Reference Analysis and Summary

The assignment involves analyzing and summarizing a collection of references related to hospitality management. The provided text includes various references from books, journals, and online sources, which are then used to create a summary of key points and ideas. The summary provides an overview of the main concepts and findings in the field of hospitality management.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION................................................................................................................................1
TASK 1.................................................................................................................................................1
P1 Investigate the principles of managing and monitoring financial performance.........................1
P2 Double entry book keeping system of debits and credits...........................................................3
P3 Balance off rule to complete the ledger......................................................................................4
TASK 2.................................................................................................................................................5
P4 Different stages of HR life cycle Applied to a specific hospitality job role and their
importance.......................................................................................................................................5
P5 Develop a performance management plan to support specific job role to resolve negative
behaviour of employees...................................................................................................................7
TASK 3.................................................................................................................................................8
Covered in PPT................................................................................................................................8
TASK 4.................................................................................................................................................8
P8 Explore how different functional roles within the hospitality sector interrelated......................8
P9 Explain the different methods of communication, coordination and monitoring applied with a
specific department of a hospitality organisation to strengthen the value chain...........................10
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
In modern era, organisation working in hospitality sector, it is very important for them to
study various factors that can affect their quality of performance. They use to perform various
services like customers' demand, proficiency of workers, latest technologies and other. In this,
business toolkit can be said as a collective form of practices of organisation which depends on
the practical and incisive approaches. This involves templates, self-evaluations and management
processes, actions plans etc. In this report, the chosen organisation is London cafe which is a
small restaurant in London, and they are famous for their coffees and sandwiches. In this report,
a study will take place on HR life cycle and it's importance. Along with this a discussion will
take place on performance plan along with some basic legislation which organisation have to
follow (Bruce and Stephens, 2017). This report will also detail about the different methods of
communication that they can use along with their benefits.
TASK 1
P1 Investigate the principles of managing and monitoring financial performance
Finance is an important aspect in business as it gives an estimation of accomplishing
project and operation appropriately. The necessity of a successful business requires a regular
flow of cash, adequate profits and strong sales. The monitoring of any company's financial
performance is essential in evaluation of strategic decisions that are to be taken on a timely
basis . Moreover, Financial analysis must be given attention by the company because it has a
significant contribution in monitoring the financial performance of organisation. According to
the present scenario, entrepreneur of London cafe has concluded that high profitability is not
possible because of the high competition in market ( Dirrigl and Noe, 2018). The management of
organisation takes various steps in managing and monitoring financial performance and while
doing this they follow principles which are listed below-
Principle I: Establishing proper budget: Before starting any project necessary
resources should be analysed which will help in attaining goals and objectives of business.
Managers of different organisations measure their financial performance at regular interval of
time. This helps in knowing about transactional errors and accordingly make substantial changes
in the organisation.
Principle II: Budget should based on thorough analysis: An analysis is done after
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setting the budget for a specific project. Managers and leaders of London cafe explains the
purpose of budget in regards of mission and goals of the business. Managers make efforts in
making a effective strategy for enhancement of resources. This will help in reducing the future
short comings in business.
Principle III: Actual financial result should compared to budget on daily basis:
Managers must take care of comparison of financial outcomes with budget on regular basis. This
helps in analysing about transactional errors ( Eltayeb, 2018). It also help in detection of changes
in business environment and measurement of a company's financial performance and
effectiveness. Manager of London cafe ensures that fund is not used in unnecessary activities.
Principle IV: Rectify condition when financial result exceeds the planned budget: In
cases where financial planning of managers regarding project exceeds the planned budget it is
duty of managers to determine the reasons behind variances of business financial outcomes and
implement strategies and plan to prevent errors accordingly.
For instance, Following table represents the monthly record of the actual income source
and the type of expenditure in general household-
Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
Allowances Household utility bills
Therefore, it is recommended to managers of Refreshment Juice Corner to prepare
financial statements, for monitoring financial performance. Furthermore, they should also need
to make aged debtors trial balance, inventory records, working capitals statements and financial
ratios etc. This would help in identifying actual flow of cash for determining financial
performance.
From the above evaluation it is advisable for the managers of London cafe to maintain
records of financial statements of the projects ( Ervin, 2016). They should evaluate the financial
performance of company on daily basis. The identification of actual cash flow is required to
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estimate financial performance and for this it is essential for managers to prepare inventory
records, working capital statements, aged debtors trial balance and various financial ratios.
Explanation of key financial terms:
i) Sales: It is defined as the revenue generated by the company in terms of credit, cash or
profits. This helps the managers of London cafe to evaluate the information regarding the
expenses, quantity of product purchased, sales of the company and balance available to
work in project.
ii) Types of cost : Cost is said to be the most important part of a business, therefore it is very
important fort them to maintain their cost. In business, there are two types of cost one is
Fixed cost and another is Variable cost ( Foster and Carver, 2018). The cost which do not
get change like, rent, salary, taxes and other come under Fixed cost, where as, the cost
which get change like amount of bills, maintenance of system labour rate and other come
under variable cost.
P2 Double entry book keeping system of debits and credits
Double entry book keeping system is a method, where accounts are maintained in a
format where a comprehensive entry get designed for a single entry. In this the books have
different columns, one for debits and another for credits. For example :-
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
Purchase return 200
Discount received 2300
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Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Trail Balance : It is a list, which contain all the names of all the accounts present in general
ledger of business. For example :-
Particulars Debit Credit Transaction amount
Wages 28976 28976
Gifts 25000 25000
Benefits 32000 32000
Allowances 16900 16900
Weekly food shopping 24000 24000
Clothes 43230 43230
Gifts 12000 12000
Household utility bills 2000 2000
Drinks 4000 4000
Lunch purchases 9000 9000
Total 94230 102876 197106
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P3 Balance off rule to complete the ledger
This is a method which London cafe use at the end of financial year, in this the accounts
of business get closed and remaining balance get transferred to new accounts which they are
going to create in new financial year ( King and Lee, 2016). Following is the example for it :-
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
TASK 2
P4 Different stages of HR life cycle Applied to a specific hospitality job role and their
importance
For an organisation, HR department is one of the most important department, as they help
them in making and maintaining a proper work force in their organisation, so that they can
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perform best. In hospitality sector like London cafe it is very important for them to have work
force which have employees full of skills. For example, if any organisation of hospitality sector
want to hire an employee for their front desk, then they have to follow steps described beneath :-
1. Recruitment : This is the first stage of HR life cycle, where manager of HR department
make plans and strategies for recruiting new employees which are required for their
vacant jobs. After that HR department hire new employees by following their respective
process of recruitment ( Mejia and Torres, 2018). For example, London cafe have to hire
employees for their house keeping department, then they have to make a set of skills
which they are looking for in their new employees and then have to hire employees
according to it.
2. On – boarding : This is the stage where HR manager of London cafe will check that how
long the new employees can board in their organisation. For doing so, they can provide
training for 90 days to their employees, which can help employees to gain knowledge
about the work they have to perform also organisation get knowledge about the
performance of them also. This also help organisation to get knowledge that they can
work with them or not.
3. Career development : This is the stage, where HR manager of London cafe can give
proper opportunities to their employees so that they can develop their career. This will
help them in improving the experience of their employees with organisation, which leads
to enhance the employees to retain in company. This all will make organisation to
improve the talent engagement in organisation.
4. Employee Recognition : This is the stage where HR manager of London cafe take care
about the needs and happiness of their employees, so that the performance and
engagement of them get improved.
5. Off – boarding : This is the last stage of HR life cycle, where an employee leave the
office and use to demotivate other employees also ( Nickson, 2013). Therefore for
managing this condition, it is very important HR manager of London cafe, to make a
proper document for off-boarding that employee.
HR manager have to follow a specific process for hiring a new employee, which is as
follow :-
Box 1 : Manger of London cafe have to make an advertisement on their job portal which reflect
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the vacancy for employee in house keeping.
Box 2 : HR team have to filter the applications and resumes received by them, and them have to
finalise people for interview session.
Box 3 : Interview questions
 What is your education qualifications?
 What is your work experience?
 How many different languages you can speak? In which work of house keeping, you are good?
Box 4 : For making the new employees understandable and friendly with environment, it is
important to provide training session (on – board) of 90 days to them.
Box 5 : Evaluating the performance of new and existing talent which organisation have to retain
is very much important for them. For doing this evaluation manager of London cafe can use 540
degree performance management.
Box 6 : It is very important for London cafe to provide proper training and development sessions
to their employees, so that they can improve their skills and work better.
Box 7 : It is very important for organisation to improve the job satisfaction of their employees,
therefore for this, they can adopt strategies like, promotions and appraisals.
Box 8 : It is need for manager to get knowledge about why employees want to switch or leave
the job, as this will help them in reducing the problem which their employees are facing.
Box 9 : It is required for manager to have some questions, that can help them in knowing that
why their employees want to switch the job :-
 What environment are you looking for?
 What do you want from our side?
It is very important for a organisation to have proper procedure which they use to follow
while hiring a new employee in their organisation. HR manager have to perform ample number
of tasks in their organisation so that their work force can get managed in proper way. As HR life
cycle is very much important for an organisation, it help them in maintaining good relationship
between employees and also help them in managing their skills. The different stages of HR life
cycle help London cafe in managing their work force and also give them knowledge about the
performance of their employees, so that they can make plans which are very much helpful in
retaining talent ( Sipe, 2013). Along with this, London cafe can use online interviews so that
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their time and power can get saved. Also they can make a proper set for promotions of
employees, so that employees work harder and better for increasing the chance of promotions.
P5 Develop a performance management plan to support specific job role to resolve negative
behaviour of employees
Performance management plan is a tool which is used by organisation for identifying the
reason behind weak performance of their employees. This help manager of London to solve the
problem and improve functionality of organisation. For example, the performance of employees
are getting low because of rude behaviour of an employee. Beneath are the script which shows
communication between employee and manager in both positive and negative manner :-
Script 1 :-
Manager : It has been observed that from last few weeks that Mr. Joy is not behaving properly
with their colleagues.
Employee : Yes sir, it also come in my notice that, they are not behaving properly with their
friends and other staff members.
Manager : So, do you have any idea that why a sudden change has come in their mind.
Employee : Yes sir, due to work load and stress, they are losing their calmness.
Manager : Okay, so according to you what measures we have to take for this.
Employee : Sir, we can hire some new and capable employees by which the work will get
divided.
Manager : Okay, I will think about this suggestion and will take action with concern of my
superiors.
Script 2 :-
Manager : The behaviour of Mr. Joy has become very rude in last few weeks
Employee : Yes sir, they are not behaving in proper manner and also not replying in good
manner.
Manager : So, do you reason behind it?
Employee : No sir, I do not have any idea behind this, and when ever I tried to know the reason,
they use to reply in very rude manner.
Manager : So, now what can we do?
Employee : Sir, I think we have to talk to them and also have to warn them for their behaviour.
Manager : Okay, I will give him a notice for 7 days, that improve yourself otherwise company
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will fire them.
Employee : Yes sir, I also think that it is the only solution for this.
TASK 3
Covered in PPT
TASK 4
P8 Explore how different functional roles within the hospitality sector interrelated.
An organisation has different types of operational activities & procedures which are
conducted on regular basis for achieving desired productivity as well as profitability. It consist
various functional roles including human resources, finance, information technology, marketing
and production but they are interrelated to each other (Chung and Chung, 2018). However, these
have different functions are carried out in order to fulfil same goal i.e. improve sales & profits.
Moreover, marketing helps production departments to produce desired number of units of
product and finance section make budget to provide required amount of funds accordingly.
Meanwhile, human resources departments hire well experienced and skilled employees for each
section to conduct required tasks appropriately. In context of hospitality industry, desired
functional roles are given below –
Theme Park
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Hospitality sector
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Hotel
P9 Explain the different methods of communication, coordination and monitoring applied with a
specific department of a hospitality organisation to strengthen the value chain.
Communication can be considered as an important in organisation for achieving set goals
and objectives in appropriate manner. It include the criteria to communicate effectively with
colleagues and superiors which facilitate to improve cooperation among workers to increase their
productivity on regular basis (Filimonau and Delysia, 2019). However, there are various kinds of
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different methods of communication which can be applied in organisation to boost up accuracy
of information shared at workplace that helps to reduce chance of errors. In case of Natural Care
Juice Centre, it has been analysed that they have mission to provide healthy drink in area of
London with the help of utilising several effective communication which are as follows –
Considering the study of different methods of communication, it has been determined that
every source including Sky Type, group meeting, WhatsApp group etc., are helpful to convey
desired information to specific person or department in accurate way. The Natural Care Juice
Centre is a kind of small firm then they can use communication method through making a
WhatsApp group in order to communicate desired message to workers on regular basis. It will
facilitate to make an appropriate decision making which facilitate to conduct operations properly
to gain better outcomes.
According to the view point of....., effective communication is essential to be carried out
for gaining effective cooperation between workers which impacts positively on productivity of
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business. It consist to make an several efficient methods such as telephonic call, Skype,
WhatsApp etc. can be used for to improve performance of employees. In context of Natural Care
Juice Centre, managers are required to apply some other effective communication techniques
besides of WhatsApp in order to create more effective conversation.
CONCLUSION
From the above discussion it has been concluded that hospitality is one of the board
group of business that basically provides services to customers as per need and requirement by
providing specific experience of their journey. Herein, mangers are adopting various laws and
regulation so that an organisation can attain sustainability for longer duration of time.
Furthermore, communication and coordination and management plan play's an effective role so
that effective strategies can be adopted so that an respective organisation can attain its goals and
objectives within stipulated time period. Thus, in today's context hospitality industry is wider
sector that help in growth of economy by providing various job opportunities and leaving
standards of people in an attractive manner.
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