Premier Inn: Financial Management, HR Cycle, and Legal Compliance

This report analyzes the operations of Premier Inn, a UK-based hospitality business. It begins with an examination of financial management principles, including transaction recording, the double-entry system, trial balance formulation, and performance measurement techniques like ratio analysis. The report then delves into the HR cycle, outlining recruitment, orientation, career development, employee retention, and termination processes, with specific examples from Premier Inn. Furthermore, it explores the role of performance management in addressing negative employee behaviors, detailing planning, monitoring, reviewing, and rewarding stages. The report also covers relevant legislation impacting the hospitality business, such as the Licensing Act, Health and Safety Act, Liquor Control Act, and Equality Act, and their implications for Premier Inn. Finally, the report investigates the importance of departmental coordination, communication methods, and integration techniques for effective business operations within the organization.

The Hospitality Business Toolkit

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Brief description regarding principle use for managing & monitoring financial performance.
................................................................................................................................................3
Use of double entry system for recording transaction............................................................4
Formulation of trial balance...................................................................................................8
TASK 2............................................................................................................................................9
Demonstrate different stages of HR cycle with relevance to selected company....................9
Explain the role of performance management plan in order to eliminate negative behaviour of
staff.......................................................................................................................................10
TASK 3..........................................................................................................................................11
Determines the legislation with relevance to hospitality business that need to be adhere.. .11
Determine effects of company, employment and contract law within hospitality context on
decision making....................................................................................................................12
TASK4...........................................................................................................................................13
Explain relation of departments and different communication methods used in the
organization..........................................................................................................................13
Determine coordination and integration impact on business operations and different
communication, integration and monitoring techniques adopted by organization...............14
CONCLUSION..............................................................................................................................16
REFERENCE.................................................................................................................................17

INTRODUCTION
Hospitality industry consist number of fields within service industry that includes lodging,
food and drink services, prevent planning, transportation, theme party etc. all these provide
services in order to full fill the needs of consumer (Kim and Im, 2018). Their main aim is to
support the wellbeing of people. Following report is based on Premier Inn which is a UK based
organisation. This company provides various services to consumer. It operates its business at
various locations that includes city centre, suburbs, airport competing with brands like
Travelodge and lbis hotels. Present assignment covers discussion about finance management, HR
cycle and its operation within company. Also influence of legal and ethical consideration,
significance of coordination and communication among all departments in order to get effective
outcomes.
TASK 1
Brief description regarding principle use for managing & monitoring financial performance.
Finance is playing a very effective role in enhancing business functioning in Hospitality sector. It
is adopted for the objective of managing of resources in a systematic manner according to laid
business objectives. In Premier Inn there are certain principles used for the purpose of managing
financial performance of organisation:
Recording of transactions: It is one of the basic principles where organisations have to record
all the transactions according to available business assets (Gomaa, Gomaa and Stampone, 2019).
Management in Premier Inn is working towards formulation of system and policies by recording
of each business transaction according to the book keeping system, journal, and ledger in
systematic manner.
Principle of double entry system: For the purpose of recording of transaction there is need to
follow the principle of double entry that is based on assumption of having dual impact on the
business.
Principle of measurement of performance: for the purpose of managing of financial resources
managers in Premier inn are using some of the techniques of evaluating the achieved
performance level such as 360 degree analysis for employee performance and ration analysis as a
quantitative technique for the objective of measurement of financial performance there is use of
ratio analysis.

Principle of risk & return: It is a principle that is based on assumption that return and risk are
going parallel. If there is high-risk that an organisation is willing to assume then probability of
return also increases. For the objective of achieving higher profit managers in premier Inn have
to take risk is that their overall operations can take place with chances of higher returns (Kim and
Jeong, 2018).
Principle of using technique of financial management: There are many associated principles of
financial management that have to be followed in an organisation that include inventory
management, capital budgeting, ratio analysis in the process of managing financial transactions.
Use of double entry system for recording transaction.
In each sector of business operations there is need to maintain records for this managers are
using double entry system & also book keeping system also that each transaction is timely
recorded and has a dual impact on the business. Following are some of the associated principles
of ledger and journal for the purpose of recording of transactions:
Ledger is prepared after completion of journal entries and in this each account is opened
separately for the purpose of recording of transactions (Cheah, HoP and Li, 2018). There is
recording of transactions in a chorological order. It is very helpful in premier for the objective of
classification of expanse based on an advertisement, materials and capital. In Premier inn this

technique is assisting in recoding of systematic data that can be used as a evidence of audit
procedure.

Formulation of trial balance.
Trial balance can be defined as a list that includes different ledger accounts that cost of both
capital and revenue part of business. In this there is each nominal account with a value of
nominal ledger balance that is holding with a credit or a debiy balance depends on the nature of
account (Ezeuduji, Chibe and Nyathela, 2017). In Premier inn trial balance is prepared
periodically at the end of reporting period where the general objective of reducing a trail balance
is to ensure that entries in book keeping system are mathematically and timely recorded. If the
total of debit and credit is equal that leads to reduction of mathematical errors and if there are
any type of missing transactions that can also be very easily identified by use of trail balance as a
technique of recording of transactions. There are some accounts adopted for the purpose of
recording multiple transactions at the end of account period losses and expenses provide a debit
balance and equity, revenue, liability, gain are providing a credit balance.
Systematic procedures are applied for the purpose of formulation of trail balance. In
Premier inn it leads to identification of business or transaction errors materials stages and also
leads towards finding the closing balance of each associated account of the business.

TASK 2
Demonstrate different stages of HR cycle with relevance to selected company.
Human resources life cycle can be defined as a continuous cycle that is undertaken by
entities of organisation in order to leads the business activities in effective manner. Respective
cycle hold five phases which are as follow:
Recruitment- This is considered as one of the most and important phase of human
resources life cycle as it help in making effective strategies that influence and recruit new &
highly skilled employee for the betterment of company (Mejia and Torres, 2018). The
recruitment procedure of respective company conduct with the primary aim of hiring effective
and efficient workforce who assist them in successful execution of strategies as well for
accomplishing long term goal of business.
Orientation- This reflect the second phase of Human resource life cycle that includes all
that activity which is offer by management team of company to new candidates on their first day.
It provides them clarity about role, responsibility and allotted them their task so that they will
engage towards their work and focus on business goal. This is mainly quick review of role that is
been assigned to employee in order to understand work and make them engage.
Career planning and development- This involve improvement of skills and knowledge of
employee in order to effective operates the operation of company as well as for opting new
technologies within company. It enhances skills and abilities of candidates and that assist them to
effectively develop their career. With respect to chosen firm, they support career development
for the advancement of employee so that they will able to perform their assigned role in well and
effective manner.
Employee retention- This tends to a subsequent last step of HR cycle which concentrate
to retain their skilled and experienced workforce of corporation in order to reduce the turnover
ratio of employee as it increase, investment realted with recruitment increase. Therefore,
respective company provides number of financial and non-financial benefits to hold their staff.
Employee termination- It is the last phase of Human resources cycle, this help
management team in assigning the task to employee according to their capabilities, skill and
experience. So that they will effectively perform their assigned and got get stuck anywhere. The
management team of Premier In focuses on having a good communication with their employees
in order to establish strong and effective ream within company.

Explain the role of performance management plan in order to eliminate negative behaviour of
staff.
Performance management can be defined as a technique that support management team of
company in order to improve the performance of employee so that predefined goal can be
accomplish. With relevance to hotel Premier Inn, entities of performance management are
responsible in order to manage the negative behaviour of employees so that productivity of
company will not affected and they will able to attain all goal within given time. Different stages
of performance management plan is discussed below:
Planning: It is the initial step that helps company to make boundaries and path that need to
be carry out for the accomplishment of organisational goal within small time effectively
(Kozlov, 2017).
Monitoring: Once Planning is done, need of monitoring occur that help managers to monitor
all activities/ function that is performed by all personnel to ensure that all operation are
performing in right and effective manner.
Reviewing: After monitoring, managers of company measure all performed task and
compare with the set goal in order to identify the gap. If gap occur then try to overcome that by
taking some significant step.
Rewarding: In reviewing process those who perform well and not faces any gap will get
reward and those candidates who are capable of meeting desired goal will compensate.
For Example:
Performance management plan for newly appointed Account assistant-
Problem
recognisance
Employee
engagement
Set clear
objective
Training
programmed
Performance
review
Face problem in
managing all data
and records.
There is
requirement of
effective and
significant
training
programme as
well proper
guidance to
Development in
skill that are
realted with
management of
data.
With the
assistance of
higher executives
of company as
well as senior
who are same
filed, employee of
company will
After 6 month
completion of
training period,
performance will
be review.

overcome this
problem
able to eliminate
this problem and
successfully
accomplish their
goal.
Face problem in
accounts while
recording entries.
It can be
eliminate by
giving proper and
effective training
in accounting to
those who have
need.
To enhance
knowledge of
employee in
accounts
By organising
effective and
required
training /class of
accounts. Also
employee need to
look into some
books and
presentation to
overcome this
issue.
Performance
would be review
after 3 months
completion of
training.
TASK 3
Determines the legislation with relevance to hospitality business that need to be adhere.
To sustain in industry for long time and organising all operation in smooth & legal
boundaries, each company need to follow all rules and regulation that are enforced by authorities
of government. Premier Inn has resolute number of legislation that assist them to survive in
hospitality industry for longer period. Few of such regulation with relevance to selected firm are
as follow:
Licensing Act 1964: Liquor licenses are granted by the UK government to
administrations that allow them to supply alcoholic beverages. The organization concerned is

obliged to have a public hall to serve alcoholic beverages. The relevant establishment is required
to obtain a restaurant license while serving alcoholic beverages.
Health and safety act 1974: This act is realted with the safety of physical and mental
health of employee within company. Execution of policies/ strategies with respect to well-being
of their workforce is critical for the significant firm as it not only generates a positive and
healthy working environment, but also give satisfaction to employee which helps corporation to
maintain success for a long time in market and have good image too (Melissen and Sauer, 2018).
Liquor control act 2003: Legislation was passed to provide a customized plan for licensed
property in England and Wales, for people offering alcohol for orderly recreation or after-hour
rejuvenation services, with alcohol-related complications. Those who were authorized to sell
alcohol. As a personal permit to reduce the campus license.
Equality act 2010: This Act was implement by government in favour of employee right
within company. As all employee needs to be treated equally in order to reduces the
discrimination based on age, gender ethnic identity, sexual orientation etc. it includes all policies
that are mentioned in EU legislation and explains all rules of employees right instead of their
position.
Determine effects of company, employment and contract law within hospitality context on
decision making.
Employment law, contract law and company law have huge impacts on decision making process
of company with relevance to current chosen firm, they use enhancement in order to operate
business in effective manner and all that practices which are mentioned below help entities to
meet their goal successfully:
Company law: This is linked with the decorum and protocol of organisation of business
activities. As entities of company need to follow all rules and regulation for successful execution
of operation. In context of hotel Premier Inn, company have to obey all policies/ rule that assist
them to carry out their business function effectively and smoothly. As well as able to combat
with any uncertainty that will occur.