Effective Organisational Functioning and Productivity

The provided assignment is focused on discussing organisational structure, company contracts, employment law, and communication within hospitality industries. It delves into how these aspects influence business productivity, making it a comprehensive resource for students seeking to understand effective functioning in such environments.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
(a) Investigation of the principles of managing and monitoring financial performances...........3
(b) Apply double entry bookkeeping system of debits and credits to record sales and
purchases.....................................................................................................................................4
(c) Produces the basic trail balance applying the use of balance off rule to complete ledger....5
TASK 2............................................................................................................................................6
(d) Review different stages of HR life cycle applied to Health Club.........................................6
(e) Development of performance management plan for hospitality job role..............................7
TASK 3............................................................................................................................................9
(f) Identify specific legislations for the Health Club has to comply and adhere to....................9
(g) How company, employment and contract law has a potential impact upon business
decision.....................................................................................................................................10
TASK 4..........................................................................................................................................11
(h) How different functional roles within the hospitality sector interrelates............................11
(I) Explain the different methods of communication, co-ordination and monitoring applied
within department of hospitality organisation...........................................................................13
CONCLUSION..............................................................................................................................13
RFERENCES.................................................................................................................................15
Books & Journals ..........................................................................................................................15

INTRODUCTION
Hospitality business toolkit is necessary for every organisation, who are dealing in any
business related to hospitality such as clubs, restaurants, hotels etc. In the current scenario, clear
vision & mission is required for business entities along with its goals accomplishments. Business
toolkit involves information related to accounting as well as management in order to enhance the
sustainability to control business for the longer period of time (Chung, 2018). This report will be
carry on Health Club, which was founded in 2016 in London, UK. This hospitality business deals
with providing facilities of juices & fruits to persons, who are looking for health based services.
This report will cover different principles of managing and monitoring of the financial
performance along with preparation of ledgers. This report will also cover aspects of trial
balance along with use of balance off rule to tally the trail balance.
TASK 1
(a) Investigation of the principles of managing and monitoring financial performances
Managing financial performance is crucial for every business entities to know their actual
potential to implement changes in their business operations. In response to this, there are various
principles, which are majorly stated to monitoring financial potential in the business firms. In
context with Health Club, during an accounting period there are various incomes and expenditure
of Health Club are as follows:
Incomings Outgoings
Salaries & Wages Lunch purchases by the customer's.
Gifts (On monthly basis) Household utility bills
Benefits (paid to staff member's of Health Club) Clothes.
Allowances (HRA, travelling and basic expenses
allowances) Weekly food shopping
Perquisites or incentives Gifts

After tabulation data, this has been prepared through recording of various incomings and
outgoings. There has been followed some of the principles in order to measures the financial
performance of Health Club are as follows:
Principle 1: A budget must be established to provide to provide a tool to: measure actual
& current financial performance, discover significant transaction errors along with resources are
necessary to achieve unit's goals and objectives.
Principle 2: A budget must be realistic, attainable and reasonable
Principle 3: Real financial results should be compared to budget on a regular basis to:
detect changes in issues or circumstances, discover transaction error, measuring of financial
performance and also transactions that are adequately supported.
Principle 4: When real results of financial aspects varies from budget, manager or owner:
must determine the real cause, evaluate activities or take corrective course of actions.
Principle 5: Business units must be operate within their budget. If expenses would
exceed actual budget, justification for such excess must be provided.
Principle 6: All the expenses must be comply with all relevant policies, regulations and
procedures.
(b) Apply double entry bookkeeping system of debits and credits to record sales and purchases
Double entry bookkeeping system is applicable to every business, except for small entity.
In the current scenario, standard method for recording transaction is the double entry system. It
actually means that every transaction must involve at least two accounts. In context with Health
Club, double entry book-keeping system will be illustrate through recording of few transactions
are as follows:
Particulars Debit Credit
Cash in hand (Overdraft) 15000
Petty cash expenses 1000
Cash sales 4500
Credit card sales 16000
Free issues 1500

New kitchen equipments 10000
Food purchase 10000
Beverage purchases 12000
Purchase return 500
Discount received 4000
Credit notes 1000
Rent 3000
Utilities 500
Functions and events
(Income) 9000
Wages 5000
Debtors 4000
Till shortage 3000
Total 50000 50000
Double entry book-keeping will be explained through complete explanation of debit and
credit system. On the first hand, where “debit side” records all kind of expenses including
purchases, cost incurred on generating the sales leads, expenses of both trading & profit & loss
accounts (Chung, 2017). On the other hand, credit records all kind of incomes & revenues, after
selling of goods & services. In context with Health Club, major income for this business is its
cash in hand, credit & cash sales along with incomes from function & events, which are recorded
in “Credit side”.
In addition to above, debit and credit in double entry double-keeping will stated several
ways: Firstly, for each and every transaction, total amount of debit side must be equal to total of
credit side to check the financial performance of the Health Club, and secondly, complete tally of
both debit and credit side must be done as per the stated norms & regulations. To maintain
double-entry book system effectively, Health Club is required to keep proper recording of their
income & expenses in order to enhances systematic recording of data/information to bring clear

business running in their business organisation. Also, Health Club must prepare separate book
keeping to record their sales and purchases generated throughout their business operations.
(c) Produces the basic trail balance applying the use of balance off rule to complete ledger
Trial balance is a list of all general ledger accounts contained into the ledger of each and
every businesses. This general ledger accounts contains name of each nominal ledger balances as
well as value of that nominal ledger accounts. It helps to provides complete analysis of income
and expenses for any businesses. Balance off rule is most popular method of trial balance in
order to tally debit and credit side. This rule says that both the side should be matched to get
balanced response of the accounting. This rule basically aimed at analysing an information,
which was present within the ledgers and journals. Also, it is done to find out whether these
ledgers or journals are corrected or not. It is necessary for Health Club to analyse all kind of
basic or detailed informations to record in Trial balance to know whether expenses are equal to
income or not. With the help of this balance off rule, Health Club would get clear-cut response of
the trial balance made to know financial stability and performance. The above given is the trial
balance for Health Club:
Particulars Debit Credit Transaction amount
Wages 20000 20000
Gifts 11000 11000
Benefits 16000 16000
Allowances 14000 14000
Weekly food shopping 20000 20000
Clothes 5000 5000
Gifts 10000 10000
Household utility bills 4000 4000
Drinks 12000 12000
Lunch purchases 10000 10000
Total 61000 61000 122000

TASK 2
(d) Review different stages of HR life cycle applied to Health Club
In context with Health cycle, the stages of HR life cycle are as follows:
Recruitment: Hiring of the best person is the major key for growth of Health Club.
Various decisions related to the recruitment & selection would directly impact the Club's annual
turnover, growth and their long term productivity. To succeed into the recruitment stage of this
life cycle, Health Club's HR department must arrive at clear-cut strategic staffing plan on a
positions that are vacant.
Education: After the recruitment process, another stage is the education process from the
tenure, when employee's started with new job positions. Every employee must know their role in
their respective organisation, show their expectations along with responsibilities. During this
stage of HR life cycle, it’s necessary for HR to: Communicate about company’s culture and
values and also train new hires to make them understand their job’s duties.
Motivation: Generally, turnover is higher in the first ninety days, which is due to a lack
of motivation to employee's. Mainly, leaders whose focus is on building strong bonding with an
any employee in the first ninety days, they can retain their employee's for longer time period. HR
can effectively motivates new hires by: keeping them continuously engaged, offers major
reasons to stay motivated or controlled through actions such as accurate compensation, benefits
etc., and provides recognition to employee's who perform their best efforts.
Evaluation: This stage of evaluation into the HR life cycle involves the supervisor who
have potential to measures the employee’s accountability and performance. Also, this stage
provides an employee and their respective leaders with metrics that actually shows that whether
the recruitment is right fit for the job or not. It will helpful in a great deal when the leaders look
out their employee's doing a great instead of continues criticizing.
Celebration: This is the lest stage of the Human resource life-cycle along with giving
opportunity to motivate their staff members and appreciate them for their hard work. This kind of
appraisal can be in form of remuneration, incentives, gift, rewards etc. As a assistant talent
acquisition, Health Club should provide higher level of confidence & motivation to their
employee's to accomplish their defined goals & profitability.
Importance of HR life cycle: In context with Health Club, an importance of HR life cycle
for strategic talent manage & overcoming issues of staff retention are as follows:

Helpful to aid & increase employee performance: Motivation stage of HR life cycle will
Health Club to enhance the motivation level of their employee's along with their increased tasks
abilities. Also, it will help them to retain for longer period of time.
Employee credential to higher level: Giving proper and complete education will help
staff of health Club to get right and correct info of Club business and proper knowledge over
operation based knowledge activities of this business entities. Hence, adaptability is required in
context of education.
(e) Development of performance management plan for hospitality job role
Script 1
Discussion which should not be undertaken
Manager: I am noticing you from the past several days, your behaviour
with your colleagues is not very good.
Employee: Yes sir, its true. My mood is off due to which i am feeling
frustrated and depressed.
Manager: Do you know, Your work is effecting due to this behaviour?
Employee: Yes sir, I know and i think it will get better in some days.
Script 2
Discussion which should be undertaken
Manager: I am noticing you from the past several days, your behaviour
with your colleagues is not very good.
Employee: Yes sir, its true. My mental condition is not good as there are
some tensions going on in my family.
Manager: Okay, but your performance is affecting due to this.
Employee: Maybe sir, But I will assure you that i will try to improve my
behaviour so that other employees won't get affected.

TASK 3
(f) Identify specific legislations for the Health Club has to comply and adhere to
In context with Health Club, business entity is required to co-operate with specific laws
and regulations to ensure the quality measurement & suitable work performance into the
business outlets (Barrutia, 2014). In response to this, there are various fundamental legislations,
on which Health Club has required to comply for bringing an effective & results working. The
various legal and fundamental regulations are as follows: Food Safety Act, 1992: This act basically initiated to make quality of food more safe and
preserved for business organisation. It deals with providing quality food to different
business, who mainly deals in food & beverages services to their customer's. In context
with Health Club, business firm is required to provide guidances & procedures, to reveals
that how quality for effective food, juices or beverages can be brought and what should
be the quality of that products. This act has been set-up to make practices related to food
regulation or preparation more fair and quality based. Employment regulation act 1997: This act has been initiated to protect employment of
employee's in every organisation, especially in hospitality industry. In hospitality based
law, Special enactments has been added in order to provide longer guarantee to
employee's to survive in their job. It has brought special changes through which
employee can't loose their interest in their job as well as continue their higher task based
performance. This can be accomplish through implementation of this act in work to
higher employee outcomes.
 National Minimum Wage Act, 1996: This act has been initiated to provide legal base to
companies for giving suitable compensation to their employee's in return of hard-work by
them. As, this act was enacted in year 1996 by Government of United Kingdom with
major purpose to provide fair and accurate wages & salaries to employees to give them
good appraise of their work done. Hence, this act will help Health Club to solve their won
issues related to paying salaries or wages to their employee's.

(g) How company, employment and contract law has a potential impact upon business decision
Companies, employment and contract law are main parts of business law, which have
different branches or legal scopes. In context with Health Club, organisation needs to get being
benefited from these laws in order to continue their business activities with taking measures &
implement major decisions through complete involvement of these laws (Charterina, 2018).
These laws has played various necessary roles for better functioning of the Health Club because,
it has puts the major rivalry on day to day activities of Health Club business. Complete
explanation of these three laws will be explained through another organisational examples, who
are engaged in same industry of hospitality. Lets have an example of Lister menu restaurant,
which has brought roles of these three laws into the work practices.
Company law impact on Lister menu:
 Lister menu has been required to implement law for maintaining work regulation into the
Lister restaurant. This will simply help to make effective decision making along with
business regulation to maintain the work accountability as per the requirements of
business regulations of Lister menu.
Employment law on Lister menu:
 This law has been initiated to protect employment of the staff member's of Lister menu to
protect them from any kind of illegal work practices as well as any kind of malware tasks
or works. The potential impact will be protection of common interest of any employee's
of Lister menu. In direct way, it will enhances the decision making power of management
of this leading restaurants.
Contract Law on Lister menu:
 Contract law has been enacted to protect business relationships among suppliers, investor
and owner of Lister menu. Contract law has been enacted to build long term relationship
by owner of business with different parties such as suppliers, investors, customer etc. for
the longer period of time.

TASK 4
(h) How different functional roles within the hospitality sector interrelates
For better knowledge of different roles in hospitality business, it is necessary to discuss
various business structure of different firms in hospitality sector such as hospital, restaurant,
hotel etc. As, all these belongs to hospitality sector, but still discuss over their defined is required
and necessary. For making business of health Club, functional structure of different hospitality
business are as follows:
Organisation structure of Lister menu restaurant:
Sources: Organisation structure of Lister menu restaurant, 2018
Organisation structure of Hospital:
Illustration 1: Organisation structure of Lister menu restaurant

Sources: Organisation structure of Hospital, 2017
Organisation structure of hotel:
Sources: Organisation structure of hotel, 2018
Illustration 2: Organisation structure of Hospital
Illustration 3: Organisation structure of hotel

Organisation of Health Club:
Sources: Organisation of Health Club, 2018
(I) Explain the different methods of communication, co-ordination and monitoring applied within
department of hospitality organisation
Health Club can used different and creative methods of communication to make their
hospitality business more and more cultivate and productive in different ways are as follows:
Conference: In this type of communication, top management person are supposed to
address the other departmental head or representatives (Stephens, 2017). With the help of
conferences, decision making will be taken on strategic formulation along with any other
strategies such as business expansion or product launching. Health Club can used this technique
to make their business process for functioning and productive.
Seminar: This kind of communication generally happens in large organisation, where top
level manager wants to address large audience or other people of organisation, as seminar would
not be applicable to Health Club, as it is small business units with limited structures.
E-mails: It is mainly considered as electronic form of communication, through top
manager of business units to send any kind of formal message to organisational structure or
different other Dept. Health Club should use this technique to provide suitable information to
employee’s of their business staff for valuable or actions. This communication will help food &
beverages department of the Health Club to ascertain their defined goals in an effective manner.
Importance of above methods for attaining benefits and strengthen value chain:
Illustration 4: Organisation of Health Club

By carrying out all given methods of communication, manager can build communication
into the Health Club to gather their productive results along with increased efficiency of their
own business (Bruce, 2017). With the help of these communication channels, barriers in way of
higher profit or productive will be overcome. Also, productive of their department will also rise,
as a reason of increased transparency and capability. Effective communication will lead to
setting of strategic framework planning for Health Club.

CONCLUSION
From the above report, it has been concluded that business toolkit is necessary in every
business entities, irrespective of their nature or behaviour. It has brought transparency in
operations of hospitality business along with ability to get the its suitable examples. Role of HR
life cycle is bigger and wider to get an effective results of business function through compete
contribution of human resource department on larger basis. Organisation structure has make
every organisation being differentiate on the basis of their actual potential as well as its
interrelationship for the business benefits. Lastly, concept of company, contracts and
employment law has created scope for effective functioning for business entities. Lastly, pure
and clear communication has brought productivity in every hospitality industry along with clear
and complete productivity.

RFERENCES
Books & Journals
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hospitality enterprises. Tourismos. 9(1).
Chung, G. and Chung, D., 2018. WOW the hospitality customers: Transforming innovation into
performance through design thinking and human performance technology. Performance
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perspectives on internationalisation in a business school with a revised
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Education. 16(2). pp. 143-153.
Gnanapala, W. A. C., 2017. Public relations in hospitality marketing. Routledge Handbook of
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hospitality research? A review of sustainable restaurant literature from 1991 to 2015.
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for developing future hospitality concepts. Journal of Vacation Marketing. 22(3). pp.
249-264.
Moeti, M. E., 2016. The development of a business social responsibility (BSR) model to promote
the long-term sustainability of hospitality SMMEs in the Free State region(Doctoral
dissertation, Bloemfontein: Central University of Technology, Free State).
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Singh, R., 2015. Empirical examination of the impact of total quality services on hospitality
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