Hospitality Business Toolkit

This document provides a comprehensive toolkit for the hospitality business. It covers the principles of managing and monitoring financial performance, double entry bookkeeping for sales and purchase transactions, stages of the HR life cycle, performance management plan for hospitality job roles, and legislation of the hospitality organization. It is a valuable resource for anyone in the hospitality industry.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A ..........................................................................................................................................3
TASK B...........................................................................................................................................9
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality business is known to be one of the big industry which provides various
services, such as – lodging, food, accommodation, food and beverages (Goryushkina, and et.al,
2019). This industry majorly rely on the providing services to the customers. In this report,
East London catering is the diversified hospitality company which is serving worldwide. In this
report various, principles of managing and monitoring financial performance is being defined
apart from this, double entry and book keeping system of debit and credit which shows the sales
and purchase of the organization is being elaborated in this report. Except this, basic trail
balance and ledger is being discussed in this report. Different stages of HR life cycle is being
mentioned in this report. Apart from this, performance management plan for then organization is
mentioned in this report. Specific legislation of East London catering organization has been
elaborated in this report. Apart from this, functional role of the hospitality sector interrelate
mentioned in this report. Different method of communication, monitoring is being mentioned in
this report.
TASK A
P1 Principle of managing and monitoring financial performance
Monitoring of financial performance is very essential for any business, to monitor the
financial performance, the management of organization must prepare the financial statement.
Financial statement includes profit and loss account and balance sheet of the organization which
will provide a vital indicator to the management that whether the organization is earning profit or
not (Konovalova and et.al, 2018). Apart from this, top manage the financial performance of the
organization, the management have to make the record of the inventories . The records of
inventories must be recorded accurately so that management know how many raw- material are
coming in the organization and how many are getting used by the organization. Apart from
this,management or the finance department of the organization must prepare the cash flow
statement the main objective of cash flow statement is to know the total cash inflows and
outflows in the organization so that the management can overcome the expenses. As the major
expenses of organization take place in the form of marketing expenses, to attract the new
customer, this organization expense a lot in the marketing, thus the budget of the organization
can vary, apart from this the organization has to make different budget for the HR, because HR
department also spent ample of money of on the training and development of the employees to

manage the and monitor then financial budget the management has to consider the HR
department as well. Another principle is that transactions must be held in consistent manner so
that transaction must follow all the rules and regulations. Apart from this all the transaction
should be handled in the reasonable time period this also one of the financial principle which has
to be followed by the company.
P2 double entry book keeping of debit and credit for recording sales and purchase transactions.
Double entry book keeping is used to record daily transactions.
This task will carry journal entry, ledger accounts and final trial balance
Journal entry:
Journal entry means recording the business transactions in the books of accounts of the business.
It consists of date, transaction description, debit and credit (Kurbonova, 2021)
Journal entry: (East London catering)
S No. particulars Debit ( £) Credit ( £)
1 Cash a/c dr
to capital a/c
(being cash is invested
by owner)
30000
30000
2 Rent a/c dr
to cash a/c
(being rent is paid)
1000
1000
3 Washers and dryers a/c
dr
to cash a/c
to creditor a/c
(being purchase is done)
25000
10000
15000
4 Insurance policy a/c dr
to cash a/c
(being insurance policy
1200
1200

paid)
5 Good supplies a/c dr
beverage a/c dr
to WH Adams ltd
(being goods are
purchased in credit)
8000
7000
15000
6 Laundary fees a/c dr
to cash a/c
(being laundary fees are
paid)
200
200
7 Telephone and internet
a/c dr
to cash a/c
(being telephone and
internet charges are paid)
2220
2220
8 Rates, water charges and
refuse a/c dr
to cash a/c
(being charges are paid)
950
950
9 Wages and salaries a/c dr
to cash a/c
(being wages and salaries
are paid)
1740
1740
10 Cash a/c dr
to sales a/c
(being food is sold)
20000
20000

11 Cash a/c dr
to sales a/c
(being beverage was
sold)
13000
13000
Ledger account:
Ledger account contain business transaction record it is the separate account for every item of
the transaction.
Ledger account:
Cash account
S no particulars Amount ( £)
Dr
particulars Amount ( £)
Cr
1 To capital 30000 By rent 1000
2 To sales 20000 By washer and
dryers
25000
3 To sales 13000 By insurance
policy
1200
By laundry
fees
200
By telephone
and internet
2220
By Rates,
water charges
and refuse
950
By Wages and
salaries
1740
By bal c/d 30690
total 63000 total 63000

Capital a/c
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
1 By cash a/c 30000
By bal c/d 30000
total 30000 total 30000
Rent account
S no particulars Amount ( £)
Dr
particulars Amount ( £)
Cr
1 To cash 1000
By bal c/d 1000
total 1000 total 1000
Washers and dryers account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 10000
To lily
creditor
15000
By bal c/d 25000
total 25000 total 25000
Insurance policy account

S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 1200
By bal c/d 1200
total 1200 total 1200
Food supplies and beverages account
(it is not mentioned in question that what type of goods it is)
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To WH
Adams ltd
8000
By bal c/d 8000
total 8000 total 8000
Beverage account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To WH
Adams ltd
7000 By WH
Adams ltd
7000
total 7000 total 7000
WH Adams ltd

S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
By Good
supplies
8000
By beverage 7000
By bal c/d 15000
total 15000 total 15000
Laundry fees account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 200
By bal c/d 200
total 200 total 200
Telephone and internet account
S no Particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 2220
By bal c/d 2220
Total 2220 total 2220
Rates, water charges and refuse account

S no Particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 950
By bal c/d 950
Total 950 total 950
Wages and salaries account
S no Particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 1740
By bal c/d 1740
Total 1740 total 1740
Sales account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
By cash (food) 20000
By cash
(beverage)
13000
To bal c/d 33000
total 33000 total 33000
Trial balance
s. no Heads of accounts Ref. debit credit
Cash account 45690 30690

Capital a/c 30000
Rent account 1000
Washers and
dryers account
25000
Insurance policy
account
1200
Food supplies and
beverages
account
8000
Beverage account 7000
WH Adams ltd 15000
Laundry fees
account
200
Telephone and
internet account
2220
Rates, water
charges and
refuse account
950
Wages and
salaries account
1740
Sales account 33000
total 78000 78000
TASK B
P4 stages of HR life cycle applied to hospitality job role and their role in retaining talent
HR life cycle:

Hr life cycle is the process of HR activities. It includes HR strategy which further involve
recruitment, training and development and all the activities until employee leaves the job.
HR life cycle have 5 stages which are as follows and the hospitality job role which will be
choosing is manager.
Attraction, recruitment and selection:
Attraction start when company require workforce to fill the vacant position. Company attract
candidate through carrying out advertisement which is attractive so that it can attract more
candidates (Harrington and et.al., 2021). For manager job vacancy East London catering will use
social media for giving job vacancy advertisement. After receiving application from applicant,
company will recruit employees through interview test and after that best candidate will be
selected.
Induction and orientation:
It means that company welcome manager at this stage by taking his or her introduction and also
giving knowledge about organization culture and his or her job role.
Career planning:
After manager is settled in the company, HR will help him to grow. Hr will do performance
management and reward the manager for good performance. This will improve talent and
increase productivity.
Retention:
Retaining workforce is one of the important HR activity. As loosing top performer employees
will be the loss for the organization. Hr of East London catering organization make sure that they
provide good working environment to their employees and also providing other benefits apart
from salary. That motivate the staff, so they will not leave the company.
Termination phase:
This phase means when employees leave the company. When employee leaves, company should
maintain good relations with them so that they can return to company if they want or recommend
good candidate for company.
P5 performance management plan for hospitality job role by applying methods to solve negative
behaviour and overcome problems of retention (Starks and Carroll, 2018).
Performance management plan:

Performance management plan is the performance action plan, it helps to know the
employees issues related in the performance and how they can overcome these issues. It also
helps to control failure so that goals can be achieved. It can be done by using three stages which
are as follows and the job role will be manager.
Plan:
Effective planning is very important if wanted to manage performance. Hr should provide
direction to the manager so that company can get good behaviour by the workforce. Hr should
make manager understand that what steps are taken by the company and why they are taking.
This will help in minimizing employee turnover (Kadieva, 2017).
Monitor:
Human resource of East London catering takes proper follow up with their staff. They hold
meetings with the staff on monthly basis where employees gets chance to communicate about the
issues which they are facing in the organization and Hr tries to solve issues as soon as possible
through this HE can take feedbacks from the workforce. This will motivate workforce and also
builds morale. HR can also observe employees performance and ask them for improvement.
Review:
Company should review performance of their workforce on regular basis. So that can appreciate
employees for good performance and also can guide to employees where improvement is needed.
This will also help in solving issues which occurs negative behaviour amongst the staff. Such
leadership styles should adopt which provide new opportunities to employees which improve
their performance. Regular feedbacks must be taken from HR and should also provide training
and development so that new skills can be build.
Communication:
in the organization HR should ensure that there is proper flow of communication. Example
vertical communication and horizontal communication. So that information should reach to
every employee.
P6 legislation of the hospitality organization.
health and safety act 1974:
Health and safety should be maintained on priority basis. East London catering ensures that
proper hygiene is maintained in organization and also follows all guidelines given by WHO
regarding covid 19. Legal authorities monitor hospitality industry that they are following safety

guidelines properly or not (Chon and Hao, 2020). Under this act East London catering should
provide healthy working environment to workforce and also make sure that safety of their guests
is taken care by the staff.
Food act 1990:
In hospitality sector it is said by the government that proper hygiene should be maintained while
preparing or serving food. Food should not contain such ingredient which harm the consumers.
Cost of food item should not be overpriced. For packaged food items weight and labelling must
have properly done.
Employment act 1996:
Under this act hospitality industry is not allowed to discriminate employees on the basis of caste,
age, gender, religion, colour etc. equality should be given to everyone in terms of salary or other
benefits. According to the government companies are not allowed to give less salary as compare
to which is prescribed by the government.
Sanitary Conveniences 1964:
Under this act minimum Sanitary Conveniences have to be maintained by hospitality industry.
As sanitary plays important role in organizations. If it is not properly maintained then
government can take strict actions against such companies (Gillander Gådin, Persson and
Zampoukos, 2020).
P7 company, employment and contract law have impact on business decision making.
Company law:
It regulates functions of company which include their business activity. It also includes
compliance which is filed by company with government so that transparency is maintained.
This law also restrict companies to make fraud (Tajeddini, Martin and Ali, 2020). Rules which is
lead by company law help company in creation of wealth through corporate governance.
Through this company decide where to invest. Example, company law provide freedom to the
shareholders to sell or purchase shares of company. This law influence company in making
decisions related to company rules.
Employment law:
This law provide rights to the employees. It ensures that East London catering does not
discriminate employees on basis of caste, gender, age etc. it influences decisions of business
which they make regarding minimum working hours, salary, working environment, safety to

workforce etc. example if the company paying less to the employees and not according to
minimum wage given by government. In that case worker can file case against company by
supporting it will employment law. This law help employees to exercise their rights and
company cannot exploit employees and have to work by considering employment law in their
decision-making.
Contract law:
Contract law regulated that how companies, partnership should execute contract to take
services and how prepare documentation. When East London catering enter into contract then
they are legally bound to execute it and if they are not doing then they have to give
compensation. Decisions made by company revolve around contract law. Example, if company
has promised to pay certain salary to the employee and agreement is made then they are legally
bound to pay agreed amount to the workforce.
P8 interrelation of different functional role in hospitality sector.
Front office and food and beverage department:
Communication between these two departments plays vital role. They communicate
regarding number of expected guests registered which is based on the occupancy and also make
sure that guests has paid advance or not. This will help food and beverage department to know
that how many guests are coming so that they can do preparation related to food accordingly.
Security department and front desk:
Proper conversation between these two departments are very important to provide
hospitality to guests. They work together so that guests security are to be maintained. They
communicate regarding safety measures in case of fire and also regarding emergency. Front desk
make sure that proper safety and security of guests must be provided so in order to this they
contract security department.
Human resource and finance department:
Human resource department is very important because it fulfils demand for human
resource in the organization. Finance department gives budget to HR to conduct recruitment
activities. By considering the budget HR conduct hiring activities. HR selects those
advertisement options for vacancy which fall under budget given by finance department. Human
resource fulfil requirements of finance department by recruiting workforce for finance
department.

House keeping department and marketing department:
Housekeeping team provide services to guests which include room service, delivery
service etc. marketing team plays important role in this (Konovalova and et.al, 2018). They
inform market trend to housekeeping related to what more services they can provide so that
guests experience can be enhanced. It will help organization in increasing sales.
Operation department and marketing department
The main objective of marketing department in organization industry is to collect the
relevant information about the market trend, like what is being preferred by the customer the
most, as the pandemic is still there so now the customer want to visit only those organizations
whop are following the corona guild line and taking proper precautions such as the staff is
wearing proper mask and using sanitizer so marketing department circulate such information to
the operation department of East London catering as their main job is to manage the operation of
the organization so by getting this information they will manage their work in a different way
such as they will provide contactless room service tom the customers.
P9 methods of communication, monitoring and coordination applied to the department of
hospitality organization which strong the value chain.
For evaluating communication, monitoring and coordination front desk department of East
London catering organization is chosen:
For front desk department communication is necessary with other departments so that
good quality of services are to be provided to guests. They communicate with housekeeping and
food department regarding the order made by guests via telephone or message. They also
communicate formally with security department by ensuring that security of guests are properly
maintained. Front desk of East London catering coordinate with all departments of the
organization. They make sure that every department is working smoothly because lack of
coordination within departments can hurt the reputation of company in front of customer and
also can decrease company sales.
They monitor the performance of housekeeping team. By observing their performance. Front
desk also give guidance to housekeeping on the basis of feedbacks received by the guests. As
front desk department directly deal with customers and customer also give feedbacks to them.
They communicate feedbacks to the department for which they have received. They focus more
on providing good experience to the guests. If guests will be satisfied with organization service

then they will visit again and also recommend to their friends and relatives. This will help in
increasing sales and revenue of organization. They also communicate with consumers and take
suggestion from them which is related to how they can improve their services. This will add
value because customer will feel that their suggestions are valued by the company.
Department of East London catering communicate with emails and by using telephone.
Management makes sure that there is coordination between employees and also monitor their
performance so that goals can be achieved. Upward communication flow from senior to junior
and downwards goes from junior to senior.
CONCLUSION
After analysing the entire report it can be concluded that this report speaks about
hospitality management. It also states about the principle of financial performance , how a
organization industry can use the principle of financial management to manage the financial
transaction. Apart from this, it also refers the double entry system of debit and credit so that they
can record the sales and purchase transaction of the organization. Apart from this, bias trail
balance and ledger also been mentioned in this report. This report contains various HR life cycle,
which is helpful in retaining the new talent. This report has a performance management plan
which describes the various job roles and also the techniques through which the issues and
problems of the staff get resolved. Apart from this, specific legislation which is implied in the
hospitality industry have been mentioned in this report. Except these, hoe employee low and
contact low has potential impact on the decision making is being described in this report. Apart
from this how different functional role in the hospitality sector have been described in this report.
Although this report states about the different communication, coordination and monitoring have
been explained in this report.

REFERENCES
Books and journals
Chon, K. and Hao, F., 2020. The Five Constants: A Confucian Business Model for the
Hospitality Industry. Journal of Hospitality & Tourism Research. 44(7). pp.1051-1071.
Franco and et,.al, 2020. Are you good enough? CSR, quality management and corporate
financial performance in the hospitality industry. International Journal of Hospitality
Management. 88. p.102395.
Gillander Gådin, K., Persson, K. and Zampoukos, K., 2020. Strategies to prevent sexual
harassment in the hospitality workplace in Sweden. European Journal of Public
Health. 30(Supplement_5), pp.ckaa166-641.
Goryushkina, and et.al, 2019. Theoretical Aspects of entrepreneurial Education for hospitality
Industry. Journal of Environmental Management & Tourism. 10(4 (36)). pp.835-841.
Harrington, R.J. and et.al., 2021. International Hospitality Development: Training to Enhance
Understanding of ‘The Art of Hospitality’Business Model.
Kadieva, S., 2017. Some Aspects of Reputation Management in the Hospitality
Business. Izvestiya. Journal of Varna University of Economics. 61(2). pp.174-186.
Konovalova and et.al, 2018. Forming approaches to strategic management and development of
tourism and hospitality industry in the regions. Journal of Environmental Management
& Tourism. 9(2 (26)). pp.241-247.
Kurbonova, Z.A., 2021. MODERN organizationS AND TRENDS IMPACTING THE
HOSPITALITY INDUSTRY. International Engineering Journal For Research &
Development, 6(ICDSIIL), pp.3-3.
Starks, P. and Carroll, W., 2018. Hospitality business simulations today: New generation
simulations for new generation students in a new generation marketplace. In Innovation
in Hospitality Education (pp. 181-193). Springer, Cham.
Tajeddini, K., Martin, E. and Ali, A., 2020. Enhancing hospitality business performance: The
role of entrepreneurial orientation and networking ties in a dynamic
environment. International Journal of Hospitality Management. 90. p.102605.
Wang, S., Hung, K. and Huang, W.J., 2019. Motivations for entrepreneurship in the tourism and
hospitality sector: A social cognitive theory perspective. International Journal of
Hospitality Management. 78. pp.78-88.
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