Hospitality Business Toolkit Assignment PDF

Hospitality business
toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Principle of financial performance ........................................................................................1
P4 Different stages of HR life cycle...........................................................................................1
P5 Performance management plan for specific hospitality job role to overcome issue of staff
retention.......................................................................................................................................2
P6 Legislation that are necessary for hospitality organisation....................................................3
P7 Employment and contract law in context of hospitality industry..........................................4
P8 Inter-relation between functional role of hospitality organisation.........................................4
P9 Different methods that helps an organisation to increase the strength of their value chain . 5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Hospitality defines the relationship between guest and host in which organisation take
care of the behaviour of people towards guest and people whom they are just met. It includes
several privileges such as food, drinks, accommodation etc. to their visitor or customers at public
events. The organisation chosen for these assignments is the Cosmoba which is operating their
business in hotel and restaurants chain (McIntosh and Harris, 2012). The task cover for these
assignments includes different principles to manage the financial performance of organisation.
Double entry book keeping system along with debit and credit transaction records is prepared. At
last legislation will be discussed that helps hospitality organisation to expansion their business
ethically.
TASK 1
P1 Principle of financial performance
To increase the market area for the organisation it is essential for management to
implement effective strategy or tool such as KPI, ROI and key financial statements etc. some of
these principles are explain as below:
ROI- This is termed as return on investment in which organisation measures profits for
the organisation which determines that investment is crucial factor for the organisation. This
helps an organisation to evaluate all the activities such as sale of products, production cost,
increase in productivity of an employee etc. through which the productivity of an organisation is
increased (Maier and Hadrich, 2011).
KPI- It is termed as key performance indicator that helps to evaluate new procedures and
processes to emerge necessary activities of an organisation towards attainment of goals. In
context of Cosmoba hotel if they decided that they approach their customers through website
then KPI helps them to set their goals through which they accomplish their goals with efficiency
and effectiveness.
Key financial statements- This statement includes all the essential financial records
which determines that monetary decisions play vital role in the organisation. This helps
management to complete their activities with in predetermine periods. Cosmoba hotel prepares
balance sheet, profit & loss account etc. through which they attract more investors.
1

P2 The double entry bookkeeping system of debits and credit to record sale and purchases.
Double entry Bookkeeping system-According to this accounting system each transaction
is recorded in two different accounts. The amount of each transaction is in both side is equal.
Cosmoba implement this style in order to assign profit and loss for each year.(Doniņa, 2015).
1. Expanding hotel business with 7,00,000 investment.
2. Pay loss 2,00,000 by the bank
3. Buy furniture for the west wing 30,000.
4. Purchase F&B of 45,000.
5. A group of business travellers booked 60 rooms and pay 100 for per room each night.
6. Wedding parties 60 rooms * 100 for 200 nights 85% occupancy.
7. Pay chef wages 1,50,000
8. Pay house rent 60,000
9. Pay maintenance work 45,000
10. Purchase F&B 55,000
11. Purchase sage software 10,000
12. Pay professional fees 10,000
13. pay insurance 15,000
BANK Account
Capital 7,00,00
By business booking 6,00,000
By W&D booking 12,00,000
Lease 2,00,000
Furniture 30,000
F&Bc 45,000
Wage chef- 150,000
Wage house 60,000
wage maintenance 45,000
F&B 55,000
Software 10,000
Professional fees 10,000
Insurance- 15,000
Total-25,00,000 Total- 25,00,000
2

Booking room sale
Date Particular Amount Date Particular Amount
Balance c/d 1800000 Bank 600000
Bank 1200000
Total 1800000 Total 1800000
Wages A/C
Date Particular Amount Date Particular Amount
6th Feb To Bank 150000 01st Feb By balance c/d 255000
To bank 60000
To bank 45000
Total 255000 Total 255000
Professional A/C
Date Particular Amount Date Particular Amount
6th Feb By balance c/d 10000
28th Feb To bank 10000
Total 10000 Total 10000
Sales A/C
Date Particular Amount Date Particular Amount
28th Feb To bank 45000 10th Feb By balance c/d 100000
To bank 55000
3

Total 49360 Total 49360
Furniture a/c
Date Particular Amount Date Particular Amount
3rd Feb To bank 30000 28th Feb By balance c/d 30000
Total 30000 Total 30000
Lease A/c
Date Particular Amount Date Particular Amount
14th Feb By Balance c/d 200000
28th Feb To bank 200000
Total 200000 Total 200000
3. Produce a trial balance applying the use of balance off rule to complete the ledger.
Balance off rule- as per this rule it is stated that at the end of year some accounts are
carried forward for next year while other are closed. But only those accounts which are choked
that carried for next year is known as balancing off method (Law and et. al., 2013). After
formulating the trial balance, it is easy for organisation to take out necessary information that
helps organisation to develop effective decision in the organisation. It is the combination of
various ledger accounts that are developed in the business. Some of the major purposes to
formulate trial balance is as follow:
 Balance of cash and bank book is required after closing the ledger accounts.
 To prepare a trial three column are required that is account name, credit balance and debit
balance.
 The account name will be filled along with the debit and credit balance in the respective
columns (Kuruuzum and Koksal, 2010).
4

 At last total of each accounts will be calculated that helps to evaluate that both column
amount must be same.
Trail balance
S. NO Particular Dr. Cr.
1 Bank 1880000
2 Booking 1800000
3 Wage 255000
4 Software 10000
5 Professional fees 10000
6 Insurance 15000
7 Capital 700000
8 Lease 200000
9 Furniture 30000
10 F&B 10000
Total 2500000 2500000
TASK 2
P4 Different stages of HR life cycle
There are five stages of HR life cycle that helps an organisation to recruit effective
employees. These stages are explained as below:
Recruitment- For the growth of an organisation it is essential for them to recruit effective
and skilled employees in order to achieve success rapidly. Like in Cosmoba hotel, organisation
needs to appoint effective supervisor for this they formulate strategic staffing plan for
5

organisation. The HR officer face challenges in order to find skilled employees for part time. For
these they promote creative advertisement about vacant job in social media.
Development- This function starts from the first day when an employee starts to work
with organisation. HR officer of Cosmoba hotel helps an employee to understand the value and
culture of their hotel. It determines that they develop overall personality of employee by guiding
them through orientation program. For instance: they found vacant job position of front desk
employees then they recruit individuals who are high in communication skills.
Enablement- It is crucial factor for organisation that helps to boost the performance of
employees. In present scenario, motivation helps management of Cosmoba hotel to reduce their
employee’s turnover by influencing them to perform their work with full potential.
Retention- This stage helps HR to evaluate performance of employee in order to develop
them by providing necessary feedback to them. So that they work as an asset for the
organisation. After recruiting front desk employees, it is essential for management to evaluate
the performance of individual (Hassanien and et. al., 2010).
Separation- This is the last stage of HR life cycle in which an organisation give vote of
thanks to all employees in order to retain them for longer period. For this they appreciate their
employees through monetary and non-monetary benefits. In this all employees either they work
at front or back end office all are appreciated for their performance and left for new project.
P5 Performance management plan for specific hospitality job role to overcome issue of staff
retention
Performance management plan is a flexible tool for increasing employee performance to
enhance productivity of an organisation. For this some steps for plan are mention in these task.
For these performance related with the employee of hospitality business is related as below:
Track employee progress- In context of supervisor it is essential for them to monitor the
performance of all employees. It helps them to convey their goals with in specified period by
guiding employees in right direction.
Face to face meetings- This is the second step in which an organisation give authority
and responsibility to supervisor to manage regular meetings with employees in order to attain
resolve their issues.
6

Improve the data collected- Data which is present in the organisation it is essential for
them to implement these information equally so they generate effective decisions for the
organisation.
Mission statement- In a large organisation there are different employees work together
in order to achieve similar so it is essential for management to define and explain their mission to
each of them.
Plan It is the combination of rules, policy,
legislation which enables an organisation to
accomplish their goals with in minimum time
period. Like Cosmoba hotel formulated their
strategy as per rules of organisation which
helps to deliver effective services to their
customers.
Implement In an organisation different goals are
achieved by them to complete their goals to
achieve their goals with in minimum time
period. For instance: after developing the
plans it is essential for departments to
implement them to increase their
performance.
Evaluate This is another step for organisation which
helps to measure the performance of activities
that is performed by employees. Within
Cosmoba hotel, management monitor all
operations of organisation to overcome from
loophole in the production process.
Feedback Once the evaluation is done in the
organisation then they implement changes in
the process of performing activity. This helps
an organisation to complete their goals with in
7

minimum time period through adopting
necessary changes in its process. In
circumstances of Cosmoba hotel feedback
helps to increase productivity of their
services.
Their is difference between the management performance plan and management
improvement plan which is shown as below. The below table consist of improvement plan of an
the Finance manager of the Cosmoba.
Name- Peter Position- Finance manager Date-10/02/2019 Manager- HR
Skills to
improve
Action to be take Development
opportunities
Date to be
completed
Success measure
Data analysis In these managers
are trained to
record the data
properly.
For improving
the performance
of finance
manager they are
trained with MS-
Excel so it is easy
for them to
complete their
goals.
The estimated
time provided to
manager is three
months as these
are sufficient for
them to
developing
performance.
To evaluate the
success of finance
manager there is
regular monitor and
control of their
activities.
Management
accounting
The management
accounting helps
an organisation to
make effective
decision for
organisation.
In these managers
provided new
software through
which they
achieve their
goals easily.
The date for learn
management
accounting is
same which is
three months
period.
For measuring the
performance of
manager the
outcome of their
decision will be
analysed by
matching actual
performance with
expected
performance.
8

TASK 3
P6 Legislation that are necessary for hospitality organisation
Hospitality organisation provides different services to its customers that include arts,
entertainment, food services etc. So, they have to implement laws that helps to retain guest and
employees for longer period.
Employ welfare act 2002- In hospitality organisation employees plays crucial role in
order to achieve their goals effectively. Human work-force has to face unique challenges while
performing their role due to several changes that exist in market. For retain employees in an
organisation management implement employment act that provide safety to employees at their
workplace. This creates positive results for the organisation as they increase the productivity
through delegating the roles according to their skills and capabilities (Doniņa, 2015).
Food and service act 2006- In hospitality organisation there are large number of food
products are offered to its customers which determines that catering and food services plays
crucial part in satisfying needs of customers. For these they execute food and safety in an
organisation to enhance productivity of its products as it helps to maintain quality of foods.
Under these acts it is stated that organisation needs to maintain proper canteen facility for
employees among with proper hygiene and clean environment to deliver their services
effectively.
Common law- These law helps an organisation specifically in-service industry to ensure
the safety of guest. In context of Cosmoba hotel management implemented high security system
through which they keep monitoring the hotel premises. This helps them to keep safe the goods
of guest whether they are present in hotel surrounding or not. This law impacts on the
organisation with a positive approach through generating the faith and trust among customers.
P7 Employment and contract law in context of hospitality industry
Employment law- It is referred as the set of laws which deals to ensure the rights and
responsibilities of employers. Like in the Cosmoba employees are working with efficiency and
effectiveness. So, it is the responsibility of a management also to help employees in order to
achieve their personal goals also. This creates positive results for organisation because its
9

motivated employees which determines that they work with more potential and helps to make
effective decision.
Contract law- It is an agreement between to more or parties through to complete job role
in an organisation. In context of hospitality industry, it is an act that is enforced by court which
determines it ensures the safety of employees and organisation by formulating several rules and
policy in order to achieve professional and personal goal equally. As within Cosmoba hotel it
relates with the services that they provide to their customers it governs that it is an exchange of
interest or ownership between host and guest for a shorter period. Like in peak season Cosmoba
requires more employees so in these contexts they generate their goals towards the expansion for
their business.
TASK 4
P8 Inter-relation between functional role of hospitality organisation
There are different roles that are performed by employees which allows them to satisfy
need of customers in appropriate manner. Inter-relation between different functional roles of an
organisation is as follow:
Front desk and catering manager- In Cosmoba different types of services are provided
to the customers at similar time period which signifies that it is important for employees to inter-
relate their activities at similar period. Like Front desk refers to the places in which customers
approaches directly to fulfil their need like restaurants, bar, lounge, pool etc. These all places
serves tangible products to customer for this they interact with catering manager, so they prepare
and deliver food to customer effectively (Burrell, and et. al., 2012).
Financial and food & beverage department- Finance manager need to interact with food
officer in order to decide budget for food department which helps finance officer to purchase raw
materials that helps them to perform their daily operations easily. Example- Finance manager of
Cosmoba hotel formulates the budget each department of organisation. While for these it is
essential for them to interact with managers of different department as it helps them to predict
estimated prices for all activities.
P9 Different methods that helps an organisation to increase the strength of their value chain
Supply chain is the sequential process for an organisation that involves in the production
and distribution of goods. Some methods to increase the strength of supply chain is as follow:
10

Transparent with work-force- it is essential for every organisation to communicate their
goals with its stakeholders such as supplier and employees. If they are not updated with the work
process of an organisation, then it is confusing and difficult for them to put their efforts in right
direction.
Improve of distribution network- The distribution network of an organisation is the
method through which management system of organisation is built. Like Cosmoba hotel co-
ordinate between the supplier and manager of organisation to organise and manage demand and
supply of products that increase strength of their supply chain through supplying the products
and services to customers effectively
(Bharwani and Butt, 2012).
Firm infrastructure- It refers to the structure and actiivities of an organisation that helps
to monitor the supply chain of an organisation. Like in Cosmoba hotel operations, inbound and
outbound logistics helps management to monitor goals their supply chain and implement
necessary changes in organisation where it is necessary.
CONCLUSION
In the end it is concluded that there are several aspects are present in hospitality industry.
This impacts on each function of an organisation with positive or negative approach. For these
they contain different set of principles and rules that helps the organisation to monitor and
regular their performance through preparing trial balance, journal entry etc. along with these
performance management plan is prepared that helps an organisation to make effective strategy
that helps to overcome from different conflicts to build healthy working environment of
organisation. Lastly different methods of communication, coordination and monitoring are
implemented to enhance the satisfaction of employees in all departments.
11

REFERENCES
Books and Journals
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Burrell, J. and et. al., 2012. Equal opportunities for women employees in the hospitality industry:
a comparison between France, Italy, Spain and the UK. International Journal of
Hospitality Management. 16(2), pp.161-179.
Doniņa, A., 2015. The role of tourism and hospitality companies in ensuring an effective
internship process. The Journal of Education, Culture, and Society. (1). pp.281-290.
Hassanien, A., and et. al., 2010. Hospitality business development. Routledge.
Kuruuzum, A. and Koksal, C.D., 2010. The impact of service quality on behavioural intention in
hospitality industry. International journal of business and management studies. 2(1).
pp.9-15.
Law, R. and et. al., 2013. Progress and development of information technology in the hospitality
industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly.
54(1). pp.10-24.
Maier, R. and Hadrich, T., 2011. Knowledge management systems. In Encyclopedia of
Knowledge Management, Second Edition (pp. 779-790). IGI Global.
McIntosh, A.J. and Harris, C., 2012. Critical hospitality and work:(In) hospitable employment in
the hospitality industry.
Qiu, Y., Shaukat, A. and Tharyan, R., 2016. Environmental and social disclosures: Link with
corporate financial performance. The British Accounting Review. 48(1). pp.102-116.
Online
Performance & Financial Management, 2019. [Online]. Available
through:<https://www.ifac.org/global-knowledge-gateway/performance-financial-
management?overview>.
12