Report: Principles of Financial Management in Hospitality Business

This report provides a detailed analysis of the hospitality business toolkit, focusing on the Gym Freak Juice Centre in London. The report covers key principles of financial management, including budgeting, sales, and cost analysis. It also examines the HR life cycle, encompassing recruitment, onboarding, development, retention, and off-boarding strategies, with a specific focus on the recruitment of a receptionist. The report further explores the importance of the HR life cycle for management and offers recommendations for improving HR processes. Additionally, the report discusses different functional roles within the hospitality sector, methods of communication, coordination, and monitoring, and provides an evaluation of these methods. The content includes financial statements, HR processes, and communication strategies relevant to the hospitality industry, offering insights into improving business operations and employee management.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
1) Principles of managing and monitoring financial performance.........................................3
2) Double entry book-keeping system and basic trial balance...............................................4
3) Balance of rule...................................................................................................................6
TASK 2............................................................................................................................................6
1) Stages of HR life cycle for retaining and developing talent..............................................6
2) Importance of HR life cycle to management.....................................................................9
3) Judgements and recommendations of HR processes.........................................................9
4) Performance management plan..........................................................................................9
Factors to a specific hospitality job in food & beverage industry:-.....................................11
TASK 3..........................................................................................................................................11
Covered in PPT.....................................................................................................................11
TASK 4..........................................................................................................................................11
1) Different functional roles within hospitality sectors........................................................11
2) Different methods of communication, Coordination and monitoring applied to hospitality14
3) Evaluation of different methods of communication, coordination and monitoring.........15
4) Critically evaluation of different methods of communication, coordination and monitoring
..............................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFRENCES.................................................................................................................................17
INTRODUCTION
Hospitality industry is a field which is categorised as wide industry that offer various
services like event planning, travelling, theme parks, lodging, transportation, cruise and many
more. There are number of hospitality industry such as restaurant, hotel, amusement parks,
travelling and so on (Jayawardena and et.al., 2013). It is mainly segmented into four segments

that are food and beverages,travel and tourism, lodging and recreation. Organization taken for
this assignment is Gym Freak juice centre which is located in London. That is serving fresh
juice, refreshment drinks and protein shakes which mainly concern with gym freak and health
conscious peoples. Topics cover in this assignment are principles which is use for managing and
monitoring financial performance and various stage of HR life cycle in this industry. Along with
this it explain development strategy which establish to conduct job role and it also explain rules
and regulation of hospitality industry. It is also include several functions of this industry as well
as it include methods of communication, monitoring or coordination which is essential for
business.
TASK 1
1) Principles of managing and monitoring financial performance
There are various principles which is use to managing and monitoring financial
performance of a company. Some major of them which can be adopt Gym Freak juice centre to
improve there financial conditions from which they are currently facing are mentioned below:- Follow appropriate legislation and regulations:- All expenditures and activities which is
conduct by respective juice centre must be based or comply on proper policies, rules and
regulations (Bowie and et.al., 2016). Which help them in smooth functioning of business. Consider financial budget before adopting any idea:- Gym Freak juice centre must
operate there business activities and functions by considering there budget or within
budgets. Evaluate and analysis financial consequences:- Gym Freak juice centre must evaluate
and analysis financial consequences before adopting any new project or activity which
help them in allocating resource in effective manner.
 Always plan substitute for any idea:- Respective company must prepare will some
substitute or safeguard idea or plan so that they effectively protect themselves from loss
situation.
For example all expenditure are based or rely on actual source of income in household and
accordingly they prepare budget.
Incomings Outgoings
Benefits Drinks

Gifts Lunch purchases
Wages Gifts
Allowances Household utility bills
Weekly food shopping
Clothes
So accordingly Gym Freak juice centre prepare there budget so that they can run there
business and operations in appropriate and effective manner.
Key financial term:-
Sales: Sales is related to activities of selling number of good and services in a particular
or given period of time. For example in context of Gym Freak juice centre they identify there
target so that they can achieve there goal related to sales on monthly basis.
Purchase: It refers to situation when organisation activities to take products and services
to attain or accomplish goal and objectives in appropriate manner (Kysilka and Csaba, 2013).
Such as respective juice centre make proper advertising and promotion activities which leads to
enhancement of numbers of purchases. Along with this by it they able to attain there goal and
objectives in effective manner.
Input cost: It refers to cost which include direct material cost, direct labour and other
thinks which is related to production of goods and services (Legrand, Chen and Sloan, 2013).
Such as for calculating input cost Gym Freak juice centre include cost like cost of fruits, protein
power, milk and many others. Along with this they also include cost of facilities which they are
serving such as air conditioner, chairs, tables, peace full ambiances and so on.
2) Double entry book-keeping system and basic trial balance
` Double entry system:- It refer to system of accounting in which each every entry needs
to comparable and different entry to an other account. In other work it means making entry of a
transaction in two accounts (Singh, 2015). Gym Freak juice centre maintain double entry system
so that they can make financial statement in appropriate manner. Such as they borrow loan from
bank, this entry is record in both account assets for cash balance account and liabilities for loan
payable account.
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
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Trial Balance: It refers to statement which include all debits and credits in book of
double entry account (Legrand and et.al., 2012). For this respective juice centre include all namer
of nominal accounts and its amount.
Particulars Debit Credit Transaction amount
Wages 17589 17589
Gifts 15000 15000

Benefits 25500 25500
Allowances 20000 20000
Weekly food shopping 20005 20005
Clothes 17500 17500
Gifts 16050 16050
Household utility bills 4078 4078
Drinks 10532 10532
Lunch purchases 5455 5455
73620 78089 151709
3) Balance of rule
Balance of rules refers to condition in which financial account of current is close at year
ending and then carry forward to next year (Nickson, 2013). This is shown by current financial
action which is mentioned below:-
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
81389 81389 162778

TASK 2
1) Stages of HR life cycle for retaining and developing talent
In an organisation HR plays an important role in retaining and developing employees
talent. It helps in attaining goal in appropriate manner and for this HR manage of Gym Freak
juice centre adopt life cycle for employees improvement which is mentioned below and they are
conducting recruitment for receptionist for there Juice Centre:-
Recruitment: At this HR of respective juice centre recruit employees according to there
requirement or vacant position. In this manager do talent acquisition through software in which
they identify appropriate candidates for vacant position. Then conduct pre employment scanning
in which they they conduct interview with candidates after this HR decide who is effective for
required position which is receptionist.
On-boarding: When appropriate candidates get selected they will get onboard training in
which HR of respective centre mainly focus on establishing relationship with new employees
and old employees (Sipe, 2013). This can be done for time duration of 90 days in which new
employees know about working environment and there task or jobs.
Illustration 1: Employee Life Cycle
(Source: Employee Life Cycle, 2018)

Development: In this manager of Gym Freak juice centre provide future growth
opportunities to there employees so that they retain for long term or duration. For this they give
them training and development session and promote according to work.
Retention: In this step manager of respective company motivate and encourage there
employees so that they feel satisfy and connected towards workplace and retain for a long time.
Along with this for retention Gym Freak juice centre also provide future career growth
opportunities.
Off- boarding: It is a process in which HR manager of Gym Freak juice centre take exit
interview and feedback when there employees left company (Pirani and Arafat, 2014). This will
help them in improving weak points in order to achieve goal and objectives.
HR manager of Gym Freak juice centre conduct analysis and evaluation for hiring
appropriate candidate for position of receptionist, which is given below:-
Box 1: Advertisement related to receptionist position will be placed at different job portals and
social media.
Box 2: For deciding appropriate candidate company use resume scanning and face to face
interview method.
Box 3: Interview Questions
 Are you confident enough to handle every workplace related situation?
 Do you have skills to handle peoples on call?
 Are you familiar with new software for trenching quarries of customers and employees?
 Do you have experiences in speed typing?
 What do you understand by your position and work?
Box 4: At induction and on boarding manager of respective company conduct welcome and
training session so they new employees get familiar with there working environment.
Box 5: For performance review respective juice centre compare past performance of employees
with performance after training and development session. By this they able to know that
employees is adapting situation in effective manner or not.
Box 6: For conducting learning and development Gym Freak Juice Centre provide training to
new receptionist so that she/ he will conduct there work in proper manner. Training which they
can provide are related to new software, how to handle clients and phone calls in proper manner.

Box 7: Promotion is related to activities in which in which a person get succession and increment
according to there work and job performance. It is important for company manager to promote
employees because by it they feel motivated and retain at workplace for long time.
Box 8: It refers to situation where employees leave there organisation when they feel
demotivated and disconnected toward company. For this employer can make appropriate
strategies and adopt promotional methods to motivate employees.
Box 9: Exit interview questions
 Why are you leaving current position?
 How was your relation with your manager?
 Do you want to give any advice or suggestion?
 What are factors like and dislike about your job?
 Do you think we should provide any special training for your positions?
2) Importance of HR life cycle to management
HR life cycle is important for every organisation because by it manager able to hire
appropriate employees and retain them for a long time period. Some major important of HR life
cycle in respect of Gym freak Juice centre such as by this HR manager of respective company is
able to recruit appropriate and effective employees according to position or recruitment
(Benckendorff and et.al., 2015). When this juice centre adopt this they training and develop there
employees skills which help them in conducting work or task in approaches manner and given
period of time. Along with this they also able to retain staff for long term which help them in
saving cost of recruitment on regular basis. This will also able to get get suggestions and advice
from employees which help respective company in conducting improvement. More over by this
respective juice centre able to retain employees and staffs for a long time.
3) Judgements and recommendations of HR processes
Recommendations which is given to manager of Gym Freak Juice Centre for conducting
HR process in effective manner is that for retain employees they can provide or develop training
and development sessions. Respective company also conduct motivation session so that
employees feel connected toward workplace. For this they may organised motivational sessions,
appraise employees, promote them and many more. To retain and motivate employees respective
company conduct meeting and discussions with employees in which they discuss issues and

problems which they are facing. Then manger of company make strategies to overcome from
issues and problems.
4) Performance management plan
Performance management plan refers to technique and tool which is conducted by a
company in order to enhance employees performance (Weinstein and Morritt, 2012). By this
employees able to improve there performance and grab opportunities in effective manner. Gym
Freak Juice Centre conduct performance management plan to evaluate and analysis employees
performance. Respective company develop performance management plan to resolve issue that
there employees are coming late to office.
The role play script which is develop on the issue of employees are behaving rude in at
workplace. Discussion on this issues with employee and manager of Gym Freak Juice Centre is
given below:-
Script 1:
Manager: I am observing and analysing that Mr. Jones is behaving rude and irritating to
every staff, do you have any idea behind this?
Employee: Yes sir, this is so because Mr. Jones is feel over burdened due to work
pressure. May be due to this he is feel irritated and behaving rude.
Manager: Okay I understand So do you have any suggestions to overcome this?
Employee: Yes sir, according to me you must add more members in Mr. Jones teams so
that there work presser get reduced and he able to conduct work in proper manner.
Manager: Okay, I will arrange or hire more employees accordingly. But along with this I
also want to organized training sessions for you so that you can handle presser in appropriate and
effective manner.
Employee: Okay thank you sir for understanding Mr. Jones problems.
Manager: I hope after that session Mr. Jones able to handle work in effective manner
and attain goal.
Script 2:
Manager: I am observing and analysing that Mr. Jones is behaving rude and irritating to
every staffs?
Employee: Yes sir, I also feeling this and other employees also discussing about it.
Manager: Do you have any idea why he is having like this?

Employee: No sir, I asked Mr. Jones why he is behaving like this, then he reply I don't
want to talk to you and I don't care about other.
Manager: Okay, then then inform Mr. Jones that if he won't do as per instructions we
have to take some strict action.
Employee: Okay sir, I will inform him.
The issues in talent acquisition and retention in food & beverage sector:-
Food and Beverage is one of the leading and famous industry which focus on satisfying
customers need and wants related to food and beverages. This sector is include various industry
in it such as hotel, restaurant, theme parks and many more. But in respective sectors manger face
difficulties and issues in acquiring and retaining talents. Some major are like employees are
getting low salary and in this industry changes is continuous according to time and demand. Due
to which company has to hire and recruit new employees who have specific knowledge and
ability. In this situation not all employees able to adapt changes on frequent basis. Due to this
they are facing issues and problems in retaining and recruiting employees in effective manner.
Factors to a specific hospitality job in food & beverage industry:-
In food and beverage sector demand and need of customers get change on continuous
basis due to which manager of respective industry's company has to hire employees accordingly.
So that they can fulfil need and demand of customer and it is very difficult to identify which
person has more adaptable skills. Along with this they have to do hire and firing process
according to need and demand of customers in effective and efficient manner. Such as respective
company hiring receptionist and while recruiting they challenges which is mentioned above.
Such as employer of respective company want to hire receptionist who know multiple languages
and adopt things easily. But they are offering salary low which is demanded by appropriate
candidates.

TASK 3
Covered in PPT
TASK 4
1) Different functional roles within hospitality sectors
In every sector or industry there are various functional roles which they have to perform
to conduct business operations in appropriate and effective manner (Sobaih, Ritchie and Jones,
2012). Some of major functional role which is conduct within hospitality sectors are human
resources, finance, marketing, chef and may more.
For effective conducing of operations and function every industry maintain there
organizational chat. Some of them are given below:-
Theme park
Hospitality sector
Illustration 2: Organization chat of theme park
(Source: Organization chat of theme park, 2019)