Principles of Managing and Monitoring Financial Performance in Hospitality Organisations

This document discusses the principles of managing and monitoring financial performance in hospitality organisations. It examines the double bookkeeping system of debit and credit cards to record sales and purchase transactions in the general ledger. It also provides a basic trial balance using the balance off rule to complete the ledger.

Hospitality
organisations

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Examine the principle of managing and monitoring financial performance ............................3
P2 Discuss double book keeping system of debit & credit cards to record sales and purchase
transactions in general ledger .........................................................................................................6
P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger. 6
TASK 2 ................................................................................................................................................7
P5 Discuss and develop performance management plan for a specific hospitality job role and
apply techniques to solve both negative, behaviour and overcome issue of staff retention ...........9
Task 3..................................................................................................................................................10
P6 Identify & examine specific legislation that a hospitality organisation has to comply and
adhere to.........................................................................................................................................10
P7 Discuss with examples and illustrate how company, employment and contract law has a
potential impact upon business decision making...........................................................................11
TASK 4 ..............................................................................................................................................12
P8 Analyse the different functionality roles within hospitality sector..........................................12
P9 Analyse several approaches of methods of communication, coordination, monitoring applied
within specific department ...........................................................................................................13
CONCLUSION .................................................................................................................................14
REFERENCES...................................................................................................................................15
Books & Journal: ..........................................................................................................................15

INTRODUCTION
Business sector is wider and broader and it is important to focus on development of
organisation so that goals are accomplished. The hospitality organisation is widening at rapid scale
in which they aims at providing better services and accommodation to customers. Main aim of this
report is to critically understand the essentials and toolkit needed for development within hospitality
(Jones, 2017). IHG which is also known as InterContinental Hotels Group plc, a large hotel firm
headquartered in U.K. It is located at global scale and has number of competitors such as Holiday
Inn Express, Radisson Hotel Group, Mariott etc. It provides wide range of services such as free
WI-FI, Lodging, room booking etc. This report consists of principle of managing & monitoring
financial performance, double entry book keeping system, trial balance, HR life cycle, performance
management plan, legislations, company employment and contract law, different function roles and
methods of communication.
TASK 1
P1 Examine the principle of managing and monitoring financial performance
In business, it is necessary to have appropriate of correct knowledge of financial
performance so that better decision making is being done. In accounting, principles are important
which are to be adopted and applied. In relation of selected hotel, it is analysed that there are
various types of principles which are crucial to be adopted and are mentioned below-
Preparing financial statement report- It is essential to focus on preparation of financial
report so that appropriate type of benefits are achieved. Without use of financial statements, it is not
possible to analyse the performance level of business. Also, it is critically crucial to access the
financial statements so that proper goals are achieved. It is time consuming process as it require
proper analysis of business transactions and other activities. With consideration of this principle, it
is seen that IHC annually prepare the reports and helps in making effective decisions (Kumhof,
2018).
Managing inventory- This is another principle which is needed to be adopted by
organisation. It is essential to focus on this so that inventory is being managed and all stocks are
well maintained. In hospitality industry, managing inventory is essential without which it is not
possible to access the customer needs and fulfil them appropriately. In relation of selected hotel,
they regularly check the inventory and make assure that everything is properly maintained in
systematic manner.
Monitoring of financial performance is important as it helps in maintaining of proper

business activities in proper manner. Also, it is examined that manage of hotel monitor the financial
performance so that positive output is achieved. Furthermore, managing and monitoring is to be
done with proper considerations (Lidón-Moyano, 2017).

P2 Discuss double book keeping system of debit & credit cards to record sales and purchase
transactions in general ledger
It is crucial for an enterprise to focus on keeping record of everything so that problem do
not occur in future period. Furthermore, it is necessary to access the different forms of accounting
terms so that decisions are take accordingly.
Journal: It is defined as process or written documents which reflects about the record of
transactions with new and first time (Ma, 2018).
Ledger- It refers to a book in which it depicts about different accounts with classification
of several accounts.
In reference of firm, the account and audit departments make assure that all these accounts
and books are well organised as well as maintained in proper manner. Moreover, it is crucial for
firm to have knowledge about these statements and accounts so that proper benefits are gained.
Both journal and ledger accounts are crucial to be prepared with use of relevant information so that
results are gained and performance is examined in correct way.
P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger
Accounts and business are interlinked with each other and aims at accessing to higher
profits. Trial balance refers to list of all the s general ledger accounts with both revenue and capital
within ledger of a business. To apply a ledger, proper information and data is needed in correct way
so that all accounts can be managed and maintained systematically (Phi, 2021).
TASK 2
P4 Analyse and discuss different stages of HR life cycle applied to specific hospitality job role and
importance for retaining and development talent
Human resource is important part of business and organisation without which it is not
possible to achieve organisational goals as well as objectives. In hospitality sector, talent acquisition
is important without which it is not possible to access competitive benefits. Talent acquisition is to
defined as process through which hiring, finding, attracting of new talent. Retention is defined as
keeping employees for longer period of time. There are various types of issues which is faced
within talent acquisition and retention in hospitality sector which are mentioned as follows-
Expensive Training and development
It is most first most issue which is faced by IHC when it comes to retaining and talent
acquisition. This is because IHC is a large enterprise and deals with number of clients as well as

customers for which employees are needed at wider approach. To conduct training as well as
development, appropriate type of knowledge and huge cost is needed. So, it is difficult for firm to
access performance of every employee and which directly affects the retention process.
Non- Satisfaction and low morale
It is another issue which is faced within hospitality sector and by HR of company. It is
because there are many employees which are not satisfied by management of IHC and policies.
Also, leaders and managers of firm are unable to increase the morale of subordinate. This increases
the turnover rate of employee (Sanchez Jimenez, 2020).
Shortage of skilled ad knowledgeable employees
In this issue, it is difficult for IHC hotel to hire and find appropriate employees for business
and vacant position due to shortage of skills and academic qualification of employees. In context of
selected firm, they have requirement of employees at larger level with relevant experience.
HR LIFE CYCLE
Illustration 1: HR life cycle
Source: https://xceed365.com/blog/2018/11/30/a-guide-to-the-hr-lifecycle/

HR in firm play crucial role in development of goals as well as objectives. In hospitality
sector, it is necessary to be aware about market situations. HR life cycle is process in which it
depicts about different stages of subordinates time with IHC and duties of HR department at each
aspect. This cycle is essential as it helps in understanding the role of human resource. It consists of
several elements which are given as follows-
Attraction- It is a first aspect in which it focus on attracting of employees within workplace.
It is important to attract so that better productivity and output is achieved. In relation of IHC,
employees are being attracted through providing them perks, benefits, holidays etc. (Sivathanu,
2018).
Recruitment- It is another stage in which it reflects about hiring, staffing of people on basis
of their roles and skills. In case of IHC hotel, the human resource of firm execute recruitment
through online job portals etc.
On boarding- It is another aspect in which it focuses on introducing of new firm within
firm. It is a process in which subordinates become part of organisation. In viewpoint of chosen
hotel, they too focus on this aspect as it helps in accessing to establishing of better relation (Song,
2019).
Entablement- In this stage, it states that HR of firm introduces new employees and brief
them about organisation culture, mission, vision etc. In context of selected company, the human
resource of company make assure that roles are properly defined.
Development- It is a stage in which subordinates as well as HR both aims at development
of organisational objectives. In reference of chosen entity, work is being carried out within team
and objectives are achieved easily.
Retention- In this stage, it shows about increasing of employee retaining time period for
longer period. In case of IHC, human resource of firm focuses retain employees through increasing
their wages and position.
Separation- It is last aspect in which it specifies about retirement and separation of
employees from organisation.
P5 Discuss and develop performance management plan for a specific hospitality job role and apply
techniques to solve both negative, behaviour and overcome issue of staff retention
In hospitality firm, it is important to examine the performance of employees so that better
decisions are being undertaken. Performance management is to be defined as process which is
carried out by entity with aim of increasing performance of a employees. It is duty of HR manager

to make assure that appropriate type of methods are being adopted. In relation of selected hotel,
human resource of company also implement performance management plan which assist in
accessing to subordinates progress level. It consists of several elements which are discussed as
follows-
Planning- It is first most aspect in which it states about planning procedure in which set
objectives are examined which it assist in developing of performance of employees. So, IHC hotel
is able to increase the inner capabilities of employees. Also, they are focusing towards clearing the
subordinates mind set and motivating and increasing their morale.
Coaching- In this stage, it states that training, guidance, is being provided to subordinates.
In hospitality sector, it is crucial to enhance the skill capability of subordinates so that objectives are
accessed. In relation of chosen company, they provide training to employees on weekly basis.
Appraising the performance- It is next step in which it shows that appraisal is needed to
be given to employees as it helps in enhancing of performance easily. It is responsibility of HR
manager to make assure that appraising performance is being given to deserving candidates. So, in
relation of selected hotel, appraisal is being given to employees through reviewing their
performance level (Yousaf, 2019).
Action- In this step, it specifies about actual action which has been taken to monitor and
measure up the progress level of subordinate. It is crucial to access these actions so that it is easy to
make decisions effectively. In viewpoint of chosen hotel, it is necessary to shows that
Thus performance management plan not only focuses on productivity of the organisation. It
also focuses on development of career of employees and provide them training in the areas that are
important. All these aspects assists an employee to stay positive towards the job. Also this helps the
organisation to retain the employees. So, it is essential to implement PMP so that appropriate type
of decisions are undertaken in correct way. This is duty of manager to make assure that all process
are undertaken in proper manner.
Task 3
P6 Identify & examine specific legislation that a hospitality organisation has to comply and adhere
to
In business, it is crucial to focus on execution of business activities with proper
consideration so that appropriate type of decisions are undertaken and problem do not occur. It is
critically important to be well aware about the government rules as well legislations. Within
hospitality sector, it is necessary to gain relevant knowledge of all government rules on the basis of

which it is easier for firm to access appropriate benefits and reduce problems in effective manner
With increase of hospitality sector it has become crucial to access the all legal procedure in effective
way so that everything is executed in proper manner.
In this competitive era, it is critically crucial to access and hire employees from legal
departments that all legal considerations are being properly followed. Basically there are various
types of legal laws and acts that are to be focused and are mentioned as follows-
Trade Description Act, 1968- According to this act, it states that about responsibility of
manufacturers, retailers, to make assure about to provide relevant information to consumers and
customers without misleading them with wrong leads or information. In context of chosen hotel,
they make assure that appropriate type information is provided on their official website and by
employees to their guests or users. Manager of hotel is well aware of the trade barriers and ensure
that all credentials which are being provided are kept secret as well as are reliable at appropriate
aspect (Zakharochkina, 2018).
Equality Act, 2010- This is also another crucial act which is needed to be focused as
because it depicts about the how one should be treated and behaved. In firm, every individual is
required to be treated in equal manner so that mutual relationship is developed and well established.
In reference of selected hotel, they assure that no discrimination is faced by employees on basis of
colour, culture, religion, age etc. With consideration of this act, it is simpler for company to enhance
the retaining period of subordinates for longer period. For example- leaves and holidays to all
employees of hotel are provided with equal numbers. People are becoming more aware about their
rights and equality so that appropriate type of relationship is established.
Environment legislation Act, 1974 - It is another act in which it specifies about protecting
of environment from being getting polluted. This is important to protect environment so that it is
easy to increase goodwill of a firm at appropriate level. With focusing of this act it specifies about
how environment can be protected. In reference of selected hotel, they assure that all activities are
being carried out in effective manner so that environment does not get harmed. It is critically to
have knowledge of acts so that effective kind of benefits are obtained by organisations.
Thus, above explained matter states that it is crucial to be well aware about government
rules and regulations so that problems do not occur in future period. It is necessary to have
appropriate knowledge of the legislation so that objectives are achieved in appropriate manner. This
is to examined that is crucial to be aware about these legislations on basis of which it is easier to
make effective decisions.

P7 Discuss with examples and illustrate how company, employment and contract law has a potential
impact upon business decision making
In business, external factors have deep impact on operations as well as functions. To
overcome with these issues, it is necessary to execute every activity with proper considerations so
that goals are achieved in well effective way. The legislations within government are of wide range
and proper awareness is required to be present so that laws are applied within business properly. In
relevance of chosen hotel, legal department for firm is well aware about every law on basis on basis
of which they are able to implement effective decisions.
HR of hotel ensure that market situations are being tracked on basis of which correct type
of laws are applied in proper manner. Two types of laws are focused which are employment and
contract law. So, both types of laws are described as follows-
Employment law-
According to this law, it specifies about relationship between both the employee and
employer. It depicts that what employers can expect from subordinates and what employees rights at
work. In reference of IHC, this hotel make assure that proper employment law agreement is given to
both parties so that issues does not arise in future time interval. Main benefit of this law is that it
assist in increasing of productivity at higher scale. Further, this is too benefits in analysing the social
change in proper way. In this agreement, subordinates are being paid by employers for their services
and work at workplace. This law impacts on business decision making as because situation might
arise and that can affects the overall decision making flow. It is necessary to make ensure that
Contract law-
It is another law which is needed to be focused and applied within business so that
objectives are achieved. A contract law is defined as process or agreement between two or more
than two parties with aim to achieve common desired goals. This law is essential to creation of
agreement, contractual intention and first requisite of contract. Main advantage of this act is that it
provides a clarity between the firms, Also, with this law entities can take decisions in appropriate
way. Further, it is too stated human resource of hotel need to be well aware of such law which helps
in dealing with situations effectively (Lidón-Moyano, 2017).
From above analysed matter, it is analysed that it is necessary for chosen hotel to have
skilled employees who have proper knowledge of laws as well as legislations. Moreover, it is
critically essential to apply these laws within business as they assist in executive of every activities
in correct and legally manner. This is also analysed that it is necessary to have correct knowledge of
rules that business decision making is carried out in effective manner.

TASK 4
P8 Analyse the different functionality roles within hospitality sector
In hospitality sector, different types of roles and functions exist which are required to be
fulfilled at all aspects. There are different types of functions within different departments which are
carried out and are mentioned as follows-
Sales and marketing department-
In hotel, sales as well as marketing play important role in development of organisation goals
and objectives. Their main role is to advertise, promote, increase sales of business at higher scale. In
this department, they focuses on accessing to increasing of the enhancing profit scale of business.
Both these departments aims at increasing of profit at higher level.
Food and beverage department- It is another department in which it is to be viewed as
biggest departments in which it comprises of several kinds of restaurants, dishes and services etc.
Within this department, it focuses on providing of profit at larger level. Also, it specifies about
different types of restaurants that deals in providing of services like breakfast, dinner, etc. In context
of chosen firm, they also have food and beverages department which provide wide range of
services to customers.
Human resource department- It is also department of hospitality in which it focuses on
hiring, staffing, managing of people. The human resource department is necessary as they help in
enhancing of productivity of firm at larger scale. There are various types of activities which are
performed by HRD such as recruitment, selection, direction etc. This department is beneficial as
because they help in fulfilling the vacant position and enhancing of profit revenue at higher scale
(Jones, 2017).
P9 Analyse several approaches of methods of communication, coordination, monitoring applied
within specific department
In hospitality department, it is essential to communicate in proper manner so that better
services is being provided to customers (Kumhof, 2018). In context of chosen hotel, they make
assure that appropriate methods are being used for communication, coordination and monitoring.
So, there are various types of methods which are use for communication and coordination which are
given as follows-
Social media
It is an effective way of methods on basis of which communication is being done in

effective manner. With use of social media, it is easy to access and have effective communication as
well as coordination. For example- in relation of IHC they uses social media platform like You
Tube, campaigns etc. for communication (Phi, 2021).
Emails, text messages-
It is another way through which communication and coordination is done. In this, it
specifies about making communication through e-mails, text messages etc. which are easy to use
and adopt. In relation of selected firm, they also focuses on using of this method which assist them
in implementing of effective communication and coordination (Ma, 2018).

CONCLUSION
After a brief analysis of above report, it has been concluded that it is essential to be well
aware about hospitality toolkit so that benefits are achieved. So, discussions have been made about
principles of managing and monitoring performance, d double entry book system, trial balance, HR
life cycle stages, PMP, legislation, functional roles and approaches of communication, coordinating.
This has been evaluated that it is critically important to have knowledge of business operations and
functions. Furthermore, it is necessary to use effective decision making so that better output is
being achieved.

REFERENCES
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States' Legislations in Divorce, Legal Separation and Marriage Annulment Matters. The
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Song, 2019. China's natural resources balance sheet from the perspective of government oversight:
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Yousaf, 2019. Occupational stress and its outcomes: the role of work-social support in the
hospitality industry. Personnel Review.
Zakharochkina, 2018. Uniform rules for registering medicinal products in the Eurasian economic
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