Hospitality Business Toolkit in UK

Hospitality Business
Toolkit

Table of Contents
NTRODUCTION.............................................................................................................................1
TASK 1............................................................................................................................................1
P1: Investigate the different principles of managing and monitoring financial performance 1
P2: Application of double entry book keeping in a ledger.....................................................2
P3. Basic trial balance............................................................................................................4
TASK 2............................................................................................................................................5
P4: Different stages of HR life-cycle.....................................................................................5
P5: Produce a performance management plan.......................................................................6
TASK 3............................................................................................................................................7
P6: Various legislations followed by the Hospitality firms....................................................7
P7: Impact of employment and contract law on decision making..........................................8
TASK 4............................................................................................................................................8
Covered in PPT.......................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

NTRODUCTION
Hospitality sector deals with a wide range of people who visit the business firms for their
comfort and ease during the travelling. The business organisations in hospitality sector are
developing and implementing new and innovative strategies in order to gain growth and success
in the market of UK. The management of these business firms needs to manage their financials
for getting an upper competitive edge in the market. The taken organisation in this assessment
report is Healthy foods which is a London based firm specialises in salads, blended juice and
smoothies. This report will investigate the principle for managing the financials and apply the
double entry bookkeeping system on transactions in a ledger. This report will further review the
stages of HR life cycle which are applied to a job role in hospitality sector along with the
development of performance management plan for that job role. This report will also discuss the
legislations followed by the hospitality organisations. In the end, interrelation of different
function in hospitality business and various method for coordination, communication and
monitoring which can be used in hospitality business are discussed in the report.
TASK 1
P1: Investigate the different principles of managing and monitoring financial performance
Financial transactions is an agreement or communication which is carried out between a
buyer and a seller for exchanging assets for payment. Healthy foods is using some source
documents such as Cash Memo, Invoice and Bill, Receipt, Pay in Slip, Cheque etc. for managing
their transactions (Bowie and et. al., 2016). Also the firm is using general ledger, general journal,
trial balance etc. for recording their transaction. There are several principles which must be
followed by the Healthy foods company in order to effectively manage and monitor their
financial performance. Some of these principles are discussed below:
Understand Risk: It is the major factor which is useful for managing the financial
performance. The managers needs to determine the risk which can impact the financial
performance of the company. The stock and bonds have a high chance of return along with the
risk. Whereas deposit and money market accounts have a low rate of return and also the risk is
low.

Pay Attention to Taxes: The tax also needs to be consider by the Managers of the
Healthy foods. The managers can use the Financial planning software which is helpful for
managing the tax related information. For example: The software Quicken quickly analyse the
taxable investments and also provides powerful organizing tools which can make the year end
tax filings in an effective manner.
Organize Your Finances: It is the first step in managing the financial performance. In
this the credit cards, bank accounts, personal loans, brokerage accounts, mortgages, car loans and
retirement accounts are needs to track and managed properly (Brotherton, 2015). The software
for budgeting can provide the suitable solutions to managers for tracking these accounts, making
timely payments etc.
Incomes and expenditures are given below:
Incomings Outgoings
Benefits Drinks
Allowances Lunch purchases
Wages Household utility bills
Gifts Weekly food shopping
Clothes
Gifts
P2: Application of double entry book keeping in a ledger
Double entry book keeping system: It is the system in which the business transaction are
recorded twice in the books. It ensures that the amount added in debit side is matching with the
amount on credit side. Healthy foods can use this system for determining the profits along with
the expenses (Darwish, Singh and Mohamed, 2013). A trial balance for this system is given
below:
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
2

Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
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
Total 37502 37502
Analysis of Sales and Purchase transactions for compiling a Trial balance using Double entry
system
Sales: It is the figures of cash or credit which is associated with the sold products or
services provided to the consumers. Sales of Healthy foods includes incomings such as wages
and other monetary benefits associated with the business firm.
Purchase: it is the figures of cash or credit which are associated with the products or
services purchased by the consumers (Dodds and Holmes, 2011). Purchase of Healthy foods
incudes Weekly food shopping, Clothes, Drinks, Lunch purchases etc. The below given trial
balance is based on above table or double entry bookkeeping along with the debited and credited
amounts for a particular month:
3

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
Total 81389 81389 162778
P3. Basic trial balance
Balance off rule: This rule states that the business transactions must be balanced or
closed in the end of a year and balance which is not closed will be carried forward in the balance
of next year (Doherty, Meehan and Richards, 2015). Main purpose of this rule is to analyse the
authenticity of the information which has been added to the ledger of journals. Healthy foods
also needs to balance their accounts in the end of year for analysing the performance of the
company.
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
4

Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
This above shown trial balance states that the transactions are correctly recorded as the
debit and credit amount is same.
Steps used for drawing the trial balance
The Healthy foods needs to follow some steps for drawing their trial balance which are
discussed below:
 While closing the general ledger, documents such as closing balance, cash book and bank
book is necessary for the record of credit entries and debit entries.
 Three columns are prepared of name of account, debit and credit balance.
 The name of account,d ebit column and credit column needs to be filled in their column
respectively.
 Then the total credit and debit amount is calculated as these needs to be similar.
 When both of the balances are same, then the trial balance is closed.
TASK 2
P4: Different stages of HR life-cycle
There are various stages of HR life-cycle which are necessary for HR managers to
perform their duty in an appropriate manner (Griffiths and Crescenzo, 2012). The HR manager
of healthy foods is going to recruit HR executive for the vacant position in the firm. For this, the
stages of HR life cycle are discussed below:
Recruiting and Onboarding: In this stage, the candidates are interviewed by the HR
manager. Based on the skills, knowledge and experience, the HR manager has decided to
5

interview the candidates whose performance was satisfactory during the previous work and
during the education. The Healthy foods needs to develop their recruitment process by evaluating
the vacancies, expectations and strategies for attracting candidates.
Orientation and Career Planning: Induction is necessary for new employees in order to
understand the working, mission and vision of the company in which they are recruited. It
provides the detail regarding the working environment, working behaviour, number of
employees etc. to the new candidates who are recruited in the firm. In this, the HR manager
plans the promotion for newly recruits which can be used for future purposes when the current
leaders of firm exit from the business.
Career Development: It is the process in which the learning opportunities are provided to
the employees for enhancing their skills and capabilities (Higgins-Desbiolles, Moskwa and
Wijesinghe, 2017). Through the enhanced skills, employees can work with the required
efficiency for achieving the goals of organisation. Employees get the opportunity to learn new
things which can help them in performing better. When the employees are equipped with proper
skills, they can work in an effective manner for achieving the desired goals and objectives.
Termination or Transition: The employees generally leave from an organisation due to
their personal or professional reasons. Major reasons are when employees of a firm are
dissatisfied in their working due to the conflict among the workers or due to the unhealthy
working environment. This dissatisfaction can be prevented by implementing new and improved
strategies which can provide healthy environment in the firm which can also reduces the conflict
among the employees. The exit interview is done by the HR managers for determining the causes
and reasons of employees for leaving the firm.
P5: Produce a performance management plan
Management performance plan needs to be well planned which is developed by the
managers. Also the management needs to consider the positive and negative impact of these plan
on the business performance. The role play script for an employee who is late for the office is
discussed below between the employee and manager of the Healthy foods.
Script 1
Discussion which should not be undertaken
Manager: I am noticing you from the past several days, you are coming very late to office
and also leaving at the regular time.
6

Employee: Yes sir, its true. I am delaying from last 5 five days.
Manager: Do you know, your work is delaying due to this?
Employee: Yes sir, I will finish the work when I am capable of doing it.
Script 2
Discussion which should be undertaken
Manager: I am noticing you from the past several days, you are coming very late to office
and also leaving at the regular time.
Employee: Yes sir, its true. I am delaying from last 5 five days.
Manager: But what is the reason?
Employee: I have health problems of which I am taking treatment.
Manager: Okay, but your working efficiency is decreasing due to this.
Employee: Maybe sir, But I will give my 100% efforts once my treatment will be
finished. I will compensate for the delay in work.
Importance of HR Life cycle in strategic talent management and overcoming issues of staff
retention
HR cycle plays a essential role in strategic talent management and overcoming of staff
issues. It is because the HR department helps the management in formulating the strategies for
managing the employees properly (Legrand, Chen and Sloan, 2013). Also the department is
responsible for providing the training to the employees so that the workers can support each
other for maintaining a proper working culture. The importance of HR department in talent
management and issues related with staff retention are given below:
Aids in improving employee performance: Talent management helps the HR department
of Healthy foods in evaluating the performance of employees for a particular task. Through this
evaluation,HR department can provide the training to workers for improving their performance
which will also assist the management in retaining the employees.
Employee motivation to attain goals: When employees are provided with training, they
feels motivated in the workplace. Also the motivation can be enhanced by providing them
rewards or appreciating them for their effort. Through this, the employees stay with
organisation.
Recommendation
7

It can be recommend to Healthy foods to enhance their HR process. For this, the
management can develop new strategies for improving the planning in HR life cycle. Also the
management of the firm can analyse the trends of market and consumers in order to enhance the
organisational performance. The HR department can provides training to employees for
enhancing their skills and knowledge.
TASK 3
P6: Various legislations followed by the Hospitality firms
There are several legislation which must be followed by the firms of hospitality sector
which are discussed below:
Equality act, 2010: This act was developed by the government for protecting the
employees from discrimination at the workplace. This act states that the workers must not be
discriminated based on their sex, age, culture etc. and they should be treated equally. If this law
is not followed by the Healthy foods, then government can exert penalty upon the firm.
Health and safety at work act, 1974: This act states that the workers needs to provided
with health and safety related training at the workplace for ensuring their well being while
working in the organisation (Nickson, 2013). The management needs to ensure the health and
safety of the employees when they are doing their work.
Minimum wages act, 1998: This act states that the employers must provide the wages to
employees according to the minimum wages specified. The minimum wages for employees of
age 25 or over is £7.83 per hour, for employees of age 21 to 24 is £7.38 per hour and £5.90 per
hour for employees having age 18 to 20. If such wages are not provided, then firm can be
penalised by the government.
P7: Impact of employment and contract law on decision making
Impact of employment law: The employment laws can heavily impact the decision
making and business if the laws are not followed properly. If such laws are not considered by the
management of the firm,then huge penalties can be received by the firm through the government.
For example, if the management is not following the anti discrimination law at the workplace,
then the employees has the right to complain this to law officials. The management needs to take
the decision by considering the laws and changes in them. Through this the management can take
better decision for the employees of firm.
8

Impact of contract law: Contract is the agreement which is signed between two or more
parties A valid contract is the one which is enforced by the law officials. The aim of contract law
is to protect the basic rights of workers so that no issues will rise in their working (Silverstein,
Samuel and DeCarlo, 2013). The management of the Healthy foods needs to consider the terms
and conditions of contract while taking the decisions. If such terms and conditions are not
considered then it can negatively impact the decision making process as the rights of the
employees are not hampered.
TASK 4
Covered in PPT.
CONCLUSION
From the above discussed report, it can be concluded that the hospitality business firms
needs to consider the various principles for managing their financial performance. Performance
management plan is helpful for the management in developing strategies through which the
business performance can be enhanced for achieving the desired organisational objectives.
Through the stages of HR life-cycle, the firm can retain and recruit the talented workforce which
can provide their full efforts for accomplishing the business objectives. Various methods of
communication system are discussed in this report which will help in enhancing the coordination
among the employees.
9

REFERENCES
Books & Journals
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Brotherton, B., 2015. Researching hospitality and tourism. Sage.
Darwish, T.K., Singh, S. and Mohamed, A.F., 2013. The role of strategic HR practices in
organisational effectiveness: an empirical investigation in the country of Jordan. The
International Journal of Human Resource Management. 24(17). pp.3343-3362.
Dodds, R. and Holmes, M.R., 2011. Sustainability in Canadian B&Bs: comparing the east versus
west. International Journal of Tourism Research. 13(5). pp.482-495.
Doherty, B., Meehan, J. and Richards, A., 2015. The business case and barriers for responsible
management education in business schools. Journal of Management Development.
34(1). pp.34-60.
Griffiths, C. and Crescenzo, B., 2012. My Start-Up Plan: The business plan toolkit. Harriman
House Limited.
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2017. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to 2015.
Current Issues in Tourism, pp.1-30.
Legrand, W., Chen, J.S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Silverstein, D., Samuel, P. and DeCarlo, N., 2013. The innovator's toolkit: 50+ techniques for
predictable and sustainable organic growth. John Wiley & Sons.
Singh, R., 2015. Empirical examination of the impact of total quality services on hospitality
industry business. Journal of Quality Assurance in Hospitality & Tourism. 16(4).
pp.389-413.
Sipe, L.J., 2013. Leadership for innovation in the memories business: A mixed methods study of
a hospitality and tourism marketplace. University of San Diego.
Van der Wagen, L. and White, L., 2018. Hospitality management. Cengage AU.
Weinstein, A. and Morritt, R., 2012. Segmentation strategies for hospitality managers: Target
marketing for competitive advantage. Routledge.
10