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

This document discusses the principles of managing and monitoring financial performance in the hospitality industry. It also explores the different stages of the HR life cycle and their importance for retaining and developing talent. Additionally, it provides techniques to resolve negative behaviors and overcome staff retention issues.

Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Principles of managing and monitoring financial performance.............................................3
Double Entry book keeping system of debits and credits to record sales and purchases
transactions in a general ledger..............................................................................................4
Trial Balance applying the use of the balance off rule to complete the ledger......................8
LO 2.................................................................................................................................................9
Different stages of HR life cycle applied to a specific hospitality job role and their importance
for retaining and developing talent.........................................................................................9
Performance management plan and job role applying techniques to resolve both negative
behaviours and overcome issues of staff retention...............................................................10
LO3................................................................................................................................................11
Specific legislation that a hospitality organisation has to comply and adhere.....................11
Company Employment and contract law has a potential impact upon business decision
making in the hospitality industry........................................................................................12
LO4:...............................................................................................................................................13
Evaluation of interrelation among different functional roles in the hospitality sector.........13
Different communication methods and levels used in an organization................................13
effectiveness of different communication methods..............................................................13
integration and monitoring within a specific department can help achieve overall
organizational objectives and strengthen the value chain. ..................................................13
valid judgements and recommendations on how coordination and integration enhance overall
business performance...........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality industry consist of different departments that includes services related to
accommodation, entertainment, event planning, lodging, food & beverages. By making a detailed
evaluation of the present marketing trends there is need to ensure higher customer satisfaction.
Present report is based on analysing hospitality marketing trends of a brand. For this there is
selection of Greene king is UK's one of the largest brewer and retailer, this brand is owning
restaurants, pubs and hotels. It was listed on stock exchange till it was acquired by London stock
exchange (Morandini and et. Al 2020). The present report is based on covering of the
transactions, financial management transactions. The main focus of report is to analyse the future
business opportunities by covering of the safety precautions that is part of food & beverage
industry.
LO1
Principles of managing and monitoring financial performance
Financial performance of a organisation is assisting in generation of revenue for a
business organisation for the purpose of managing their overall revenue. There are different
types of principles that are to be followed whole recoding of particular transactions and the
required amount of observations. It assist business in maximization of benefits and minimizing
the overall cost so that timely decision can be taken (Citra, Purwanto and Soenoko, , 2020). In
Greene king there is daily recording of all the transactions in form of vouchers, receipts & raw
materials so that decision can be taken according to that scenario. Each organisation has a focus
on managing their cost in such a way that there can be maximisation of benefits from it so that
cash flow can be regular monitored by keeping a cheek on the overall financial statements.
Below discussed are some of the principals related to financial management as mentioned below:
Preparation of financial statements: It is a function that is based on analysing the present
financial performance of a organisation so that decisions can be taken timely. Organisation have
to observe the trial balance and balance sheet to predict future financial requirements. In Greene
king there is a quarterly review of such financial reports on regular basis so that there can be
timely preparation of reports (Noori, 2018).
Evaluation of overhead cost: In this aspects there is evaluation of overhead cost where expenses
is not directly related to production. For allocation of overhead cost overhead rate has to be

applied to direct cost tied to the production cost. In Greene king there is calculation of overall
expenses and cost that may lead to reduction in operating cost but it helps in recording of
additional expenses.
Maintaining of stock records: Records have to be maintained in such a manner so that decision
can be taken according to provided time frame. In Greene king there is need to record such
transactions so that there is no situations of stock out.
Double Entry book keeping system of debits and credits to record sales and purchases
transactions in a general ledger
It is regarded as a system where the entries have to be reordered and there is need to
record it in required and pre determined format (Shumeyko, Sagamonova and Sagamonova,
2018). There is tow equal & corresponding sides that is regarded as debit & credit sides. The
asset account is regarded as expense account is normally debited and debit leads to increasing of
financial value or the money quantity. Where as credit decrease the value or amount. Liability or
revenue account is normally credited. There is setting up of some principles in Greene king that
is determined by the legal entity and the finance department of this organisation. Another set of
principal is based on accounting equations that is Assets-Liabilities. And the third rule is that the
transactions posses a dual impact on financial documents.

Ledgers:
Cash a/c
DR CR
Date Particulars . J
F
Amount Date Particulars J
F
Amount
04/03/
20
To capital a/c 30000 05/03/2
0
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 07/03/2
0
By Prepaid
insurance policy a/c
1200
11/03/2
0
By Laundry fees a/c 200
15/03/2
0
By Telephone and
internet expense a/c
2220
15/03/2
0
By Water charges
a/c
950
16/03/2
0
By Wages and
salary a/c

31/03/2
0
By balance c/d 47430
63000 63000
Capital a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amoun
t
31/03/2
0
To balance c/d 30000 04/03/2
0
By cash a/c 30000
30000 30000
Rent a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amoun
t
05/03/2
0
To cash a/c 1000 31/03/2
0
By balance c/d 1000
1000 1000
Purchase/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amoun
t
06/03/
20
To cash a/c 10000 31/03/2
0
By balance c/d 40000
06/03/
20
To vendor a/c 15000
09/03/
20
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amoun
t
07/03/
20
To cash 1200 31/03/2
0
By balance c/d 1200
1200 1200

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

16/03/2
0
To cash a/c 1740 31/03/2
0
By balance c/d 1740
1740 1740
Sales a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amoun
t
31/03/2
0
To balance c/d 33000 18/3/2
0
By cash a/c 20000
20/3/2
0
By cash a/c 13000
33000 33000
Trial Balance applying the use of the balance off rule to complete the ledger
All the different business accounts are to be listed in trail balance and have to be record
in a more appropriate manner. Different names that are part of ledger account have to be record
timely. Debit and credit balance is part of nominal account. Debit and credit balance are part of
nominal account where trail balance has to be prepared according to the actual financial position
of the business. Further overall position of the company can be evaluated properly.

LO 2
Different stages of HR life cycle applied to a specific hospitality job role and their importance
for retaining and developing talent
HR life cycle is regarded as the continuous process of HR activities of a respective
business organisation. The transformation process includes the operational activities that are part
of overall HR strategy of business. The cycle is journey of the way a particular individual is
hired in a organisation and till the time they are leaving the organisation. Different associated
functions includes the recruitment, training of employees, further assigning them all the roles and
responsibilities and it ends with the way finally when employee is leaving the organisation. In
Greene king also this process is started with a vacant position in the organisation so that key
stages of HR life cycle can be assessed as mentioned below:
Attracting of employees: It is the first step in which skilled individuals are attracted at a
workplace. The Greene king mission, present employees, culture of the organisation,
organisation growth opportunities are some aspects that are leading to attracting of competent
individuals.
Recruitment and Selection:
In this step there is consideration of hiring of right individuals who play a viral role in
enhancing the productivity and overall growth of the organisation. For achievement of higher
success there is need to focus on this recruitment phase of HR life cycle, in Hyatt hotel there is

creation of a strategic staffing plan by creation of benefits and compensation packages that are
competitive enough to attract the talented individuals (Makarova, Shubenkova, and Pashkevich,
2018).
On-boarding: It is a process in which new employees are to be introduced to the organisation.
Through this process in Hyatt employees are becoming familiar to the overall learning of new
job roles, duties establishment of relationship with co workers, supervisors and focussing on
development of niche.
Entablement: At this stage of HR life cycle there is orientation of new hiring. The HR
department of Hyatt at this stage is introduction the company mission, bison, values, guiding
new employees. Introduction of new hiring pans and answering to their doubts,
Development: In this stage of HR lifestyle HR departmental and employees are working together
for achievement of their long term goals of career. In Greene king, career development
opportunities are very important to ensure that employees are engaged with the organisation.
Retention: At this stage HR managers are providing the opportunity to are energize the Staff. In
Hyatt HR department is showing the required appreciation to their staff members by offering
them with unique benefits such as flexible working schedules, extra time off, gift cards
(Kavanaghand Johnson, 2020).
Separation: In the cycles are coming to a end it may be ending with recruitment, termination. In
Greene king at this stage the human resource managers ensure that all procedures and policies
are properly followed, there has to be carrying of a exit interview, removal of employee from the
system must be a smooth process.
Importance of HR life cycle for retaining and developing talent in an organisation
Above mentioned all the stages of Human resource lifestyle leads to having right
individual at right place. If there is a well executed life cycle then it leads to retaining of skilled
employees. Further it also helps the Greene king in managing overall associated cost of the
organisation as overall employee morale is boosted which enables business organisation to carry
on their functions with application of innovate approaches.
Performance management plan and job role applying techniques to resolve both negative
behaviours and overcome issues of staff retention
Performance management plan is term that is associated with establishment of
coordination between various activities such as managing, alignment and building up of

coordination among employees. It can assist organisations on attainment of their laid vision and
mission statements. performance management plan has to be developed by focusing on
effectiveness of operations. Some of the steps of this process are mentioned below:
Plan: It is the first step of performance management plan. In this stage in Hyatt hotel employees
and managers are working towards accomplished of the laid goals. There can be negotiation of
the competencies that is important for accomplishment of the required performance level. So
there is defining and development of employee needs by elimination of the gaps in their present
and the maximum level of competence.
Monitoring: The progress and performance of employee has to be continuously monitored. In
this stage at Greene king the manager and employees are tracking the performance &
development of employees. So that employee performance plan is made according to the
changing circumstances (Beams, Anthony, Bettinghaus and Smith, 2016).
Reviewing: It is the third stage where the employees standards and accomplished have to be
achieved by managers and employees by making a timely analysis. In Greene king managers are
evaluating the employee performance is that further decision related to employee's employment,
rewards and compensation can be taken (Greenman, 2017).
Improving: It is the next step of performance management where there is understanding of the
reasons if a particular employee is not performing according to the set optimum standards of
performance.
Measurement: It is the last stage where the performance has to be measured where the process
of collecting data is very crucial. In Greene king there is analysing of performance measurement
by matching of the performance measures by aligning it with the overall company's strategy,
culture and business strategy.
LO3
Specific legislation that a hospitality organisation has to comply and adhere
Different activities of a business organisation have to be processed in such a manner by
effectively complying with laws and regulation. The management of Greene king have to follow
all such laws that are enforced by the government, all such regulations assist in conducting the
business activities that leads towards building up of a positive brand image. Some of such legal
laws are mentioned below:

 Food standards act 1999: The subjective of food standards act 1999 is to establish a
food standard agency. The main objective was to protect the public health with relation to
food. In Greene king the major focus according to this act is to not include nay ingredient
that can damage the health of people, in case there is any type of packed food then it is
properly prestressed, advertised and labelled.
 Alcohol licensing: This is related to providing information about the types of alcohol and
providing their licenses with proper guidance and the way for which it has to be applied.
In Hyatt this act requires the supervisors to take the overall responsibility of supply and
sale of alcohol as it has a impact on the wider community, disorder, crime and any type
of antisocial behaviour (Heard, 2016).
 Health and safety act 1974: It outlines the legal duties that employers have to protect
the safety, health and welfare of their employees. In Hyatt hotel this also extend to all the
different category of employees such as people visiting workplace premises lie casual
workers, temporary workers, client, general public.
Company Employment and contract law has a potential impact upon business decision making in
the hospitality industry
For the purpose of achievement of smooth operations of business there is need to focus
on the compliance of different types of laws that are impose mainly by government. The
management of Greene king is focusing use of appropriate structures of planning in collaboration
with the government to ensure that the decision making is taking place according to the
requirement. Some of such laws are stated below:
Contract law: In UK English contract law is a body regulating in England & Wales, there
is preparation of contract formed between one person making offer and another individual
accepting of the offer by communication of their assent of performing the offer terms. In Hyatt
hotel, such type of contract is developed between all the employees and employer when they are
willing to enter in such contract (Barker, Penman, and Teixeira, 2020). All such laws leads to
enhancing the transparency at workplace and there is proper functioning taking place according
to such laid legislations and laws.
Employment law: This law is focussing on making a proper differentiation between
workers, employees and self employed people, employees must posses extensive rights while

employer posses the whole control over work. There is need to have a mutuality of obligation so
that there is no inconsistency of employment relationship.
Company law: in UK the company law is regulating the formation of organisations
under Companies act 2006. company law is further broken in two major element that is corporate
finance and corporate governance, in case of Greene king there proper adherence to all such
regulations and laws that are related to duties and rights of employees, shareholders, directors
and creditors (Nicholson, 2016).
LO4:
Evaluation of interrelation among different functional roles in the hospitality sector
There are different department that are part of hospitality sector which posses
interrelationship with each other as mentioned below:
Marketing and sales department: These departments are willing to develop the required amount
of coordination as marketing department is focusing on analysing the market based on which
brand is promoted (Sangster, 2018). On other hand sales department has to maximize the sales
so in Hyatt there is presence of interrelationship which leads towards promotion of this
hospitality brand in such a way that overall sales target can be achieved.
Front Office and housekeeping department: Front office in Hyatt hotel has to perform functions
such as reservation, reception, registration. Housekeeping is responsible for performing functions
of maintenance, cleanliness, aesthetic up keeping of rooms (Warren, Jonick, and Schneider,
2020). There is need to maintain a interrelationship between these two departments by ensuring
that the requirement of guest are timely & properly taken care.

Various methods of communication used by organisation
There are different kinds of communication such as formal, informal, downward, upward,
horizontal, oral and written communication. These is used by employees in organisation with
each other to communicate with mangers or external stakeholder. While communicating be
ensure that which communication method should be used at which time. Greene king use formal
communication to communicate with employees and other stakeholders. It is flow of information
through defined channel and structure form (Berkenkotter and Huckin, 2016). This structure are
from lower level to upper level employees they have to follow in systematic manner while
accomplishing their duties. The advantage of formal communication is to fix the responsibility of
employees and control them in proper way. In this structure manager know when they want
information so there is systematic order to flow.
How different kinds of communication is effective in organisation
Communication is effective for organisation when the information is shared to workers
gives success to organisation while it benefits employees, managers, customers and suppliers.
Greene king communicate effectively because it benefit to communicate objectives and task to
workers, this reduces mistake of delivering wrong information (Rale and et. al., 2017).
Secondly, it improves and build their relationships among suppliers and customers. However,
effective communication help them to take decision quick whereas it encourage there employees
to give opinion or ideas and solve problem. To operate business smoothly clearly communicating
with creditor, investor to reduce confusion over expenses and income of business. There is low
employee turnover and satisfaction of employee is high and this also effective and enhance the
image of company and employees.
Assess and monitor particular department to achieve goal and strengthen value chain
Various method is used by Greene king to strengthen value chain in department such as
communication, monitoring and coordination. Communication strengthen value chain by group
discussion, presentation that help organisation to improve their operations they allow workers to
allow them to give ideas and opinion. Greene king monitor and regularly take feedback and
information to monitor the performance of organisation (Thompson, 2018). It also monitor

various policies and procedure that they implemented in proper manner whereas co-ordination
help organisation to build relationship among them and it is an exchange of ideas that bring
together to achieve goal and strengthen value chain.
Determine how coordination enhance performance of business with valid judgements
Integration means coordination between different department whereas coordination
means operating activities of two or more things at same time to achieve organisation objective
effectively. The recommendation is that there should be communicate authority and
responsibility so there is no problem of coordination between them. Therefore, it become easier
to define rules and policies whereas it also solve differences among department by meeting or
report. This will help Greene King to build harmony among various department through
exchanging ideas or discussion. The another recommendation is every employee should have
individual interest with organisation.

CONCLUSION
It can be concluded from above mentioned report that hospitality industry is posing a
high amount of contribution towards overall economic development of a country. This sector is
laying emphasis of providing quality facilities to employees. It leads towards enhancing the
overall satisfaction of the customers to whom they are treating as guests. The hospitality industry
is working towards adoption of appropriate HR life cycle that there can be presence of a satisfied
workforce which can be managed in a most effective manner.

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Online:

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