Hospitality Business Toolkit (Unit-04)

This report discusses managing financial performance, recording transactions, HR life cycle, performance management plan, hospitality legislation, and functional inter-relationship in the hospitality industry. It includes recommendations for Ginger Jar Food (GJF), a UK catering company, and a performance management plan for Sous-chefs at ELC.

HOSPITALITY BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
P1 Principles of managing and monitoring financial performance.............................................3
P2: Recording of transactions......................................................................................................4
P3: Trail balance and balance sheet.............................................................................................8
TASK-2............................................................................................................................................9
P4: Stages of HR life cycle..........................................................................................................9
P5: Performance management plan...........................................................................................11
P6: Legislation in the context of hospitality sector....................................................................12
P7: Impact of company, employment and contract laws...........................................................13
P8: Interrelation of different functional areas of hospitality industry .......................................14
P9: Methods of communication, coordination and monitoring in Front office department......14
CONCLUSION AND RECOMMENDATIONS..........................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Human resources are the key aspect and element of every organization. Their retention in
the company will enable the company to have a grabbing of its objectives. Management of
performance and enabling training and development opportunities will lead to raise employee's
retention. Ginger Jar Food (GJF) is a famous catering company of UK. It was started in 2009 by
Jenny McNeill. It aims and delivers its creative food with stylish delivery. This report will
discuss the concept of finance and recording transaction under Task-1 while Task-2 will deal
regarding the HR life cycle, performance management plan, hospitality legislation along with its
implications. Functional inter-relationship along with methods of communication, monitoring
and controlling is also a part of the report followed by recommendations.
TASK-1
P1 Principles of managing and monitoring financial performance
Financial performance:
It is an indicator of financial condition of the company. It is usually determined with the
help of financial statements that include cash flow statements, income statements, balance sheet,
and various others. These statements are the reflection of the company's financial position and
performance. A positive representation of these statements reflect the good financial condition
and vice versa.
As finance is the blood of the organization which enable the organization to have an
attainment of its objectives so it is very essential that the company's financial position will be
quite positive so that its concerned stakeholders will be remained a part of the company.
Principles:
Attention towards paying taxes:
It is counted as major liability and responsibility of the company. Non-payment of taxes
will lead to have an implication of negative brand image. Thus making timely analysis and
payment of taxes will lead to have a positive brand image and good financial performance with
respect to ELC.
Understand risk:

This is a major principle that is concerned with managing and monitoring performance.
As it is a fact that the higher return may bring high risk. Thus, managing the finance in terms of
debt and equity management will lead to have better financial performance (Daniel, Marioara
and Isabela, 2017). As this will have a major impact over the ELC's financial performance, so a
focus towards this aspect will lead to entitle good financial performance.
Organization of finance:
This is also a major aspect with regard to management of finance. Organization of
finance in the form of making balance between debts and equity and income and expenditure
will lead to entitle ELC better financial performance.
Likewise, a consideration towards the principle of consistency focussing on performance
of consistent transactions and its recording, timeliness in terms of timely handling and its
recording, ensuring justification related with the occurrence of transactions, documentation under
which adequate documentation will be performed and certification under which the transactions
will be signed by authorized signatory will need to be focussed and considered by ELC.
P2: Recording of transactions
Double entry book-keeping system:
It is a modern concept of recording transactions. Under this system every transaction and
activity have corresponding and opposite impact over other accounts (Liang and et.al., 2021). It
has two sides debit and credit. It will lead to have a balance in accounting.
Rules:
 Debit the receiver and credit the giver.
 Debit all expenses and credit all income.
 Debit what comes in and credit what goes out.
Journal entries
Date Particular Debit Credit
01/01/21 Cash a/c Dr
To Owner's equity
£30,000 £30,000
05/01/21 Rent a/c Dr £1000 £1000

To Cash a/c
06/01/21 Dryers and Washers
a/c Dr
To Bank
To Cash
£25000 £15000
£10000
07/01/21 Insurance policy a/c
Dr
To Cash a/c
£1200 £1200
09/01/21 Beverages a/c Dr
Food supplies a/c Dr
To Bank a/c
£7000
£8000
£15000
11/01/21 Laundry fee a/c
To Cash a/c
£200 £200
15/01/21 Telephone and internet
a/c Dr
To Cash a/c
£2220 £2220
15/01/21 Rate, water charges
and refuse a/c Dr
To Cash a/c
£950 £950
16/01/21 Salaries and Wages a/c
Dr
To Cash a/c
£1740 £1740
18/01/21 Cash a/c Dr
To Sales a/c
£20000 £20000
20/01/21 Cash a/c Dr
To Sales a/c
£13000 £13000
Ledger accounts:

Bank account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £30000 06/01/21 Dryers and
Washers a/c
£15000
09/01/21 Food supplies
a/c
£8000
09/01/21 Beverages a/c £7000
£30000 Total £30000
Cash account
Date Particular Amount Date Particular Amount
01/01/21 owner equity £30,000 05/01/21 Rent a/c £1000
18/01/21 Sales a/c £20000 06/01/21 Dryers and
Washers a/c
£10000
20/01/21 Sales a/c £13000 07/01/21 Insurance
policy a/c
£1200
11/01/21 Laundry fee
a/c
£200
15/01/21 Telephone and
internet a/c
£2220
15/01/21 Water charges,
Rent and
refuse a/c
£950
16/01/21 Salaries and
Wages a/c
£1740

30/01/21 Balance c/f £45690
Total £63000 Total £63000
Capital account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £30000 01/01/21 Cash a/c £30000
£30000 Total £30000
Rent account
Date Particular Amount Date Particular Amount
05/01/21 Cash a/c £1000 31/01/21 By bal c/d £1000
Total £1000 £1000
Sales account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £33000 18/01/21 Cash a/c £20000
20/01/21 Cash a/c £13000
£33000 Total £33000
Insurance policy account
Date Particular Amount Date Particular Amount
07/01/21 Cash £1200 31/01/21 By bal c/d £1200

Total £1200 £1200
Beverages account
Date Particular Amount Date Particular Amount
09/01/21 Bank £7000 31/01/21 By bal c/d £7000
Total £7000 £7000
Washers and Dryers account
Date Particular Amount Date Particular Amount
06/01/21 Cash £10000 31/01/21 By bal c/d £25000
06/01/21 Bank £15000
Total £25000 £25000
Telephone and internet fee account
Date Particular Amount Date Particular Amount
15/01/21 Cash £2220 31/01/21 By bal c/d £2220
Total £2220 £2220
Food supplies account
Date Particular Amount Date Particular Amount
09/01/21 Bank £8000 31/01/21 By bal c/d £8000
Total £8000 £8000

Wages and salaries fee account
Date Particular Amount Date Particular Amount
16/01/21 Cash £1740 31/01/21 By bal c/d £1740
Total £1740 £1740
Laundry fee account
Date Particular Amount Date Particular Amount
11/01/21 Cash £200 31/01/21 By bal c/d £200
Total £200 £200
Rate, water charges and refuse fee account
Date Particular Amount Date Particular Amount
15/01/21 Cash £950 31/01/21 By bal c/d £950
Total £950 £950
P3: Trail balance and balance sheet
Trail balance:
It is a worksheet under which total balances of all ledgers are placed under debit and
credit sides of the account (UDEH, 2017). Its main purpose is to have an arithmetical accuracy of
the accounts.
Trail Balance

Particular Amount (Dr) Amount (Cr)
Bank £30000
Cash £45690
Sales £33000
Capital £30000
Telephone and internet fee £2220
Laundry fee £200
Food supplies £8000
Insurance policy £1200
Wages and salaries fee £1740
Beverages £7000
Rent £1000
Washers and Dryers £25000
Rate, water charges and
refuse fee
£950
Total £93000 £93000
TASK-2
P4: Stages of HR life cycle
HR life cycle:
It is a continuous process with an integration of HR activities. It covers every aspect eight
from attraction till separation of employees.

Source: Chukwujama, 2018
Stages:
Attraction, recruitment, selection:
As per this step employees will be attracted and selected for the GJF. It will lead to
building efficient workforce. This process begin with attracting applicant, recruiting them
through various process, and finally select the most appropriate candidate. In case of front office
manager, this step plays an important role because this post is the representation of the face of
GJF.
Induction, orientation, and on-boarding:
This stage is related with making familiarization of employees and employer towards
each other. Here the HR of GJF make the selected employees to be familiar with the organization
and its working. This is a major step in case of front office manager because it need to well
aware about the organization and its concerned staff along with prevailing rules.
Career planning and development:
Here the HR enable career and growth opportunity to its employees. This is an important
step in terms of talent retention because if the employees will be enabled good opportunities then
Illustration 1: HR Lifecycle

they will never leave the organization (Nocker and Sena, 2019). Focus over this step will lead to
have high retention rate in case of front office manager of GJF.
Retention:
This stage is solely concerned with retention of employees. Here it is assured by the HR
that the employees will be motivated and feel satisfied (IvANA, 2020). This will lead to have
high stability and entitle growth to GJF. This will also assist the concerned personnel like front
office manager to enhance its skills and professionalism with experience.
Separation and termination:
It is related with employees leaving and separation step. This is the stage where with
adequate reason employees will leave the organization. GJF always take adequate strategies with
regard to employees so that they will never left the organization.
Relation with talent management and staff retention:
This process is directly and closely related with these terms. As if this process will be
applied and implemented in the organization then it will lead to have better retention as well as
implication of talent management. This can be context with the career enhancement
opportunities, adequate recruitment and selection, raising motivation and various other aspect of
the HR life cycle.
P5: Performance management plan
It is a process that enable and support the employees to work in the direction of the
attainment of organizational goal (Performance management plan, 2020). In order to create
performance management plan with respect to the role of Sous-chefs at ELC, it is important that
the following points need to be considered:
Performance management plan for Sous-chefs at ELC:
Skills Measured
performance
Required action Resources Time
Communication
skill
It will enable to
maintain and
build relationship
within the team.
Must be
interactive with
the team with
respect to
decision-making
Meetings,
teamwork,
leading
3 weeks

and maintenance
of service quality
Administrative
skills
Lead to make and
make
organization of
operational
activity
Controlling skills
with respect to
decision-making
and financial
controlling
Training and
aspect related
with financial
management
1.5 month
Time
management
skills
With time
management
skills food would
be able to serve
without making
any delay
Must be
consistent with
respect to
performance
Setting targets,
time deadlines
1 month
Skills related with
Kitchen and
knowledge
It is mandatory
requirement with
respect to chef
that it must
possess kitchen
skill with regard
to various
ingredients and
chopping
Must have full
and in-detail
knowledge of all
the food
ingredients
coaching, degree
or training
20 days
Health and safety
standard
Must be careful
with regard to
implication of
health and safety
standard
Must be cautious
regarding
workplace
sanitation as well
as personal
hygiene
health and safety
standards training
1 month
Techniques in association with the resolving of issues related with negative behaviour:

Persistence of negative behaviour in terms of making violation of rules and regulations,
making harassment, bullying others, conflicts and mis-management. This is the main and major
reason that lead to raise employees turnover and lower the retention rate of employees. However,
in order to make deal with such situation, the HR need to take several steps in terms of:
Setting up of ethical code of conduct:
In order to deal with this situation, HR need to make standard code of ethics along with
rules and regulations. This will assist the ELC and its employees to make and resolve the issue
concerned with such negative environment.
Making policies with respect to rewarding:
Motivation is the key that lead the taking of action and initiates the action. And by
enabling reward system with regard to taking of positive moves and action, the negative
environment and the situation of retention will be improved.
Effective communication:
The major reason with regard to the conflict involves the lack of effective
communication. Thus, with the enabling of process of effective communication the occurrence of
the conflicts will be automatically reduced.
Involvement in decision-making:
This will lead to raise retention because if employees will be considered while decision-
making and their consideration will be given importance then it will lead to raise their
participation and reduces the violation of rules and regulations.
P6: Legislation in the context of hospitality sector
The Food Act, 1997:
This is one of the major act in association with the hospitality industry. As per this act it
is important that the concerned hospitality organization including ELC, GJF and various others
have to complied with this act and inculcate in their business operations. As per this act they
need to be careful and follows the required guidelines concerning the preparation of food,
maintenance of hygiene, composition of food, food activities and various others. This act will
ensure that the concerned organization will deliver the best quality and hygienic food to its
customers. Hospitality industry being a direct dealer with customer, need to strictly abide by this
act and law.

The carrier and Innkeepers act:
This act is completely related with the housekeepers. This means the provisions of this
act is for the safeguarding and protecting the interest of housekeeper (Singer, 2020). Its one of
the regulation also states that a house keeper may perform good or loss or damage the guest
property. However, it is important that the situation must fulfil the following requirements:
 The person must need to a guest of the organization.
 The amount is limited up to $100 with respect to property of the guest. However, if it is
deposited under hotel's safety locker than the value must be limited to $2000.
 Damage to motor vehicle and live animals is not covered under this act.
Liquor control act:
This act is also applicable in case of hospitality industry. These act is concerned with
those personnels that are engaged with the liquor serving and selling. It is to be noted that in
order to pursue the liquor selling the concerned hotel must have authenticated license.
P7: Impact of company, employment and contract laws
Impact of specific regulation and legislation:
Legislation and regulations in the form of various acts have a direct and major impact
over the concerned organization including GJF or others. As these regulations are concerned
with the betterment of the company's position and efficiency so it has positive impact over the
sector. This can be understood with an example of food Act, 1997 that GJF need to perform its
business operation in the compliance with this act. As this act covers the rules related with food
and its delivery in terms of maintenance of hygiene and other factors. Thus, an application of this
act have a positive impact over the GJF in terms of enabling and grabbing large number of
customers and raising its sales percentage too.
Likewise, ethical consideration and principle in terms of implying the ethical code of
conduct and ethical consideration will further lead to have a positive impact in terms of
enhancement of brand image or market image of the concerned organization. For example, in
case of GJF it always works with the compliance and consideration of ethical code and conduct,
thus, a consideration of these factor will put positive impact over its competitive image.
Likewise, it will also lead to have a favourable impact over its employees too. This means that

they will also work in discipline and perform their work of handling customers with a
consideration of moral values.
Similarly, inculcating and following of employment contract law will also positively
impact the organization. For example, engaging employees as per contract act and formulating
contract at the time of employment will lead to have a clarity in the mind of employee as well as
employer too. Thus, this will lead to have a better and efficient performance with regard to
employee's perspective.
These acts, rules, principles are also taken as base in the decision-making process. This
would also not be wrong to said that the decision taken on the compliance of these acts and rules
will lead to have better outcome and results. This acts and rules will lead to bring clarity in the
minds of concerned personnel regarding taking of most appropriate decision with respect to
organization's betterment and growth.
However, on a critical note it is also to be noted that these acts will sometime lead to
rigidity and inflexibility with respect to executing business operations. Sometimes, in order to
comply with these laws, major decisions of the GJF will delay and ultimately affect it in long
term.
P8: Interrelation of different functional areas of hospitality industry
There are majorly four functional department in case of hospitality industry including
marketing, human resource, accounting and finance, and purchase department. These
departments are closely related with other.
This can be understood as a direct relation of purchase with accounts and finance. This
means that as per the allotted funds, purchase department need to make purchase. Likewise, as
per the demand of the purchase department regarding the purchasing of material, account and
finance department will release funds.
Likewise, there is also a relation between marketing and purchase and production
department. This means that the marketing department will make promotion of only those
products which is being produced by the organization.
In the same manner human resource also share its relation with every department in terms
of enabling and entitling adequate number of human resource within each department (Anlesinya
and Amponsah-Tawiah, 2020).

P9: Methods of coordination, communication and monitoring in Front office department
Communication:
Front office department uses both verbal and non-verbal communication method in order
to make communication within different departments within the organization and with the
customers too. They use emails, resolves online queries in case of communicating with
customers (Porcu and et.al., 2019). However, they use hotel software and verbal and non-verbal
modes with different departments in order to deliver best services to its clients.
This will lead to have a direct impact towards attainment of organizational goal through
enabling best services to the clients and as a result grabbing of more customers. This will raise
the efficiency of value chain in terms of making adequate and efficient communication with the
concerned department like housekeeping in preparing room as per client request and need.
Coordination:
With effective communication and liaison with the different department including
marketing, sales, housekeeping, maintenance and various other they establish coordination.
This is also having a direct relation with the grabbing of goal of GJF in terms of enabling
best services to its customers. With the concept of effective coordination, front office department
make enable the other department regarding the work or operation they need to take so that their
client experience will raise and ultimately GJF will achieve its objectives. Coordination is again
having a direct relation with enhancing value chain efficiency. This means that with effective co-
ordinating activities the firm's overall value in terms of its delivered services will raise.
Monitoring:
It includes the timely inspection and checking before the arrival of client that its
requirements are fulfilled or not. This includes regular review before check-in of clients. As this
aspect will lead to have direct checking and enabling services as per client requirement so plays a
direct role with respect to goal attainment of GJF. This will also enhance value chain because
monitoring enable the finding of deviation and required changes which will finally lead to have a
delivery of best services.
However, on the other hand it would also be right to said that the aspect of
communication, monitoring or co-ordination will lead to have a creation of lengthy process and
sometime even may affect the quality of delivered services. Being a time-consuming process, it

may also lead to loosing of client as no one client and customer want that its time will be wasted
in enabling services of hotel.
CONCLUSION AND RECOMMENDATIONS
CONCLUSION
As per the above report it is concluded that the finance and recording of transactions
plays a major role with regard to GJF and ELC too. It will lead to have a control and tracking of
all the transactions. Likewise, a well devoted HR life cycle enable the GJF to have a better
functioning along with attracting and retaining employees within the organization. This report
also summarizes the aspect of performance management and legislative requirement with an
association towards GJF. In the same way methods in association with the communication,
monitoring and coordination along with its critical impact towards the GJF is also understood in
this report.
RECOMMENDATIONS:
 In order to improve communication, it is recommended that the GJF need to entitle and
up-gradation in its communication software and train its employees with regard to non-
verbal communication so that faster actions will be taken.
 In order to improve monitoring and co-ordination it is also recommended that an
emphasis over effective communication and data envelopment in the form of taking
regular feedback will lead to better outcome and results (Peters, 2018).
 Likewise, enabling better career opportunities, organization of training sessions, enabling
flexible and employee's friendly environment will lead to have better retention and
improvement in the existing HR process of GJF.

REFERENCES
Books and journals
Anlesinya, A. and Amponsah-Tawiah, K., 2020. Towards a responsible talent management
model. European Journal of Training and Development.
Daniel, A.C., Marioara, A. and Isabela, D., 2017. Annual Financial Statements as a Financial
Communication Support. Ovidius University Annals, Economic Sciences Series. 17(1).
pp.403-406.
IvANA, D., 2020. Human Resource practices in improving employee retention. Review of
Economic Studies and Research Virgil Madgearu. 13(1). pp.33-43.
Liang, and et.al., 2021. Pattern Recognition and Anomaly Detection in Bookkeeping Data.
Nocker, M. and Sena, V., 2019. Big data and human resources management: The rise of talent
analytics. Social Sciences. 8(10). p.273.
Peters, B.G., 2018. The challenge of policy coordination. Policy Design and Practice. 1(1). pp.1-
11.
Porcu, and et.al., 2019. Analyzing the influence of firm-wide integrated marketing
communication on market performance in the hospitality industry. International Journal
of Hospitality Management. 80. pp.13-24.
Singer, J.W., 2020. Public Rights. Law and History Review. 38(3). pp.621-629.
UDEH, S.N., 2017. THE TRIAL BALANCE.
Online references
Chukwujama, C., 2018. A Guide to the HR Lifecycle. [Online]. Available through
<https://xceed365.com/a-guide-to-the-hr-lifecycle/>
Performance management plan., 2020. [Online]. Available through
<https://www.designingbuildings.co.uk/wiki/Performance_management_plan>
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