Human Resource Management in Hospitality

This assignment delves into the crucial role of Human Resource Management (HRM) within the dynamic hospitality industry. It examines essential HRM functions such as recruitment, selection, training, performance management, compensation, and employee relations. The document emphasizes best practices for attracting, retaining, and motivating a high-performing workforce in the hospitality sector. It also highlights the importance of legal compliance, ethical considerations, and fostering a positive work environment to ensure organizational success.

Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Principles of managing and monitoring financial performance with the help of table....3
P2. Double entry book keeping system and basic trial balance to record purchase and sales
transactions in general ledger.................................................................................................5
P3. Formation of basic trial balance by applying balance off rule: .......................................7
TASK 2............................................................................................................................................8
P4. Different stages of HR life cycle for retaining and developing talent.............................8
P5. A performance management plan..................................................................................10
TASK 3..........................................................................................................................................11
P6. Specific legislation adhere within hospitality organisations..........................................11
P7. Reflection on potential impact of regulations, legislations and ethical principles on
decision-making process......................................................................................................12
TASK 4..........................................................................................................................................13
P8. Different functional roles within hospitality sectors......................................................13
b). An analysis on different methods of communication, monitoring and coordination within
hospitality department of an organisation............................................................................15
P9. Different method of communication..............................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Hospitality is an act or a service in which there is lot of activities done in relation to
receiving, entertaining guest, welcoming and receiving. Organisations engage in the services of
hospitality industry provide numerous services like, catering, entertainments services, lodging
etc. to guest in order to satisfy their need and and gain more advantages and advancements in
their business (Bruce and Stephens, 2017). On a simple term, it is a act of kindness in which
there is a relationship between a guest and a host. While, it is essential for a business
organisation who perform their functions in hospitality industry to conduct their activities within
rules and regulations laid down by government. Present case study has been conducted on, Tasty
Bud espresso restaurant in Diana road, England. Restaurant have there speciality in offering
delicious salads and splendid smoothies. Report include, management plan, governmental
legislations and formative interconnections between different roles and functions in hospitality
sector. In addition to this, report include different ways of communication and coordination in
organisation departments.
TASK 1
P1. Principles of managing and monitoring financial performance with the help of table
As to increase profitability and proficiencies of a business organisation and performance
level of an individual it is important for an organisation manager to control and monitor day-to-
day business activities in order to conduct functions in effective and smooth manner. On the
other hand, financial performance is an ability to achieve targets and goals in effective manner.
In context Tasty Bud espresso restaurant, mentioned below certain principles which will benefit
them control, monitor and manage their financial performance:

Principle 1. Budget is required to be established in proper way: It is essential for an organisation
to manage their financial resources in proper and systematic manner as to run their business
operations in smooth and effective way. For this manager of Tasty Bud espresso restaurant, is
required to formulate effective strategies and policies in relation to make proper budget so to
control wastage and necessary utilization of fund (Dirrigl Jr and Noe, 2018).
Principle 2. Budget must be based through analysis: It is necessary for Tasty Bud espresso
restaurant, manager to frame budget after conducting analysis of overall factors and elements of
restaurant mission and goals. In addition to this, proper and systematic strategies and policies are
required to be framed in effective manner by taking care of future uncertainties.
Principle 3. Actual financial result required to be compared with daily basis budget:It is the
basic and most important function which is necessary for business manager of Tasty Bud
espresso restaurant, to perform. It will help them to detect error and correct transaction in given
time frame and manage financial performances in effective manner (Eltayeb, 2018).
Principle 4. Rectification of condition when financial budget exceeds pre determined budget:
Manager of Tasty Bud espresso restaurant, is required to analyse conditions of business activities
in regular manner and find actual cause in relation to certain variable in business financial
outcome. For this it essential to frame proper and formative strategies and take correct initiative
actions.
A. During and accounting period expenditures and income of an organisation are
mentioned below:
Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
Allowances Household utility bills
As per the above mentioned discussions, it has been recommended to Tasty Bud espresso
restaurant manager, to formulate organisation balance sheet and other necessary financial
statements in a proper manner as to monitor their financial performances in effective manner. In
addition to this, it is necessary for manager to make related statements like inventory records,

financial ratios, working capital requirements, debtors trial balance etc. in systematic way. This
will benefit them to determine position of their actual cash flow in order to maintain effective
level of financial performance.
Explanation of key financial terms:
Sales: This is one of the most important terminology in a financial aspect as in this sales
transactions of credit and sales are recorded in periodical manner. This will benefit Tasty Bud
espresso restaurant manager, to maintain proper record and quantity of their raw material
purchased and other expenses (Ervin, 2016).
Purchase: In this, calculation of current stock available and purchase of inventory is
done in order to obtain actual good cost. For example, opening balance of Tasty Bud espresso
restaurant is 60,000 Euro and inventory purchase is 90,000 Euro, cost of good sold by restaurant
in a month is 12,000 which is their actual ending inventory balance.
( Opening inventory+ Purchase-Closing inventory)= Cost of good sold
( 60,000 Euro+ 90,000-12,000) = 3,000,00 Euro
Types of cost: It is one of the essential element of expenditure which required to be
calculated and monitored in effective manner as to measure performance in formative way.
There are various factors included in cost such and are categorised in different terms such as,
cost accounting, financial accounting, capital budgeting an many more. Cost can be categorised
in two manner that is fixed and variable cost. In this fixed cost remain fix and does not change
with any output. Whereas, variable cost change with change in output (Foster and Carver, 2018).
P2. Double entry book keeping system and basic trial balance to record purchase and sales
transactions in general ledger
Double entry book keeping system is dual aspect to recording transaction by having two
fundamental aspects. In this one aspect include, receiving a benefit whereas, other one involve
giving of benefits. In this process of double entry-book keeping every transaction is recorded in
two aspect namely debit mad credit in a equal proportion. Mentioned below there is a account
balance double entry book keeping of Tasty Bud espresso restaurant :
Particulars Debit Credit
Cash in hand (Overdraft) 10700

Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Detailed analysis of sales and purchase transaction to compile a trial balance suing double
entry system:
Sales: This factor is mainly consist of overall balance of cash and credit transaction
which depicts estimated number of total product sold and services that are provided (Godnov and
Redek, 2018). In context with, Tasty Bud espresso restaurant overall sales balance of business
organisation include wages and other types of monitory term.
Purchase: It include, cash and credit transaction estimation in which there is overall
record of Tasty Bud espresso restaurant weekly purchase of drinks, clothes, food, lunch etc.

There are trail balance of Tasty Bud espresso restaurant mentioned below that is related to table
1 of double entry bookkeeping system. Main motive of this is to reflect overall income and
outcome for a particular month:
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
Clothes 17809 17809
Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
Total 81389 81389 162778
P3. Formation of basic trial balance by applying balance off rule:
Balance off rule: It is also termed as balancing off accounts which is done at the end of
accounting period (King and Lee, 2016). It is important for Tasty Bud espresso restaurant
manager to analyse actual balance of each ledger account as to extract a trial balance which is a
part of accounting cycle. In relation with, Tasty Bud espresso restaurant it is necessary for
manager to monitor their trail balance statement on regular basis in order to create a financial
statement.
TRIAL BALANCE
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700

Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
According to the mentioned above trail balance it has been analysed that, all the above
mentioned transaction in this statement are recorded in systematic and correct way. Trial balance
include combination of different types of expenses and income within a proper frame work of
principle of accounting (Mejia and Torres, 2018). While, equal balance of trail balance show that
principles of accounting is mentioned in systematic and proper manner.
TASK 2
P4. Different stages of HR life cycle for retaining and developing talent
Importance of HR Life cycle in relation to strategic talent management and overcoming
issues of staff rotation:
Strategic talent plan of management plays very important role in HR cycle which will benefit in
recruiting skilled and potential candidates and increase their capabilities so to maximise
proficiency of an organisation (Nickson, 2013). There are different types of functions included in
HR cycle which is important for Tasty Bud Espresso restaurant manager to perform so to
increase proficiencies of employees in best effective manner and retain restaurant new and
existing employees for long run.

Recruitment: It is the most important and vital stage stage, in which it is the basic responsibility
of managers to frame effective strategies in order to hire candidates. This include identification
of actual role and responsibilities as to accomplish a job role, prepare documents for interview
process and advertise them on different job and web portals. Therefore, in order to recruit chefs
in the department of cooking HR manager of Tasty Bud Espresso restaurant is taking advantage
of external recruitment source and interview.
On Boarding: It is the most important step in the process of HR life cycle, in which new
employees decide their estimation of time they want to stay in an organisation. Therefore, in
order to retain their employees for long period of time, HR manager of Tasty Bud Espresso
restaurant is required to provide estimated training of 60 days to their employees as to form a
positive and healthy relationship with them (Sipe, 2013).
Career Development: By providing effective career development opportunities to their
employees , Tasty Bud Espresso restaurant can attain more success to regain their employees for
long run. For this, at the time of interview manager us required to prepare realistic objectives for
their employees and set their goals accordingly.
Employee Recognition: In order to satisfy employees in best effective manner, it is essential for
HR manager to perform their functions in proper manner. Is is one of the most important stage of
HR life cycle in which it is important for a manager to offer good incentive and reward to
employees even for their small achievements.
Off-boarding: This is the end stage in which an employee leave office it adversely affect other
employees as it increase feeling of demoralise in them. Therefore, it is essential for Tasty Bud
Espresso restaurant manager to formulate proper strategies and policies related to off-boarding of
an employee in effective manner (Weinstein and Morritt, 2012).
In order to hire new chefs in department of cooking, mentioned below there are some
steps with the help of which HR manager can conduct their process of recruitment in effective
way:
Box 1: Giving advertisements as per according to job of chef position on newspapers,job portals
and website.
Box 2: Giving them a task related to position and matching profile of candidates according to
restaurant required job position and conduct final interview for selected candidates.
Box 3: Related Interview Questions:

 What is your style of cooking in vegetarian and non-vegetarian zone?
 What made you to become a chef?
 What is best cousin that you cook?
 Can you make yourself available in flexible hours?
Box 4: Conduct induction program and provide required related informations to employees in
addition to this make them familiar with restaurant working environment and provide on-
boarding training secession to employees for about 60 days.
Box 5: In order to retain new and existing employees for long run it is essential to evaluate them
in proper manner. This will benefit them to determine contribution of every employee as to fulfil
need of consumer in best possible way.
Box 6: Offer apprenticeship and other forms of training to employees this will benefit Tasty Bud
espresso restaurant to effective workforce. In addition to this, employees get fair chance to
maximise their competency and skills in order to develop their career.
Box 7. Promotion plans and reward system help manager to provide effective job satisfaction to
their employees. It will benefit them to retain their workers for ling run.
Box 8. In a situation when a employee wants to leave a job, it is important for a manager to find
actual cause. It is required for them to create positive working culture and implement effective
form of communication in their working system as to overcome these situations.
Box 9. In order to find actual reason for employee turnover, Tasty Bud espresso restaurant is
require to adopt two way communication and have open dialogue like,
 What kind of issue you are facing that make you feel uncomfortable to continue you job
here?
 Do you need some hike or other offerings within company provision?
Importance of HR life-cycle for talent management
It is essential for HR managers of Refreshment Drink Corner to understand the concept of
employee life-cycle for hiring, developing and retaining talented workforce in the organisation. It
would help him in resolving the issues related to the acquisition of talent and retention of
employees for longer period ( (Mejia and Torres, 2018). By analysing different stages of HR life-
cycle, they can improve the efficiencies of their staff. The main component of talent acquisition
is, background screening procedure by using this managers develop efficient approach for the

selection of candidates from the wide pool. By using exit approach they can also evaluate the
reason behind switching their job and influence them to remain in the company.
Recommendations for improving HR processes
For the managers of Refreshment Drink Corner it is highly recommended that in order to
retain the efficient workers they need to develop strong policies, to improve their HR processes.
For measuring or evaluating the performance of each and every worker, HR of the organisation
has to adopt proper approaches. After evaluating the performance of employees, management
need to make open discussion with those workers, after taking training whose performance is
still not improved. This would further help the managers in developing another policies for
increasing the productivity of the employees, and by engaging them in group task. Here, by
observing seniors the workers can learn to give their best performances.
P5. A performance management plan
For improving and enhancing the productivity of the workers and workplace a tool
named Performance management plan is used. For this process, managers of Refreshment Drink
Corner used to identify the reasons related to their poor performance and then taking actions for
improving the same. By reviewing the past experiences and targeting the future goals helps in
creating clear and realistic goals.
Script 1:
Manager: I am observing that Mr. Chris is not behaving in a cordial manner with the
colleagues from last some days.
Employee: Yes sir, I have also been a victim to his rude behaviour in past some days.
Manager: Do you have knowledge of the cause behind such behaviour?
Employee: Yes sir. Chris is facing a lot of work pressure from last some time and this is
the reason behind his arrogant conduct.
Manager: Do you have a possible solution for this?
Employee: Sir, we can hire new employees to reduce his pressure.
Manager: Thank you, I will discuss the same with high authorities.
Script 2:
Manager: I have been observing that Chris is constantly coming late to office from past
one week.

Employee: Yes Sir, I have also seen the same.
Manager: Do you know the reason behind his unpunctuality?
Employee: Yes sir, he has some family issues which is causing such delays.
Manager: What can we do about this?
Employee: We should take certain action which will restrict him from coming late.
Manager: I will give him a notice period of 7days within which if his habit doesn't
improve, he will be fired.
Employee: Yes sir, I consider it as the perfect idea.
TASK 3
P6. Specific legislation adhere within hospitality organisations
As to conduct business activities in smooth and effective way and within governmental
rules and regulations it is essential for Tasty Bud espresso restaurant manager to have effective
knowledge of government laws and regulations. Mentioned below there are some certain laws:
Food Act 1997: As per according to this act, it is important for organisations performing
in hospitality industry to perform their functions as per according to governmental code of
conduct and offer healthy and hygienic food items to consumers (Bruce and Stephens, 2017).
Therefore, it is essential for Tasty Bud espresso restaurant manager to serve food in their
restaurant as per according to procedures.
Liquor Control Act 1987: According to this act, organisation are advised and informed
to offer beverage in their organisations as per government rule and decrease any kind of misuses
of these products in their business organisations. As Tasty Bud espresso restaurant offer
smoothies and salads which satisfy consumer in healthy manner. Therefore, Food act is
amendable to those enterprises to take prior permission as to sold these beverages in their
business organisations.
Impact of company, contract law and employment law on decision-making
It is important for an organisation to perform their functions within law and regulation as
it impact on workers performance, relationship between employees and employers and on other
activities of business. All these laws affect decision-making strategies and policies. Therefore, it

is important for an organisation to conduct their business activities in proper framework of law
and guide employees as to comply laws in concerned manner (Dirrigl Jr and Noe, 2018) .
P7. Reflection on potential impact of regulations, legislations and ethical principles on decision-
making process
In order to have proper knowledge of governmental rules and legislation, I have
examined that it is important to adhere certain rules of government as to reduce any kind of
illegal activities in a business organisation (Eltayeb, 2018). As a manager of Tasty Bud espresso
restaurant, implementation of acts like, liquor Act 1987, Food Act 1997, Healthy & Safety Act
1974 etc. is required. Proper code of conduct are framed by me to conduct my business activities
in effective and ethical manner. In addition to this proper analysation of current prevailed market
situations is done by me, it has been analysed by me companies who don't follow these
compliances faced heavy compensation such as:
Companies Act or Regulation Result Fine
Bupa Care Homes Health and Safety At
Work Act 1974
Guilty £3,000,000.00

Award wining
Greenfingers Ltd.
Construction
Regulation 2005
Guilty £20,000.00
Toby Smith Health and Safety At
Work Act 1974
Guilty £615.00
Elysium Healthcare
Ltd.
Health and Safety At
Work Act 1974
Guilty £500,000.00
TASK 4
P8. Different functional roles within hospitality sectors
In order to perform business activities in smooth and effective manner it is important of
an organisation to perform their roles and responsibilities in formative way. In this there is an
organisational chart and theme which will help in defining roles and responsibilities of each and
every department in which there is so many units such as, HR, Front office, Finance, research
department and more (Ervin, 2016). In relation to this, mentioned below there are some certain
role of hospitality industry:
Theme Park:

Hospitality sector:

Hotel:
b). An analysis on different methods of communication, monitoring and coordination within
hospitality department of an organisation
There are different types of communication measures which will benefit an organisation to
convey their information and data in effective manner. Some of that methods include, Skype,
WhatsApp, Group meeting and more (Godnov and Redek, 2018). As a restaurant Tasty Bud
espresso restaurant is recommended to take advantage of Sky type and WhatsApp as an effective

source of communication as to deliver their related necessary information in more flexible way
and in proper time frame.
P9. Different method of communication
In order to achieve organisation business goals and mission in better effective manner, it
is important for Tasty Bud espresso restaurant to frame and implement effective way of
communication in their working culture as to become best restaurant in London (Foster and
Carver, 2018). Therefore, it is the responsibility of manager to frame effective mission and adopt
formative methods of communication that is mentioned below:

Recommendations:
According to the view of Godnov and Redek (2018), it has been evaluated that with the
hospitality is on of the fastest and leading growing sector in which implementation of various
measure of communication such as Telephonic call, Group meetings, Skype and more can help
an organisation to effectively conduct their activities in more systematic manner within given
time frame. While as to increase their level of communication it is essential for Tasty Bud
espresso restaurant to take advantage of other measures such as Skype and WhatsApp (King and
Lee, 2016). in addition to this, managers is required to analyse sources of funds to conduct their
functions in effective manner so to increase effectiveness of an organisation in formative way.
CONCLUSION
As per the above mentioned report, it has been concluded that, organisation running their
business in hospitality sector are required to ensure various factors that include various stages of
HR life-cycle with the help of which effective and skilled employees are recruit as to increase
proficiencies and productivity of employees. In addition to this, with the help of formative
communication system manager can retain their employees for long run and convey their
necessary related informations in best effective manner. Lastly, with the by having proper
knowledge of governmental rules and regulations organisation can perform their functions in
great effective manner.