Principles of Managing and Monitoring Financial Performance in Hospitality Business

Hospitality business
toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ................................................................................................................................1
P1 Investigate the principles of managing and monitoring financial performance....................1
P2 Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger .................................................................................1
P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger
.....................................................................................................................................................2
P4 Review the different stages of the HR life cycle applied to a specific hospitality job role,
and their importance for retaining and developing talent...........................................................2
P5 Develop a performance management plan for a specific hospitality job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention..................4
P6 Identify specific legislation that a hospitality organisation has to comply and.....................5
P7 Using specific examples, illustrate how company, employment and contract law has a
potential impact on business decision-making in the hospitality industry..................................6
P8 Explore how different functional roles within the hospitality sector interrelate ..................7
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organisation to strengthen the value chain ..........7
CONCLUSION................................................................................................................................9
References:.......................................................................................................................................9

INTRODUCTION
Hospitality management is job roll which covers managing a hotel or a resort. It cover
managing every activity whether it is related to finance, marketing or HR. Manager of hospitality
sector is responsible for all the management of hotel regarding to customers as well as
employees (Ivanovs, 2019). Hotel management concern with managing staff and their
performance, having look of all assets in hotel that they are properly working or not, fulfilling
the needs of customers, maintaining rooms as per the customer wish, managing financial
transactions, suggesting good and proper strategies plan to senior authority for hotel growth and
many more. Hence, hotel manager are called multitasked in their own field. Premier Inn is a UK
based hotel chain company which is founded in 1987 by its parent company Whitbread. It’s
headquartered in Dunstable, UK. The following report cover managing finance and transactions
of mentioned hotel, managing HR life cycle within human resource strategy, legislation and
ethics in hospitality industry and hospitality functions and departments.
MAIN BODY
P1 Investigate the principles of managing and monitoring financial performance
Financial performance is the way of identifying how well companies are using their assets. It
further states that what the position of company in terms of finance. High earning companies are
considered as having good financial performance and the company who is facing losses and are
earning very low profit are having bad financial performance(Martínez-Martínez and et. al.,
2019).
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P2 Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger
Double entry book keeping system is a system of recording every transaction related to
business which is having a corresponding and opposite entry to another different account. It has
two corresponding sides, Debit side (at the left hand) and Credit side (at the right hand). Double
entry system has two corresponding ides which is Debit side and Credit side. In double entry
book keeping system, a single transaction always affect two accounts. This statement can be
classified an example like- purchasing goods is the transaction in which two account is affected,
first is purchases account and another one is cash account because when goods comes in business
then payment is made by the company and hence cash account is also affected. Here purchases
account is recorded in debit side and cash account is recorded in credit side. At the end the total
of debit side and credit side must be equal. Some of the business transactions of Premier inn
hotel are mentioned below in the form of general ledger accounts-
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