Unit-4 Hospitality management Assignment Sample

Part A: Report on finance and legal understanding

Introduction

The highly volatile hospitality industry in London is famous for having premium services, creative and diverse solutions and legal issues. As concerns in the hospitality industry, specifically upscale hotel businesses, The Savoy, The Ritz London, The Dorchester and other luxury brands compete in a very volatile and competitive market. Such enterprises are characterized by offering excellent services, quality facilities, and sound customer relations entrenched in sound financial handling and compliance with legal and ethical standards.

In this report, an analysis of efficient working aspects of the financial and legal functions in such luxury hospitality organizations has been made. That has been made in terms of financial working, evaluating performance and aspects of compliance with legal and ethics. The focus is on the double-entry method of bookkeeping, trial balance, Key Performance Indicators for the financial performance of an organization, and laws and regulations that affect business decisions. These findings are premised on the study's endeavour to enlighten organisations on the necessity of applying sound financial and legal strategies and principles. That can help to improve organisational performance and more importantly to meet the set legal requirements. This discussion is set against the background of luxury hotels in London that compete for market leadership within a saturated and strictly governed industry.

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Activity 1: Double-Entry Book-Keeping to Trial Balance

Recording Journal Entries for March

Double-entry bookkeeping is a disciplined procedure of recording business transactions that check and balance the accounts equation that is (Assets = Liabilities + Equity) (CFI Team, 2024). In this section, a double book-entry system is used for the bar in the selected luxury hotel for March. This process includes the capturing of all the accounts of one’s source documents and posting the result of the trial balance in order to check that accounts tally with accounting standards. The journal entries recorded for the month of March include the following-

Preparation of Ledger Accounts

The transactions were placed in the appropriate ledger accounts as follows-

• Purchase Ledger

• Revenue from Beverages

• Revenue from Food

• Bank Account

Trial Balance Preparation and Balancing

A trial balance is a statement prepared from ledger accounts and merely shows the balances. These debit and credit columns must balance to ensure accuracy as to the recording process by the account balance. The Summarization of Trial balance is provided below-

This Activity illustrated an accurate Balancing, Recording and Transaction summary illustrating March’s exact financial information.

Activity 2: Key Performance Indicators for Measuring Financial Performance

Recommended KPIs for Restaurants

1. Gross profit margin

The total gross profit margin is one of the primary measurements of the financial performance of restaurants. It identifies the proportion of income that one is left with after he has paid for all his stock (CFI, 2024). This KPI reveals to what extent the organisation manages the expenditures and the management of prices. For instance, if the revenue is £ 100,000 and the Cost of goods sold is £ 40000, the gross profit margin is 60% (GoCardless, 2020). Such a figure is useful to keep track of general financial standing since managers of different comprise organizations know that the future will be unpredictable.

2. Occupancy rate

Occupancy rate is another important factor which needs to be measured to ensure organization success. This calculates the percentage of seating capacity sold and is an exact barometer of revenues (StudySmarterUK, 2019). For instance, if a restaurant accommodates one hundred people and at a given service, only eighty people are seated, then it means that eighty per cent of the restaurant’s seating capacity has been used. The observation of this KPI enables more efficient control of available space and proper scheduling of promotions or events resulting in higher customer traffic during low hours.

Principles of Financial Performance Management

Several principles define efficient financial performance management.

Data Accuracy

Data accuracy is of high importance since the information collected serves as the basis for KPI tracking. It also assist in decision-making in that the right decision is made after having looked at all the factors that could influence the particular decision that has to be made (Kalf et al., 2023). For example, costs and sales numbers better allow for KPIs such as gross profit margin to be valuable and dependable.

Benchmarking

It is equally important to make benchmarking comparisons to see where the organization is below par. For instance, a comparison of gross profit margin to one of the competitors provides information on how successful cost control as well as pricing policies are (Asfahani, El-Farra and Iqbal, 2023).

Regular review

This helps to make sure that financial metrics continue to be measured and revised as often and according to the changes in market conditions and performance figures. Adhering to such principles, the restaurant will be able to establish a relatively sound and elastic financial management system (Luther, 2024).

When implemented in a dashboard or scorecard, the presented KPIs allow restaurant managers to observe current and developing trends in financial performance and progress more efficiently.

Activity 3: Legal Compliance in the Hospitality Industry

Key Legislation Affecting Hospitality

Hospitality businesses need to comply with the different legal frameworks including “the Health and Safety at Work Act 1974” and “Employment Rights Act 1996”. According to “the Health and Safety at Work Act 1974”, the employer is responsible for ensuring that the working environment on the premises is safe for the staff and guests. Compliance refers to Risk assessments, Staff training, and safety standards of operational equipment (Health and Safety Executive, 2020). “Employment Rights Act 1996” regulates employees’ rights and responsibilities regarding employees' remuneration and conditions of work (UK Government, 2025). Violation of these laws drives legal consequences and negative perceptions after being associated with the laws.

Impact of Employment and Contract Law on Business Decisions

Thus, employment law provides special importance in relation to recruitment, employee turnover and discharge issues. For instance, the implementation of non-discrimination policies within the confines of the hiring process helps avoid court cases and create a healthy organizational culture (Jenkins, 2023). Contract law helps to guarantee the legal enforceability of contracts with suppliers or service providers which is crucial for effective functioning (Legal Foundations, 2024). Contract breaches could hinder the supply chain and supply chain performance including business performance.

Activity 4: Legal and Ethical Considerations

Impact of Regulations on Decision-Making

Relevant laws are very strict and businesses working in this sector cannot afford to ignore them. The Health and Safety at Work Act 1974, The Equality Act 2010 and food safety legislation directly influence decision-making processes in a hotel (Health and Safety Executive, 2020). For instance, a hotel has to guarantee that not only the kitchens but also building guest rooms conform to the mandatory standards in health and safety. The basis may require spending money on safety equipment or training staff. Employment law is also another big component of regulation (Mujtaba, Kaifi and Lawrence, 2023). It means that employment contracts, working hours regulations, and rules on rights like paid leave or maternity leave will all come down to the hotel’s HR department, which will have to handle staffing levels and workforce policies.

In addition, General Data Protection regulations such as GDPR define how information should be stored and accessed within any given hotel, and the need for the hotel to secure data of customers and employees (GDPR, 2018). Operational practices are regulated as much as strategic decisions. For instance, compliance with environmental regulations can compel a hotel to undertake sustainable practices, like cutting waste and implementing energy-saving technologies, with an expensive upfront cost but then with long-term benefits (Kularatne et al., 2019). In this regard, hotel operational strategies are regulated by regulations to maintain a high standard of service and the service standards conform to the legal requirements.

Ethical Considerations in the Hospitality Industry

Hospitality businesses rely heavily on ethics in the process of decision-making. There are many ethical dilemmas that hotels face and they must try to find the best and more ethical solution to them. The treatment of employees is one large ethical consideration. Hotels need to pay fair wages, offer a safe working environment, and hold out opportunities for employment advancement (Hoang, Yang and Luu, 2023). Not following these principles can result in high staff turnover, a bad public look and maybe even legal issues. In addition to this, hotels need to take into account the sustainability of their operations (Prakash et al., 2022). A growing number of ethical decisions based on reducing the environmental impact have become more important including things like reducing how much plastic is used or sourcing food from an ethical food supply.

Nowadays many customers expect their hotels to express values and sustainability is becoming a competitive advantage in the hospitality business. Hotels also have to count diversity and inclusion as concerns for all hotel guests and employees feel like they are being treated with respect and value and are being handled fairly (Oskam and De Visser-Amundson, 2022). However, hotels also need to be maintained in an ethical relationship with guests. It is a matter of upholding customer privacy, providing a quality service, and delivering advertising and promotions which are truthfully dealt with. Failing to meet these ethical standards can lead to the loss of customer trust and a loss of the brand's reputation (Chen and Liu, 2022). The public image and long-term success of the hotel are also influenced directly, by ethical considerations. A hotel ethically requires that the hotel uphold its principles because an ethical trial in the hotel has a positive workplace culture and other hotels will attract other ethical customers which also leads to an increase in hotel business performance.

Conclusion

In conclusion, the luxury hospitality industry particularly in London should pay more attention to financial regulatory practices and issues. Accounting tools such as double entry system and key performance indicators if well put in to use by Hotels will help them achieve a positive financial performance. Furthermore, candidate qualifications and integrity, strictly following the existing law and regulations including health and safety requirements, employee relations criteria, and sustainable standards as potential sources of competitive advantages are crucial for sustainable business. Combined, the inclusion of these elements guarantees both the organisation’s financial solidity and the absence of legal violations, as well as the formation of a favourable image among employees and customers.

PART B: Presentation

Introduction

• This presentation focuses on several aspects of management, HR management, and departmental integration in the sector of hospitality.
• It aims for potential improvements in the HR life cycle, helps to fix staff performance issues
• It also improves communication and coordination among the departments.

Without proper HR and Organizational Integration talent retention, operational efficiency and other critical issues including organizational objectives will not be achieved.

Overview of the HR Life Cycle in the Hotel Industry

• Stages in the HR Life Cycle in the hotel industry include recruitment, onboarding, training, performance management and offboarding (Cattermole, 2019).
• However, each phase is critical to aligning talent to meet organizational goals.
• Recruiting is the process of finding and recruiting skilled candidates, and onboarding is the process through which new employees are welcomed and quickly put into the hotel’s culture (Hamza et al., 2021).

Training and development are centred on the provision of training and development which enhances the performance of employees. Assessing progress and giving feedback falls under performance management while offboarding assures you have smooth transitions from prepping exiting staff. HR Life Cycle in the hotel is important to its success by making sure the right people are assigned.

The Importance of HR Life Cycle Stages for Talent Retention and Development

• Each stage in the HR Life Cycle is crucial for talent retention and development (Akunda, Chen and Gikiri, 2018).
• Recruitment that works well attracts quality people to the hotel, and the onboarding that follows helps employees feel they are valued and part of the hotel’s culture.
• All key features are required to retain the employees and enable the competencies of the employees in terms of continuous training and development for careers (Hosen et al., 2023).

Performance management helps employees to achieve and gives them support to improve. Last, the offboarding process aids in the maintenance of positive relationships with outgoing employees, for the reason that it could result in continued and better employer branding, which in turn impacts retention.

Strategic Talent Management and Recommendations for HR Documentation Improvements

• HR processes in the hotel industry that are put in accord with the organizational goal to attract, develop and maintain top talent are called strategic talent management.
• By reviewing the effectiveness of the recruitment and training methods regularly, the hotel will ensure that as it competes in the labour market the hotel remains competitive (Chytiri, Filippaios and Chytiris, 2018).
• To be consistent and transparent, HR documentation such as clear job descriptions, structured performance appraisals and accurate records of employee development must be improved.

The implementation of a centralized HR system to ease the documentation process and also make human resources data easily accessible for management is recommended. It enables greater decision-making and consequently improves talent management in the hotel.

Performance Management Plan for Addressing Staff Behavior Issues

• The performance management plan aimed at how to deal with staff behaviour issues, such as low morale or dissatisfaction, and how to address the causes, pinpointing them first (Vuong and Nguyen, 2022).
• The first is setting clear expectations about what behaviour will be and what job performance will look like.
• Feedback and performance reviews also help to establish a regular measure of progress and see how concerns improve (Giamos, Doucet and Léger, 2023).

Finally, if problems arise, management must take a positive approach to handling the matter, doing what’s needed to support, train or help guide the employee, rather than simply throwing them to the wolves. After all behavioral issues should be addressed promptly so they will not impede team dynamics. Importance is placed on encouraging open communication and providing conflict resolution training, to maintain a positive work environment.

Strategies for Improving Staff Retention through the HR Life Cycle

• To improve the retention of staff in the hotel industry, an integral consideration must be applied throughout the HR Life Cycle.
• One should attract and retain the right person for the right role by offering competitive compensation, benefits and growth opportunities at the recruitment and onboarding stages (Abraham et al., 2023).
• A continuous course of training and career development for employees keeps them positioned and motivated.

Employees feel valued, and performing regular reviews and feedback, gives them an understanding of what is expected of them. Also, encouraging a good working environment with recognition and teamwork would prevent turnover rates. However implementing exit interviews while offboarding also yields insights into what might be improved, and whether these should be addressed before an employee decides to leave, as the hotel aims to retain talent by giving employees what they want earlier.

Interrelation of Functional Roles within the Hospitality Sector

• In the hospitality domain, there are management, operations, marketing, and customer service functional roles which interconnect and need to be smooth (Dennis, 2024).
• For instance, the marketing team aligns promotions to what services they currently have available.
• The chef works with front of house team and other kitchen staff to make sure that there is no delay in food service.

So HR is critical to make sure the right people are there for these functions. All departments need to collaborate well for the best guest experiences and organizational goals.

How Functional Roles Contribute to Organizational Success

• Hotel success is dependent on each functional role within the hotel.
• Daily services experience is the direct function of operations teams which provide a smooth running to daily services and as a result impact guest satisfaction (Ali et al., 2021).
• Into it comes the marketing department, which then affects bookings and brand reputation.

The service standards have to be consistently maintained; therefore, recruitment, retention and development of skilled staff have to be managed by HR. Budgeting, costing and profitability are under the management of finance to make the hotel financially sound. Aligned hotel departments are extracting objectives to achieve the company’s overall goal and this provides outstanding experiences and enduring business success.

Communication and Coordination Methods in the Food & Beverage Department

• Good communication and fleet coordination are key to a smooth run in the Food & Beverage (F&B) department (Ali et al., 2021).
• This means that front-of-house staff has to communicate guest preferences and orders within the kitchen, as well as communicate management of operational changes or special events.
• To deliver food on time to guests, it is vital to have coordination between the personnel of the kitchen and services.

Banned regular briefings, clear instructions written, and feedback channels are helpful to prevent misunderstandings and to work without any kind of hitch. Radiate communication in the F&B department makes it possible to satisfy the guests and also ensure operational effectiveness.

Strengthening the Value Chain Through Effective Communication and Monitoring

• Effective communication and monitoring within the Food & Beverage department make the value chain efficient with resources by ensuring service standards are met (Geminarqi and Purnomo, 2023).
• A good way of keeping communication between the kitchen and the service teams is because regular communication helps reduce waste cases, increase profitability and also guest satisfaction.
• Inventory levels, food quality, and staff performance are monitored so that the department can run on a budget while keeping quality high.

Besides, they aid in monitoring guest feedback and help improve services to create value and higher profits in the hotel’s value chain at large high.

Achieving Organizational Objectives and Recommendations for Improvement

• Features of clear communication, efficient coordination and robust monitoring methods are needed to achieve organizational objectives (Zorlu and Korkmaz, 2021).
• In the Food & Beverage department, this tracks sales revenue, guest satisfaction and operational performance to ensure that service goals match the hotel’s strategic objectives.
• Communicating to the team occurs regularly during team meetings, and can occur weekly, daily, or multiple times in a day (Allen and Lehmann-Willenbrock, 2022).

The hotel can work on its communication tools or set up a centralized monitoring system to keep track of the key metrics efficiently, to ensure consistent service delivery and yield to financial and operational targets.

Conclusion

• The key to success of the hospitality organizations is effective HR management and coordination of the departments.
• Hotel business success is driven by optimizing the HR life cycle
• It includes performance challenges management, and communication to improve employee satisfaction, the efficiency of operations and a quality guest experience.

These factors are essential for achieving organizational objectives and maintaining for HR life cycle.

References

Part A

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