Hospitality Industry Sustainability

This assignment delves into the crucial topic of sustainability within the hospitality industry. It requires students to explore the various environmental, social, and economic challenges faced by this sector. Furthermore, the assignment encourages an in-depth analysis of best practices and strategies employed by hospitality businesses to promote sustainable operations. This includes examining topics like waste management, energy conservation, community engagement, and responsible sourcing.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Recording all expenditures and incomes with the help of table.............................................1
b) Explaining following terms as pertains in hospitality industry..............................................1
c)Double entry book keeping system of debits and credits to record sales and purchases
transactions in general ledger......................................................................................................2
TASK 2............................................................................................................................................4
a) Different stages of HR life cycle applied to food and beverage hospitality job role and their
importance for retaining and developing talent..........................................................................4
b) Importance of HR life cycle in relation to strategic talent management and overcoming
issues of staff retention................................................................................................................4
c) Judgements and recommendations of HR processes and documents can be improved for
effective talent planning throughout HR life cycles...................................................................4
d) Performance management plan for hospitality job role and techniques for resolving both
negative behaviour and overcoming issues of staff retention.....................................................4
TASK 3............................................................................................................................................6
a) Specific legislations that a hospitality organisations has to comply and adhere.....................6
b) Using specific examples illustrating company, employment and contract law potential
impact upon business decision making in hospitality industry...................................................6
c) Examining potential implications of regulations, legislations and standards upon decision
making in a hospitality organisation...........................................................................................6
d) Critically reflect on potential impacts of regulations, legislations and ethical principles
upon decision making in a hospitality organisation....................................................................7
TASK 4............................................................................................................................................7
a) Different functional roles within hospitality sectors...............................................................7
b) Different methods of communication, coordination and monitoring applied to hospitality
for strengthening value chain....................................................................................................10
c) Analyse different methods of communication, coordination and monitoring within
department of hospitality organisation for achieving organisational objectives and
strengthening value chains........................................................................................................11

d) Critically analyse different methods of communication, coordination and monitoring within
department of hospitality organisation and make recommendations........................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality sector mainly refers to a division of business which deals in hotels,
restaurants, theme parks, lodging units, travel and tourism etc. In current scenario it is most
fastly growing business sector which further helps helps in improving economic development of
a country. Income or growth of this sector is highly dependant upon availability of free time as
well as disposable income or spending power of individuals (Anderson and et. al., 2017). This
report has been framed based on Sip and Scotch ice cream bar and juice cafe which has been set
up in London, UK. This report focusses on various elements such as stages of HR life cycle,
development of performance management plan, various hospitality roles and functions and their
interrelationship with each other. Also legislations imposed on various business units have been
mentioned in this report.
TASK 1
P1 Investigate the principles of managing and monitoring financial performance.
Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
drinks
Lunch purchases
Sales: Sales is a term which combines selling a number of goods and services within a
specified time frame. Sales value of one business unit can be quite different from another. can
be different from another. Sales can also be known as a transaction that takes place between two
or more parties.
Purchase: It is a process that refers to gaining possession of any property, goods or
services (Bowie and et. al., 2016). Buyers need to pay in a certain amount of money in return for
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goods and services. It forms a major part of a number of business concerns and their day to day
working schedules as well.
Types of Cost
There are a number of costs that occur in a business concern. These costs can further be
classified into various parts which have been mentioned as under:
Variable Cost- It is a type of cost that keeps on altering or changing from time to time
depending upon manufacturing and production processes. This cost is generally present in the
form of salaries of employees, wages of labour class, marketing prices etc.
Semi Variable Cost- A type of cost which combines both variable as well as fixed cost
is referred to as semi variable cost (Bruce and Stephens, 2017). Examples of semi variable costs
include cost of rent, facilities and expenses occurred during staffing as well.
Fixed Cost- Any amount of cost or expenses that do not change or modify and always
remains same is known as fixed cost. These costs generally remain fixed for a quite longer
period of time. It can be present in the form of rent, depreciation etc.
P2 Double entry book keeping system of debits and credits.
Double entry is a a system which deals with effective recording of transactions . In this
from of book keeping transactions are generally recorded twice, i.e. once in debit and once in
credit. For maintaining their record of transactions managers of Sip and Scotch can consider this
method.
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
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Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Trial balance: Trial balance is an important tool which works as book keeping worksheet. This
worksheet compiles all relative ledger balances in a single document (What is a trial
balance. 2019). Debit and credit of trial balance should always be equal.
Steps of Trial Balance
Step 1: Preparing a worksheet with three different columns
Step 2: Recording balances correctly in both debit and credit accounts.
Step 3: Calculating total of both debit and credit accounts.
Step 4: Making comparisons of both the columns.
P3 Balance off rule to complete the ledger
Balance off rule: Balancing off is a process which is considered by almost all business concerns
at the end of accounting or financial year. Main aim of companies behind using this rule is to
examine the correctness of data added in journals and ledgers. This will help Sip and Scotch in
determining their current financial position.
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
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Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
Clothes 17809 17809
Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
81389 81389 162778
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TASK 2
P4. Different stages of HR life cycle applied to food and beverage hospitality job role and their
importance for retaining and developing talent.
The human resource department in every organisation plays an important role in retention,
introduction and development of talented employees. In Sip and Scotch ice cream bar and juice
cafe human resource department take five stages for retention and development of managers and
employees. The different stages followed by HR team involve different tasks such as on-
boarding, career development, recruitment, off boarding and employee recognition (Ervin,
2016). For example the HR team focuses on the following steps to be implemented on managers
of Sip and Scotch ice cream bar and juice cafe-
STAGE: 1 This is first step of employee life cycle according to which workers are
appointed by managers by following an effective strategy of recruiting. It is responsibility of
managers to provide effective advertisements on job portals, preparing proper documentation for
interviews. Also HR team of Sip and Scotch ice cream bar and juice cafe selects best candidate
suitable for working with the organisation. These managers takes interviews by using external
recruitment source (online procedure).
STAGE 2: This stage focuses in identification of time of retention of a new hired
individual. It is important for the HR team to make efforts in retaining the employees for long
period of time. HR managers of Sip and Scotch ice cream bar and juice cafe provide several on
boarding trainings for over a period of 3 months. The HR team tries to build a healthy
relationship between old and new employees of the company.
STAGE 3: Career development opportunities for employees are provided at Sip and
Scotch ice cream bar and juice cafe (Legrand, Chen and Sloan, 2013). This helps in retaining
talented employees in the organisation. Managers of HR department evaluates real life goals of
employees and assign them roles according to that. By doing so organisational tasks will be
achieved faster.
STAGE 4: Managers are responsible for providing their employees positive environment
at workplace. In Sip and Scotch ice cream bar and juice cafe HR team is providing incentives,
gifts, employee awards to make workers feel valued and satisfied.
STAGE 5: Off-boarding is known as the last stage of life cycle of HR. According to this
stage when there are situations where any individual leaves the company, it results in
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demotivating other people. In such cases HR team works to make those employees feel
motivated again and for this they prepare documented process for off- boarding an individual in
right manner.
Recommendations: It is recommended for the HR managers of Sip and Scotch ice cream
bar and juice cafe to make good strategies and policies to retain employees in the organisation
(Moeti, 2016). Performance of every individual should be evaluated by HR team so that
effectiveness can be increased. Management makes open discussions with the employees whose
performance is not up to the mark even after providing trainings to them. This helps in making of
new policies for increment in productivity. Employees can learn from their seniors.
The HR department of this company follows the recruitment process for hiring new chef
in the cafe. The process is explained as under-
Box 1: Advertisement related to job vacancy for chef position will be placed on job portal.
Box 2: Through screening resumes and matching profile according to company's requirements,
candidates are selected for further interview procedures.
Box 3: Interview Questions:
 What's your speciality in cooking?
 How long have you been in this profession?
 Is coking your passion?
 What is the best dish you have ever made?
Box 4: To make new employees familiar with working environment, managers provide proper
on-boarding training for 3 months (Lub and et. al., 2016).
Box 5: For retaining talented new and existing workers, their performance are evaluated on the
basis of 360°.
Box 6: Providing training like apprenticeship aid employers of Sip and Scotch ice cream bar and
juice cafe in getting best talented workforce. This would help in getting efforts of workers for
providing best services to customers. Similarly, employees such as chefs get chance to enhance
their skills for career development through training.
Box 7: In order to provide job satisfaction, further managers will develop promotion plan. This
would help in retaining workers for longer period (Mejia and Torres, 2018).
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Box 8: When an employee wants to switch job then manager will firstly identify the reason
behind same. Then they develop strategies like developing positive culture, mentoring and
creating an open dialogue to retain them by resolving their issues.
Box 9: To identify reason behind exit of an employee, managers of Sip and Scotch ice cream bar
and cafe, organise an open dialogue as:-
 Under which circumstances you start to look for a new job?
 What could company do for you to remain employed here?
 Why did you feel uncomfortable to continue to do job here?
 What was the best part of your job in company?
HR managers of Sip and Scotch ice cream bar and cafe should know the concept of
employee life cycle in order to hire, develop and retain talented workforce. This helps in solving
issues which are related to Talent retention and acquisition for a long period. By following these
stages HR team will be able to efficiently retain employees and retain workers. By the use of
screening procedure managers have the ability to effective approach in selecting best candidates
for the organisation. Moreover by using the exit approach the HR department evaluate
techniques to influence workers who want to change their jobs.
P5 Performance management plan for hospitality job role and techniques for resolving both
negative behaviour and overcoming issues of staff retention.
Performance management plan refers to a tool for improving and enhancing productivity
of workplace. For this process, managers of Sip and Scotch ice cream bar and juice cafe used to
determine reasons that are related to poor performance of employees (Nickson, 2013). Several
career development plans trainings are provided to retain employees. For example: a short role-
play script between manager and employee is made in both negative and positive manner to help
them understand the importance and need of a good relation between them.
Script 1:
Manager: I am observing since a past few days that Mr. John has been coming late to
office, but he leaves at regular time without fulfilling his working hours.
Employee: Yes sir, your observation is correct. He is coming late from last 7 days.
Manager: Do you know the reason as to why is he doing so?
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Employee: No sir, I don't know the exact reason but got some information that he is
having some major health issues.
Manager: Okay, but why is he coming late?
Employee: It can be due to his health issues. He might not be getting enough of rest.
Manager: Okay, if it is so then why is he not applying for a medical leave.
Employee: He wanted to but due to loss of pay he decided about continuing office.
TASK 3
P6 Specific legislations that a hospitality organisations has to comply and adhere.
For proper running of Juice centre, employers of Sip and Scotch has proper knowledge
about the laws and legislation applied to the beverage industry (Pirani and Arafat, 2014). These
laws and legislations include:
Liquor Control Act, 1987: According to the Liquor Control Act 1987, before selling
alcoholic drink to the customers Sip and Scotch should take the permission. The main reason
behind establishing this act is to control the misuse of the alcoholic drinks, and make sure that
they sell these alcoholic drink to individuals of age above 21 years.
National Minimum Wage Act, 2018: According to the act, following regulations were
applied from 1st April, 2018. Following regulations were followed by Sip and Scotch which is
mentioned below:
 National Living Wage (over 25 years') 7.83
 21-24 year's old £7.38
 18-20 year's old £5.90
 under 18 year's £4.20
Health and Safety At Work Act, 1974: This act is also abbreviated as HSWA 1974,
HASWA or HASAWA (Singh, 2015). The act defines general provisions for securing the health
and safety of their employees, for protecting them against any risk related to their health and
safety while performing their work on job.
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P7 Using specific examples illustrating company, employment and contract law potential impact
upon business decision making in hospitality industry.
After using company, employment and contract act by Sip and Scotch juice centre,
company makes sure that employees should not be misusing the authority, not making any
unethical actions which breaks the trust of their customers. By using these laws and policies, a
company can work smoothly with more efficiency and effectively.
The names of different companies which have been prosecuted for violation of different
legislation along with fine is given below:
Names of business
entities
Act or Laws enforced Result Fine amount
Hill Care Limited Health and Safety At
Work Act 1974
Guilty £100000
GMG Car Wash Ltd Employers Liability Guilty £650
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Compulsory Insurance
Kent County Council Control of Asbestos
Regulations 2012
Guilty £200000
Western Isles Council
Health and Safety At
Work Act 1974
Guilty £12,000.00
Woodbay Limited Health and Safety At
Work Act 1974
Guilty £50000
After understanding the regulations and legislations of Sip and Scotch juice centre, I have
analysed that these laws helps in reducing the illegal activities within the company or with the
customers. By doing proper evaluation of Liquor Control Act, 1987, National Minimum Wage
act, 2018, I have analysed that proper code of conduct, rules and regulations and hierarchy can
help the company to run in a ethical manner and ensure its sustainability at marketplace (Sipe,
2013). Post the market analysis, I have gained knowledge that certain companies across the
world didn't comply with government legislations which led to payment of heavy compensation.
TASK 4
P8.Different functional roles within hospitality sectors.
There are a number of roles that have to be performed by hospitality industry. These roles
further help in ensuring effective functioning of business concerns and provide them support in
timely achievement of goals and objectives as well. Various functional roles in context of
hospitality sector have been stated as under:
Theme Park
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Food and beverages sector
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(Source:Food and Beverage Organisational Chart)
Hotel
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P9 Different methods of communication, coordination and monitoring applied to hospitality for
strengthening value chain.
In present context it is quite essential that Sip and Scotch should have effective
communication, coordination and various other monitoring tools so as to develop and strengthen
their value chain (Sobaih, Ritchie and Jones, 2012). This is an essential tool which helps in
timely achievement of golas and objectives and also maintaining goodwill of the company.
Various means of communication have been mentioned in the diagram:
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After effectively and critically examining various methods that can be used in
communication, it has been concluded that Sip and Scotch should consider written form of
communication in their overall business operations. Written communication is quite beneficial as
it can be preserved for a longer longer period of time and there are lesser chances of confusion
nor miscommunication. Written documents can even serve as a legal evidence in certain complex
matters hence this method is most preferred (Weinstein and Morritt, 2012). Written
communication also saves time and funds and helps in exchange of ideas and thoughts. Lastly it
also helps senior management in delegating authority and power to subordinates. It aids in
maintaining and protecting image of organisation and company.
Hospitality sector is quite vast sector of business, hence it has been examined that they
should possess effective and appropriate channels of communication. This will help in ensuring
effective and appropriate information being transferred. Also it leads to timely achievement of
goals and objectives as well (Weinstein and Morritt, 2012). In present context Sip and Scotch
which is a part of food and beverages sector is facing certain critical issues such as lack of place,
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lingual barriers, lack of funds for innovation etc. It has been recommended that managers should
examine all such factors and try resolving them for higher profitability and growth prospects as
well.
CONCLUSION
From the above mentioned report it has been concluded that hospitality industry is mostly
vastly growing business sector which helps in enhancing economic profits of a business leading
to growth and development. This report also focusses on various modes of communication that
can be used such as oral, written etc. Further this report contains various financial elements such
as trial balance, balance sheet, double entry book keeping etc. These help in ascertaining whether
a firm is able to generate profits or not. HR life cycles has been prepared for following each and
every task effectively and efficiently. There are various legislation which need to be followed by
enterprise for creating goodwill in market such as health and safety act, employees insurance act
etc. This will further help in ascertaining both positive as well as negative aspects. Hence
business should adopt effective communication channels which help in flow of information from
one medium to another.
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