Principles of Managing and Monitoring Financial Performance in Hospitality Industry

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).