Hospitality Business Toolkit: Managing Financial Performance, HR Life Cycle, and Performance Management Plan

This report discusses the principles of managing and monitoring financial performance, journal and ledger of East London Catering, HR life cycle, and performance management plan for a functional manager in the hospitality industry. It also covers specific legislation and functional roles within the industry. The report aims to improve staff retention and overcome negative behavior with East London Catering as a case study.

Hospitality Business
Toolkit

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Principles of managing and monitoring financial performance............................................3
P2. Journal and ledger of 'East London Catering'.......................................................................4
P3. Trial balance of 'East London Catering'..............................................................................10
TASK 2..........................................................................................................................................10
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.........................................................10
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................11
TASK 3..........................................................................................................................................12
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
...................................................................................................................................................12
P7 By the help of specific examples, illustrate how company employment and contract law
has a potential impact on business decision-making in the hospitality industry.......................13
TASK 4..........................................................................................................................................14
P8 Explore how different functional roles within the hospitality sector interrelate.................14
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organisation to strengthen the value chain.........14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

Introduction
Hospitality management refers to the activity of managing day to day operations related to the
hospitality industry (Adeyinka-Ojo, 2018). This is a big industry which accounts to a significant
percentage in the economy of UK so management of this sector's companies is essential for both
the entrepreneur and the government. Hospitality management is a vast field which consists of
activities such as travel, accommodation, food, event management and different services for
tourists (Álvarez-Risco, Estrada-Merino and Pérez-Luyo, 2020). In this report a catering
company named East London Catering is considered whose financials are made along with the
discussion of various factors associated with hospitality industry.
TASK 1
P1. Principles of managing and monitoring financial performance
Finance is considered the most essential aspect of any business, without proper
management of finance the organisation won't be able to sustain (Bellizzi, 2018). The
management of these finance is done by a dedicated team which evaluates every part of the
company that is associated with numbers. Finance team is also responsible for estimating
budgets and financials projections of the organisation. East London Catering have a good finance
team who works ethically in order to provide support to different departments of the business.
There are certain principles that needs to be taken in account while managing and monitoring
these financials, few of them are discussed below:
 Budget made by the finance team must be realistic so that it can act as a tool of
comparison when the company generates actual result. A budget helps in assessing the
conditions that the company may face in the near future (Connatser, 2021). Preparation of
a budget is essential for a company such as East London Catering because it helps the
managerial team in taking important decisions.
 All the expenditures occurred during the course of business must be backed by proper
accounts so that the organization would be able to calculate their exact amount of profit.
Creation of various financials expenditure accounts such as advertising, rents and taxes,
wages and salaries helps the managers to know the source of expense. East London

Catering makes prepares all the expense accounts for the clear understanding of the
expenses.
 The financial team must avoid window dressing, this refers to fabrication of data for
personal or organizational gain. This is considered as a severe offence as this effects the
shareholders and investors of the company (Rodríguez-Antón and Alonso-Almeida,
2019). In context of East London Catering, they follow ethical approach while recording
the amounts in the books of the company.
 They are responsible for maintaining an adequate cash flow for the organisation, so that
the organisation can meet the obligations that are entitled for short term (Thommandru
and et. al., 2021). Finance team of East London Catering manges the operating, financing
and investing activities of the company to increase the profitability and reliability of the
company.
P2. Journal and ledger of 'East London Catering'.

Date Particulars Debit Credit
2021
January
January
January
January
January
January
January
January
January
Cash a/c
To capital a/c
(Started business with cash)
Store rent a/c
To cash a/c
(Store rent being paid in cash)
Washer and dryer
To Cash a/c
To creditor a/c(Supplier of washer and dryer)
(washer and dryer being purchased for 10000 cash and
15000 credit)
Insurance policy a/c
To cash a/c
(Insurance premium paid in cash)
Food supplies a/c
Beverages a/c
To Creditors(WH Adams)
(Food supplies and beverages being purchased on credit)
Laundry fee a/c
To cash a/c
(Being laundry fee paid for cash)
Telephone and internet a/c
To Cash a/c
(Being telephone and internet bill paid in cash)
Rates, water charges and refuse a/c
To cash a/c
(Being rates, water charges and refuse paid in cash)
Wages and Salaries a/c
30000
1000
25000
1200
8000
7000
200
2220
950
1740
30000
1000
10000
15000
1200
15000
200
2220
950
5

January
January
To cash a/c
(Being wages and salaries paid in cash)
Cash a/c
To sales(food) a/c
(Being food sold for cash)
Cash a/c
To sales(beverages)
(Being beverages sold or cash)
20000
13000
1740
20000
13000
Total 110310 110310
Ledger accounts:
Cash account
Date Particulars Amount Date Particulars Amount
To Capital a/c
To Sales(food)
To Sales(bev.)
30000
20000
13000
30/01/18
By Store rent
By washers
By Insurance
By laundry fee
By telephone
By rent
By wages
By balance c/d
1000
10000
1200
200
2220
950
1740
45690
63000 63000
01/02/18 To balance b/d 45690
Capital account
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 30000
01/06/16 By cash a/c 30000
6

30000 30000
01/02/18 01/07/16 By balance b/d 30000
Expense(Insurance) a/c
Date Particulars Amount Date Particulars Amount
To cash a/c 1200
30/01/18 To balance c/d 1200
1200 1200
01/02/18 To balance b/d 1200
Expense(food supplies) a/c
Date Particulars Amount Date Particulars Amount
To creditors a/c 8000
30/01/18 To balance c/d 8000
8000 8000
01/02/18 To balance b/d 8000
Expense(Beverages) a/c
Date Particulars Amount Date Particulars Amount
To creditors a/c 7000
30/01/18 To balance c/d 7000
7000 7000
01/02/18 To balance b/d 7000
Expense(laundry fee) a/c
Date Particulars Amount Date Particulars Amount
7

To cash a/c 200
30/01/18 To balance c/d 200
200 200
01/02/18 To balance b/d 200
Expense(Telephone and internet)
Date Particulars Amount Date Particulars Amount
To cash a/c 2220
30/01/18 To balance c/d 2220
2220 2220
01/02/18 To balance b/d 2220
Expense(Rent, water and refuse)
Date Particulars Amount Date Particulars Amount
To cash a/c 950
30/01/18 To balance c/d 950
950 950
01/02/18 To balance b/d 950
Expense(Store rent)
Date Particulars Amount Date Particulars Amount
To cash a/c 1000
30/01/18 To balance c/d 1000
8

1000 1000
01/02/18 To balance b/d 1000
9

Creditors account(Supplier of washer and dryer)
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 15000
By washer 15000
15000 15000
01/02/18 By balance b/d 15000
Creditors account(WH Adams)
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 15000
By food supplies
By beverages
8000
7000
15000 15000
01/02/18 By balance b/d 15000
Sales account
Date Particulars Amount Date Particulars Amount
30/06/16 To balance c/d 33000
07/06/16
15/06/16
21/06/16
By cash a/c(food)
By cash a/c(bev.)
20000
13000
33000 33000
01/07/16 By balance b/d 33000
10

P3. Trial balance of 'East London Catering'.
Trial balance
Particulars Debit Credit
Capital
Cash
Expense(store rent)
Expense(Supplier)
Expense(beverages)
Expense(insurance)
Expense(laundry fee)
Expense(Telephone and internet)
Expense(Rent. Water and refuse)
Expense(Wages and salaries)
Asset(Washer and dryer)
Creditors(Washer and dryer)
Creditors(W.H Adams)
Sales(food)
Sales(beverages)
45690
1000
8000
7000
1200
200
2220
950
1740
25000
30000
15000
15000
20000
13000
Total 93000 93000
11

TASK 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
HR life cycle is a well executed chain of activities which ensure that the people hired in the
business are serving the right role in the organisation (Feniser, Dusa and Sadeh, 2018). This
helps in establishing a good relationship between the employees and the human resource
manager of the company. In context of East London Catering they follow a vicious a HR life
cycle to ensure efficient working in the organization. The HR life cycle is major divided into five
parts:
 Attraction, recruitment and selection- This is the foremost step of a human resource
manager, every basic role of HR is fulfilled in this stage. It is all about attracting the
people to fill for the job role, conducting tests and interviews and selecting the
appropriate person to fill the job role (Kalotra, 2017). In context of East London
Catering, their HR manager hires people by interviewing candidates whose resume fit
the job role and it helps in extracting the best people out of the applied one's.
 Induction, orientation and onboarding- After the recruitment, HR managers explains
the job role briefly along with the information about the organisation. In this stage the
employees are informed about the resources and facilities provided by the company. In
context of East London Catering, they conduct special sessions to inform the exact job
role and territory of the employee. This helps in avoiding the assumption and confusion
part from both the sides.
 Career Planning and development- The HR manager is responsible for providing
ample of opportunities to the employee working in the organisation (O’Connor, 2019).
This motivates the employee to work harder so that they can grow more and more. In
context of East London Catering, they have a huge growth structure for the employees
working in the organisation.
 Retention- Retaining employees for a long time is one of the major tasks of HR as there
is a lot of resource and time invested in hiring people. To avoid the same hectic process
they offer numerous amounts of benefits to the employees. In context of East London
Catering, they make their employees feel respected in the company. They offer various
kinds of perks to the employees which interests them in working for the organisation.
12

 Separation and termination process- This process is done in order to increase the
efficiency of operations in the organizations. HR closely monitors the work of the
employees and if they finds out that the person is unable to serve the purpose of job role
then they are served with a termination notice.
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
A performance management plan is prepared to analyse the efficiency of employees in achieving
the objectives of the company. The job role considered in East London Catering is the functional
manager, the company is facing issues in properly managing the various areas. Due to the
improper management in the organisation, the company is unable to retain its employees. The
solution to these problem is a three step solution which is discussed below:
Plan: This is the first and foremost task of an HR manager, in this stage he identifies the
problems and plan accordingly to solve the issues that are causing problems in the organisation.
They will develop full set of tasks to increase the efficiency of the functional manager. Different
training sessions will be conducted to make them explain the techniques of managing their
territory of the business.
Monitor: This activity involves observing the implementation of planned things, this activity is
focused on analysing the betterment in the company due to the planned changes. This task is
continuous as the evaluation is done on a daily basis and the performance is checked by
matching the standards. This helps in communicating to the reporting manager about the changes
seen in the performance after the implementing the plan.
Review: This is the end result of the whole process as this activity is to calculate the exact
performance of the employee after applying the performance management plan (Rivera,
Casadesús Fa and Villar, 2021). The HR manager of East London Catering rewards the
employees if the expected performance level is achieved. A report document is prepared in
which the performance of very employee is mentioned along with the reviews related to the
workings of the people.
13

TASK 3
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
Hospitality organisation needs to follows the laws associated with the operations of the industry
to assist the customer in having a good experience while travelling (Pappas and Brown, 2020).
There are certain laws that are made compulsory by the government so that both the parties don't
face any problem. Some legislation that comply to East London Catering are as follows:
Health and safety at work act, 1974- It defines the regulations that needs to be maintained in
the workplace in order to enforce health and safety in the organization (Stylos and et. al., 2021).
This act revolves around listing the duties of employers, employees and everyone that is
associated with the organisation. This act is backed by the strict criminal laws, in case of
violation of this act the owner will need to face obligations. In case of East London catering, they
follow this act in the organisation in order to ensure health and safety of their employees and
consumers.
Food safety act, 1990: This act is implied by the government on all the food services in UK, this
ensures the quality of food that is being served by the organisation. This act condemns the act of
adding any kind of ingredient that may cause damage to the health of the consumer. This act also
ensures that the food is actually being provided is matching to the way the organisation
advertised.
P7 By the help of specific examples, illustrate how company employment and contract law has a
potential impact on business decision-making in the hospitality industry
The working in the organisation must be done in the way the rules and regulations are imposed
by the government . The government has set laws for all the organisation that are related to the
hospitality industry. Few of contract laws that directly puts a impact on the business decision
making are as follows:
 Company law- There are certain laws that every company operating in UK has to follow,
these laws are implied by the government in order to avoid any kind of forgeries in the
course of business (Rudd and Flanegin, 2019). These laws directly impact the operation
and profitability of the business. In context with East London Catering these laws helps
in maintaining the good work environment and increases the terms of trust in the
14

organisation. These laws help in bringing clarity in the ownership and the revenue of the
business.
 Employment law- These laws are made to ensure the safety of the employers working
in the organisation, these are essential to follow as employees are considered as the most
important asset of the organisation. These laws are compulsory and not following these
may result in legal complications for the organisation. In context of East London
Catering, their employees develops a feeling of trust due to these laws, as these laws
defines the minimum wages and salaries and working criteria of the employees.
 Contract law- A contract refers to a document which is drawn by the supplier or the
organisation in order to make the workings smooth. These documents are supported by
legal terms and any kind of problem in these documents are backed by several laws. In
context of East London Catering, they draw these with the customers and food supplier
so that the terms get clear on a legal basis.
TASK 4
P8 Explore how different functional roles within the hospitality sector interrelate
Every industry operating in this world is divided into departments so that efficiency in the
organisation can be established. Hospitality industry is backed by every functional department
and these departments are interrelated in terms of work (Sharma and Gursoy, 2018). In context
of East London Catering, they have dedicated department of finance, marketing, operations and
HR. All of these department works hand in hand to increase the productivity in the business.
 Interrelation between human resource and finance department- Both of these
departments works together as the human resource department needs finance team to
clear their finances that are required in recruitment and compensation of employees. HR
department is responsible for recruiting the right educated people in the finance team. In
context of East London Catering, both of these team work together which ensures that the
finances of HR department are clear and HR department is efficiently managing the
human resource in the finance department.
15

 Interrelation between operations and marketing department- These departments are
related in terms of product and services as the operation department manages the
production part and the marketing team advertises the products. In context of East
London Catering, their marketing team conducts survey to analyse the demand of the
consumer and than they further communicate this information to operations department.
P9 Explain the different methods of communication, coordination and monitoring applied within
a specific department of a hospitality organisation to strengthen the value chain
To ensure that the information is communicated between the departments, specific method of
communication are applied in the organisation. A good communication and co-ordination
between different departments helps the business in sustaining for a longer term in the market.
Hospitality industry's key aspects include effective communication between every department of
the business. The various methods of communication,coordination and monitoring used in East
London Catering are as follows:
 Proper verbal and written communication- Communication of information in the right
manner is essential, the communicator needs to decide the mode of communication
according to the relevance of information. Communication of financial information
should be done on a written basis as they might get fabricated in case of a verbal
communication. In case of East London Catering, their employee should communicate
the orders in a written form so there won't be any confusion and the customer will get the
exact order that he wants.
 Functional monitoring- This is management of activities on the basis of its role, this
monitoring helps in accessing the performance of that specific role in the business. In
context of East London Catering, they follow a specific approach of reviewing and
monitoring the roles which helps them in effectively managing the resources.
CONCLUSION
It can be concluded from the above report that hospitality industry is vast and requires different
techniques in order to manage the finance of the company. Different performance management
tool used in the organisation helps in optimising the efficiency in the organisation. All the
16

departments in hospitality industry are interrelated and interdependent , a smooth flow of
information between these department is essential as it enhances the performance of the business.
17

REFERENCES
Books and Journals
Adeyinka-Ojo, S., 2018. A strategic framework for analysing employability skills deficits in
rural hospitality and tourism destinations. Tourism Management Perspectives, 27,
pp.47-54.
Álvarez-Risco, A., Estrada-Merino, A. and Pérez-Luyo, R., 2020. Sustainable development goals
in hospitality management. In Sustainable Hospitality Management. Emerald Publishing
Limited.
Bellizzi, L., 2018. The hospitality industry in the era of social media (Bachelor's thesis,
University of Malta).
Connatser, C., 2021. Assessing Employee Retention in the Hospitality Industry: An Examination
of the American Hotel & Lodging Association’s Registered Apprenticeship Program
(Doctoral dissertation, Johnson University).
Feniser, C., Dusa, S. and Sadeh, A., 2018, March. Factors That Determine Innovation in the
Hospitality Industry from a Managerial Perspective. In International Conference on
Tourism Research (pp. 41-VIII). Academic Conferences International Limited.
Kalotra, A., 2017. An Analysis of Awareness of Marketing Mix Strategies of Hospitality
Industry: A Study of Delhi. JOHAR, 12(2), p.1.
O’Connor, P., 2019. Online tourism and hospitality distribution: a perspective article. Tourism
Review.
Pappas, N. and Brown, A.E., 2020. Entrepreneurial decisions in tourism and hospitality during
crisis. Management Decision.
Rivera, D.E., Casadesús Fa, M. and Villar, A.S., 2021. Identifying and Measuring Customer
Delight in the Hospitality Industry. Tourism Analysis, 26(1), pp.1-10.
Rodríguez-Antón, J.M. and Alonso-Almeida, M.D.M., 2019. The circular economy strategy in
hospitality: A multicase approach. Sustainability, 11(20), p.5665.
Rudd, D. and Flanegin, F., 2019. COMMUNICATION AND CLIMATE APPLICATIONS IN
THE HOSPITALITY INDUSTRY. ASBBS Proceedings, 26, pp.463-474.
Schneider, A. and Treisch, C., 2019. Employees’ evaluative repertoires of tourism and
hospitality jobs. International Journal of Contemporary Hospitality Management.
Sharma, B. and Gursoy, D., 2018, June. HRM practices in hospitality and tourism industry: a
review of the literature. In 8th Advances in Hospitality and Tourism Marketing and
Management (AHTMM) Conference (p. 28).
Stylos, N. and et. al., 2021. Beyond smart systems adoption: Enabling diffusion and assimilation
of smartness in hospitality. International Journal of Hospitality Management, 98,
p.103042.
Thommandru, A., and et. al., 2021. Role of tourism and hospitality business in economic
development. Materials Today: Proceedings.
18