Hospitality Business Toolkit: Managing Financial Performance, HR Life Cycle, and Legislations

This toolkit provides insights into managing financial performance, HR life cycle, and legislations in the hospitality industry. Learn about principles of financial management, bookkeeping, trial balance, performance management, and various legislations. Explore the impact of employment and contract law on business decision making.

Hospitality Business
Toolkit
Unit 04
1

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Identify the various principles of managing and monitoring financial performance........3
P2 Apply double entry book-keeping system of debit & credit for recording sales and
purchase transaction...............................................................................................................4
P3 Develop a basic trial balance.............................................................................................5
Task 2...............................................................................................................................................6
P4 Explain various stage of HR life cycle and its importance for developing & retaining
talent.......................................................................................................................................6
P5 Performance management plan.........................................................................................7
Task 3...............................................................................................................................................8
P6 Explain various legislations related to hospitality industry..............................................8
P7 With the help of an example, explain how employment & contract law will influence
business decision making process..........................................................................................9
Task 4...............................................................................................................................................9
P8 Explain the interrelation between various functional roles within hospitality industry....9
P9 Discuss various methods of communication, coordination and monitoring within a specific
department for strengthen the value chain..............................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
2

Introduction
Main objective of this report is to better understand the concept of hospitality business. It
was analysis that it is a boarder concept of service industry as it will include food & drink
service, event planning, travel & tourism and so on. It will also include hotels, restaurants and
bars (Crosbie and et. al. 2021). Now a day’s hospitality industry will play an essential role in the
growth of economic. Growth of a hotel is depend on the service quality that they will offer to
their customers. For this report Victoria hotel is taking into consideration. It was founded in 1890
located in Amsterdam, Netherlands. The hotel was design by J.F. Henkenhaf. It was the first
hotel in the country to have electric limiting. This report will include various principles of
managing and monitoring financial performance. Other than this it will include book-keeping
system, trail balance. It include various stage of HR life cycle and its importance for retaining &
developing talent. It include performance management plan, specific legislation in hospitality
industry and an example of how company contract law & employment will affect business
decision making in the hospitality industry.
Main body
Task 1
P1 Identify the various principles of managing and monitoring financial performance.
Finance play a crucial role in the growth and success of an organisation. In context of
selected business their management will effectively manage & control the financial performance
of company. They will prepare an effective budget and also manage the profit margin for the
future. Main reason behind preparing monthly cash inflow & cash outflow is for better executing
the overall transaction in an effective way and it will also assist in formulating business budget.
In relevance of selected company, their financial manager of company will maintain a monthly
budget which will provide a clear direction and guidelines towards the achievement of company
goal. In context of selected company various principles of managing & monitoring the financial
performance of an organisation are mention below:
 Consistency- As per this principle, the selected company will develop all the policies &
process according to the similar transaction that will be place in company (Eickmeier,
and et. al. 2018).
3

 Timeliness- This principle of managing financial performance will define that all the
activities related to finance are handled within a specific time.
 Justification- According to this principle, it was analysis that there is important to have a
valid reason which will support the project as well as objective of selected company.
 Documentation- This principle will define that an organisation will require to provide
effective and timely justification for their financial statements that they will prepared.
This principle will include the maintenance of all record which are prepared by the
financial department of selected company.
 Certification- This principle of handling financial performance will define that for
effectively managing & monitoring the financial documents for long period it is
important that all transaction of company are certified (Heapy, King and Samperi, 2018).
P2 Apply double entry book-keeping system of debit & credit for recording sales and purchase
transaction.
In context of selected company, they will adopt various principles within the
bookkeeping system that will assist them in emphasizing on possessing their own lawful article.
As per the accounting principle it will define that Assets – Liability= Capital of company. It was
analysis that principles will determine in terms of various transactions which will directly affect
the transactions of business which is consider as a double impact.
Balance sheet of East London Catering
Assets Amount Liabilities Amount
Insurance 1200 Current liabilities 15000
Current assets 52000 Fixed liabilities 54490
Fixed assets 94000 Capital: 30000
NP: 47710 77710
Total 147200 Total 147200
The above balance sheet of the company will define that all the principles which are
related to the book keeping system are effectively followed by the financial manager of
company. It is also important for financial manager to ensure that will effectively handle the
balance sheet as per the need & requirement (Joye, 2018).
4

P3 Develop a basic trial balance.
Particulars Amount Particulars Amount
Rent 1000 capital 30000
Purchases 10000 Food supplies 2000
Insurance 1200 Sales 20000
Petty expenses 200 Sales of beverages 13000
Telephone and internet 2200
rates, water charges and refuse 950
wages and salaries 1740
Net profit 47710
65000 65000
The above trial balance of company will help company to effectively analysis their all
vouchers & receipts. It will assist in effectively recording all transactions in a general book.
From there any transaction will easily tracked and assessed as per the transaction nature. For
achieving better efficiency in their account it is important that the balance of account will be
match. Effectively analysing the process of recording transaction in a proper manner is the main
objective of trail balance. In context of selected company, by with the help of this tool company
will effectively manage their overall functions. It was analysis that the record is only consider to
be correct when both sides are equal (Rahmafitria, and et. al. 2021).
Analysing kinds of cost
In context of selected chosen company, for effectively tracking the record of various
activities of company in proper manner, company can adopt various types of cost in their
organisation. It was analysis that selected company will focus on the fixed and variable cost.
Example of net profit margin is mention below:
Net profit margin example:
NP margin = NP / Sales revenue*100
= 25000/105000*100
= 23.80%
Gross profit margin example:
5

GP margin = GP / Sales revenue*100
= 18500/105000*100
= 17.61%
Value of accurate recording process
It was analysis that principles of finance will play an essential role in effectively and
accurately recording process. In context of selected company, they will effectively follow all
principle which will help them in better recording and managing the transactions of business and
help in increasing the profit in the pre-decided period.
Task 2
P4 Explain various stage of HR life cycle and its importance for developing & retaining talent.
It was analysis that the life cycle of HR will include various stages for the job role of
Front office management team in the hospitality industry. Various stages of HR life cycle id
mention below:
 Attraction- This step start before the organisation is even looking for a new employee. It
will encompasses the organisation brand and analysis that which factor will shave the
overall perception of potential employee of company. It was analysis that word of mouth,
brand of organisation will play an essential role in shaping public opinion and act as a
strong motivator. In context of Victoria Hotel, It was analysis that it is the most important
responsibility of HR manager of company to provide valid and required information
related to the requirement of Front office manager to their employees and on company
website (Rahnuma, 2020).
 Recruitments- It means selecting a bets candidate from the pool of applicants. For
effectively fulfilling this step it is important for HR manager of an organisation to select a
best and talented candidate as per the requirement of their job role. In context of selected
hotel, their HR manager will effectively perform all these role which help company in
selecting the best employee who will perform their duty effectively. For effectively
performing the recruitment process the HR is responsible to attract large number of
subordinate for the front line manager job vacancy.
 On boarding- As per this stage of life cycle of HR manager it will require to develop
good relationship between manager and employees. This stage is performed when
6

employees will sign the contract and appointed on their job role. In Context of selected
company, Their HR manager will organise orientation session for introducing their staff
member to their new workplace. In this step the HR of company will ensure that their
new employees will feel comfortable at workplace (Rajendran and Fennewald, 2021).
 Development- As per this stage, the HR is responsible for conducting various
development programs. Once the employees are established, the main focus of HR
manager is to provide them an opportunity for growth. In context of selected hotel, it I the
main responsibility to focus on the growth and development of their employee by
providing them different training and development sessions.
 Retention- It was analysis that there is a lot of time & money is invested in the cycle for
each employee, and losing any employee means that the HR manager will require to
repeat the whole process again. Long term retention of employees will reduce the labour
turnover rate which will create a positive image of company. In context of selected hotel,
will provide a positive working environment to their new front office manager and also
ensure that they will satisfied with their job, which h will help them in better retaining
their employees.
P5 Performance management plan.
In context of Victoria hotel, their plan is to recruit a front office manager for their hotel,
which is mention below:
 Plan- In this step the HR manager of selected hotel will develop various strategies and
plan different activities for effectively hire an individual for the job role of front office
manager in an effective way. It will help company to effectively select the highly skilled
& talented front office manager.
 Monitoring- Next step which is performed by the HR manager of company is to
effectively monitor and implement the various planned activities. HR is responsible for
time resolve the problem faced by them through regular monitoring the work (Rishi and
Kuthuru, 2021).
 Review- This is the final stage where HR manager of Victoria hotel where an effective
and talented front office management is hired. In this stage the top management will
focus on the development and growth of their employees.
7

It was analysis that after effectively performing the management plan the company is require
to identify the various issues which are related with the retention and negative attitude of
employees. In context of selected company, they will select various methods which will assist in
resolving problems related to the high turnover rate of employees and improper behaviour of
employees in an organisation. They are discussed below:
Freedom to express opinion- As per this step company will require to give full freedom to
their employees to express their opinion. This will help in enhancing the moral and confidence
level of employee.
Fair treatment- In context of selected company, they will create an unbiased environment in
their organisation which provide equal opportunity to all employees and reduce the labour
turnover rate for company (Sinha, and et. al. 2020).
Task 3
P6 Explain various legislations related to hospitality industry.
For smooth functioning and effectively operating the various operations of hospitality
business it is important that they will effectively follow all legislations related to it. In context of
selected company, they will focus on different legislations which are mention below:
 Alcohol licensing regulation-In context of sleeted company, if they want to sell alcohol
in their hotel then they will require to take licence and follow all rules related to it. Other
than this it was also analysis that the rules for selling alcohol is different from country to
country.
 Food safety & Hygiene- In context of selected hotel, they are require to obey rules
related to food, safety and security law. It is very important for company to maintain food
hygiene in their business.
 Employment method- For success of selected company it is important that they will
follow al rules and regulation related to the employment law such as working contract,
minimum pay, discipline and so on (Slabbert, 2021).
 Equality and discrimination law- As per this law it is very important for company to
ensure that any kind of discrimination or unfair practice is not done with any employee of
their company. Discrimination law include unfair practices in context of age, religion,
gender, colour and so on.
8

P7 With the help of an example, explain how employment & contract law will influence business
decision making process.
Effect of company law- For smoothly run the various operations of an organisation it is
very important that thy will conduct their activities under law. In context of hospitality sector,
they are also require to follow various law such as health & safety law, compensation law and so
on. In context of Victoria hotel, it was analysis that effectively implementation of these law will
require a lot of money which will increase the expenditure for company. Other than this if they
will not follow the company law than both employee and customers have right to file case
against company which will affect the image of company.
Impact of employment law- It was analysis that government will implement various law
related to employees working in an organisation for protecting them against unfair activities and
discrimination. In context of selected company, thy will face various issues related to the
employment law such as unfair labour practice, employment standards, bad labour management
relation and so on. Company will require to effectively identify these issues so that they can
timely resolve it by formulating better policies (Zanon, and et. al. 2019).
Impact of contract law- It was analysis that all the organisation which are including in
buying and selling of goods and services are require to apply contract law. The contract law will
directly impact the hospitality sector on the bases of products included into contract like
product/service, price and so on. In context of selected company, they will face different issues
like lack of price protection because of which they will face price hikes etc. it was analysis that
because of this issue the image of company is also get affected.
Task 4
P8 Explain the interrelation between various functional roles within hospitality industry.
Housekeeping department & Front office department- Main role of housekeeping
department is to provide hygiene and clean environment to their guest while front office is
responsible for to ensure that their guest will not face any kind of problem and allot room
according to their needs. It was analysis that both the departments are interrelated with each
other. As front office will define the problems of customers related to their room to the
housekeeping department.
9

Security department- In context of selected hotel, main role of this department is to
provide security to all employees of hotel, company property, customers and so on. It will play a
crucial role of provide a safe environment to all members of hotels and everyone who belong to
the hotel.
HR department- This department of selected company is responsible for acquisition,
training & development of employees of selected hotel. Main role of human resource department
is to provide trained and highly skilled employees to different department of company as per
their requirement and employee skills (Zanon, and et. al. 2019).
P9 Discuss various methods of communication, coordination and monitoring within a specific
department for strengthen the value chain.
In context of selected company they can select various methods related to coordination,
communication & monitoring that will be used company for strengthen the value chain which are
mention below:
Brainstorming- It refers to a tool which is used by an organisation for conducting
various activities in an effective way. It is a method of generating ideas & sharing knowledge
related to particular problem solution.
Benefits- In context of selected company, this method will increase communication between
employees of company and also motivate them to think creative.
Limitation- It was analysis that there are also some workers in company who are stay quiet and
feel shy to communicate in group.
Benchmark- This tool is used by company for enhancing g the motivational level of their
employees by providing them measurable targets that will be required to obtain in a specific time
period. It will help in maintain coordination among team members.
Benefits- In context of selected company, this tool will help them to increase the coordination
among employees and also enhance their level of performance (Laws, Monitor and Outlook,
2020).
Limitation- It will not provide the overall improvement it is limited to a small area.
KPI- This tool will help company to better monitor the work and analysis the
performance or working of their employees in an effective way. KPI is stand for Key
performance indicator which will assist in help in identifying the performance over a specific
period of time. It is also have benefit and limitation for company which is mention below:
10

Benefit- In context of selected company, main advantage of this tool is to analysis and monitor
the performance of their employees. Other than this it will assist in measure the outcome as this
tool is trackable.
Limitation- In context of selected hotel, it was analysis that they are require a lot of money for
adopting this tool as because it is an costly tool which will increase cost of company (Meerzon,
2020).
In context of selected hotel, it was analysis that brainstorming is the effective tool for
company which will assist them in promoting better communication between their employees.
Other than this benchmark is consider as an effective tool for controlling and monitoring and
assist in generating better ideas which h will enhance the performance of their employees.
11

Conclusion
From above discussion on this report it is concluded that hospitality is consider as a wider
concept because it will include various sectors such as food, hotels, tourism and so on. This
report will define various principles of managing financial performance and for managing the
sales book keeping system is also used. Other than this trail balance is also included in this report
which help the company to further prepare their accounts. Other than this HR life cycle will be
analysis in this report which will apply to the front office manager job role in hospitality sector.
This report include various legislation such as health and safety, alcohol and so on which are
required to be followed by company. It will include various tools such as brainstorming,
benchmarking etc. which will help in better communication and control in company.
12

References
Books & Journal
Crosbie, E. and et. al. 2021. State preemption: an emerging threat to local sugar-sweetened
beverage taxation. American journal of public health. 111(4). pp.677-686.
Eickmeier, R., and et. al. 2018. Advocating to Protect the Franchise Business Model-Stories
from the Trenches on the Joint Employer Issue. Int'l J. Franchising L.. 16. p.3.
Heapy, J., King, O. and Samperi, J., 2018. Customer-driven Transformation: How Being Design-
led Helps Companies Get the Right Services to Market. Kogan Page Publishers.
Joye, J.F., 2018. Tourism development and adaptation to climate change through legal
constraint. Worldwide Hospitality and Tourism Themes. Jelincic, D.A. and Mansfeld, Y. eds.,
2019. Creating and managing experiences in cultural tourism (Vol. 1). World Scientific.
Rahmafitria, F., and et. al. 2021. Disaster management in Indonesian tourist destinations: how
institutional roles and community resilience are mediated. Worldwide Hospitality and Tourism
Themes.
Rahnuma, N., 2020. The Bangladeshi higher education quality assurance framework: a pathway
for transformation. Quality in Higher Education. 26(1). pp.14-31.
Rajendran, S. and Fennewald, J., 2021. Improving Service Supply Chain of Internet Services by
Analyzing Online Customer Reviews. In Supply Chain Management in Manufacturing and
Service Systems (pp. 147-163). Springer, Cham.
Rishi, B. and Kuthuru, N.R., 2021. A Review for Managerial Guidelines for Social Media
Integration of IMC in Digital Era. In Digital Entertainment (pp. 187-212). Palgrave Macmillan,
Singapore.
Sinha, A.A., and et. al. 2020. Improving the service quality of telecommunication companies
using online customer and employee review analysis. Quality Management Journal. 27(4).
pp.182-199.
Slabbert, L., 2021. Establishing and managing research programmes in tourism destinations: the
case of South African National Parks. In Handbook for Sustainable Tourism Practitioners.
Edward Elgar Publishing.
Zanon, J., and et. al. 2019. How promoting a family firm image affects customer perception in
the age of social media. Journal of Family Business Strategy. 10(1). pp.28-37.
Laws, R., Monitor, F. and Outlook, R.E., 2020. June 24-26, ALA Virtual Annual
Conference. World Economic Outlook.
Meerzon, Y., 2020. ‘Speaking in Tongues’: Staging Hospitality of (Non) Translation.
In Performance, Subjectivity, Cosmopolitanism (pp. 75-113). Palgrave Macmillan, Cham.
Pearce, J.R. and Pearce, P.L., 2017. Retro-methodologies: insights for city tourism
research. International Journal of Tourism Cities.
13