The Hospitality Business Toolkit

This report discusses financial transactions, talent acquisition and retention, and performance management plan in the hospitality industry. It covers the principles of managing and monitoring financial performance, double entry system, and classification of cost. It also reviews the different stages of the HR life cycle and provides recommendations on how processes and documents can be improved. The report includes a performance management plan for a newly appointed marketing manager.

The Hospitality
Business Toolkit

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Activity 1.....................................................................................................................................1
Source documents......................................................................................................................1
Principles of managing and monitoring financial performance..................................................2
Principles of Double entry system...............................................................................................3
Classification of cost....................................................................................................................4
Activity 2.....................................................................................................................................5
A review of the different stages of the HR life cycle as applied to issues in talent acquisition
and retention................................................................................................................................5
Develop a performance management plan to support the specific job role.................................6
Recommendations on how processes and documents at each stage of the HR life cycle can be
improved......................................................................................................................................7
Identify specific legislation(s) that hospitality organizations has to comply..............................8
Company’s employment and contract law impact on business decision-making.......................9
Implication of regulations............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality is quite a wide concept which covers in its fold various services provided by
hotels, restaurants, resorts, etc., to their customers for the money paid by them. Hospitality
management is a professional career path. The Fat Duck, is a dining restaurant in UK, known for
its excellent services it provides to its customers. (Ulker-Demirel and Ciftci, 2020)In this report,
there is a discussion about the financial transactions of the hospitality management, acquisition
and retention of talent of HR within the food and beverage sector and its importance in growing
and supporting such talent. Also there is a discussion about the management plan to support the
specific job role and make valid judgements using examples. Further, how the company's
employment, law and legislation impact business decision-making and some ethical issues are
also being discussed.
TASK 1
Activity 1
Accounting can be defined as the techniques that the organisation uses in order to record the
various financial as well as the non-financial data through which the managers become able to
evaluate the performance in the market. It is very necessary for the organisation to regularly
analyse the performance of the company through which they can take necessary actions against it
in order to solve any problem if caused in the future (Paton, 2020). In relation to the Fat Duck
restaurant, they maintain their accounts in a very effective manner through which they can easily
analyses the cost as well as the profits in the market. it helps the management to record each and
every transaction that take place.
Source documents
1. Sales order: This document can be used by the organisation as a proof of the sales they
have made in the workplace.
2. Bank statement: There are various kinds of statements that the company gets and it can
be used later for the purpose of the alignments of the records and they can maintain the
cash at bank.
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3. Credit and receipt: This can be defined as the document that contains the proof of the
credit that has been issued by the organisation to the customers in the market. through
this the company become able to manage the cash at demand.
4. Time card: This card is very beneficial for the organisations to execute the pay check to
the employees of the company. It also helps to manage the invoices of the customers.
5. Quotes: it can be defined as the document that is given by the company to the interested
customers. Through this they can determine the prices of the products in of the business.
6. Receipts: It means that the hotels should maintain the receipts of the customers that have
visited in. This helps the organisation to maintain the records of the customers as well as
of the sales.
Principles of managing and monitoring financial performance
Timeliness: It is one of the main rule that the transactions that has occurred in the
organisation should be recorded at that time only (Nayak and Taylor, 2018). Effective
financial statements should be prepared by the Fat Duck restaurant.
Consistency: It means that all the transactions should take place in a regular manner.
Policies and procedures should be followed by the company in order to prepare the records in
an effective manner.
Justification: It means that the organisation to give valid justifications which helps the
organisation to achieve the specific goals.
Certification: Each and every documents should be authenticated and signed by the
officials.
Documentation: It can be defined as that the organisation should maintain the enough
documents and proofs in order to match the transactions.
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Principles of Double entry system
It can be defined as the system that are used by the organisation in order to records the
transaction in the two accounts (Van Abel, 2021). This accounting system is based on the debit
and credit system which automatically balances the accounts. There are various principles that
the Fat duck restaurants should use are as follows:
 Debit the receiver and credit the giver.
 Debit what comes in and credit what goes out.
 Debit all the expenses and credit all the incomes.
It is very important for the accounting department to consider all the rules while preparing the
accounting reports. Through this they can effectively debit and credit the amounts in the books.
One of the entry is given below in relation to the hotel is:
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Salary Paid - Salary a/c Dr $10000
To Cash $10000
Electricity Bill paid - Electricity Bill a/C Dr $2000
To Cash $2000
Classification of cost
Labour cost: It can be defined as the salary as well as the wages of the employees in the
company that has to be paid to them.
Material cost: This cost can be explained as the cost that has been incurred on the production of
the goods and the services (Bogues, 2021). There are components includes in this costs that are
as raw material, cost of packaging etc.
Expenses: It can be defined as all the expenses of the company that are undertaken by the
organisation in order to sell the products and the services in the market.
Classification by Functions
 Production costs: This cost is associates with the production of goods.
 Commercial costs: It can be defined as marketing and distribution of the products and
the services in the market.
Classification by Traceability
 Direct cost: It can be defined as the cost which is directly has a relation with the
production and manufacturing of the goods. This cost can easily be terraced by the
company in the market.
 Indirect cost: It can be defined as the costs that are undertaken by the organisation and
the business firms in order to sell the products into the market by various marketing
techniques or distribution of it into the market.
Classification by Normality
 Normal cost: It can be defined as the part of the cost of manufacturing of the products.
This cost can be explained as the expenses at the normal level of the output.
 Abnormal cost: This cost is not assumed by the organisation and generally is not
incurred at a normal level of the output. It is not included in the cost of the manufacturing
of the goods and the services.
Financial management plays an important role in the analysing the financial position of the
company through various tools and techniques. There is a need for the organisation to take
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actions on the right time through they can achieve their desired goals and targets. In relation to
the Fat Duck restaurant, they ensure that all functions should be carried out the in the systematic
manner through which they increase the profitability in the business (Liu 2018). Through
financial management they become able to execute the resources in a way through which they
can increase their profitability in the market. Accounting department of the company follows all
the rules and principle of accounting while preparing the accounts.
Activity 2
A review of the different stages of the HR life cycle as applied to issues in talent acquisition and
retention
An industry or organization goes through various stages while recruiting talents to fill
their vacancies. The Fat Duck restaurant is quite a renowned restaurant in UK, known for its
food and services. The HR life cycle goes through various stages in order to acquire and retain
talent within the restaurant. These stages are discussed below:
 Attraction, recruitment, selection – Attraction is the first step to the process of finding
and retaining talent for the organization. The Fat Duck restaurant attract people and then
they start selecting and recruiting the suitable ones they feel like are best for the job.
 Induction, orientation, onboarding – Once the people are selected for the posts, the
chosen restaurant, starts their induction and orientation. At this stage, the employer and
employee put forward their expectations of each other. This is very necessary as it makes
the employees familiar with the work, environment and the employees already working
over there. This makes them feel valued, welcomed and helps them to work efficiently.
 Career planning and development – This is the stage where the employer helps the
employee grow by providing an opportunity to do so. The chosen restaurant, rewards and
appraise its employees when they achieve the goal set by them. These rewards may be for
the individual or for whole of the team. This motivates the employees to perform their
best every time.
 Retention – Cycle of every employee needs a good investment of money and time. So to
retain employees, The Fat Duck, gives them good environment, skill and tools that they
need to do their job.
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 Separation and termination phase -Understanding why employees leave is very important
in order to retain the good ones.(Guzzo, Abbott and Madera, 2020) The chosen restaurant
have a face to face talk with their employees to know about their problems so that they
can solve their queries and retain them for a long period.
 Evaluate each stage of the HR life cycle and the importance HR plays in supporting,
growing and retaining talent as applied to the specific job role.
The role of HR is quite significant in supporting, growing and retaining talent within an
organization or industry. Being a fine successful dining restaurant, The Fat Duck, has its own
strategies of retaining good and efficient employees. The chosen restaurant has HR for the
recruitment of its employees. (Morgan and Pritchard, 2019) The HR selects and appoints the
suitable and the most efficient employees for the job. Hence the work and importance of HR is
quite significant. After this the selected employees are made familiar with the organization and
they are retained by giving good working conditions, asking and solving their problems.
Develop a performance management plan to support the specific job role
Performance management is a process which involves the measurement and improvement
of employees and organization's effectiveness and efficiency. It is a process used to align the
resources and knowledge of workers to achieve the objectives set by the organization. (Cabral
and Jabbour, 2020) The Fat Duck goes through all the stages of performance management to
ensure smooth performance of its restaurant. There are four stages of performance management
plan and those are discussed below:
 Planning – Planning is the very first and major step of any process and so it is for
performance management plan. It means setting goals and objectives that the
organization is expected to achieve. The priority should be that people are able to
understand the plan because if they are not able to understand it how they will execute it.
So proper understanding of plan is very necessary for the smooth performance of an
organization. HR of the chosen restaurant ensures that the employees understand the plan
drawn to execute.
 Monitoring – Monitoring stage tracks the progress of the goal currently in process. The
Fat Duck monitors the progress of the objectives by having a word with the employees
about their work and progress. Employees work more efficiently as they know that the
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restaurant would ask them about the result at the last of the week. This motivates them to
work harder.
 Reviewing – This stage involves reviewing performance of employees. The Fat Duck's
manager review the work of their employees and take their mistakes out. The chosen
restaurant also identifies their strengths and weaknesses from the work performed by
them. This helps the organization achieve the targets set by them.
 Rewarding – Last but not the least, rewarding, this is one of the most satisfying stage.
Rewarding employees for their work keeps them motivated for working hard and
efficiently. (Cunill And et.al., 2019) This makes employees feel valued and welcomed
and make them dedicated and loyal towards their work and the organization.
Performance Management plan for newly appointed marketing manager.
Issues
identification
Employees
involvement
Set clear
objectives
Training
programmed
Performance
review
They are facing
issue of declines
sales and customer
response.
By providing
training and
leaning
programme in
order to assist the
marketing
manager.
By providing
skills and
capability test and
activities to
marketing
manager.
In order to asset
marketing
manager, the
managers will
conduct trainings
and campaigns.
It will be review
after 2 months of
their performance
through taking
feedback.
They face an issue
when they have an
inexperienced
team.
Their skills can be
improved by
providing them
proper training
facilities.
By setting goals
and objectives for
the staff
members ,
motivating them
to achieve them
and rewarding
them for the same.
In order to help
the staff, the
manager can hire
trained
employees.
After 3 months of
training and work,
their performance
will be reviewed.
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Recommendations on how processes and documents at each stage of the HR life cycle can be
improved
HR life cycle goes through various stages as discussed above. The work of yhe HR can be
improved in various ways. It is the duty of the HR to give advertisements and publish in various
publications about the vacancy of the job. These vacancies are to be filled by the suitable persons
as the HR deems fit for the job. The planning, recruitment, and retention of employees is quite
necessary as an organization spends a lot an recruiting an employee. For example - The HR of
The Fat Duck can publish advertisements in local and vernacular newspapers giving the
qualifications or requirements necessary for filling the vacancies in their restaurant.(Pizam and
Tasci, 2019) Those vacancies may be of a receptionist, chef, waitress, etc. the HR should try to
give more and more specific details about the job and its requirements which makes it easier for
both. the HR as well as the person, to apply and hire for the job.
Identify specific legislation(s) that hospitality organizations has to comply
In today's world where everyone has a hectic schedule, hospitality managers need to ne
multi – talented. Every field is based on some rules and ethics. These rules and regulations are
known as legislations. Like every field, hospitality too has its own legislations it complies with.
These are mandatory for the organizations to comply with. Data Protection Act, 1998, Gas
Safety (Installation and use) Regulations 1994, The Health and Safety at Work Act, 1974, The
Trade Description Act, 1968, etc., are some of the acts that are to be complied with by the
hospitality organizations.
The Health and Safety at Work Act, 1974 sets out some duties that the employers have
towards employees and sometimes towards public in general. (Lee, Lee and Dopson, 2019) This
act sets out some guidance that everyone needs to follow while they are at work. According to
this act there are certain duties employees have towards each other and they must fulfil them.
The Data Protection Act, 1998, ensures the security of data of an individual to be
collected, stored and processed with an organization. (King and et.al., 2021) This helps build the
trust of the individuals and protect the personal data of the people. The data can be easily
accessed to whenever needed by the individuals as everything is on computers. Easy accessibility
and proper security is the key factor to the satisfaction of customers, generally.
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Company’s employment and contract law impact on business decision-making
A company’s employment can be defined as the placing of the employees at the workplace
and when it is done on a temporary basis that is known as ‘Temping”. In relation to the contract
law, it has significantly affects the operational activities of the business. There are several laws
has been made by the government in relation to the production of the goods and the services.
Contract laws puts a major impact on the activities of the business that is to be carried out at the
workplace. It also influences the way of doing the business activity in the market and how the
organisation behaves with the customers in the market. organisations also play an important role
in the improvement of the career law (Nelson, 2018). On the other hand, decision making
process can be defined as making the actions plan for future purpose. It is done by gathering data
and all the necessary information through which they can take effective decisions. Along with
that the employees of the company helps the managers of the company to take necessary actions
that are to be required in the company. It also facilitates the organisation to improve their
performance in the market. it results in the increasing of the job satisfaction of the employees at
the workplace when the employees are involved in the decision making process.
Implication of regulations
Fat Duck restaurants follows all the rules and regulations of Health and Safety act. Main
purpose of this act to enhance the customer satisfaction with products and the services they are
offering to them in the market (Benson and et.al., 2020). This will facilitate the organisation to
make valuable image in the market which will results in the increasing profitability for them.
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CONCLUSION
From the above report, it has been analysed that Human resources department plays an
important role in the hiring the potential employees at the workplace. In the above report there
has been the discussion on the various stages of the HR lifecycle. Performance management plan
has also been evaluated. There have been the recommendations given to the organisations in
order to improve the HR lifecycle. Special legislations have also been undertaken in relation to
the hospitality. After that principle of managing the financial performance has bene evaluated.
Along with that principle of double entry system has been analysed. At the end of the report,
company’s employment and contract law has been analysed.
REFERENCES
Books and Journals:
Benson, and et.al., 2020. The development and validation of a toolkit to measure consumer trust
in food. Food Control, 110, p.106988.
Bogues, L.S., 2021. The Hospitality Industry and Cannabis Tourism in Whatcom County,
Washington: A Phenomenological View (Doctoral dissertation, California Southern
University).
Cabral, C. and Jabbour, C.J.C., 2020. Understanding the human side of green hospitality
management. International Journal of Hospitality Management, 88, p.102389.
Cunill, O.M. And et.al., 2019. Thirty-fifth anniversary of the International Journal of Hospitality
Management: A bibliometric overview. International Journal of Hospitality
Management, 78, pp.89-101.
Guzzo, R.F., Abbott, J. and Madera, J.M., 2020. A micro-level view of CSR: A hospitality
management systematic literature review. Cornell Hospitality Quarterly, 61(3), pp.332-
352.
King, C. and et.al., 2021. Reimagining attraction and retention of hospitality management talent–
A multilevel identity perspective. Journal of Business Research, 136, pp.251-262.
Lee, P.C., Lee, M.J. and Dopson, L.R., 2019. Who influences college students’ career choices?
An empirical study of hospitality management students. Journal of Hospitality & Tourism
Education, 31(2), pp.74-86.
Liu, Z., 2018, August. Creative Graphics Education Potential for Creativity of Hospitality
Students via Virtual Environment. In International Conference on Geometry and
Graphics (pp. 1643-1654). Springer, Cham.
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Morgan, N. and Pritchard, A., 2019. Gender Matters in Hospitality (invited paper for
‘luminaries’ special issue of International Journal of Hospitality
Management). International Journal of Hospitality Management, 76, pp.38-44.
Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’ perspective.
Worldwide Hospitality and Tourism Themes.
Nelson, G.S., 2018. The analytics lifecycle toolkit: A practical guide for an effective analytics
capability. John Wiley & Sons.
Paton, N., 2020. Testing times-how OH is responding to coronavirus. Occupational Health &
Wellbeing, 72(5), pp.8-11.
Pizam, A. and Tasci, A.D., 2019. Experienscape: expanding the concept of servicescape with a
multi-stakeholder and multi-disciplinary approach (invited paper for ‘luminaries’ special
issue of International Journal of Hospitality Management). International Journal of
Hospitality Management, 76, pp.25-37.
Ulker-Demirel, E. and Ciftci, G., 2020. A systematic literature review of the theory of planned
behavior in tourism, leisure and hospitality management research. Journal of Hospitality
and Tourism Management, 43, pp.209-219.
Van Abel, K., 2021. Business research toolkit: The creation of an online, asynchronous business
information literacy course. Journal of Business & Finance Librarianship, 26(1-2), pp.67-
80.
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