Hospitality Business Toolkit (Unit-04)

This document provides study material and solved assignments for Unit-04 of Hospitality Business Toolkit. It covers topics such as financial performance, double entry bookkeeping, HR life cycle, and performance management in the hospitality sector.

Hospitality Business Toolkit (Unit-04)

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 ............................................................................................................................................................3
P2 ............................................................................................................................................................4
P3 ............................................................................................................................................................8
TASK 2..........................................................................................................................................................9
P4 ............................................................................................................................................................9
P5 ..........................................................................................................................................................11
TASK 3........................................................................................................................................................12
P6 ..........................................................................................................................................................12
P7 ..........................................................................................................................................................13
TASK 4........................................................................................................................................................15
P8 ..........................................................................................................................................................15
P9 ..........................................................................................................................................................15
CONCLUSION.............................................................................................................................................18
REFERENCES..............................................................................................................................................19

INTRODUCTION
Hospitality sector is wider category of areas within service sector that involves food
services, theme parks, lodging, transportation and event planning. It is one of leading sector that
contributes towards economy of country. It offers wide range of the series to attract the
customers and make them loyal towards company (Aragon-Correa, Martin-Tapia and de la
Torre-Ruiz, 2015). East London Catering is a catering organization that specialized events like
weddings, family gatherings and birthday parties. In this given report will be discussed about
double entry book keeping system of credits and debits to record the sales as well as purchases
transaction in general ledger. There will be included about the different stages of HR life cycle
and also importance of sustaining talent.
TASK 1
P1
Financial performance is explained as degree to which an organization can effectively use
assets to help generate high revenues (Ariza-Montes and et. al., 2017). There are various
principles that provide guidance for monitoring and financial performance management. To gain
benefit of minimized expenses, financial accounts are created. East London Catering
organization records the source documentation of daily receipts and vouchers received during the
purchase and sale of raw materials. In addition, the company's financial reporting process
requires. Each organization needs to manage as well as control its finances so that its costs are
minimized and cash flows are monitored for these different financial statements. There is various
principles financial performance management mention below:
Maintain proper records of stock
Chan and Hon (2020) stated that principle is based on preserving and establishing
accurate records of raw materials and other important purchases made through an organization.
This offers East London Catering knowledge about waste during the purchase and storage
process of the inventory.

Making key financial statement reports- This principle is based on the development,
with view to an overview of the company's existing financial performance, of key financial
statements like profit & loss and balance sheet. East London Catering would be able to build
awareness of these areas through preparing these reports, which helps the company to increase
its output next year.
Evaluating the overhead cost- This principle aims to gain insight into an entity's
additional expenditure in addition to organizational expenditures. East London Catering will
calculate the costs of these expenses which can be reduced in next year to lower the operating
costs and increase profit margins by keeping all additional expense records.
P2
This is system in which each account entry requires a matching, opposite account entry.
Two equal as well as corresponding sides of the double entry are called debit and credit. The left
is debit and the right is credit. Three principles are established in this system, such as separate
entity in which East London Catering has a legal entity independent from its owner. Other
principle is the accounting equation, which says Assets – Liabilities= Capital The third rule
states that each transaction has a dual effect on dual transaction (Häusler, 2017).
Double entry book keeping

Ledgers:
Cash a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
04/03/20 To capital a/c 30000 05/03/20 By rent a/c 1000
18/03/20 To sales a/c 20000 06/3/20 By purchase a/c 10000
20/03/20 To sales a/c 13000 07/03/20 By Prepaid
insurance policy a/c
1200
11/03/20 By Laundry fees a/c 200
15/03/20 By Telephone and
internet expense a/c
2220
15/03/20 By Water charges
a/c
950
16/03/20 By Wages and
salary a/c
31/03/20 By balance c/d 47430
63000 63000

Capital a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
31/03/20 To balance c/d 30000 04/03/20 By cash a/c 30000
30000 30000
Rent a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
05/03/2
0
To cash a/c 1000 31/03/20 By balance c/d 1000
1000 1000
Purchase/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
06/03/2
0
To cash a/c 10000 31/03/20 By balance c/d 40000
06/03/2
0
To vendor a/c 15000
09/03/2
0
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
07/03/2
0
To cash 1200 31/03/20 By balance c/d 1200
1200 1200
WH Adams Ltd a/c
DR CR

Date Particulars JF Amount Date Particulars JF Amount
31/03/2
0
To balance c/d 15000 09/03/20 By purchase a/c 15000
15000 15000
Laundry fees a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
11/03/2
0
To cash a/c 200 31/03/20 By balance c/d 200
200 200
Telephone and internet expense a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
15/03/2
0
To cash a/c 2220 31/03/20 By balance c/d 2220
2220 2220
Water charges a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/20 To cash a/c 950 31/03/20 By balance c/d 950
950
Wages and salary a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
16/03/20 To cash a/c 1740 31/03/20 By balance c/d 1740
1740 1740

Sales a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
31/03/20 To balance c/d 33000 18/3/20 By cash a/c 20000
20/3/20 By cash a/c 13000
33000 33000
P3
All leader accounts in the business heading are listed on a trial balance. The name or
value of the each nominal ledger account is included in this list. Every nominal ledger account
has a debit or credit balance. The trial balance is conducted correctly or not to document the
operation. Where all parties are equal (credit and debit), the reporting process is correct and all
registration procedures of this organization are conducted with an over-the-counter examination
(Hertzman and Zhong, 2016).

Trial balance ( East London Catering)
TASK 2
P4
Human resource function is the backbone of company and its main focus on enhancing
the productivity of business by improving employee performance. This is important that the
human resources are effectively managed by a company to preserve them in future contexts for a
long time. It will even help to inflate existing operational level. In this respect, they undergo
through certain stages of the HR life cycle to allow their efficient development whenever new
candidate is hired and entered in a business. HR life cycle is essentially sequence of stages and of
also role of human resources managers in each of its phases. In context to East London Catering,
an individual is chosen at designation of Accounts Assistant (Kasemsap, 2017). There are
different stages involves in HR life cycle mention below:
Attraction- The appeal ends before the company even searches for a new employee. This
covers the company brand and what shapes the overall perception of a potential employee of an
organization. This stage is linked to attracting qualified and competent staff. East London
Catering will provide Account Assistant with fair pay and job benefits. This attracts the
candidate's attention and draws them into company (Lashley, 2016).

Recruitment- The recruitment of right staff is very necessary for any business' growth
and profitability. In addition to being able to successfully complete the recruitment stage of HR
lifecycle, the Department for Human Resources needs to develop a Strategic staffing plan with
complete knowledge of positions to fill by employee and what will be expected from him or her.
East London Catering will hire the candidate selected to the position of Accounts Assistant in
this context.
On- boarding- It is a process through which company gets new employees. By learning
new roles, forming relationships with colleagues and managers to create a position. East London
Catering will be giving the applicant training to learn about the accounting terminology and
skills in financial management for this purpose (Levand, 2017).
Enablement- This HR-lifecycle stage involves orienting new employees and also
formally presenting them in the culture, mission, values and vision of organization. Orientation
is generally held as conference-style event, where new hires receive information by presentations
and question and reply sessions. Firms also intend to bring in new workers for each of their
members, introduce them and explain their positions within the organization.
Development- Lub and et. al., (2016) stated that this is where the workforce and the
department of human resources work with company to achieve their long-term career objectives.
Human resource managers may now use personality profile assessment to help their employees
identify best career choices. . In order for the recruited employee to execute the work properly
according to position within organization, this stage of the human resource life cycle will be
combined to develop appropriate, skills knowledge and competence. Opportunities to build
careers are necessary to keep a worker employed with company. In context to this, it is extremely
necessary for the organization to promote growth through conduct of training programs for new
applicant named to the position of Accounts Assistant. It enables individuals to improve
knowledge according to East London Catering requirements.
Retention- HR lifecycle process helps to revitalize employees, appreciate them for their
great labor and acknowledge key milestones. HR departments should demonstrate workers
support for their specific benefits like flexible working hours, gift cards and additional time off.
This is crucial steps in the HR life cycle as employee replacement costs are far greater than the

training and employee development. East London Catering would thus offer new candidate a
positive working scenario in order to make them happy at work.
Separation- Mackay, Chipato and Thom (2016) stated that it is last step in the life cycle
of human resources and involves the employee's retirement. In this case, East London Catering
would make sure that Accounts Assistant retires from e existing company without causing
any disruption.
Overcome issues of staff retention
It has been evaluated that organization can face number of issues that can increase staff
retention rate, in this it has been evaluated that issues like lack of recognition can affect entity in
adverse manner so as to overcome this issue respective organization by taking use building
genuine culture of recognition can overcome this problem in efficient manner. In addition to this
lack of mutual trust is also a factor that can adversely affect staff retention rate, thus in order to
overcome this issue entity by taking advantage of embracing transparency can gain significant
advantages.Along with this, as per according to the above mention evaluation it has been
signified that as to increase staff retention rate organization by increasing morale of employees
and offering them recognition can accomplish objectives in best effective manner.
P5
Mejia and Torres, 2018 stated that Performance management is a way to ensure that a
variety of activities effectively and efficiently fulfill the goals of an organization.
Performance management can focus on performance of a department, an organization, an
employee or processes for managing certain tasks. It is regarded as a continuous mechanism
involving the contact of subordinates with the superior at all times. The main aim is to align
employee performance with organizational needs. It includes the continuous supervision and
guidance provided by the employees' supervisors to improve overall performance within
company. In due course, this will influence the reach of organizational targets and objective. In
order to minimize negative behaviors, East London Catering is responsible for performance
improvement and allows the workers to improve their productivity. Different stages of
performance management plan mention below:

Stipulation of performance objective- This is first stage and important to recognize
variance between current and desired performance of East London Catering employees. The
aims of SMART are to meet the criterion of Specific, Measurable, Realizable and Timely.
Training- The next stage is to determine need for training and the improvement areas
(Narangajavana and et. al., 2016). It is necessary for company to provide the training to
employees so that they can work effectively and their skills and abilities can be improved.
Training helps in motivating the employees and from this they can focus on attaining the set
objectives effectively.
Evaluation of employee performances-After training is provided to employees, next
step in performance management process involves assessing performance of employees. In doing
so, East London Catering will assess the efficiency of the Account Assistant. The organization
will help to determine the impact on performance of training session.
Comparison of current performance with the benchmarks- Following a performance
evaluation by the account assistant, the next step is to align it with East London Catering
performance target at the start of process. Entity recognizes the improvements scope by
identifying gap among current as well as desired performance. It paves the way for measures to
address and efficiently fill such a gap (Nayak and Taylor, 2018).
Monitoring and controlling- The final stage is to create improvement plan to fill gap
among actual performance and also desired performance. In this context, East London Catering
plans to improve performance of the Accounts Assistant effectively.
Performance Management Plan for newly appointed Accounts Assistant
Issues
identification
Employees
involvement
Set clear
objectives
Training
programmed
Performance
review
Face issues in
data handling
Proper
instructions and
training to the
Account
Assistant are
given.
Improvement in
skill of data
handling
The worker will
be supervised by
the senior
accountant who
will give the
employee
assistance and
advice for the
proper
management of
financial details.
After 5 months,
performance
review will be
take place.

Face issues in
accounts to fill
the entries
The gap is
resolved through
providing further
education and
informative
material to the
employee.
Develop general
accounting
knowledge
A person should
be trained on the
job, whereby he
or she should
receive
accounting
handbooks and
presentations.
After a period of
3 months, the
performance
review would be
performed.
TASK 3
P6
There are the some legislations needs to be comply with to conducting the business
effectively and also sustain at market place for long period of time. East London Catering
examined that legal regulations are potentially needed, which are necessary in industry to retain
them for a longer time period within hospitality industry (Ogbeide, Fu and Cecil, 2020). There is
some legislation which East London Catering needs to be complying given below:
Licensing Act, 2003- This Act lays down single repairs and modifications (for sale and
delivery of alcohol, regulated entertainment or late afternoon cooking) for licensing facilities in
England and Wales. Permission is now found in an only permit, a municipal license, replacing
many varied and complicated schemes, to carry out any or all these licensed activities. The
licensed authorities now have the duty, in particular the London municipalities, the Metropolitan
districts and the unitary authorities and the district councils, which have taken over the Peace
Judiciary's authority.
Health and safety Act, 1974- This act is specifically linked to the health of all
employees employed in this industry. This is important that East London Catering manager
complies with Health and Safety Act so as to affect employees' interest, so they must feel safe
inside the hotel. This will also help staff to keep their business longer.
Equality Act 2010- Equality Act 2010 is really an Act of United Kingdom Parliament
with main purpose of aggregating, upgrading and replacing various existing laws and regulations
which have been developed as anti-discrimination legislation basis in the Great Britain. It clearly

represents and incorporates the principles of the four main EU equal treatment regulations.
However, the legislation provides protection in the field of religion or belief, disability, age, race,
sexual orientation and race reform beyond EU guidelines, protection against discrimination on
the basis of a person's ethnicity and citizenship and even the extension of the person's freedom in
areas outside workplace.
P7
Company law, contract law and employment law plays main role over business decision
making of company in hospitality sector. This is necessary for company to follow all legislations
to implement business activities on timely basis and develop positive impact on decision making
of business. Impact of the company, contract and employment law on business decision making
mention below:
Contract law- This is primarily associated with the organizational agreement involving
two or more parties and the terms and conditions referred to therein have been agreed. With
regard to East London Catering, this is said that before making any changes in their expansion
activities the respective company manager has to first pass the employment contract agreed upon
by them. This directly affects East London Catering decision-making. Contracts are relevant as
they define all parties' expectations and protect all parties when such expectations are not met.
Contract law concerns corporations because all firms are delivering either a service or product,
which ensures that the service needs to be bought, sold or made services
Company law- It is particularly associated with code of conduct as well as standards
which business associations have to abide for the ethical purpose of carrying out their business
activities. In the East London Catering context, the company has an influence on overall process
of decision-making. It is because the management team must concentrate on the following all
guidelines in section while making significant decisions in company. It also helps to avoid legal
obligations of any kind in near future (Sota, Chaudhry and Srivastava, 2020). To order to
regulate how companies work, laws and regulations have been enforced. Such laws also
safeguards customers and promotes competition between businesses. Corporations that are not in
accordance with all corporate regulations are subject to fines or penalties.

Employment law- This kind of legislation is primarily related to workers and employers
relationships, where the company human resources manager ensures that company comply with
government policy and standard. With regard to East London Catering, this can be stated that the
human resources department must meet all the recruiting criteria and guidelines during employee
planning. It shows that the decision taking by the East London Catering HR department impacts
employment law accordingly. Employment legislation seeks to protect workplace rights and
encompasses almost all about the employment contract. To order to eliminate expensive
employment court lawsuits, employers must comply with different laws and regulations.
For an example- For 2 staff who had been burned by fire, the leading food manufacturer
KFC was penalized at the branches of Stockton Borough for £ 1.5 million. A further example is:
for punishment that was bought from ORR and caused death of a cleaner, LSER and Wettons
were rewarded with £2 m or £1.1 m.
TASK 4
P8
In every organization, business functions are interrelated with each other and their goal is
common to attain organizational objectives. This interrelation assists them effectively to
implement their business performance and aims to enhance their respective departments and
organizational goals. In the hospitality sector, the main concern of customers is to make every
effort to raise their level of satisfaction. In order to achieve business success quickly, each
department of East London Catering aims at maintaining its relationship with each other to make
business successful (Walters and Helman, 2020). There is an interrelationship among various
functional departments in East London Catering and with their role mention below:
Human resource and Food & beverages functions- In each company, the primary role
of the HR function is to manage employees in an appropriate form within business. As to East
London Catering, Food and Beverage function shares a positive relationship with HR department
to make them aware of the workforce requirements in this department. They may also ask the
HR department for particular training and development programs to improve their skills in

accordance with the evolving demand of the client, which further assists them in the rapid
conduct of their work.
Marketing and Finance function- These both the functions are interconnected since the
finance department gives marketing manager required amount to carry out their promotional
activities efficiently. Here, both departments have adequate interactions to enable each
department to fulfill its requirements and to perform operational activities in an appropriate
manner.
P9
Communication, coordination and monitoring are identified as effective methods which
are mainly adopted through managers of the hospitality industry to manage employee’s
performance and also strengthen the value chain. In relation to East London Catering, this can be
stated that manager of the marketing departments makes use all factors and the sub methods
which are considered in it. Different methods of communication, coordination and monitoring in
a marketing department of East London Catering Ltd. Mention below:
Communication- It is effective means by which persons exchange information and also
share information is considered to be the medium of communication. For every company,
communication plays an important role as the employee knows how to follow new policy and
work with this supervisor. Communications within the marketing department are effectively
carried out through e-mail and also meeting in the context of East London Catering. If there is
any kind of the discussion on the new services then the employees of marketing department
connect with each other through different communication methods such as emails, confereing
etc. Recorded information is officially shared in email with employees. Meeting is two
communications where direct communication is provided by management and workers, so they
can discuss effectively new plans, legislation, problems and future growth with the each other
(Williams and Horodnic, 2017). There are some communication methods given below which to
strengthen the value chain and in a specific department of East London Catering Ltd.:
Video Conferencing- This is considered as most powerful communications method. This
approach is being used through East London Catering marketing executives to develop the
contact network and to preserve the company's credibility. The successful management of direct
communication with company staff is video conferencing. Managers of marketing department at

East London Catering use video conferences to show their customers' live presentation of
services.
Verbal communication- This type of the communication method includes the written text
to transfer information in black and white. Written communication may take place with or
without an ink object, depending on access to the facility available. Such written notes contain
memoranda, correspondence, etc. Some of the benefits of this type are that it can be saved for
use in future.
Non- verbal communication- This correspondence uses organizational signs to reach the
organization's leaders. To order to interact within the company for example facial expression and
body language may be used.
Email- It is simple way of organizing the duties and responsibilities of the supervisor or
boss. E-mail is mainly used to communicate and provide the employee with details within the
marketing department. E-mail is given at every organizational machine from which information
can be easily exchanged. Email is a tracking tool used to help East London Catering staff of the
marleting deparment performs those tasks.
Significance methods to strengthen value chain
Manager of marketing department in East London Catering cater is possible to produce
useful policies for future with the help of this process. This is due to the fact that sequence and
systematic transmission of essential data are feasible. Mistakes and issues with the
communication process may be eliminated and the priorities and objectives accomplished in
most effective way.
Coordination- Coordination is regarded to be an efficient method, by which two or more
persons effectively work together in an adequate way. To achieve success in a legitimate way,
respective company Manager of marketing department must assure employees coordinate
appropriately. There is a horizontal and the vertical coordination. The different functions
included in the marketing department should work together such as sales, advertising and others.
This could be done successfully in two ways. It assists employees to share their points of view
and perception and minimize chances of conflict, which essentially leads to efficient

coordination and the quicker implementation of organizational goals. Sound planning is other
coordination method that develops alignment work and makes coordination between staff
members.
Monitoring- It can be seen as effective process by which managers effectively control
the assignment of marketing department employees. Monitoring within East London Catering
can effectively be carried out using two methods, the evaluation and the formal survey. In the
performance evaluation, supervisor monitors employee performance and compares it further with
the criteria foreseen. They can determine the degree to which performance can be correctly
improved and guide employees. Through taking the feedback from employees, formal surveys
could, by asking them to complete the survey, be efficient. There are some monitoring methods
mentions below:
Employee feedback- The marketing manager of the East London Catering can take the
employee's feedback to measure the progress of its communication. This feedback paves the way
for contact among the management and staff leaders. The feedback information could also be
used to measure employee's performance.
Tasks planning- East London Catering staff perform tasks on the basis of what is
previously planned. The expected role of employee should be well known to efficiently control
contact within organization. A clear mode of communication between the employees of
marketing departments concerned is needed to maintain an effective program.
CONCLUSION
It has been concluded from the above mention report that main concern of the hospitality
industry is on providing the high quality of services on the basis of needs and the demands of
customers. Hospitality organizations hire the well qualified and talented staff members which
can able to give the better experience to customers. For managing the all activities at workplace,
HR manager plays a necessary role and focus on improving semployees’ performance. There has
been Liquor Control Act 2003, Licensing Act, 1964 and Health and safety Act, 1974 discussed
which firms needs to comply with. Interrelationship among the different departments has been
discussed in a detailed manner.

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