Elcot Park Hotel while carrying out
their financial recordings. Moving ahead in this process it is necessary for businesses to maintain
accounts of each sort of category differently. For this purpose there are three types of accounts
specified in this system, that are Real accounts (accounts of all the assets of organisation),
Personal accounts ( accounts of all associated persons with business like Debtors and Creditors)
and Nominal accounts ( accounts of all incomes and expenses). Mentioning of accounts, there
are three rules of each type of account, called Golden rules, that are followed during maintaining
and recording transactions. These rules guides recorder or accountants to undertake their job
(GORYUSHKINA and et.al., 2019). This book-keeping system have helped Elcot Park hotel and
many other business in the way that since for every transactions there are two entries in two
different accounts, in which one account is debited and the other is credited, thus in end
calculations of Balance sheet all the Debited balances and all the credited balances should match
with each other. If in any case the balances do not seem matching it means some financial errors
have occurred while maintaining records.
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5

Ledgers:
Cash a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
04/03/
20
To capital a/c 30000 05/03/2
0
By rent a/c 1000
18/03/
20
To sales a/c 20000 06/3/20 By purchase a/c 10000
20/03/
20
To sales a/c 13000 07/03/2
0
By Prepaid
insurance policy a/c
1200
11/03/2
0
By Laundry fees a/c 200
15/03/2
0
By Telephone and
internet expense a/c
2220
15/03/2
0
By Water charges
a/c
950
16/03/2
0
By Wages and
salary a/c
31/03/2
0
By balance c/d 47430
63000 63000
Capital a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
6

31/03/
20
To balance c/d 30000 04/03/2
0
By cash a/c 30000
30000 30000
Rent a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
05/03/2
0
To cash a/c 1000 31/03/2
0
By balance c/d 1000
1000 1000
Purchase/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
06/03/2
0
To cash a/c 10000 31/03/2
0
By balance c/d 40000
06/03/2
0
To vendor a/c 15000
09/03/2
0
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR
CR
Date Particulars J Amount Date Particulars J Amount
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F F
07/03/2
0
To cash 1200 31/03/2
0
By balance c/d 1200
1200 1200
WH Adams Ltd a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
31/03/2
0
To balance c/d 15000 09/03/2
0
By purchase a/c 15000
15000 15000
Laundry fees a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
11/03/
20
To cash a/c 200 31/03/2
0
By balance c/d 200
200 200
Telephone and internet expense a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
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15/03/
20
To cash a/c 2220 31/03/2
0
By balance c/d 2220
2220 2220
Water charges a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/2
0
To cash a/c 950 31/03/2
0
By balance c/d 950
950
Wages and salary a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
16/03/2
0
To cash a/c 1740 31/03/2
0
By balance c/d 1740
1740 1740
Sales a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
31/03/2
0
To balance c/d 33000 18/3/2
0
By cash a/c 20000
20/3/2
0
By cash a/c 13000
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33000 33000
Producing basic Trial balance
Required in the Double entry Book-keeping system that there should be maintenance of
separate accounts of different types business operations and components, for example Cash a/c,
Plant and Machinery a/c, Debtors a/c and Creditors a/c (by their names) etc. For very
transactions pertaining to these accounts, there is either a debited entry or a credited entry.
Similarly, when balances from each account will be drawn then they either lie in the debited side
or credited side. These balances which are carried forward for next year are listed in Trial
balance of business. Trial balance too have debit side in left and credit side in the right, in which
balances of various ledger accounts are listed against their names (Li, Xu and Yu, 2017) .
This supported Elcot Park hotel in identifying any mismatch between their debit and
credit balances. Further balances listed in Trial balance are used in preparing Trading and Profit
and loss account, and Balance sheet.
Trial Balance
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ACTIVITY 2
Assessment of managing Human resource Life cycle in context of HR strategy
Human resource Life cycle is the continuous process of certain activities in which a
Human resource manager seems engaged continuously in his entire career as a Human resource
manager either within any particular organisation or in different organisations. This process is
called life cycle of HR for this reason only.
The report shall be discussing life cycle of HR in Elcot Park Hotel. What are different set
of activities and strategies that HR manager undertakes in order to seek individual, employees
and organisational growth(Maleka and et.al., 2020). For a better understanding of this issue, a
crucial job in hospitality sector, of Receptionist, is taken.
Human resources Life cycle
Business strategy- Business strategy is a set of several priorities of a business organisation like
Elcot Park Hotel which a Human resource manager keeps in mind and try to align it with every
other strategy and planning involved (Načinović Braje and et.al., 2020). Strategies of Elcot Park
Hotel like harbouring guests indiscriminately, fixed pricing standards etc. has to be kept in mind
by Human resource manager while undertaking its responsibilities and communicating the same
to others.
HR strategy- Based on the the lines of business strategy, Human resource manger intends to
prepare strategies and strategic priorities of HR functions which are in alignment with business
strategy. Its alignment is important for achieving organisational goals holistically and
advancement of business goals (Ogbari and et.al., 2018). Like Elcot Park Hotel follows fixed
price standards and HR shall keep it in consideration while carrying orientation to Receptionist
and Front office desk employees.
Organizational design- HR prepares Organisational design based on certain principles like
specialisation, coordination, knowledge and competence, control and innovations. Based on
these principles organisational design is prepared aligning with business missions, goals and
competitive strategies. Organisational design includes deciding different departments, their
hierarchy, their functions and their standards of practices.
Job and Team design- Under this stage Human resource manger designs a particular job and
specifies their standards and competency levels. For example, while making design for
Receptionist job, HR have to sets out different elements like requirement regarding its
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qualifications, understanding of different language, understanding of human behaviour,
experience requirement, communication skills requirement, knowledge of computer etc. which
shall be involved in a job of Receptionist (Okwir and et.al., 2018). Similarly under a team
design, HR sets out various task that a group of people, like Housekeeping, facilities and
Security teams, will perform and how they would coordinate while carrying these.
HR planning- Under this task the HR makes a forecast related to expected demands of
employees and from listing out different sources to meet this demand. For example, while
seeking to meet demand of Receptionist, HR takes note of all the business units of Elcot Park
Hotel where this requirement has to be met and then goes on listing down sources and manners
through which these requirements will be met like publishing job advertisement, contacting
placement agencies etc.
Vision and culture- While sorting any job, its requirements, employees that will perform the
job, their job functions and responsibilities, communication and coordination among employees
and departments and many more functions of Human resource management in line, the manager
must be clear about vision of organisation and its culture. Vision and culture of organisation tells
that what are the aspirations of company and what it will it become in future.
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Recruitment and selection- After HR is clear about all other aspects like, Job function, design,
organisational design, planning, strategy etc., in next it go for recruitment of potential applicants
who applied for Receptionist job and who are eligible for the same. From recruitment to
selection of employees HR undertakes different activities like screening of applications,
engaging them in preliminary screening interview, group discussions, holding final interview,
analysing results and making final selections to support business objectives.
On-boarding and Induction- After making selection from available applicants, it is important
to aware these beginners about organisations goals and objectives as well as their duties and
roles to perform in order of fulfilling these objectives, which will help in collective growth of
Elcot Park Hotel and individuals themselves. As a Receptionist, HR have to induct employees
about types of guests that visits Hotel, manner in which communication will be established with
them, how to resolve their queries, to make entries of Check-in and Check-out and follow up
actions thereon.
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Illustration 1: Human Resource Cycle

Assessment and Appraisal- Monitoring the performance of employees, checking whether they
are meeting desired resul6ts, identifying faults in performance and helping them to resolve are
some more functions for HR. For the employees who are performing well and desirable it is
necessary to reward them for their performance and make promotions.
Training and development- Training and development of employees is continuous process. It
helps employees to meet requirements of changing standards of work with time. This helps
employees also to acquire new knowledge and increase their competency.
Engagement and Reward- For employees, it is obvious that their job stops exciting them
anymore and they finds it monotonous. Due to this they starts deviating from their role. Like for
receptionist, communicating continuously with guests, helping resolving their doubts which are
same mostly, standing for long etc. can make their work seem boring to them. HR should help
these employees, listen to their problems and motivate them to engage in work time to time
(Wadhwa and Guthrie, 2018).
Exit- When any employee intend to quit job in the organisation, HR should try and find out what
are the reasons for his exit and try its best to retain a competent employee in the business. Even
after an employees exits company, that employees presents itself as the sponsor of organisation
in the outer world, convey to the people about business operations, standards and practices.
Developing Performance management plan
Performance management is the task that enables HR to foster continuous growth in the
performance of employees and helps them in aligning with the changes led by time. Through the
process of performance management an HR monitor the performance of employees, check the
standards of performance, identify deviations an motivate employees to reform and engage them
in working more zealously. Task of performance management is thus a little complicated and
requires behavioural as well as scientific approach. This can not be necessarily done in absence
of proper strategy and plan. A performance management plan may include:
Define and communicate company goals and performances- An HR manger shall make
continuous attempt for making employees aware about the goals of organisation and what are the
contributions of their job role in achieving these objectives. For Elcot Park Hotel, the manager is
needed to not only look at the performance of employees but also their behaviour and
communication skills with guests as well as colleagues, as poor communication can the
sentiments of guests may downgrade the hotel reputation.
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Utilizing performance management software- Performance management software is a tool that
helps monitoring performance of employees as per set standards. This is really quick and
efficient method to measure the levels of performance. In Elcot Park Hotel, this is helpful as
there are numerous employees working in different departments ranging from management to
kitchen, housekeeping, servants, facilities and securities.
Offer Frequent performance feedback- Feedbacks are very helpful in the manner that they
provides opinions of other. It helps understanding human performance from human behaviour.
Unlike performance management software that is totally scientific in nature.
Use peer reviews- Peer reviews are like 360-degree reviews. In this, performance regarding
reviews are sought not only from the guests and users but from the employees also.
Pre-emptive management and Recognition- To help employees staying motivated and
continuously align themselves with goals and objectives of Elcot Park Hotel, the HR manager
should also attempt to increase morale of employees through rewards and recognition for their
contribution and performance. This will also encourage other employees to raise their standards
of performance.
Set regular meetings to discuss outcomes and results- Also to achieve standards of
performances in employees, Managers are required to make direct communications with
employees and understand their actual grievances and try help them resolving in best possible
manner. HR manager should also engage in meetings with mangers of other departments and
avail suggestions from them.
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Potential impacts of legal and ethical considerations on Elcot Park Hotel
Compliance with the legal standards set by governmental agencies is pre-requisite for any
business to survive in an territorial land. Laws are made by governments keeping in mind
welfare of the society and nation as a whole, therefore all businesses have to stay abide by them,
otherwise they may attract censure from the government and agencies and may face closure.
Some of the legislation that any business in Hospitality sector stay abide by are discussed in the
report.
Licensing Act, 1964- Licensing act requires Elcot Park hotel to obtain license from Government
in order to serve liquor beverages in their hotel. Also this legislation requires cleanliness of
Optics, pipes and glasses.
Liquor control Act, 2003- Passed by UK Parliament, the act mentions a clear and single
comprehensive licensing for England and Wales. The act have replaced different and
complicated licensing acts and bought them under one roof. Elcot Park Hotel is needed to obtain
it from local authorities for serving liquors and carry out late-night refreshments.
Equality Act, 2010- This act is the basis for equal treatment of all the people in society. Under
this Act, Elcot Park Hotel is required that it should not discriminate any of its guests or any
person associated with the business on the basis of religion, race, ethnicity, political belief etc.
Also, the company is required to protect interest of any people who are vulnerable to such
discriminations within Hotel premises.
Health and Safety Act- Under this Act, Elcot park Hotel is required to maintain all the
standards that are required to protect and promote health and safety of their employees.
How Company, Employment and Contract law impacts decision-making in Elcot Park Hotel
Company Law- Company law is a law under which any business organisation have to register
itself. Also the act provides specific guidelines and formalities that a business have to comply in
order to seek registration. The act impacts decision-making in any business in many ways, for
example, whenever Elcot Park Hotel makes changes in their goals, missions or even office
address, they have amend its Memorandum of Associations filed the Company law and have to
acquire prior permission for the same with concerned authorities (Zembylas, 2020).
Contract Law- This law governs the different type of business contracts that could be made for
carrying business operations. The act is impactful over the decision-making in Elcot Park Hotel
business, for example whenever the company engages in any business contract, like with any
16

digital marketing platform, then the business can not make even minor changes on its own
because the act require proper negotiations and rounds of meeting along with required
signatories signing under their names.
Employment Law- Under the employment law Elcot Park Hotel is required to take care of
several employment and service conditions regarding their employees, their working hours, work
safety conditions etc. The act is impactful in several ways, for example it cannot exceed working
hours voluntarily and for any breach of health and safety standards business is liable to pay
compensation to employees.
CONCLUSION
From the discussions in the report it can be concluded that the hospitality business have
involved different dimensions in business operations, the clarity of which became prominent
through a case study on Elcot Park Hotel business. The report helped understanding how
businesses in Hospitality sector maintains their accounts using Double entry system of book-
keeping, what are its system's significance and their usefulness to the business. The system of
debit and credit entry system and its mismatch in Trial balances helps business identify financial
errors easily. An understanding of role of HR lifecycle and strategy are also depicted in the
report. Different stages that are involved from Business strategies to developing HR strategies,
preparing organisational and job designs, recruitment and selection of employees for particular
job, like Receptionist, as discussed in the report, their Training and development to their Final
Exit from organisations, crucial roles performed by HR are comprehended. Necessity of
performance development plan and discussion on its contributions helpful in collective growth of
employees and organisation both were followed by understanding impacts of different legislation
on business operations and environment.
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REFERENCES
Books and Journals
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management, 71. pp.41-50.
Camilleri, M. A., 2020. Strategic corporate social responsibility in tourism and hospitality.
Camilleri, MA, Strategic Corporate Social Responsibility in Tourism and Hospitality.
Sustainable Development. pp.1-3.
Chang, S., 2018. Experience economy in the hospitality and tourism context. Tourism
Management Perspectives, 27. pp.83-90.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism management, 71. pp.234-245.
Gnanapala, W. A. C., 2017. Public relations in hospitality marketing. Routledge Handbook of
Hospitality Marketing. p.197.
GORYUSHKINA and et.al., 2019. Theoretical Aspects of entrepreneurial Education for
hospitality Industry. Journal of Environmental Management and Tourism, 10(4).
pp.835-841.
Li, H., Xu, Y. H. and Yu, L., 2017. Predicting hospitality firm failure: mixed sample modelling.
International Journal of Contemporary Hospitality Management.
Maleka and et.al., 2020. Performance management, vigour, and training and development as
predictors of job satisfaction in low-income workers. SA Journal of Human Resource
Management, 18. p.10.
Načinović Braje, I., Pavić, I. and Ferjanić Hodak, D., 2020. EMPLOYEE-RELATED
INDICATORS IN THE NON-FINANCIAL REPORTING IN HOSPITALITY
INDUSTRY. Ekonomska misao i praksa, 29(2), pp.559-578.Miller, R.A., 2017. On
Hostility and Hospitality: Othering Pierre Legrand. The American Journal of
Comparative Law, 65(suppl_1). pp.191-206.
Nikolskaya and et.al., 2020. Formulation of development strategy for tourism and hospitality
industry. International Journal of Management (IJM), 11(3). pp.467-474.
Ogbari and et.al., 2018. Talent management as a determinant of firm performance: A conceptual
approach. Business & Social Sciences Journal (BSSJ), 3(1). pp.21-32.
Okwir and et.al., 2018. Performance measurement and management systems: a perspective from
complexity theory. International Journal of Management Reviews, 20(3). pp.731-754.
Wadhwa, P. and Guthrie, J. P., 2018. Strategic human resources management and organizational
effectiveness in hospitality settings. American Journal of Management, 18(1). pp.10-24.
Zembylas, M., 2020. From the ethic of hospitality to affective hospitality: Ethical, political and
pedagogical implications of theorizing hospitality through the lens of affect
theory. Studies in Philosophy and Education, 39(1). pp.37-50.
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