Hospitality Business Toolkit: Financial Management, HR Life Cycle, Legislation, Functional Roles, Communication Methods

This report covers financial management, HR life cycle, legislation, functional roles, communication methods in the hospitality industry. It includes principles of managing and monitoring financial performance, double entry bookkeeping system, trial balance, cost analysis, talent acquisition and retention, career planning, communication methods, and more.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Task 1...............................................................................................................................................4
Investigate principles of managing and monitoring financial performance...........................4
Explain the principles of double entry bookkeeping system..................................................5
Produce a basic trial balance..................................................................................................9
Analyse types of cost and how they could be managed.........................................................9
Importance of accurate recording of transactions................................................................10
Evaluation of role of financial management........................................................................10
Task 2 ............................................................................................................................................10
A review of the different stages of the HR life cycle as applied to issues in talent acquisition
and retention within the food and beverage sector...............................................................10
Develop a performance management plan to support the specific job role.........................12
Make valid judgements and recommendations on how processes and documents at..........13
each stage of the HR life cycle can be improved using examples.......................................13
Task 3.............................................................................................................................................14
Identify specific legislation(s) that hospitality organizations has to comply and adhere to, in
the daily transaction of business using examples to explain where applicable....................14
Illustration of how the company’s employment and contract law impact on business decision-
making..................................................................................................................................15
Task 4.............................................................................................................................................15
An exploration of the different functional roles within the hospitality sector and how they
interrelate using an organisation chart..................................................................................15
Explain the different communication methods and levels used in an organisation.............16
A review of Coordination and Integration within a business organisation using examples
where necessary....................................................................................................................17
Analyse the effectiveness of different communication methods, integration and monitoring
within a specific department can help achieve overall organisational objectives and strengthen
the value chain......................................................................................................................17

Recommendations................................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES .............................................................................................................................19

INTRODUCTION
Hospitality industry of UK is dynamic in nature has various kinds of changes after
Brexit. In the year 2018, UK has invested in the industry and a positive outcome if seen by
the industry. Highest performance for the growth of hospitality industry in UK is seen in the
London city (HOSPITALITY INDUSTRY IN THE UNITED KINGDOM - GROWTH,
TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 – 2027), 2022). The Waterside
Inn. restaurant was founded in 1972 by Michel and Albert Roux. Head chef of the restaurant
is Fabrice Uhryn and they basically use French cuisine. The restaurant is located in Bray,
Berkshire, England, UK. The following report will covers application of HR life cycle to the
mentioned company, performance management plan to support specific job role,
justifications and recommendation to improve each stage of HR life cycle and legislation of
hospitality industry. This report also covers impact of company's employment and contract
law on business decision making, different functional roles within the hospitality sector,
different communication methods used in organisation and effectiveness of different
communication methods, integration and
monitoring within a specific department.
MAIN BODY
Task 1
Investigate principles of managing and monitoring financial performance
Proper allotment of budget- It is essential for companies to conduct proper
research of their previous financial records and evaluate their future expectations to prepare
their new financial budget for different departments.
Proper documentation- It is essential for organisation to maintain their financial
records with appropriate method and documentation (Muggleton and et. al., 2021). In
context of selected restaurant, it is essential for their financial department to maintain all
documents properly to analyse their profit and expenses. This will further help them to
mitigate those activities which are unproductive.
4

Explain the principles of double entry bookkeeping system
Double entry book keeping system is the concept which define that a single business
transaction can impact two accounts (What Is Double Entry Bookkeeping and How's It Fit in
General Ledger?, 2021). There are two sides of financial accounts like credit side and debit
side and it is essential that the credit and debit side of balance sheet should be equal.
5

Ledger accounts
6

7

8

Produce a basic trial balance
Trial balance is the financial document which include balances of all general ledger
accounts of an organisation for a specific period of time (What is a Trial Balance?, 2021). It
include all major accounting items such as assets, equity, liabilities, expenses, losses and
many others.
Analyse types of cost and how they could be managed
There are various kinds of cost in which a company deals to operate and it includes
variable costs and fixed cost. Variable cost are those cost which has dynamic nature, it
means that the variable cost changes according to the quality and quantity of the product and
services. Whereas, fixed cost is consist of those cost which generated at a fixed rate for a
longer period of time like rent of the building.
9

Importance of accurate recording of transactions
It is very essential for the companies to record their daily transactions so that they
will analyse their expenses and profit earned for both short period of time as well as for long
period of time (Lahmiri and et. al., 2020). This will further help companies to make
decisions which will minimize unproductive activities from the organisation and help to
make investment decision for productive activities. In context of Waterside Inn restaurants,
they can maintain their financial data on daily basis and this can further help them to make
effective decision for their organisational growth.
Evaluation of role of financial management
It is essential for selected organisation to manage their financial activities properly
and analyse their financial performance because this will help them to achieve their long
term objective. Financial management will also help companies to minimize their unwanted
expenses and prepare appropriate budgets for each department.
Task 2
A review of the different stages of the HR life cycle as applied to issues in talent acquisition
and retention within the food and beverage sector
HR life cycle is also called employee life cycle and it is defined the various stages of
a employee in their professional career (Employee life cycle, 2022).
Issues in talent acquisition and retention within the food and beverage sector-
Talent acquisition and retention are two different terms where talent acquisition is
the process where companies attract best skilled and talented candidates toward their
company and select them for performing their tasks and duties for the company (Talent
acquisition VS talent retention, 2021). On the other hand, Retention is the process where
companies provide growth opportunities and well-being working environment to their
employees so that they will stay in the company for longer period of time. There are few
issues in talent acquisition and retention within the food and beverages sector such as lack of
awareness and skills, expectation of employees related to their growth, maintaining their
performance well and many others.
There are five stages in HR life cycle which are mentioned below-
Stage 1- Attraction, recruitment, selection
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Most of the candidates get attracted to the company for finding vacant job role due
to the company's brand reputation. In context of The Waterside Inn. restaurant they can
attract new candidates by their advertisements and website. Recruitment is the other process
where candidates can apply for the interviews and get selected by proving their skills and
experience in the same industry. In context of Waterside Inn., they can recruit their
employees while conducting interviews and checking their skills and talents practically and
then make a appropriate decision for selecting them. It is good for them to select best
candidate out of various alternatives to hire best talented employees which will increase
their productivity and profitability.
Stage 2- Induction, orientation, on-boarding
This is the stage where new hired employee get to know about their senior authority,
their colleagues, their actual job role and duties and many others (5 stages of the HR life
cycle, 2021). In context of Waterside Inn., their managers can introduce their new hired
employees to their existing employees and motivate them to communicate well with existing
employees. It is seen that employees are not introduced well by their work and colleagues in
food and beverages industry and due to which most of the talented employees left the
company. Hence, Waterside Inn. is required to conduct orientation process properly for their
new joiners.
Stage 3- Career planning and development
It is essential for companies to provide opportunities to their employees to grow well
in case of their good performance. In context of Waterside Inn., they can measure the
performance of their chef and kitchen staff by measuring the reviews of their customers and
then make appraisal decision. For example, if customers provide positive reviews to a food
dish made by a particular chef then that chef will get a appraisal for their good performance
to keep their customers satisfied.
Stage 4- Retention
The best way to retain talented employees is to provide them al those resources and
tools and equipments which they require to perform their job (5 stages of the HR life cycle,
2021). In context of Waterside Inn., they can provide all tools to their kitchen department
such as chef knife, carving knife, salmon knife, vegetables and many others to make them
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satisfied to perform their job role. This stage will help the restaurant to mitigate the issue of
employee retention.
Stage 5- Separation and termination phase
This is the stage where employees left the organisation. In context of Waterside Inn.,
their managers must respond politely to those employees who is going to leave their
restaurant and thank them for their performance for the organisation. They can also provide
them well wishes for their future professional life. This will help them to gain respect and
mitigate the issue of declining brand reputation due to insulting employees while their
termination phase.
Develop a performance management plan to support the specific job role
Performance management is the process where managers monitor and evaluate
employee's work (Performance Management, 2021). Supervisor is the specific job role
which is selected for monitoring and evaluating performance of existing employees of
Waterside Inn. restaurant. Performance management plan for the chosen restaurant is given
below-
Plan- It is essential for the supervisor of Waterside Inn. Restaurant to plan their
performance and analyse which tool they are going to use to measure the performance of
their employees. Supervisor of the chosen restaurant is advised to make plans for both
positive as well as negative outcomes that what they should do overcome with bad
performance of their employees and how they will appreciate to their good performing
employees so that they will further improve their performance for the growth of restaurant.
Monitor- It is also essential for the supervisor to monitor the performance of their
employees and make sure that they will utilize the available resources appropriately. Here,
the main role of supervisor is to check that their employees will not waste any available
resources and use them in such a way which will provide maximum benefit to the restaurant.
Supervisor must check the performance of their employees while they are doing their task so
that supervisor will make them correct on the spot if they found any incorrect way of
performing task by any employee.
Review- It is also essential for a supervisor to review their plan appropriately and
make sure that their employees are performing according to their plan or not. In case the
employees are not performing according to plan then they are required to make corrective
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actions again by modifying their plans as well as actions related to implementation of plan.
It is essential for the supervisor of a food and beverage company to review the employees
performance by analysing how much customers are getting satisfied with their food dishes
and services. More customer satisfaction means better outcome of performance conducted
by the employees.
Make valid judgements and recommendations on how processes and documents at
each stage of the HR life cycle can be improved using examples
Stage 1- Attraction, recruitment, selection
It is recommended to Waterside Inn. Restaurant to use appropriate job description
and person specification documents at this stage which will analyse the job role and the
skills required by individual to perform the vacant job. This will help the candidate to
analyse that whether their available skills and talents are suitable to apply for the job role or
not. It is also recommended to the restaurant that they can select candidate for the vacant job
role after checking their skills in interviews as well as practically by providing them tasks
related to offered job role for a particular period of time to notice whether they will perform
the job role appropriately or not.
Stage 2- Induction, orientation, on-boarding
It is also recommended to the Waterside Inn restaurant to introduce their employees
well and focus to motivate them to have appropriate communication with other employees.
It is suggested that the existing employees must know that the employee is new to the
organisation and they must come first to say 'hello' to their new employee to make them feel
better and encouraging (Employee Orientation: Keeping New Employees on Board, 2020). It
will also helpful in the orientation if a mentor of buddy will assign for the introduction of
new employee with others and make them clear their doubts regarding their tasks and duties.
Stage 3- Career planning and development
It is recommended for Waterside Inn restaurant to make their employee self
dependant and encourage them to set target for them self and measure their day to day
performance with honesty. This performance measurement than cross checked by managers
and then they will decide that which employee of their restaurant is eligible for promotions
and increments. They can provide increment after every 6-8 months because 1 year time
duration of increment will be little discouraging employees.
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Stage 4- Retention
It is recommended to the restaurant to make a list of their most talented employees
and their expectation to stay within their restaurant for longer period of time. Making
negotiations and make a proper retention strategy will help Waterside Inn to retain their
talented employees to improve their productivity and profitability. It is also essential for
Waterside Inn to focus on the behaviour of their managers because a study in 2019 states
that 57% of employees left the organisation due to their bad relationship with managers (12
Employee Retention Strategies for Your Company, 2022). Hence, the restaurant must
motivate their managers to stay polite with their employees.
Stage 5- Separation and termination phase
It is also recommended that the chosen restaurant to follow a process of separation
phase of their employees which are mentioned below-
 Employees are suggested to provide written notification to the management team
with minimum of two weeks notice.
 When management team receives the letter of reignition then they should forward it
to HR department with signed separation notice (The Five Step Employee Separation
Process, 2022). This separation notice will stop the employee's payroll and benefits.
 Another step is to communicating with employee to analyse the main reason for
leaving the organisation.
 At the end restaurant must mail a letter of confirming employee resignation.
 Keeping all documents of employee termination safe in employee's personnel files is
essential.
Task 3
Identify specific legislation(s) that hospitality organizations has to comply and adhere to, in
the daily transaction of business using examples to explain where applicable
There are various kinds of laws related to hospitality industry in UK and few of the legal
laws and mentioned below-
The Trade Descriptions Act 1968- This law states that the hotel must use accurate
and true information in their advertisement activities and did not mislead their customers. In
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context of Waterside Inn restaurants, they advertise those food dishes and services which
they actually have in their restaurant.
Data Protection Act 1998- According to this law, hotels and restaurants are
required to protect the data of their customers and employees from threats such as hackers.
There are various kinds of data protection techniques such as Big data encryption, Cloud
data protection, Tokenization and many others. In context of Marriot hotel, they use Micro
Opera PMS software which help them to protect their data and arrange them properly
(Marriott selects Micros Opera as PMS for all North American properties, 2013). This
software will help them to manage their daily basis data appropriately.
Health and Safety at Work Act 1974- This is one of the most essential regulation
for hospitality industry. It states that employer of the hotels must focus to maintain the
safety of their employees at their workplace (Hotels Laws UK, Regulations, Laws &
Industry Practice, 2020). Restaurants like Waterside Inn must have fire extinguisher at their
kitchen area to protect their employees from unwanted fire accidents.
Illustration of how the company’s employment and contract law impact on business
decision-making
Employment law has major impact upon decision making process of hotels and
restaurants. In context of Waterside Inn restaurant, The Trade Description Act, 1968 will
impact upon decision making process of the restaurant related to their promotional
activities. They must decide to advertise only actual dishes and services without any show
off. Secondly, Health and Safety at Work Act 1974 will also impacted upon decision
making process of the chosen restaurant. Here, a fixed number of employees are allowed in
kitchen area of the chosen restaurant and they have all safety measures such as oven gloves,
medical kit, fire extinguisher and few others at their restaurant. Hence, restaurant have to
invest in such particulars also due to this law.
Task 4
An exploration of the different functional roles within the hospitality sector and how they
interrelate using an organisation chart
There are various functional roles within hospitality sector and few of them are mentioned
below-
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Marketing department- This department is responsible for conducting marketing
research for a company. In context of Waterside Inn restaurant, their Marketing department
can help them to analyse the preference of their customers toward their offered products and
services. Secondly, they are also responsible for analysing marketing trends.
Finance department- This department is responsible to prepare financial reports of
the companies such as balance sheet, profit and loss account and few others (Jiuhe, Xizhuo
and Guoqiang, 2019). This department is also responsible for preparing budgets for the
company and analysing appropriate source of finance for the company. In context of
selected restaurant, their financial department can analyse those activities which will help
them to earn maximum Percentage of profit so that they will invest more to earn more.
HR department- This department is responsible to manage employees and other
essential resources of the company. In context of selected restaurant, their HR department is
responsible to manage whether their employees are capable to communicate with their
customers or not. They are also responsible to manage performance or their employees and
make effective strategies for employee development.
Explain the different communication methods and levels used in an organisation
There are various kinds of communication methods within an organisation and of the
methods are mentioned below-
Verbal communication- It consist of using words to convey any message. For
example, when a employee ask other employees regarding their required resources while
speaking and other individual is responding well by understanding the message then it is
verbal communication.
Written communication- It consist of sharing message through written form like
letters, documents and many others (Szabo and van Zanten, 2020). For example, when an
organisation convey their new rules and regulations of their organization by pasting the
documents which contain new rules and regulations on the notice board of the office than a
company uses written communication.
Body gestures- This type of communication takes place when two or more
individuals understand each other’s message through their body language. For example,
when one employee move their head horizontally then other employee understand that he is
conveying 'no' and in case head is moved in vertical direction than it means 'yes'.
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A review of Coordination and Integration within a business organisation using examples
where necessary
It is essential for the hotels and restaurants to focus on their internal coordination and
integration for achieving their organisational goal appropriately. In context of a restaurant
like Waterside Inn restaurant, their each department have to coordinate well to make their
customers satisfied and happy. In context of marketing department, they collect information
regarding food dishes getting popular near the location of their restaurant and this
information get conveyed to kitchen department where chef make the dishes and waiter and
waitress serve them to their customers. HR department of the restaurant also interact with
their employees and get to know about their issues and requirements so that desired
requirements will be fulfilled.
Analyse the effectiveness of different communication methods, integration and monitoring
within a specific department can help achieve overall organisational objectives and
strengthen the value chain
Communication method allow employees to coordinate well with each other. In
context of Waterside Inn restaurant, they can use verbal and body gesture method of
communication to communicate with other employees (Muratova and Abraimova, 2020).
Body gesture method of communication will help those employees to understand each
other's message which are standing in distance and they did not shout loudly to convey their
message. This will not disturb guest of the restaurant. Secondly, verbal communication
method will also help the employees to communicate faster and make decision as quick as
possible.
Recommendations
 It is recommended to Waterside Inn restaurant to focus to comply with more
legislations and legal laws within their organisation to enhance their effective
organisational culture.
 It is also recommended that the managers must involve their employees in decision
making process to generate confidence and motivate them for their skills and talents.
This will also help to maintain good relationship between managers and employees.
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CONCLUSION
There are various financial documents which can be used by a company to maintain
their financial records effectively such as balance sheet, trial balance, loss and profit account
and few others. It is concluded that HR life cycle is having five stages which will define life
cycle of a employee in an organisation. Functional area like marketing department, HR
department and few others are interlinked with each other to achieve their organisational
goal. It is also concluded that effective communication method will also help the company
to achieve their organisational goal.
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REFERENCES
Books and Journals
Jiuhe, W.A.N.G., Xizhuo, H.A.N. and Guoqiang, S.H.I., 2019. A study of the functional
area layout planning of logistics park considering railway dividing line. Industrial
Engineering Journal, 22(5), p.102.
Lahmiri, S. and et. al., 2020. Performance assessment of ensemble learning systems in
financial data classification. Intelligent Systems in Accounting, Finance and
Management, 27(1), pp.3-9.
Muggleton, N. and et. al., 2021. The association between gambling and financial, social and
health outcomes in big financial data. Nature Human Behaviour, 5(3), pp.319-326.
Muratova, G. and Abraimova, N., 2020. The use of information-communication
technologies and modern methods in teaching a foreign language. Mental
Enlightenment Scientific-Methodological Journal, 2020(2), pp.175-182.
Szabo, B. and van Zanten, H., 2020. Adaptive distributed methods under communication
constraints. The Annals of Statistics, 48(4), pp.2347-2380.
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