Principle of Managing and Monitoring Financial Performance in Hospitality Sector

This report explores the principle of managing and monitoring financial performance in the hospitality sector. It covers topics such as double entry book-keeping system, formulation of trial balance, stages of the HR life-cycle, and techniques for resolving negative employee behavior. The report also discusses the legislation followed by hospitality organizations and the inter-relation with functional roles in the sector.

HOSPITALITY
BUSINESS TOOLKIT

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate about principle of managing and monitoring financial performance.............3
P2 Double entry book-keeping system of debits and credits to record sale and purchase
transactions.............................................................................................................................4
P3 Formulation of Trail balance.............................................................................................5
TASK 2............................................................................................................................................6
P4 Review about the stage of Human resource life-cycle......................................................6
P5 Development of performance management plan and implement of techniques for resolving
negative behaviour of employee.............................................................................................7
TASK 3............................................................................................................................................9
P6 Legislation followed and implemented by hospitality organisation.................................9
P7 Potential impact of organisation, employment and contract law that relates with decision
making for hospitality sector................................................................................................10
TASK 4..........................................................................................................................................11
P8 Inter-relation with functional role in a hospitality sector................................................11
P9 Methods of communication, monitoring and coordination in hospitality organisation. .12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
The term hospitality sector refers to service sector that focuses towards offering and
providing services that are related with lodging, tour, travels, food and accommodation.
According to present market conditions hospitality industry is broad and wide that is dealing
with large portfolio of customers through offering them various services. This report is written
from perspective of Marriott hotel that is one of the best hospitality organisation and operates its
business among all over the world. The specific London Marriott hotel is undertaken for better
understanding of service sector in upcoming phase of report. Moreover, report highlights on
managing and monitoring principle of financial performance and double entry book keeping
system. Trail balance and different stage of HR life-cycle will also be included in this report. In
the last, performance management plan and specific legislation is focused that adhere better
decision making in hospitality industry.
TASK 1
P1 Investigate about principle of managing and monitoring financial performance
This refers to level of performance that a business faces over a period of time for
generating loss or profit in existing or future transactions (Yusupova and Pozdeeva, 2018). For
financial department and account assistant it is mandatory for organisation to evaluate financial
performance for understanding the effectiveness of business strategy via calculating its results in
monetary term. Some principle which support to manage principle of financial performance are
as follow:
 Planning of key financial statement- With the basic report Marriott hotel maintain its
balance sheet and Profits & Loss account as it provides overview of all business
transaction that generated on a monthly basis. Example- Sale revenue from all
perspective whether it is because of accommodation, restaurant and conveyance cost are
included with specific entry under sales account.
 Management of inventory- Raw-materials and other essential resources which are
purchased for delivering better services must be managed properly so the waste will not

enhance cost of operations. Along with this mismanagement of resources also generates
difficulty for organisation due to which its business is impacted. Therefore, with
purchase account it is easy for management to enhance better results that incur record
for each transactions.
 Overhead analysis- Organisation faced certain expenses that are not related with
operations but it is essential to perform and impacts on profits. This refers that there are
various cost incurred that impacts on cost of operations so to deal with them Marriott
hotel completely record to analyse right profit.
P2 Double entry book-keeping system of debits and credits to record sale and purchase
transactions
Double entry keeping is an effective system for accounting that allow business transaction
for include two accounts that is used for balancing accounting equations (Schwager, Decker and
Kaltenegger, 2016). Example- double entry book-keeping record debit as well as credit for
making recording business transactions which are undertaken as a general ledger and given as
below:
Sales account
Particulars Amount Particulars Amount
To balance b/d 7500 By bank account 5000
By Mr. Joey account 2500
Total 7500 Total 7500
Purchases account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Mr. Joey account

Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Ms. Rachel account
Particulars Amount Particulars Amount
To balance b/d 500 By bank account 500
Total 500 Total 500
Bank account
Particulars Amount Particulars Amount
To Sales account 7500 By Purchases account 6500
By balance b/d 1000
Total 7500 Total 7500
P3 Formulation of Trail balance
Trial balance is an account which refer to make an effective book keeping system that
enlist balance on basis of general ledger account that provides organisation to make debit balance
written in debit column and on other side credit balance is written with in the credit column (Qiu,
Shaukat and Tharyan, 2016). This refers that all performance must be equally recorded. In last,
following trial balance is provided as per ledger accounts.
Particulars Amount Particulars Amount
bank account 1000 sales account 7500
purchases account 6500
Total 7500 Total 7500

TASK 2
P4 Review about the stage of Human resource life-cycle
Human resource management can be defined as a formal system or structure for an
organisation that is responsible for developing, managing and recruiting employees. The main
aim of HR life cycle is to ensure that effective employees are recruited, developed and manage in
an organisation via monitoring it’s all department (Nyheim and Connolly, 2011). HR activities
undertakes various phase which support organisation to retain and developed employees that
increases productive for completing all work in an organisation. moreover, the vacancy for an
accountant that adopted by Marriott hotel in order to recruit highly skilled employee that follow
HR life-cycle effectively. Some stages that are beneficial are as follow:
 Attraction- For ensuring top position and to become successful in market this is more
important for organisation to attract skilled and capable employees. This support Marriott
to complete all work in proper manner for completing all task as per decided quality. It
results that with accountant job role accuracy must be included for offering better
compensation as per workplace benefit.
 Recruitment- This is an important stage for Marriott hotel as management is performing
as an operator that provides better results through recruit right individual for right job.
This stage also consider that HR department applied an appropriate knowledge and
encourage longer and better results for making financial transaction accurate. Along with
this financial information is confidential so it is essential for management to recruit right
person that work as asset for employee.
 On-boarding:- This stage incorporates the way toward creating information, aptitudes,
conduct and demeanor among representatives according to their assignment for
guaranteeing smooth running of tasks (McIntosh and Harris, 2012). In the wake of
choosing an up-and-comer, Marriott lodging must compose appropriate preparing and
improvement program for the up-and-comer which help in building up an understanding
identified with manners by which records and money related capacities are performed.
 Development:- For keeping up the nature of work and execution of its representatives,
Marriott lodging must spotlights on empowering proficient advancement by sorting out
learning programs on normal bases so as to refresh the aptitudes or information on
workers. This assistance recently designated bookkeeper to find out about new techniques

for accomplishing their work which bolster them in playing out their undertaking all the
more adequately.
 Retention:- Under this progression Marriott inn must attempt to keep its top entertainers
upbeat and happy with their activity by giving them a positive organization culture. The
expense of supplanting representatives is extremely high as it influence the presentation
of the organization as well as upset crafted by different offices. Since accounts office is
consider as the core of organization through which all the store monetary funds is
recorder (Manning, 2018).
 Separation- With this final stage HR life-cycle consist that all employees must come at a
point at which management perform its all duties. Along with this management is able to
retire for longer period. In this stage Marriott international hotel employee leave or drop
the job without interrupting function of others.
P5 Development of performance management plan and implement of techniques for resolving
negative behaviour of employee
Performance management refer to an effective process that undertake continue interaction
between employees and employer that aim to align employees performance to work decided
criteria. This include regular supervision of activities that provides right guidance for employees
in order to match their performance with motive of achieving organisational objectives. In
context of this aspect management utilise performance management for reducing negative
behaviour from employees that results for decreasing rate of employee turnover. Some steps that
is managed by performance management plan that support Marriott hotel is as follow:
 To decide objective- According to this process HR department under Marriott hotel
try to examine all work that is performed to manage task as a new accountant for
determining area for improvement (Maier and Hadrich, 2011). So after identifying
performance Marriott hotel implement equality and diversity to complete work in
proper manner.
 Evaluating performance- With providing right training employees who are less
skilled work to provide optimise training. This result it is easy for management to
manage work for enhancing skills in proper manner. Moreover, in accountant for
Marriot manage divide its teams on two bases. This is national and international so it is

easy to evaluate employee performance separately and then provide training as per
required skills.
 Compare of performance with benchmark- With examine and evaluate methods
such as KPI & benchmarking assist organisation to evaluate its performance with
decided standards. So with analysis of current level quality it is easy for management
to complete operations as per decided business performance.
 Monitor and control- This is last step that provides actual analysis and techniques for
control all business aspects that constantly leads to enhance their performance and lead
those task which is leading management for formulate strategy that provides right
action for each step that boost performance of employee.
In last with analysis of above table it is considered that management is leading those phase which
satisfy needs of employees (Lockwood, 2010). As all step are designed for completing its work
that helps to deal with issue of staff retention and leads employees to gain benefits by solving
their issue and management is benefited as it provides probability for minimising issue of staff
retention.
With the following table performance management table for employee of service sector is
understand:
Objective To provide training Performance review Monitoring &
Control
By developing
knowledge
Accountant must complete
its training period through
understanding job training
performance on actual
basis that is provided via
handbooks and other
required material.
With the understand of
knowledge related with
accountant that is used
for evaluating
performance on
constant basis. So by
monitoring
performance regularly
mistake at work are
identified easily.
It is the last step in
which organisation
work is hired and
accountant check to
complete task as per
current performance
that provides material
for focusing on
specific area to
manage skill of staff.
Improvement to
handle data
Accountants assign their
work as per senior staff
Financial job is a
complex task for
Once organisation
analyse its

skills member which provides
support to guide employee
for collecting financial
data and transferring it
with appropriate financial
statement in a confidential
method.
service sector as it
undertakes various
aspects for business.
This also governs that
with a period of six
month accountant
performance must be
verified at on job role.
performance gap it
also consider those
areas that provide
guidance to select
right training method.
Techniques to overcome from staff turnover and negative behaviour of employees
This is most important phase for Marriott hotel which leads to deal with negative
behaviour of employees. It is a major cause behind high turnover rate of employees. So
organisation work with motive of retaining employees to engage them for longer duration by
using techniques which are mention as follow:
 To create organisational culture- The main work which is at priority for Marriott
international is used to implement similar culture in organisation. So all employees are
able to gain equal and similar opportunity that provide similar platform to workforce to
perform their role and responsibility. Mutual contribution and team work is develop and
implement by Marriott hotel for providing right information to all employees and it also
provide opportunity for workforce to represent new and innovative among top
authorities.
 By providing training- Sometimes employees are not able to perform their work due to
incompetence of understanding job role or responsibility (Legrand, Chen and Sloan,
2013). These generate negative behaviour among employees. So to overcome from issue
of job role, Marriott hotel conduct seminar and training session of employees in order to
enhance their weak section.
TASK 3
P6 Legislation followed and implemented by hospitality organisation
This is most important for organisation that all of its operations which are designed by
Marriott International must not impact by international rules and regulations. This helps

organisation to improve its work and provide better legal compliances for managing and
completing work with follow of certain laws are:
Alcohol Permitting Act, 2003- This law give rules to friendliness segment identified with
the deal and gracefully of liquor for the arrangement recently night refreshment and amusement.
As per this Law Marriott Global must guarantee that liquor ought to filled in according to the
rules gave by legislature of UK (Kusluvan and et. al., 2010). As breaking of these rules may lead
association to experience the ill effects of legitimate compliances that may influence their
generosity. For instance:- By applying this law, Marriott lodging can confine the utilization to
liquor for kids or high school which is unsafe for those. This help in giving wellbeing seeing
wellbeing just as nourishment to the youngsters who visit lodging and request to have liquor.
This help Marriott lodging to improve their image picture inside the market.
Management of Health and Safety at Work Guideline, 1999- As per this law Marriott
Global must guarantee the wellbeing of its representatives while working and should hold fast to
rules that are given this law. For example, Marriott inn must check all the instruments or
resources that are utilized for performing activities. They should not be unsafe and in the event
that it is hazardous to use than, it is possible that it must be kept away from or preparing ought to
be given to utilize it adequately. Penetrating of this law may make lawful and other work issues,
for example, staff turnover, dissemination of negative picture outside the association and so on.
For instance:- By applying this law, Marriott lodging can give wellbeing and security
confirmation to its workers. This should be possible either by giving protection over any injury
that might be looked by a representative during their working hour or by giving legitimate
preparing to them to utilizing hurts devices adequately that can take out the opportunity of injury.
P7 Potential impact of organisation, employment and contract law that relates with decision
making for hospitality sector
Law, regulations, rules and legislation must grow for a particular region that follow and
leave huge impact over decision of an organisation (Kuruuzum and Koksal, 2010). There are
various rules related with operations so with right business decisions it is analyse that
organisational actions and activities are impacted due to employment and contract law. So on
this bases employment practices is mentions as follow:
 Company law- The company law describe standards and code of conducts which is
followed by organisation to perform their operations in an ethical manner. Decision

making of Marriott hotel is directly influenced by company law because it considers
guidelines which are provided by government to manage business in a country. This
helps to decide what activities are done for a specific area without breaking any law.
Example- at time of formulating new policy or modifying an old one Marriott hotel
consider that it must not negative impact on organisation.
 Employment law- With this legislation organisation regulate better and positive
relations between employer and employee through governing terms as well as
conditions that relates with selection and recruitment of employee (Kasemsap, 2017).
So Marriott hotel consider its employees laws must be designed as per decision
making process for completing all work with use of right strategies. Example-
charges and salary which is provided by Marriott hotel complete work as per UK
employment law.
 Contract law- The main aim for this law relates with development of a formal
framework which is also legal for both parties that are involved in business. This
results it is easy for management to solve dispute and regulate operations as per
contract law. This law also impact on decision making process as well as policies.
For instance, Marriott hotel require changes in its work policy and procedure related
with employees then management must work as per employment contract.
TASK 4
P8 Inter-relation with functional role in a hospitality sector
Hospitality sector work toward offering and managing service that enhance customer
satisfaction in minimum time period. But it is not possible for management to complete their
work on individual basis (Jayawardena and et. al., 2013). Therefore, Marriott hotel ensure that all
task which are performed must interact with functional department because large variety of
services are offered by management to its clients.
Financial and marketing department- Both functional unites of Marriott are inter-
connect as before taking any action manager of marketing department must decide their budget
with finance department. Moreover, this department work towards management of finance
related transactions that are performed in organisation and marketing unit is able to utilise budget
in and effective manner.

Front office and house-keeping department- Marriot hotel ensure that proper interaction
between all units generates effective and organised coordination among all activities. So both
department manage accurate cooperation that results to provide better experience to all of its
buyer and clients. Example– If front office provides regular information to its housekeeping
department then it is easy to clean and manage room as per requirement of customers.
P9 Methods of communication, monitoring and coordination in hospitality organisation
With the following methods it is easy for management to manage and complete their in
effective manner that offers to gain desired performance standard from operations of employees
(Jauhari, 2014). Some methods that are used by management to improve performance of
marketing department is as follow:
Communication- With communication process it is to exchange information by writing
and speaking. Emails, meeting and conference is most important tool that is used to provide
information within all departments. Marriot hotel improve strength of its value chain through
dividing equal responsibility and authority to organisation in order to formulate right and
effective plan for upcoming future.
Coordination- With the process of coordination integration between all activities is generated
properly that leads to accomplish positive results. The main role of coordination from point view
of Marriott hotel is for making effective partnership between all departments and also to manage
or develop positive relations with its stakeholders so all task are completed towards desired goals
and objectives. Sound planning is one of the best example that coordinate all functions properly
through understanding needs of all departments (Foster and Carver, 2018).
Monitoring- This refers to a process that is used to observe and check performance of its
employees through completing task as per decided strategy. So this results Marriott hotel
provides right results to all of its employees such as performance appraisal as per individuals
efforts. So fair and right decision provide motivation to engaged employees for putting more
efforts in order to gain better result from business operations.
CONCLUSION
With the above mention report it is concluded that all functions and operations that are
performed by department of hospitality industry are inter-linked with each aspect that encourage
employees efforts towards enhancing value in customer services. Communication, coordination

and mentoring are some key methods that lead organisation operations productivity for
delivering better customer experience. Further, to perform all operations in an effective manner
this is essential for hospitality business to work as per laws and regulations which are related
with service sector and provide guidelines for completing operations in an ethical manner.

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