Financial Performance, HR Lifecycle and Legal Compliance at Travelodge

This report provides a comprehensive analysis of Travelodge's financial performance, human resource management, and legal compliance. It begins by describing the principles of managing and monitoring financial performance, including the use of balance sheets, annual reports, and key financial indicators. The report then applies the double-entry bookkeeping system to record sales and purchases and produces a basic trial balance. Following this, it reviews the stages of the HR life cycle, focusing on the role of the HR manager, and develops a performance management plan. The report also identifies specific legislation, such as the Data Protection Act and Health and Safety Law, that Travelodge must comply with and discusses the impact of company, employment, and contract law on business decision-making. Furthermore, it explores the interrelation of different functional roles within the hospitality sector and presents various methods of communication, coordination, and monitoring. The report concludes with a summary of the findings and provides relevant references.

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Describing principles of managing and monitoring financial performance................................1
Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..................................................................................2
Produce a basic trial balance.......................................................................................................3
LO2..................................................................................................................................................4
Review the different stages of the HR life cycle for HR Manager of Travelodge .....................4
Performance management plan for HR Manager........................................................................6
Identify specific legislation that a hospitality organisation has to comply.................................7
How company, employment and contract law has a potential impact on business decision-
making ........................................................................................................................................7
How different functional roles within the hospitality sector interrelate ...................................8
Presenting different methods of communication, coordination and monitoring ........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry provides different services such as lodging, food, drink services,
theme parks and cruise lines etc. In the same way, the chosen company for this report is
Travelodge which is one of the top and leading travel company in UK, who provide different
services to the firm as per analysing the demand of their customers. Report will describe the
principles of managing and monitoring the financial performance and produce trail balance by
applying the use if balance off rule to complete the ledger. Further, study will review the stages
of HR life-cycle and develop a performance management plan for HR Manager of the company.
It will also describe specific legislation that company must adhere and then explore interrelation
of different functional roles and explain different methods of communication, coordination and
monitoring.
LO1
Describing principles of managing and monitoring financial performance
The financial performance of Travelodge is stable such that its Balance sheet and Annual
report shows that the company is in profit. The sales of its services is increases from last years
and this shows that it has stable financial performance.
There are different principles of managing and monitoring the financial performance of
Travelodge such that:
 The budget of company should achieve the goals and objectives of a business. Therefore,
the budget should be realistic and attainable.
 A budget plan help to increase the resources or modify the goals or objectives if the
current resources are fall short in order to meet business need.
 A manager of the company should determine the cause, evaluate the activity when the
financial results may vary significantly from the budget (Chandra, 2018).
 Further, another principle is such that all the expenditure should comply with all the
relevant policies, rules and regulations
 Next, is each unit should also be evaluate the financial consequences before starting a
new activity and a current activity may be changed.
The indicators are as mentioned below:
Balance Scorecard: It is the performance metric and strategic management tool that
helps to identify and improve the various internal functions of a business. Therefore, it is used to
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measure and provide feedback to an organization (Parmenter, 2015). Thus, by using Balance
Scorecard into the working area will help to provide better strategic planning. It also helps to
provide powerful framework in order to build and communicate the strategy.
Bench marking: The tool also helps to determine best practices of a firm from other
companies in the term of quality, time and cost. Further, the tool also help to gain an independent
perspective about how well the company is performing and also drill down the performance gaps
in order to identify the areas for improvement (Cox, Issa and Ahrens, 2015).
Apply the double entry book-keeping system of debits and credits to record sales and purchases
transactions in a general ledger
Journal Entry Explain financial performance in a hospitality oies
Date Particular Debit (£) Credit (£)
2nd April Room rent A/c Dr 200
To room sale 200
2nd April Tax A/c Dr 2000
To room sale 2000
2nd April Room sale A/c Dr 150
To refund 150
2nd April Table A/c Dr 100
To credit 100
2nd April Pens A/c Dr 20
To Bank 20
2nd April Staff Wages Dr 5000
Staff payment 5000
2nd April Staff equipments 100
To staff payment 100
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Room sale Account
Date Particular Amount Date Particular Amount
2nd April To room rent 200 By refund 150
To Room- tax 2000 by balance c/d 2050
2200 2050
Equipment
Date Particular Amount Date Particular Amount
2nd
April To Table 100 By balance C/d 120
To pens 20
120 120
Staff payment
Date Particular Amount Date Particular Amount
2nd
April Staff wages 5000 by balance c/d 5100
100
5100 5100
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Produce a basic trial balance
Particular Debit (£) Credit (£)
Room Purchase A/c 150
Equipment A/c 120 100
Staff Payment A/c 5100
Suspense A/c 5270
5370 5370
LO2
Review the different stages of the HR life cycle for HR Manager of Travelodge
This is for HR manager (Hospitality job role) in food and beverages department of
Travelodge:
HR life cycle identifies the different stages a worker advances in an organization and the
role of HR in this cycle is optimizing that progress. Further it is the concept that describes the
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stage of an employee's time with a particular company. For HR life cycle, there are five different
stages which are as mentioned below:
Recruitment: It is the process of hiring the employee by HR Manager. Even the success
of recruitment phase is quite essential to run the business in effective way. There are many
advance techniques available in market for recruitment such that Travelodge may use Talent
acquisition software which help to design and automate all hiring process and even pre-
employment screening and scheduling interviews are conduct to follow up with candidates
(Dodge and Robbins, 2019).
On-boarding: It is the next stage, where employees accept the job offers and they
become the part of company's workforce. Therefore, in this stage, the HR Manager of the
company provide all necessary information and tools to work efficiently and integrate into the
working culture. Thus, in this stage, employees learn about the company's policies, procedures
and duties and further they also undergo into training for further improvement. Apart from this,
initially the HR Manager of the company also organize induction session in which the new
employee will be introduced to other staff members and co- workers. So that they also feel
comfortable and consider themselves as an integral part of a company.
Enablement: It is the next stage in which the employees are motivated because lack of
motivation also leads to reduction in employee turnover. That is why in this stage, the managers
should be able to connect with employees and even make a bond with them. In this way,
manager are able to retain the employees for a long period of time (Koplyay, Lloyd and Mako,
2014). Therefore, for this stage, HR Manager should be keep them engaged at every level and
praise them for their better performance that helps to grow the business.
Career development: It is the next stage, in which Manager provide different
opportunities to keep employee engaged within a company. If the employee has established
themselves in a company and determine the goals and objectives of a firm. At that time, HR
department of Travelodge should try to help them to meet their goals only if they are realistic. It
is so because it helps to raise their personal growth and provide training sessions in order to
make them more responsible for their position (Wang, 2019). By monitoring their performance,
the manager can easily identify the performance level whether they are best hire or not.
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Termination: It is the last stage in which many employees will leave the company
through retirement or for grab new opportunities for their future. Therefore, In this stage, the role
of HR is to manage the transition by make sure that all the policies and procedures are followed
that also includes an exit interview. Therefore, all the stages should be handled internally so that
it helps to provide best services to manage the employee life cycle.
Through effective HR life cycle, the HR manager of Travelodge will also manage the
positive environment and mitigate the problem of staff retention issues as well. Further, these
stages also help to retaining and developing talent such that that it help s to lead the business at
further level of success. Therefore, it has been identified as a requisite pool of qualified and
talented employees can simply the process of achieving the organizational goal and also help to
focus on various issues which really matter in the interest of an organization. If Travelodge have
talent pool of employees then the goals are easily achieved.
Performance management plan for HR Manager
For HR Manager of Travelodge , the performance management plan is to maximize the
employee work efforts to achieve goals and this is as mentioned below:
Skills to be improved Action taken Resources Time taken
Management skills Through training,
solve the issue of
employee by listening.
Prioritize the
important work
Mentor, trainer 45 days
Decision-making skills Start attending training
session, reading books
Books, trainer 25 days
Communication skill Start attending small
meetings, public
speaking, attending
seminars
Online resources,
trainer
30 days
Techniques to resolve negative behaviour and overcome issue of staff retention:
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 The negative behaviour can be overcome when manager of the firm start listening them
and then provide best solutions.
 To overcome the issue of staff retention, the company should offer competitive pay and
benefits so that it affect the employee performance in positive way (Gupta, 2019).
 Always praise when the employee perform extra ordinary thus it leads to provide positive
working environment and feel comfortable as well.
 Flexibility is another technique that leads to overcome the issue of staff retention and
company should also recognize and reward the employees that helps to increases loyalty
of employees towards firm.
Identify specific legislation that a hospitality organisation has to comply
Legal issues affect the hospitality industry is positive way such that it keeps customer
safe and also protect the industry's reputation as well, while on the other side, if the company did
not comply with the laws, then it creates negative impression upon the business. There are some
important laws which should be adhere by Travelodge such as:
Data Protect Act, 2018: It is one of the most important law that helps a business to
protect their personal or professional information (Dreyer and Schulz, 2019). Further, the law
also ensured that a business should not shared the information without the consent of owner to
third party and if such things happen, then they have to pay penalty as describe.
Health and Safety Law: Travelodge should also comply with this law which states that
the employers must protect the health and safety welfare at workplace of all their employees
(Ingberman and Tesfayesus, 2017). Such that employer should provide proper equipments to
their employees. This act also defines the general duties of employers and employee which they
should be adhering while performing their roles at working area. Therefore, it will help a
business in its smooth functioning.
Employment Law: It is another important law which Travelodge should comply with,
this law is the collection of laws and rules that regulates the relationship between employers and
employees. It also states that the business should pay minimum wages to their employees and if
they extra work for the firm (Breakspear and et.al., 2019). Then it is the duty of the company to
pay extra except from wages. Further, at the time of recruitment and working, no individual
should be discriminate on the basis of race, caste, gender and if firm done so, they will be
penalised as prescribe in the law.
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How company, employment and contract law has a potential impact on business decision-
making
Every law and regulation are very important key element that helps for the smooth
functioning of a business, such that
Company law: This law provides guidance and direction to a business for its smooth
functioning and this also allow business to understand what is expected of them in their personal
capacities. For instance, if there is breach in any law, then the employee of Travelodge have the
right to make complaint against any other party even in a court also regarding any disputes
(Cairns, 2015). Thus, the company law restrain the government and others from infringing on
property rights and also provides a peace and predictable means by which the disputes can be
easily resolved.
Employment law: This law creates direct impact upon the business such that the health
and safety of the employees also creates direct impact upon business. Therefore, employees or
the public can litigate for negligence only when they prove that their loss or damage is the result
of poor health practice. Hence, it will impact the business reputation and less confidence from
the stakeholder in a business (Walsh, 2015).
Contract law: It is basically a legal document that governs the oral and written
agreement and also secure ways for a business to protect themselves from any dangerous events.
This law affect the business in negative way such that most of the small and large business in the
world are now looking for the reliable outsourcing services providers to effectively organize and
manage their contracts, because if any party breach the law, then they should be penalised as per
describe in the law (Stout and Blair, 2017).
How different functional roles within the hospitality sector interrelate
In Travelodge , there are different functional roles and they all are interrelate with each
other such that Human Resource department of the company work closely with other functional
department of the company. As their main work is to recruit the best candidate for their business
so that they will help to produce best outcome by attaining the goal of a firm. Further, the HR
department of Travelodge is directly link with Research and development department such that
R&D determine the needs of the customers and then HR department recruit those candidate who
help to fulfil the need of their demand by offering them services accordingly (Walger, Roglio
and Abib, 2016).
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Further, Finance department of Travelodge mainly assign budget to each department in
order to meet the need for the research, promotion and distribution. This also work closely with
the marketing department of the company such that for promoting any services of Travelodge in
market, the finance department provide budget to the team in order to promote the products. In
addition to this, the marketing department also likely to concentrate on sales volume and
building market share and on the other side, finance department more focused on the cash flow,
covering cost and paying back investment as possible. This shows that finance department is also
interrelate with all other department.
Operation department of the Travelodge Is mainly work for adequate research and
development which is planned for satisfying the need of the customers. This department mainly
look after or monitor the quality and design of the products or services offered by the Travelodge
(Slack and Brandon-Jones, 2018). This also link closely with the Research and development
department, such that the R&D mainly identify the need of the customers and operation
department of the firm mainly checks the quality and design specification. Apart from this, it
also interrelate with marketing department in which the marketers wish to get the products to
market as soon to gain high competitive advantages, whereas, production department want to test
and develop the services fully to make sure that they meet the requirement in better way.
Presenting different methods of communication, coordination and monitoring
Methods of Communication: An effective communication always help a business to
convey exact message to their employees.
Oral communication: there are various methods of communication such the HR department of
Travelodge may use oral communication because it helps to convey the message directly to their
employees (Bell and Leabman, 2017).
 Face to Face communication: Further, the face to face discussion or communication
which is generally used at the meetings which also helps to exchange the words exactly
without any interruption.
 Written communication: Apart from this, another method of effective communication
is through written communication, where the messages and information are delivered
through e-mails in single way.
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Methods of Coordination: It has been analysed that an effective coordination helpful to
run the entire business in smooth way.
Interdepartmental coordination: there should be proper coordination with all
department of the company and the best method of coordination is effective communication that
prevents a HR department from any disputes, conflicts and delays (Methods of coordination,
2017).
 Effective communication: Further, if HR department of Travelodge wants to
coordinate various activities then they should make committees, because committees
develop better understanding and morale among employees and an effective staff
meeting should also be done for better exchange of ideas of people from different
sections.
Methods of monitoring: As plans are implemented and it is quite essential to keep
monitoring the department and review its progress as well.
 Key performance indicators: HR department uses different key performance indicators
such as Benchmarking, Balance Scorecard and financial governance (Fennell, He and
Sloan, 2019).
 Regular Feedback: Apart from this, by taking regular feedback from the employees is
another monitoring tool that will also help Travelodge HR department to identify
whether the firm is align towards a goal or not.
It has been further analysed that using key performance indicators also help a business to
identify the errors and run a business smoothly. Therefore, an effective communication strategy,
proper coordination and using key performance indicators will help a business to strengthen up
the value chain as well. Moreover, these effective strategy will also help to sustain its brand
image in market.
CONCLUSION
By summing up above report, it has been concluded that Travelodge should use or apply
principles of managing and monitoring the financial performance such as Balance scorecard. By
using HR life cycle, manager of Travelodge may easily retain and develop the talent among
their employees. Report further concluded that by developing a performance management plan,
the manager of Travelodge can enhance their weaknesses and show different techniques to
resolve both negative behaviour and overcome issues of staff retention. In addition to this, the
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present study conclude that the company should adhere with employment law, data protection act
and then explore that different functional role of Travelodge are interrelate with each other and
through effective communication, proper coordination and regular monitoring also helps HR
department to strengthen the value chain.
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