Hospitality Business Toolkit

This project explores the key aspects of running a successful hospitality business, focusing on financial performance management, talent management, legal and ethical considerations, and communication strategies. It uses the Carnival Corporation & PLC as a case study to demonstrate practical applications and best practices in the industry.

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Activity1 Principal of managing and monitoring financial performance...............................1
Activity 2 Methods to measure the financial performance....................................................4
TASK 2............................................................................................................................................5
Activity 3 HR life cycle for talent management.....................................................................5
Activity 4-Performance planning...........................................................................................6
TASK 3............................................................................................................................................7
Activity 5- Written material for training seminar...................................................................7
Activity 6 Briefing on legal and ethical consideration...........................................................9
TASK 4..........................................................................................................................................10
Activity7 Importance of coordinating and integrating various functions of departments within
the hospitality sector.............................................................................................................10
Activity 8 Different method of communication, coordination and monitoring in food and
beverage department of a cruise liner...................................................................................11
Communication Methods: This involves direct and indirect method of communication that
helps to share ideas and problems with in cruise line such as-............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is a business that involves in serving guest and customer satisfaction.
It is an act of greeting visitors with friendly and warmth behaviour and satisfying their needs by
providing them with products and services as per their requirement in exchange of money. There
are many sectors that comes under this industry such as Tourism industry, food and beverage etc.
In the report the company which has been selected is A British American cruise operator named
Carnival Corporation& PLC is world's largest leisure travel company situated in Southampton. It
operates over 100 ships which offers wide range of services in food, bars, restaurant, events etc.
This industry completely depend on delivering what customers wants as commitment and loyalty
are it's main features (Björnefors and Kjellsson, 2014).
The reports covers topics such as principles of managing and monitoring financial
performance, application of double entry system, trial balance, analysis of HR life cycle. It also
consist of performance management plan, legislation of hospitality, impact of company law,
roles of hospitality sector and methods of communication coordination and monitoring.
TASK 1
Activity1 Principal of managing and monitoring financial performance
Under the flagship programme it was required to undertake several different job rotations
and performing various activities in order to develop knowledge and ability to make good
decisions. The first rotations was of Finance department that concerned with having skills of
appropriately handling company's finances.
Book keeping- It refers to the process of keeping accounts of daily transactions of
business. Every organisation maintained books of accounts by recording, analysing, summarising
and verifying financial transactions done during the course of performing business activity
(Boateng, 2019).
Ledger accounts and trail balance has been maintained by the Carnival Corporation& PLC
which has been explained below:
Purchase A/C
Date Particular Amount Date Particular Amount
01st Feb To Kate's Kitchen 5001 28th Feb By balance c/d 34553
1

01st Feb To Harry 29552
Total 34553 Total 34553
Kate's Kitchen A/C
Date Particular Amount Date Particular Amount
6th Feb To Bank 5001 01st Feb By purchase 5001
Total 5001 Total 5001
Harry's A/C
Date Particular Amount Date Particular Amount
14th Feb To Meganne 2008 01st Feb By purchase 29552
17th Feb To Bank 29552 28th Feb By balance c/d 2008
Total 31560 Total 31560
Bank A/C
Date Particular Amount Date Particular Amount
6th Feb By Kate's Kitchen 5001
28th Feb To balance b/d 34553 17th Feb By Harry 29552
Total 34553 Total 34553
Beverage A/C
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Date Particular Amount Date Particular Amount
3rd Feb To sale 11203 28th Feb By balance c/d 42493
10th Feb To sale 8966
22nd Feb To sale 10614
17th Feb To sale 11710
Total 42493 Total 42493
Sales A/C
Date Particular Amount Date Particular Amount
3rd Feb By Beverage 11203
3rd Feb By Food 1824
10th Feb By Beverage 8996
10th Feb By Food 1687
17th Feb By Food 1611
17th Feb By Beverage 11710
28th Feb To balance b/d 49360 22nd Feb By Beverage 10614
22nd Feb By Food 1715
Total 49360 Total 49360
Food A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 1824
10th Feb To sale 1687 28th Feb By balance c/d 6837
22nd Feb To sale 1715
17th Feb To sale 1611
Total 6837 Total 6837
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Trial balance
Key performance indicator
These are the means that helps in evaluating the performance of organisation, department and
employee. There are two Carnival Corporation& PLC uses different KPI to measure the
performance of restaurants named Kitchen management KPI and sales, marketing and
administration KPI.
Activity 2 Methods to measure the financial performance
Principles of managing and monitoring financial performance based on kitchen KPI:
Managers of Carnival Corporation& PLC made sure to comply the rules and regulation
regarding expenditures such as cost of goods sold, menu item profit, production time per dish
and food wastage.
Kitchen management KPI- As kitchens a
re the main part of restaurants therefore managers reduce costs by controlling things that are
coming in and out of Kitchen department.
 Cost of goods sold: Analysing the expenditures made in kitchen department is key factor
that shows the performance of business. Controlling such expenses helps in increasing
the profitability of business (Chauhan and Tan, 2016).
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 Menu item profit and popularity- It is used in evaluating the performance based on the
returns earned on particular items of menu. Further decisions are then taken weather to
increase or decrease the price of item in order to maximise sales.
 Production time per dish- As per this factor the duration of producing an item is
considered for measuring the performance. Taking too long for preparation of dish is
generally one of the reason for low sales thus Carnival Corporation& PLC delivers faster
service by shortening time. Food wastage per food purchased- This elements is considered to determine the how the
food is being managed, and what are the other ways of preparing food.
Sales marketing and administration KPI- This indicator is used by the chosen company to
measure the financial performance by checking flow of cash in the business.
Principles based on sales, marketing and administration KPI:
The main principles set by Carnival Corporation& PLC is concerned with managing and
controlling financial performance through effective evaluation of financial results by determining
the cause and effect of each activity and thus taking decisions to improve the profitability of
business.
 Return on investment- Determining the flow of cash after investing in the project is vital
as decisions are then made whether to continue investing in it or not.
 Total accounts payable and receivable- This factor helps the business from defaulters by
tracking sales made in cash or credit basis.
TASK 2
Activity 3 HR life cycle for talent management
Next round is made to the HR department which involves managing different stages of HR life
cycle within the context of chosen organisation (Hayes and Tucker, 2018).
HR life cycle- The various phases that an employee goes through during the course of working
in the organisation. There are mainly five main stages which are explained below:
 Recruitment- This is the first stage that included all the procedures regarding hiring new
worker. In Carnival Corporation& PLC activities like determining the vacancies,
screening applications, scheduling interviews to selection all are managed by the Food
and beverage manager. This is very crucial for the managers to manage the employee life
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cycle as workers are the backbone of organisation as the with the first stage itself talented
candidates are selected.
 Onboard- This is the stage where selected candidates are now becomes the part of
organisation, manager organises induction programme for the new employees and make
them aware about company's policies, structure, and also about the duties which they
have to perform. Second phase is important for ensuring that new workers become
comfortable with their surrounding and understand their roles and responsibilities.
 Develop- Under this stage performance of employees are evaluated and feedbacks are
given to further improve their performance. Managers of Carnival Corporation& PLC
keeps tab on on how employees are performing their task and made in case of any
deviation concrete actions are taken (Di Benedetto, 2014). Talent management is
ensured through developing the competencies of employees.
 Retain- It refers to retaining the employee in the organisation as increased employee
turnover is not good for the image of company therefore managers of food and beverage
ensures that they recognise the talent of employees for example cooks working in
restaurant are given required training to become chef at certain point. Retaining
employees helps in motivating the workers which results in reducing employee turnover.
 Off board- This stage is associated with workers leaving the company for the reasons best
known to them, role played by managers is to ensures that proper procedures and
documentation are being followed for their termination process. This vital stage as it
allows organisation to understand the reasons about increased turnover and policies that
needs to be formulated in response to them.
Evaluation of HR life cycle in relation to strategic management
HR life cycle plays significant role in the strategic talent management as from acquiring
to developing and retaining the workers will help in improving the efficiency of organisation.
Each stage of this cycle has specific tasks like effective recruitment acquires potential
candidates, in the onboard stage they are made to feel like they are part of family and become
aware of their roles and responsibilities. In the development stage their competencies are
developed to realise their full potential afterwards retaining and off board helps in reducing
employee turnover.
Recommendation of HR process and recommendation for the effective talent management
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It is recommended that for the effective talent management managers need to make
changes such as improvement in the recruitment process by using software like talent acquisition
along with documents like attendance worksheet should be prepared by the organisation to
analyse the working hours of employees also performance reports will help the managers in
determining the compensation, or any other rewards which should be given to employee based
on his performance.
Activity 4-Performance planning
Lately the company has been facing high turnover issues, concerns are raised by the
waiters and waitresses regarding working conditions, refusal to do additional tasks and unwilling
to cooperate with leaders thus performance management plan has been created in response to that
(Hu and Chen, 2016).
Performance management plan
This is tool that is used to eradicate the deficiencies in the performance of workforce,
Carnival Corporation& PLC is using this method to resolve the negative behaviour of waiting
staff and overcoming the issues of staff retention. The five stages of this plan are as follows:
 Plan- Under this stage the company plans to address the reasons behind such negative
behaviour of workforce by using techniques such as open communication.
 Monitor- As per this stage employees performance will be monitored individually with
the help of 360 degree feedback techniques. Negative behaviour can be identified by
application of this method and managers can take actions to remove those elements that
are causing staff retention.
 Review- This stage will help in evaluating how the workers are performing if they are not
performing as per standards feedback are given to them. Critical incidents techniques are
used by the managers to identify negative behaviour of employees. Due to this managers
will become aware about how each individual of organisation respond towards certain
situations thus this will help in overcoming the problems. improve- This involves improving the performance of employees either by motivating
them through rewards in the form of bonus, promotions or by providing further training.
Behaviour of employees can be improved either by appreciating their efforts or with
guidance from superiors on how to better cope up with the issues.
Importance of HR life cycle for resolving issues of staff retention
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Conflicts that can arise in the future can be determined during the recruitment stage as
undeserving candidates can be identified while onboard stage helps in making employees aware
about the roles, responsibilities, and structures of the organisation that helps in building
coordination amongst the workforce, in developing and retention stage employees will be trained
and guided in such way that they will become habitual in dealing with unforeseen situations. Off
board stage will give perspective of high turnover organisation and decisions are taken by the
management to control such situation (Legrand, Chen and Sloan, 2013).
TASK 3
Activity 5- Written material for training seminar
Legal issues that impact the operations of company are important to determine by the HR
department. The specific legislation that Carnival UK has to comply with are as follows:
Employment Act 2002- This act states that the chosen company has to comply to the
terms and conditions mentioned under this. It comprises of rules regarding maternity, paternity,
adoption leave and pay along with provisions concerning equal pay, flexible working etc. As the
workers were prone to mistreatment at the workplace these laws provides them benefits of
settling disputes regarding salary, leave and working hours.
Human right act 1981- This act was made to protect the rights of every individual
irrespective of age, gender, religion, ethnicity etc. Any discrimination made on any grounds will
not be tolerated by the government therefore Carnival UK has to provide freedom to workers
express their opinions and work freely with respect. Employees can file complaints in case of
any violations of this act.
Health and safety regulation act 1974- workers often faces the issues of accidents and
poor health, this act made certain provisions regarding safety of employees health. Carnival UK
has to ensure that workers must be provided clean and safe working environment along with
regular medical check up and other safety tools. In hospitality industry following this legislation
is very important as if the employees working in the organisation are not healthy then how will
they be able to take care of their customers.
Impact of company, employment and contract law on business decision making
These laws are created by the government and it is in the welfare of the company to
follow them. There are various policies and standards that hospitality industry has to comply in
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order to project the good image of the organisation in the eyes of customers. For example if the
organisation is indulges in any sort of misbehaviour or unequal treatment with staff based on
their religion, colour, gender etc then the customers are meant to be treated as god will not see
that organisation which can satisfy their demands. Decisions have to taken by the management to
make sure such rules and regulations are used. By not following the norms mentioned in the
company, employment and contract law the organisation will have to pay the penalty to the
government (Mowforth and Munt, 2015). Decision making of Carnival UK has been impacted
in positive way due to such laws as workers are happy working under this organisation and large
number of customers are attracted because of the effectiveness of the organisation.
Company law act 2013- These are created to ensure the code of conduct of businesses
and compliances which are needed to be followed by the organisation.
Employment law- These are established by the government to protect the rights of
employee working in the organisation. Employees are not allowed to work for more than 48
hours as per UK jurisdiction.
Contract law- This help in solving disputes which happens in case of breach of contract.
The employee and employee can not exceed their authority.
Activity 6 Briefing on legal and ethical consideration
Positive and negative impact of regulation, legislation and ethical principal :-
Equality act 2010- As this act is concerned with providing equal opportunities to each
and every employee. No discrimination is allowed as per this legislation made under UK law.
Let's see how these legal consideration impacts the business of Carnival UK
 It impacts the business in positive manner as it helps in improving the leadership qualities
of managers and their decision making for example in case of conflicts in the workforce
they are able to make judgements by following the rules and regulations mentioned under
this act.
 It negatively impacts the business decision in a way that it causes delay in decision
making, managers has to think of every possible outcome. For example if it requires for
manager to take decision about selecting project that can increase the profitability of
business but because it is important to consider rights of every individual this will cause
delay in their decision making.
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Law of contract- Under this law an agreement is made between the parties which each
of them has to met. In case of breach of contract by any one they are liable to pay penalty.
 Positive impact of this legislation is that managers have enough proof to address the
claims made by the other party based on that effective decisions can be taken. For
example if an employee claims to demand higher compensation or leave in future this
can act as source of evidence. It negatively impact of this law is that sometimes the party who made the contract
includes hidden terms and conditions which can cause conflicts in future. For example
sometimes firms does not specify guidelines in simple language which often employees
could not see at the of signing agreement (Yan and Subramanian, 2018).
Ethical principals are discussed below:
 Truthfulness- This factor positively impact the organisation in a way that for example if
the organisation has always been truthful with it's employees and customers, it's
goodwill will remain intact in future.
 Confidentiality – Protecting the privacy of customers is what makes companies like
google and Facebook to stand out in the market. Negative impact of not following this
principle can damage the reputation of company as customers will not feel safe in using
their goods and services.
TASK 4
Activity7 Importance of coordinating and integrating various functions of departments within the
hospitality sector.
To- HR manager(Carnival Corporation & PLC)
cc- Human resource manager
From- George Bailey
Date- 8th April,2019
Different functions of hospitality sector are interrelate with each other for better service
providing to the customers. Herein, some functions of hospitality sector are described below
which are interrelated with each other:
Accommodation- This function is related to the providing luxurious accommodation to the
clients. It is very important because customer's services are invisible so companies should try to
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focus mostly on this function. As well as this function coordinate with other functions for better
result. Carnival Corporation & PLC applies this function for enhancing the quality of service
and aligns it with other service departments which helps them in achieving the goals.
Food and Beverage- Accommodation and food & beverage are interrelated with each other.
This is why because a customer is wanted good accommodation services along with quality
food and beverage. Companies have to understand the relation between these two functions.
Otherwise it can be reason of loss. If company relay on one function then they can't survive for
long. Carnival Corporation & PLC interrelates these above mentioned functions for better
service providing to the customers and they get desired profit.
Entertainment- It is required for maintaining the customer's interest in the particular
hospitality sector. This is very crucial part of different functions of the hospitality. It is an
additional function which is interrelated with above two functions. Though it is optional for the
companies but if it relates with the other functions then it can help in achieving the objectives.
Carnival Corporation & PLC company arranges this function for the satisfy the customers and
coordinate with the other function of the hospitality sector (Nelson, 2018).
Activity 8 Different method of communication, coordination and monitoring in food and
beverage department of a cruise liner
Communication Methods: This involves direct and indirect method of communication that
helps to share ideas and problems with in cruise line such as-
 Cellphone: This is used not only cruising time but also it used to communicate in a
proper manner to share the information. Such as crew member of Carnival used
cellphones to communicate with its passenger as well as employees in food and beverage
department.
 Apps for Cruiser: Mostly cruise lines used this to communicate is available for 24*7
hours (Subbiah, 2012). Such as Carnival offers carnival hub app that has fun element by
counting days,minutes and hours through chat among cruise members.
 Ship phone: At present mostly company also provides ship phone facilities to
communicate with food and beverage department that give information about ship's
member needs and wants. Such as if any member of Carnival needs to communicate with
food and beverage department then it can communicate with the help of ship phones.
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Coordination method: Carnival adopt one to one coordination method that helps to coordinate
with food and beverage department through e- mails and by sharing problems with department. It
start from lower level to upper level in coordination process that helps understand in a better
way. It also helps to increase the passenger loyalty and trust among members by better
coordination.
Monitoring Method: Carnival adopt training and development method to monitoring the work
in food and beverage department such as it provides training to its employees that helps to cope
up with problems and get solution of problems. A better training method also helps to record the
activities of cruise liners and controls on its activity by monitoring the performance (Singh,
2015). By applying training and development method an organisation an increase value chain by
providing better services and recording the performance. Such as Carnival provide training to its
employees who understand passenger's problems and give solution, that build a relationship
among cruise liner and its staff in order to increase value chain.
From above mentioned method like communication, coordination and monitor helps to
achieve company's goals such as in Carnival company cruise member can uses apps for cruiser
and ship phone that give make a proper communication and solve problems. One to one
coordination method help to coordinate with department and give information for next arrival
ship that helps to maintain coordination. And training method alos helps to accomplish
organisation's goals by providing effective training that helps to understand problems and find
the solution of problems. Hence, above discussed method helps to achieve organisation's
objectives.
CONCLUSION
From the above report it has been concluded that the hospitality business is way of
earning earning incomes by greeting customers and satisfying their demands. Restaurants,
tourism, transportation etc are some of the sectors that lies under hospitality industry. Different
areas such as finance, HR, sales are effectively managed by the organisation for the achievement
higher profitability. Trial balance and ledger account are made to systematically record and
analyse each and every transactions made on daily basis in the operation of business while HR
life cycle stage comprises of recruitment, onboard, developing, retention and off board are
concerned with employees phases in the organisation. Afterwards performance management is
created that helps in dealing the inefficiency in the organisation.
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REFERENCES
Books and Journals:
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comparison of the sustainability work by hotels in the Gothenburg area.
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REGIONALĂ. 3(01). pp.125-136.
Chauhan, C. and Tan, W., 2016. Community survivorship program: Kansas Hope in the Valley
program.
Di Benedetto, C. A., 2014. Open innovation and the value of crowds: implications for the fashion
industry. Journal of Global Fashion Marketing. 5(1). pp.26-38.
Hayes, S. and Tucker, H., 2018. Qualitative research skill training: Learning ethnography in the
field. In Asian Qualitative Research in Tourism (pp. 139-151). Springer, Singapore.
Hu, Y. H. and Chen, K., 2016. Predicting hotel review helpfulness: The impact of review
visibility, and interaction between hotel stars and review ratings. International Journal
of Information Management. 36(6). pp.929-944.
Legrand, W., Chen, J.S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Nelson, G. S., 2018. The Analytics Lifecycle Toolkit: A Practical Guide for an Effective Analytics
Capability. John Wiley & Sons.
Singh, R., 2015. Empirical examination of the impact of total quality services on hospitality
industry business. Journal of Quality Assurance in Hospitality & Tourism. 16(4).
pp.389-413.
Subbiah, K., 2012. The management strategies of ecotourism development in Papua New
Guinea. International Journal of Economics Business and Management Studies. 1(3).
pp.114-120.
Yan, L. X. and Subramanian, P., 2018, June. A Review on Exploiting Social Media Analytics for
the Growth of Tourism. In International Conference of Reliable Information and
Communication Technology (pp. 331-342). Springer, Cham.
Online
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