Managing and Monitoring Financial Performance in Hospitality Industry

Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Principles of managing and monitoring financial performance.............................................3
P2 Double entry book keeping system of debit and credit to record sales and purchasing
transaction in general ledger.......................................................................................................4
P3 Trial balance applying the use of balance off rule to complete the ledger ...........................7
TASK 2............................................................................................................................................9
P4 Different stages of HR life cycle applied to specific hospitality job role and their
importance for retaining and developing talent..........................................................................9
P5 Performance management plan for specific hospitality job role ........................................10
TASK 3..........................................................................................................................................11
P6 Specific legislation that hospitality organisation has to comply and adhere to ..................11
P7 How company, employment and contract law has potential impact on business decision .12
TASK 4..........................................................................................................................................12
P8 Different functional role within hospitality sector ..............................................................12
P9 Different method of communication, coordination and monitoring applied within specific
department for strengthen the value chain................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality industry is wider section of service industry which focus on leisure instead of
basic needs. It comprise of 5 major sub-sectors which involves food and beverages, lodging
services, events, tourism and transportation (Deale, 2017). There are several activities which
included within hospitality sector but their main goal is to provide services as well as customer
satisfaction. Moreover, hospitality industry is widest as well as fast growing sector in today's
economy. Respective industry can be segmented within four i.e., Food & beverage, travel &
Tourism as well as lodging and recreation.
This report is based on Holiday Inn which is part of hospitality industry founded in 1952
and its founder was Kemmons Wilson. It is headquartered at Denham, Buckinghamshire, United
Kingdom and serving in Americas, Europe, Middle east, Africa as well as Asia-Pacific. In
addition to this, their services are lodging, conventions, meeting, food services, timeshares and
so on. This report will going to discuss way to manage finance and record transaction for
minimising cost responsibly. Along with this, way of managing human resource life cycle in
relation of HR strategy will highlight. Moreover, potential impact of both legal and ethical
consideration in hospitality business will illustrate. Furthermore, importance of coordinating and
integrating within several function of hospitality organisation will elaborate.
TASK 1
P1 Principles of managing and monitoring financial performance
An organisation manage their financial performance for creating accuracy as well as
confidence in developing long as well as short term goals and objectives. In simple term it can be
said that, managing financial performance leads in growth and stability of business as well as
also help in competing with its rivalries (Stumpf and Califf, 2018). Through principles of
management financial activities will monitored which help in eliminating delay within
achievement of goals. Some principle of these are implemented by Holiday Inn manager which
are mention below :- Principle of consistency – According to this principle financial transaction should be
managed on constant basis. In relation of Holiday Inn manager will implement principle
of consistency for managing as well as monitoring monetary transaction in routine.

 Principle of justification – This principle states that financial transaction will recorded
for several ways or reasons for justifying information in book-keeping as well as double
entry (Van der Wagen and White, 2018). Manager of Holiday Inn implement principle of
justification for determining information that will result in accomplishing desired goals
within effective manner. Principle of Timelines – It is related to managing transaction for accomplishing target
within required duration which result in reducing time wastage (Carpi and Pınar Şenoğuz,
2019). Manager of Holiday Inn set target time on which goals will be achieved by
managing as well as monitoring financial performance.
 Principle of Documentation – Principle is important element for examine that
transaction is essential or not. Moreover, principle of document help in preparing
organised and complete document which will be ready for auditing. Manager of Holiday
Inn will implement respective principle for maintaining detail record of transaction a well
as perform implied during accounting period which result in accomplishing goals.
P2 Double entry book keeping system of debit and credit to record sales and purchasing
transaction in general ledger
Double entry book-keeping – According to this concept each and every accounting transaction
have its two affects on organisation finances. Moreover, general ledger record each transaction at
two sides for instance, if company sells their product it revenue will increase as well as cash also
by equal amount. Furthermore, When business firm borrow funds from creditors than their cash
balance will increase but on the other side debt of company also increase by same amount. Along
with this, double entry system create balance sheet which is made up of assets, equity and
liabilities (Groen and et. al., 2019). That balance sheet will also balanced because assets of
company will equal to its equity plus liabilities. In general ledger transaction which recorded
have two side i.e., Debit and credit.
Date Particulars Debit Credit
01/04/16 Cash a/c........... 180000
To capital a/c.... 180000