Principles of Managing Financial Performance in Hospitality Business

This report discusses the principles of managing financial performance in the hospitality business, including the preparation of financial statements and inventory records. It also explores the HR life cycle and its importance for talent development and retention. Additionally, it covers specific legislations that hospitality organizations must comply with, such as the Food Safety Act and the Equality Act. The impact of company law, employment law, and contract law on overall business decision making is also discussed.

Hospitality business
toolkit

Table of Contents
TASK 1............................................................................................................................................4
P1. Investigation of principles of managing financial performance.......................................4
P2. Applying overall system of double entry, book-keeping system of debits and credits to
recording of sales & purchases transactions ledger................................................................6
P3. Producing a trial balance by application and the use of the balance off rule to complete
the ledger................................................................................................................................6
TASK 2............................................................................................................................................7
P4. Reviewing of various stages of HR life cycle applying on a specific hospitality job role &
its importance for development and retention of talent..........................................................7
P5. Development of a performance management plan...........................................................9
TASK 3..........................................................................................................................................10
P6. Identification of some specific legislations on a hospitality organisation has to make
compliance............................................................................................................................10
P7. Describe that how company law, employment law and contract law has a impact on
overall business decision making.........................................................................................11
TASK 4..........................................................................................................................................12
Covered in PPT.....................................................................................................................12
CONCLUSION...................................................................................................................14
REFERNCES.................................................................................................................................15

INTRODUCTION
Hospitality sector is one of the emerging sectors in today's scenario. They are consisting
of various services such as food, beverages, accommodation and much such related type of
services (Cerchione and Bansal, 2019). It is very necessary that organisation that is part of this
industry must posses adequate understanding and knowledge of laws & legislations that are’
being applied on a particular industry. In this report a new juices outlet Jolted Juice is being
launched in London that will be dealing in some unique combinations of fruits and vegetables for
making juices. In this report there is discussion on various aspects such as HR cycle,
employment related laws, laws of employment contract. Further, there is discussion of
communication channels, communication and monitoring being applied in a hospitality
organisation.
TASK 1
P1. Investigation of various principles for management of financial performance
To make a assessment if business performance, there is requirement to address various
questions such as growth drivers, factors affecting in functioning etc. there are some ways to
managing & monitoring overall performance of a organisation as discussed below:
Preparation of financial statements: It is responsibility of every organisation to prepare
balance sheet, P&L statements. These are final indicators that help in smooth performance of
business functions. It helps in getting an overview of all the financial conditions of inner
functionality of business (Kandampully, Zhang, and Jaakkola, 201).
Preparation of inventory records: There are different business that are investing in
machinery, raw materials. There is a strong requirement to maintain adequate inventory levels so
that there is no overstocking that is taking place in the organisation. For having cost effectiveness
and reducing piling up of inventory there is a requirement of finance and a detailed discussion of
financial requirements is mentioned below:-

P2. Applying overall system of book-keeping system of debits and credits to recording of sales
double entry and transactions of sales and purchase in ledger
Double entry book keeping system is a system where each entry of account requires a
similar impact on another part of account. It includes various transactions that are getting
impacted because of such transactions (Kasemsap,2020). Double entry us a basic system that is
used for understanding overall impact of financial transactions have on two different accounts.
Basically this is used for satisfaction of a particular accounting equation.
Types of accounts: There are different account types such as purchase account, sales
account etc. Debit is that part of a accounting entry that is related with increase in a expense or
asses and at same time there is decrease in equity or liability in a accounting entry. On other
hand credit is related with increasing of liability and at same time there is decrease in asses that
is taking place in a financial statement (Redmondand Sharafizad, 2020).
Application of system of double entry debit and credit to record sales & purchase
transactions:
Such as in case of purchasing of a merchandise in Jolted juices entry will be done in assets
account and at same time there will be decrease in assets in from of use of cash or bank deposits
that has been done to purchase a particular assets. It leads to creation of a liability in case goods
have been purchased on credit and arsing of current liabilities in form of creditors takes palace.
Hence, for every transaction of purchase and sales there is simultaneous increase and decrease in
credit and debit account takes place this is double entry system of accounts.
P3. Developing a trial balance by application and the use of the balance off rule for completing
the ledger
Trial balance consists of ledger in business. It consists of value & name of all the ledger
accounts of a business. Each ledger accounts is related to debit and credit balance. In case of,
Jolted juices trial balance is presented below:

TASK 2
P4. Reviewing of various stages of HR life cycle applying on a specific job role in hospitality
sector & its importance for development & retention of talent
Consideration is related to all the stages of business, human resource department has to
address all the stages of a life cycle (Melissen,. and Sauer, 2018). In relation to Jolted juices,
human resource cycle is being discussed below:
Recruitment:
This is the first stage in life cycle of HR in the basic responsibility of human resource
department is to attract competent employees for various vacant position in the organisation
(Zach, Krizaj. and McTier, 2018). In case of Jolted juice, human resource management is
making adequate efforts to attract potential employees by use of attractive advertisement,
satisfactory salaries and allowances. Overall staffing plan is prepared in such a manner that right
employee is applying according to their skills for each vacancy.
Education:
It is the second stage in human resource life cycle in which employee is selected and
starts working in the new organisation. Employees are made aware of her overall responsibilities
and roles. In Jolted juice it is role played by human resource department that they have to
communicate overall value and culture of their organisation to their newly hired staff this will

help employees in getting aware of culture and becoming more comfortable in performing their
assigned job roles.
Motivation:
Motivation is a very important tool for reducing overall turnover of employees,
absenteeism at work and retaining of employees in long run. In jolted juices, it is responsibility
of managers to keep their employees engaged at all levels by providing them with better
compensation & growth incentives, timely recognition (Golubovskaya, Robinson, and Solnet,
2017). All such efforts on part of human resource department will be very useful in having cost
effectives in management of employees.
Evaluation:
According to this stage of HR life cycle. Employee performance is measured & is
evaluated in detail by supervisors. After evaluation feedback is provide that helps their leaders to
make decisions if employee is suitable for a particular job or not. In jolted juice, there will be
evaluation made by senior managing of human resource department but only after there has been
a completion of reasonable amount of time by their newly hired staff. There is a minimum
requirement of completion of at least a period of three moths to measure performance of a
particular employee (Filimonau, and Delysia,2019). After that employees will be assessed
whether they are working according to requirements of organisation.
Celebration:
It is last stage of every HR life cycle in this there is final opportunity with human resource
department that they can reenergise there whole workforce for their satisfactory performance
level. Jolted juice can use this stage after completion of approximately a period of six months of
their employees by providing them with unique benefits such as gift cards, increased
compensation, non monetary benefits. This is a great tool that can help them in keeping their
competent staff members motivated for contributing more towards achievement of organisational
objectives.

P5. Development of a performance management plan
Performance management plan is a prices that is very helpful organisations in alignment f
overall knowledge poses by their workers and all the resources that help in achievement of
organisations overall objectives’ (Newhouse,. and Weeks, 2017). It is very helpful in attainment
of overall objectives within given time frame. This is a process which consists of some below
discussed steps necessary for achieving laid down objectives of the plan.
Plan: in this step there are various objectives and goals that are set up by top authorities.
Overall objectives are very necessary for laying down the directions in which work has to be
done and at same time useful for establishment of priorities of employees. In case of jolted juices
there is a objectives set in the month of January to February 2020 that a 10 day trainings session
will be organised for employees especially waiters in which there will be training provided
regarding customer behaviour to employees in their outlet.
In this step there will be preparation of objectives that has to be achieved in the given
course of time along with this there is planning on who such objectives are going to be achieved.
In present case, objectives have be already set and now there is requirement of formation of
teams so that there is employee engagement and people are contributing more productively
towards achievement of organisations objectives’ (Rhou and Singal, , 2020).
Monitor: this the next step after planning where there will be communication of overall
activities that are going to be done in course of achievement of overall objectives laid down in
present planning process. Such as in present case of jolted juices mangers and leaders who are
appointed have to convey all their activities that are going to be conducted.
Review: this is the last step of every performance management plan in which all the
activities that have been performed earlier are reviewed. In present scenario in the end of
February with there will be measurement of overall performance of the laid objectives with set
standards. If there has been any deviation then attempts are made that it is not occurring in
future.
Above discussed are three steps that have to be undertaken every organisation for
achievement of objectives specified in every project management plan.

TASK 3
P6. Identification of some legislations on a hospitality organisation has to make compliance
There is some specific legislation that has to be fulfilled by specific legislations in hospitality
organisations. There are some of legislations that have to be followed in organisation:
 Food safety act 1990: This act was implemented by UK government to make various
framework regards to food legislations. There are three major aspects that are discussed
in this act such as quality, safety of food and labelling of food done in such a manner that
clearly denotes all the ingredients being used in preparation of final product. Also, this
act clearly mentions that increase of any harmful products sued then that has to be
specifically mentioned on the product with a specific warnings (Buhalis, and Leung.,
2018). With the advent of this act it has become compulsory for all organisations
functioning in hospitality industry that they have to make proper disclosure of ingredients
and all materials they use in their products. In case of jolted juices there is adequate
consideration given to packaging and labelling, the bottles in which juice is offered to
customers is f glass and there is detail of all ingredients used in juice. It helps their
customers in developing basic understanding of what they are consuming.
 Equality Act: Equality act is act by parliament of UK the major purpose behind this act
is regulation of equality practises in organisations. This act is based on protecting
employees with regards to various socio economic inequalities taking place in a
organisation. In case of jolted juices, there is considerable consideration given to this cat
while formation of policies for employees.
 Employment act 1996: this act was implemented in 1996 by UK government. According
to this cat all employees in organisations have the right to get their contact of
employment within a period of two months since their date of joining (Peters,
Kallmuenzer and Buhalis, 2019). There are various previsions relate to holidays, notice
period, sick leaves and all other terms of employment are mentioned in this act. In jolted
juices management has made sure that all such acts have been properly implemented.
Employees are provided full liberty and freedom to raise their voices on case if they are
not satisfied with the compliance done by their organisation.
Above discussed are some of acts that government on UK have enacted to be compulsorily
followed by all outlets that are part of service & hospitality industry.

P7. Describe that how company law, employment law and contract law has a impact on overall
business decision making
Company law: In UK, the entire corporation are regulated by companies act 2006. All’
functions and operations in companies are regulated by this act (Hallak, Lee. and Onur, 2019)
. This law is basically based on discussion made on duties & rights of various stakeholders such
as employees, creditors etc. All business decision that are being taken in jolted juices are based
on consideration to such laws. Jolted juice is a emerging company and it has been made after
reasonable consideration given to all the provision that are part of company laws. So, that there is
no scope of non compliance which can further lead to penalties or fines for this new outlet.
Employment laws: employment laws are related with relation between employees,
employers and trade unions. This law deals with minimum wages that have to be paid to
employees for working minimum hours per day. Various other provisions such as contract of
employment are mentioned in this act (Olson and Rajagopal, , 2018). Basically this act has been
formed for the purpose of protecting rights of employees who are working in different sectors. It
leads to protecting interest of workers and it is made sure that they are not being exploited by
employers. In case of jolted juices employers are ensuring that they have a satisfied workforce by
following all fair practises for their employees.
Contract laws: contract is basically a agreement that takes place between two or more
persons. A legally binding contract is one in which there is a voluntary agreement taking place
among two or more persons that is completely enforceable in eyes of law. Contracts are very
crucial part of every organisation both for employees, employers and all such stakeholders who
are part of this contract (Muralidhar, Mast and Gatica-Perez, 2018).
In case of jolted juices all these contracts are made only after reasonable amount of
consideration is given to such laws. In relation with Jolted juices, this law is governing all the
relationship and interpretation of a particular agreement that is present between two individuals,
organisations or companies. In case decision making is done with respect to tenure of a particular
staff member then all aspects of law will be made with respect to contact law and it results in
creation of a contract between organisation and the employee.

TASK 4
Covered in PPT

CONCLUSION
From the above report it is being conclude that HR is crucial plays a very effective role
for the entire business organisation for management of talent in most effective manner. It is also
summarised that there are different weakness that have to correct so that overall performance is
not getting impacted. It can also be summarised that there are various legislations that have to be
compulsorily followed by every organisation os that they are not penalised. Apart from this there
are special considerations that have to be made by organisations that are part of hospitality sector
as it is concerned with the health and lifestyle of their target customers.

REFERNCES
Books & Journal
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