Principles of Managing and Monitoring Financial Performance in Hospitality Industry

This document discusses the principles of managing and monitoring financial performance in the hospitality industry. It covers topics such as double entry bookkeeping, trial balance, and the importance of financial analysis. The document also explores the different stages of the HR life cycle and their significance in retaining and developing talent. Additionally, it identifies specific legislation that hospitality organizations must comply with. The case study focuses on Rose Wood, a luxury five-star hotel in London.

Hospitality
Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigation of the principles of managing and monitoring financial performance........3
P.2. Application of double entry booking keeping system of debits and credits to record sales
and purchases transactions in a general ledger? ...................................................................4
P.3. Produce a basic trial balance applying the use of balance off rule to complete the ledger?8
TASK 2..........................................................................................................................................11
P.4. Review the different stages of the HR life cycle applied to a specific job role and their
importance for retaining and development talent? ..............................................................11
P.5. Develop a performance management plan for specific hospitality job role applying
techniques to resolve both negative behaviour and outcomes issues of staff retention......12
TASK 3..........................................................................................................................................13
P.6. Identify specific legislation that hospitality organisation has to comply and adhere to 13
P7 Illustration of the way in which employment, company and contract law has potential
impact upon business decision making................................................................................14
TASK 4..........................................................................................................................................15
P8 How different functional roles in hospitality sector interrelate.......................................15
P9 Different methods of communication. Coordination and monitoring in specific department
..............................................................................................................................................16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Hospitality industry is so wide as large number of activities are included in this. It tends
to provide services related to food, stay and services related to comfort, leisure of visitors and
travellers. It is a part of tourism industry as it caters their services to both travellers as well as to
tourists. This industry is divided into two segment. First one is related to accommodation and
lodging industry and other is concerned to food & beverages ( Shi, 2019).The company that was
selected in this report is Rose Wood as it is luxury five-star hotel located in London. In the year
2013 it is opened in location 252 High Holborn, London. The topics that were included in this
assignment are investigate how to manage finance and record transactions to minimise cost
responsibility with in the hospitality sector. How to manage human resource life cycle within the
context of human strategy are also explain in the project. Importance of coordinating and
integrating various functions of departments with in the hospitality sector are explain in detail in
this project. Potential effect of ethical and legal consideration on hospitality sector are also
mentioned in this report.
TASK 1
P1 Investigation of the principles of managing and monitoring financial performance
It is necessary to monitor & manage financial performance in every organisation. For this
appropriate principles are followed by the company. Rose wood Hotel make concentrate on
various principles as these are explain in detail in below mentioned bullet points.
Documentation:It is another essential principle that organisation Rose wood Must follow
to monitor financial performance and on continuous basis make control over it. It help to make
record of all important transactions which are exist during the year.
Timelines: the principle explains that in the company all managers are responsible to
complete their activity/ task at certain period of time and meet timeline of the task. Rose wood
accounting professionals use timelines so it can easily manage business performance and time to
time analyse whether properly task is performed or not (Baum, 2019)
Justification: Justified information should be recorded in the books of accounting as per
this principles. To manage financial performance respective principle is focused by Roose wood

because allows management team to analyse accurate as well as actual information and
according to that effective decision making is done.
Consistency: This is most important principles in which all the entities tends to be focus
with the intention to control financial performance. Consistency taken into consideration by
Hotel Rose wood for the purpose of monitoring and managing business presentation in monetary
terms
P.2. Application of double entry booking keeping system of debits and credits to record sales
and purchases transactions in a general ledger?
Statement of Profit & Loss :- As it is prepare for every Financial year and in this all the
transactions are recorded that are made during the year. It is also called as income statement. As
well as booking keeping is another name of double entry system. In this all the entries are done
by recording amount in the coloum debit or credit . At last the balance of both the columns are
equal.
Effective recording of debit and credit:- It is known as the process to record all the
transaction through using debit and credit account . In the form of Journal entries recording is
done. For that various are followed to do entry. Examples of these rules are debit what comes in
and credit what goes out; Debit the giver & credit the receiver. And the last rule is that all
expenses are entered in DR. and incomes are recorded in CR (Adeyinka-Ojo, 2018)
Manual addition to computer software to record financial data together with
information
For accounting period Financial statement are prepare by staff of finance team as it is
helps to reflect the financial position of business. It is signed by CA in practice that gives
ensurity that all the informations are true and fair. It also supports outsiders to take correct
decisions regarding investment. Nowadays, with the changing atmosphere and introduction of
modern advance technologies people start to do accounting by using smart software which make
out work simple and also consume less time to recordings. The activities which performed by
using computer such as recording of transactions reflects truth & fare representation. As the
accountants of hotel rose Wood record their accounting transaction by using the Software SAP in
the business. It is most commonly used software (Dirisu and et. al, 2018).

P.3. Produce a basic trial balance applying the use of balance off rule to complete the ledger?

Trial Balance
It is the collection of ledger account formed as well as arranged in this statement by
maintaining Debit and Credit Account. At the end of accounting year it is mostly prepare, The
balance off rule is the process to record total debit account and credit account equally. And at the
end of accounting period ledger are to be balanced by showing same figure at both the sides
(Khan and Hossain, 2018)

Elements of Trial Balance : It is in the form of statement in which details of account
name and numbers are involved along with the columns of particular, Date, Debit and Credit
column. Name of the enterprise are mentioned on the top of the trial Balance.
Role of trial balance in identifying rectification of errors- Only with the help of trial
balance it become possible to do rectification of errors. By using suspense account it match both
debit and credit side. With taking prompt decision errors can be rectified by smart finance team
of Hotel Rose wood
Uses of Budget for the purpose to plan and control.
Variable cost , Fixed cost and semi variable cost: Variable cost is the cost which is
vary as per the chance in production unit on the other hand fixed cost is the price which is not
effective due to increase or decrease in output. And semi variable cost are those in which some
factors prices are fixed up to certain context and after that it is fluctuates. Direct material, labour
, rent, light expenses etc are the few example of these costs that are observe in Rose wood hotel.
Pricing strategies and setting realistic goals: The pricing strategies are the cost which
is incurred to produce a particular item as this cost is changed by customer by adding profit-
margin in it. Hotel Rose Wood manager implement cost plus pricing strategy as it tends to
describe that cost plus profit-margin leads to profits maximisation (Kotera, Adhikari and Van
Gordon, 2018)
Income Stream: It shows the profit margin due to this revenue is generated by
organisation. Managers of Hotel Rose wood consists of income as their capital generation
through different modes such as high rate of return ,investment, involvement of risk, etc.
After analysis it is conclude that in organisation whether big or small , investigation is
necessary to perform regarding principles so that it become possible for finance team to make
control over the financial performance. Also to appropriate recording of transaction it is
necessary for organisation to do effective book keeping so that important financial information
are not to be loose because these are consider as most crucial part of business. As singe mistake
can change the whole financial results as it tends to make impact on the profitability of the
organisation. With the help of proper book keeping, company can estimate their budgets and on
the basis of that by making comparison financial analysis is done.

TASK 2
P.4. Review the different stages of the HR life cycle applied to a specific job role and their
importance for retaining and development talent?
Life cycle is implemented by Human Resource Manager to control or manage its role for
the purpose to achieve targets effectively and efficiently on time.
HR life cycle: It is explain as the various stages of employee goes to perform their work
for specific organisation. Rose wood Human resource manager concentrates on workforce for
internal strength so that they can easily compete with their competitor. Respective life cycle is
tends to classify further with the help of different states as it is describe as follows
Recruitment- It is the process in which various activities are perform such as identifying,
screening , short-listing, interviewing for selecting most suitable candidate to fill the vacant
position. Hotel Rosewood use this process to appoint appropriate person who can perform many
actions such as staffing, housekeeping, chef, reception etc.(Watson amd et. al, 2018)
Selection- In this unsuitable candidate is weeding out and most suitable one is chosen on
the basis of their experience, knowledge and skills. Various steps are followed by Rose wood to
select most appropriate person like Preliminary interview, receiving application, screening,
employment test, interview, medical examination, group discussion and at last final selection.
On boarding as well as Orientation- In this process activity is to be describe which is
perform by selected candidate on their job. In this designation is given as well as job role and
responsibility is also explain to the selected employee. HR manager of Rose wood acknowledge
the workforce with their hotel atmosphere along with description of rules and regulations.
Exit and Transition- On superannuation employees separate from the job whether they
are interested or not. Replacement can also be done if employee not perform well
Different Recruitment Method: Performance management, succession planning,
training & development and maintaining workforce motivation to retain staff are the various
methods to recruitment process. As performance management is the tool that are used by
organisation Rose Wood to analyse the performance of the employees .Training and

development is used to provide training to workforce so that their efficiency is tends to be
increase which supports them to earn maximum profit (Ivanov, 2020)
P.5. Develop a performance management plan for specific hospitality job role applying
techniques to resolve both negative behaviour and outcomes issues of staff retention.
Performance Management Plan: It is the process to examine various activities that are
performed in the organisation by workforce with regards to goal achievement or not with
efficiency and effectiveness. To make control over the performance of employees, Human
Resource Manager of Rose Wood implement this plans in their hotels so that it become possible
to achieve targets on time. Food & Beverage manager perform the job role to maintain drinks &
food facility properly that tends to attract large audience to survive as luxury lifestyles. Manager
of the hotel focus on various problems that are relates to customer service, drinking & snacks
facilities in rooms, from cloth or paper removing plastic packaging etc.
Plan: It is an description of task that are do to frame strategic planning as well as to do
effective decision making to avoid or reduce mistakes due to which there is unnecessary delay in
objectives achievement. In Rose wood the manager of food and beverage department make
attention on above mentioned issues to take appropriate corrective measure to eliminate these
problems. It tends to maintain interior designing with smart manpower who are well qualified
and excellent communication skills. With the help of their soft skills they attract large number of
customers (Jones, Hillier and Comfort, 2017)
Track as well as monitor: Tracking style is the process in which working style or
performance of the employees is to be analyse at regular interval of time. And time to time
guidance and motivation is given to workforce so that they become capable to achieve targets of
the company. Hotel Rose Wood food and beverage manager on continuous basis track the
activities which make impact on targets. Further , the manager monitor the decisions, to make
proper arrangement of amenities and facilities inside the rooms such as table with tea bags and
refreshment, almirah with beverages and snacks
Review: It is the process in which manager analyse and review, that activities which are
necessary to perform to achieve targets are organised properly as per clients demand. Manager of
food and beverage make focus on manpower actions. Also with fluency and eagerness working
style is to be determine, that tends to be provided with voluntaries and incentives (Lugosi, 2019)

From performance management it is observe that absenteeism as well as negative
behaviour of workforce can be managed positively by putting extra efforts that helps in target
achievement. Controlling multicultural team work helps to understand each other with the help
of co-ordination and co-operation as it leads towards stability as well as success of Rose wood
hotel
TASK 3
P.6. Identify specific legislation that hospitality organisation has to comply and adhere to
Legislation is considered as statutory law that is governed by United Kingdom
government regulations as it is imposed on company to control various issue related to health &
safety measures. Many challenges relates to legislation are faced by hospitality industry like
cyber laws, equal remuneration act, employment protection law etc. as these legal acts or
provisions help organisation to maintain healthy environment and also supports in achieving
objectives otherwise strict punishments and high penalty values are attracted. Few examples of
legislations that most commonly followed in organisation are explain in detail as follows-
Food & Safety legislation Act ,1990 : For all type of business who are engaged in food
supplying, in presenting, preparing, labelling, transporting, storing, importing / exporting food
etc are concerned to environmental regulations which are set out under this Act. It tends to give
surety that pure virus protected food with great quality is serve by business that is generally
expected by audience. Hotel Rose Wood concentrate as well as focus on rules and regulations
that are related to food laws to deal consumer food safety with health issues (Bharwani and
Mathews, 2016)
Environmental Legislation Act, 1974: This law is concerned to environmental issues
like noise, air, land, water pollution that affect health of manpower, animals , society etc. which
indirectly make negative impact on business also. Rose wood management team concentrate to
reduce pollution so that goals can easily be achieved with lawful objectives.
Consumer Legislation Act, 2019: This is commonly known as Consumer Protection Act
as is framed by the government to safeguard the rights of consumers. As per this law , consumer
has right to raise their voice and make complain to appropriate authority if something goes
wrong with them. Compensation is demanded by consumers if any default is involved at the time
of giving product and services by employer. To identify issues of consumer, managers of rose

Wood Hotel follow this act and sought out the problems which is related to defects and
deficiencies in context to product and service(Chon, 2019)
P7 Illustration of the way in which employment, company and contract law has potential impact
upon business decision making
Company have positive impact on decision making concept through legislation governed.
Following laws are implemented by managers of hotel Rose Wood to restrict harmful actions for
manpower and society as following laws are describe in detail in mentioned below bullet points.
Employment Law: This law is provide social security to workers or employees in the
place of working. The manager of Rose wood follow this law to develop healthy relationship
between employee and employer which helps in achieving objectives of the company on time
(Chon, 2019)
Contract law: It is a form of agreement between two or more persons as it bind the two
parties. In this contract is enforceable by government it any party breach the contract without
mutual understanding between two parties. To perform various agreement Rose Wood managers
implement this law.
Company Law: In this law all the provision of companies act is involve in it. This law is
imposed to make direct control on actions of the company to achieve lawful objectives of
government in maximising their profits. Rose wood work as per companies law and tends to give
surety to outsiders that all the work is done by following rules and regulations. If any default is
made than high penalties and punishments are attracted by company (Melissen and et. Al, 2019)
TASK 4
P8 How different functional roles in hospitality sector interrelate
To complete the activity various roles as well as responsibilities are tends to perform by
managers in business so that goals can be easily be attain by them. To complete task on time
each company follow different structure which leads to increase sales and revenues . As the
Functions of hotel Rose Wood are interlinked to various department as these are explain in detail
as follows-
HRM with marketing department

It is the responsibility and duty of Human resource department to appoint appropriate
candidate to fill the vacant position as it is done by HR through following the process like
conducting interview round, screening, Group discussion, selecting best available option,
conducting training and development programme etc. On the other hand marketing managers
plays a most significant role in promotional activities, also it give advertisement regarding
vacancies in their unit with the help of marketing they tends to create awareness so smart
management for this, is appointed by HR team in Hotel Rose Wood. In this manner they are inter
connected to each other (Armstrong and Matters, 2016)
Research with managing department:
In most of the company research is needed for the purpose to increase business
productivity. As the expectations of clients are informed by Hotel rose Wood manager to
research department. Both functions are followed continuously so that business runs smoothly
with great profitability.
HRM with finance department: It is duty of HRM to conducts various rounds to
interview, training session and many other activities. And role of finance department is that to do
accounting, auditing, preparing financial statements, Bank reconciliation, Vouching etc. as it is
not possible without smart , talented accountants so if there is any further requirement to human
resource than information is given to HR department of hotel Rose wood so that they can appoint
suitable person for finance unit.
Finance with marketing: The role of finance department is very crucial in business
because they make arrangement of cash to meet the requirement of working capital. Whereas
marketing needs heavy amount to make investment in performing various promotional
activities . For this they concerned to finance department so that they make arrangement and
provide sufficient cash whenever needed.
P9 Different methods of communication. Coordination and monitoring in specific department
Communication & coordination is important in company as it supports to complete the
set activity and leads to raise profitability effectively. Many employees are working in entity so
effective communication is needed to avoid misunderstanding and conflicts as it helps to connect
workforce with each other and tends to put efforts to solve the problems collectively. The
meaning of coordination is to maintain a coordination among workers so that task can be

achieved and tends to maintain good performance. management is playing important role as it
influences workforce through coordinating and monitoring, controlling the performance.
Various methods which are used by Rose Wood Hotel to communicate & coordinate various
activities for the purpose to monitor performance that are as defined:
Text message: It is common method that are generally used to send message to other
person by using this method plan is to be share that helps to manage performance. This
communication mode is used by managers of Rose wood hotel to send information to employees.
This is simple and easy to follow so it is commonly adopted by companies.
Group meeting: It is a method in which more than two people are come together to
discuss the matter and after that effective decision making is done so that targets which are set by
them are easily achieved. It considers as best suitable method because it tends to decrease
chances of fraud. Hotel Rose wood conduct various meeting in conference room where they
discuss and take all the relevant decisions to attain the objectives of business.
Telephone: It is modern method to communication, in this people from different location
keep in touch with each other through sharing information by Telephone. It is most effective and
less time consuming method which indirectly improves profitability of business. All staff
member are connected to each other by sharing important information and messages to each
other. In this way productivity of industry increase.
Mails : In modern era mail which is formal way, to communicate people . In Rose Wood
hotel workforce and manager leads to communicate with the help of emails as well as coordinate
that helps to smoothly operate and run all important functions effectively. All the important
information are sending through email.
Effectiveness of communicating method
All the above methods to coordinate and communicate are effective as management team
of hotel rose wood with group meeting, telephones and mails share all necessary and important
information from top level to bottom. For instance, research department understand the desires
of audience and these needs coordinate with manufacturing or production unit so that kind of
hospitality services can be offer to them effectively. On the other hand , it is the responsibility of
HRM department to analyse and understand requirement of vacancy and get help to marketing
in terms to provide related information about vacancy which helps to get large number of
candidates. All employees of selected company get connect to each other and tends to effectively

perform their functions so that objectives can efficiently be achieved (Mahadi, Siti-Nabiha and
Stocker, 2017)
CONCLUSION
After deep study and analysis it is to be conclude that hospitality sector is most complex
business in which various different functions are involved related to tourism companies, hotels,
resorts etc. All the activities are done by human resource in the company with the intension to
achieve targets on time as well as to provide satisfaction to their customers.All enterprise tends
to focus on various areas so that it become possible for them to manage or control all human
resource as well as finance of the company. For this all the transactions which are relates to
specific period are recorded properly and on the basis of that performance is to be analyse, and
suitable plan is to be formulate if needed. There are so many legislations are attracted to business
so it is the duty of workforce to work as per law so that it does not attract any punishments or
penalties because if legislations are not follow properly than it tends to make negative impact on
business image as well as on revenues. For all departments of hospitality sector it is important to
coordinate with each other so it become possible to perform the tasks which are planned.

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