Principles of managing and monitoring financial performance in hospitality business

This document discusses the principles of managing and monitoring financial performance in the hospitality business. It covers topics such as the double entry bookkeeping system, basic trial balance, and the stages of the HR life cycle applied to a specific job role in the hospitality industry.

Hospitality Business
Toolkit

Table of Contents
Task 1...............................................................................................................................................4
P1 Principles of managing and monitoring financial performance.............................................4
P2 Double entry book keeping system of debits and credits to record sales and purchases........5
P3 Basic trial balance by applying the use of balance off rule to complete the ledger ..............6
Task 2.............................................................................................................................................10
P4 Different stages of HR life cycle applied to specific hospitality job role............................10
P5 Performance management plan for specific hospitality job role by applying technique .....11
Task 3.............................................................................................................................................12
P6 Specific legislations that a company uses ............................................................................12
P7 How employment and contract law has potential impact on business decision making......13
Task 4 ............................................................................................................................................14
P8 How different functional roles in hospitality sector interrelate............................................14
P9 Different methods of communication. Coordination and monitoring in specific department
....................................................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality business is consider as a field that is classified as wide industry and it offers
various services. Different services like theme parks, cruise, travelling, planning etc. are provides
provide hospital industry. It is important for organisation to understand the needs and wants of
customers that can make happy to them (Murillo and King, 2019). This is most growing and
developing industry who is contributing in economical development and economic prosperity.
This assignment based on One Aldwych Hotel that is London based Hotel specialised in
providing staying services, travelling, theme parks and healthy food to customers. Different
topics are covered in this report such as stages of HR life cycle for hospital industry,
performance management plan for a particular job role and legislations in relation to hospital
industry. Moreover, report covers importance of integration and coordination between various
departmental functions in this sector.
Task 1
P1 Principles of managing and monitoring financial performance
Finance is important for all organisation as well activities which helps to maintain the
good performance and profitability (Tuma and Sisson, 2019). For executing plans and
completing business activities finance is playing a significant role that helps to manage functions
and increase competition. In One Aldwych Hotel, all funds are managed by managers who are
performing significant role in organisation and helps to attaining the business goals.
Financial transaction – This is a agreement which is done between two people one is
buyer and second is purchase. It is carried out out for running business by payment and recording
all translations. Whenever a products and service is purchased by people then something is paid
by them is considered as financial transaction. In One Aldwych Hotel, customers who buys
hospitality services they pays something in return such as cash is considered as financial
transaction.
Bookkeeping – This is a document and accounting process which is used to provide
financial information by recording all transaction. The proper meaning of bookkeeping is to
recording all information and data accurately so, supportive document can be prepared in order
to improve the organisational profitability. In this, management of One Aldwych Hotel records
day to day transactions and make a statement that helps to show profitability ratio.

Principle and managing monitoring financial performance is used by management in
order to manage and monitor the financial performance. In One Aldwych Hotel all transactions
and financial information is managed by management which helps to manage activities and
increase productivity effectively. Different types of principles in relation to financial
management are as defined:
Principles of risk and return – This principle states that there is required to take risk if
organisation wants to get return. Risk is the main factor which is used to get higher returns and
increase image. This principle is used by One Aldwych Hotel management as they take risk in
business activities and earning higher profits. Moreover, this is used to manage the functions
effectively (Kundu and et. al., 2019).
Diversity principle – This is important principle in which portfolio containing many
different assets and kind of assets carries lower risk than a portfolio. In One Aldwych Hotel,
financial manager analysis the risky situation by using diversify principle that helps to address
the risk effectively.
Principle of double entry system and bookkeeping system – According to this system
double entry is managed by management on the debit and credit side that helps to manage the
activities effectively. Such entries shows double effects of transactions and manage performance.
On the other side, the principle of bookkeeping stated as a system which is used to record the
transaction in relation to finance that helps to prepare document and other statement in order to
know profits. One Aldwych Hotel is following this function in order to keep records and
maintaining performance.
P2 Double entry book keeping system of debits and credits to record sales and purchases
Double entry and book keeping system are stated as business transaction which is used to
record the amount in two accounts. This system records transaction in debit and credit side where
profitability of organisation can be increases by managing information properly. One Aldwych
Hotel is using double entry system by recoding sales and purchase as:
 The book keeping system involves appropriately tally of business and income
with the help of sales and purchase transactions.
 Classifying the expenses in to different categories such as capital, material,
advertising and promotion that occurred in organisation.

 To utilise the payment of bills within specified date by considering all expenses.
P3 Basic trial balance by applying the use of balance off rule to complete the ledger
Trial balance – This is consider as list of all general ledger accounts which are involved
in ledger of business. It is prepared with the help of all transactions and managing records
effectively. The main purpose of trial balance is to ensure all business activities are made in
organisation's ledger and they are properly balanced. In One Aldwych Hotel, management are
recording all information in order to create financial statement by involving all entries that helps
to know the profitability (Chang and et. al., Chen, 2019).
There are different steps which are used in preparing the trial balance that are as defined:
 Prepare a worksheet with three columns that covers tittles, debit and credit which
is used to manage all transactions in proper form.
 Fill in the account tittles and record their balance in appropriate form such as
debit and credit columns.
 Total the credit and debit columns that states how much there is difference
between them.
 Compare the total of columns and find out the errors where mistake has been
done.
Date Particulars Debit Credit
01/04/16 Cash a/c 180000
To capital a/c 180000
10/05/16 Purchase a/c 130000
To cash a/c 130000
15/06/16 Purchase a/c 6000
To cash a/c 6000

01/07/16 Cash a/c 8000
To sales a/c 8000
01/08/16 Purchase a/c 9000
To cash a/c 9000
01/09/16 Sundry expenses a/c 200
To Bank a/c 200
01/10//16 Cash a/c 17000
To sales a/c 17000
01/11/16 Wages a/c 2100
To cash a/c 2100
01/12/16 Postages cost a/c 300
To Bank a/c 300
Ledge accounts
Cash a/c
Date Particular Amount Date Particular Amount
01/04/16 To capital a/c 180000 10/05/16 By Purchase a/c 130000
01/07/16 To sales a/c 8000 15/06/16 By Purchase a/c 6000
01/10//16 To sales a/c 17000 01/08/16 By Purchase a/c 9000
01/11/16 By wages a/c 2100

31/03/17 By balance c/d 57900
205000 205000
Bank a/c
Date Particular Amount Date Particular Amount
31/03/17
To balance
b/d 500 01/09/16
By Sundry expenses
a/c 200
01/12/16 By Postages cost a/c 300
500 500
Purchase
a/c
Date Particular Amount Date Particular Amount
10/05/16 To cash a/c 130000 31/03/17 By balance c/d 145000
15/06/16 To cash a/c 6000
01/08/16 To cash a/c 9000
145000 145000
Sales a/c
Date Particular Amount Date Particular Amount
31/03/17
To balance
b/d 25000 01/07/16 By cash a/c 8000
01/10//16 By cash a/c 17000

25000 25000
Postage cost
a/c
Date Particular Amount Date Particular Amount
01/12/16 To Bank a/c 300 31/03/17 By balance c/d 300
300 300
Sundry
expenses
a/c
Date Particular Amount Date Particular Amount
01/09/16 To Bank a/c 200 31/03/17 By balance c/d 200
200 200
Wages a/c
Date Particular Amount Date Particular Amount
01/11/16 To cash a/c 2100 31/03/17 By balance c/d 2100
2100 2100
Capital a/c
Date Particular Amount Date Particular Amount
31/03/17 To balance 180000 01/04/16 By To cash a/c 180000

b/d
Trial Balance
Particular Debit Credit
Cash 57900
Sales 25000
Purchase 145000
Sundry expenses 200
Wages 2100
Postage cost 300
Bank 500
Capital 180000
205500 205500
Question 2
Ratio calculation
Current ratio = Current assets/Current liabilities
For 2014 = 4926/1508 = 3.26
For 2015 = 7700/5174 = 1.48
Operating profit margin = Operating income/Revenue
For 2014 = 914/9482*100 = 9.63%
For 2015 = 1042/11365*100 = 9.17%
Days trade receivable = Trade debtors/receivable*365
For 2014 = 2540/9482*365 = 97.77 days
For 2015 = 4280/11365*365 = 137.45 days
Sales revenue to capital employed = Sales/capital employed
For 2014 = 9482/8305 = 1.14
for 2015 = 11365/5094 = 2.23

Return on capital employed = EBIT/COE
For 2014 = 914/8305*100 = 11.005
for 2015 = 1042/5094*100 = 20.455
Task 2
P4 Different stages of HR life cycle applied to specific hospitality job role
HR life cycle considered as a concept in relation to Human resource management that
describes what are employees doing and how they can complete the task. Herein, task is
classified among different employees and performing well. HR department is responsible for all
functions and activities that can help to increase organisational productivity and profitability.
Every stages in relation to HR represents own challenges and opportunities that helps to run a
business effectively. In One Aldwych Hotel, management are using different HR life cycle
stages in their hospital industry in order to handle operations and managerial functions that are as
explained:
Attraction: This is first step where great number of employees are collected in order to
perform a job role. A procedure which is used to attracts number of people in order to fill the
vacancy and getting task complete is consider as attraction phase. One Aldwych Hotel is
applying this step to attracts employees and fill the vacancy that help to complete the task which
is assigned by management (Mitin and et. al., 2019).
Recruitment: Hiring the right people at right time is very important to the productivity
and growth of organisation. In One Aldwych Hotel, HR manager create a strategic staffing plan
by understand the position which is required to be filled. Many interviews round are conducted
by management that helps to choose the right person for right jobs.
On boarding: This is the process which is used to introduced the new employees in
business organisation. Through this process employees become member of One Aldwych Hotel
and start to learn new job duties, responsibilities and relationships that helps to perform well.
Various programmes are structured by management that increases business productivity and
profitability (Molfetas, 2019).
Enablement: This HR life cycle states orientating new employees and they are
introducing formally from the organisation's culture, mission, vision and employees. In One

Aldwych Hotel, managers introduce new employees to safety, health and any other policies
which are related to organisation and their welfare.
Development: Such stage is related to employees and human resource department that
helps to attain the long term career goals and increase organisational productivity. The
management of One Aldwych Hotel provides career development opportunities that is important
to keep employees engaged with organisation overtime.
Retention: Such stage is used to give the opportunity to employees by re energize,
thanks for their hard work and recognising as important assets of company that helps to retain
them for long period. In One Aldwych Hotel, management are evaluating employees
performance and give them benefits such as flexible work schedules, extra paid time off, gift
cards and incentives that satisfied them.
Separation: All cycles is required come to and end for instance employees get
retirement, leaves and switch the organisation after attaining goals. One Aldwych Hotel
management, manages separation by ensuring all policies and procedure are followed, removing
them from the system in smooth manner and giving retirement respectively that helps to improve
the operations and profitability of organisations (Kasemsap, 2019).
P5 Performance management plan for specific hospitality job role by applying technique
A plan or process which is used to managing, aligning, communicating and coordinating
the performance with the help of employees is considered as performance management plan. If
organisation is having good management plan then it can increase the productivity and
profitability of their business (Kichuk, Brown and Ladkin, 2019). By evaluating issues which are
faced by One Aldwych Hotel is reducing outcome and increasing employee turnover a
performance management plan is prepared by management that is discussed as under:
Plan: This is main step in which planning and strategic objectives are set by management
that helps to improve the organisational performance. To remove the conflicts, reducing
employees turnover and increasing outcome management One Aldwych Hotel make strategic
plan and share with employees that can help to perform well and improve profitability.
Monitor: This means to record and monitor the employees performance in order to
awarding and completing task effectively. In One Aldwych Hotel, after making strategic plan

this step is required to perform by management. In this, manger understand suitable strategy and
monitor employees performance which helps to overcome the negative behaviour. Moreover,
training and development programme are also provided to employees so, they can accept
challenges and problems in order to turn issues in to opportunities (Celiker, Ustunel and
Guzeller, 2019).
Review: It can be consider as final stage of performance management plan that is used to
review the activities after monitoring by top management. So, productivity can be increase
effectively. In One Aldwych Hotel, management overlook various hurdles and monitor the
functions so, improvement can bring in organisation. With the help of this, employees feels good
and work properly that increases productivity and employees retail for long term.
Task 3
P6 Specific legislations that a company uses
Legislations are the rules and laws which are formulated by government in order to make
a business effectively and people welfare. Such legislations are important to follow and give
positive outcomes to business. One Aldwych Hotel is applying different laws and policies that
need to comply in order to operating business and running it effectively. The description of
legislations are as defined:
Data protection law: Employees who are working in organisation wants to get protect
their information and data. They wants that people their personal information and data should not
be leak. This helps to create a trust and confidence level of employees and they works
effectively. In One Aldwych Hotel, management ensures employees that their data and personal
information will be protect and not would be share with others that helps to retain employees and
increase profitability.
Anti discrimination act: This refers as laws that is designed to prevent discrimination
against particular group of people in a organisation. When top management are behaving
differently with other people and discriminate on the basis of colour, sex, religion and language
then employees feel negatively and do not work well. In context to One Aldwych Hotel,
management are following this act in which they give equal opportunities and chances to
employees that make them happy. With the help of this, employees feel vital part of organisation
and get done task effectively (Figueroa-Domecq and et. al., 2020).

Health and safety act : This act is mainly related to heal and safety of people who are
working in organisation and giving their best. According to this act organisation should construct
a structure which can help to provide safety and good health to people. One Aldwych Hotel is
following health and safety laws where management are responsible to maintain safety and
security in organisation and attracts employees to work more. This regulation is formulated by
government for the purpose of employees welfare and provide them security effectively.
P7 How employment and contract law has potential impact on business decision making
Contract law: In business environment, there are different types of laws and legislations
which are used to make right business decision. This influences decision making process of
company as One Aldwych Hotel is following contract law by representing agreement between
employees and management that helps to complete the work in specified time period. With the
help of contract law operations and productivity of organisation increases and this leads to
improvement in performance.
Company law : This is considered as important law which is formulated by board
regularities in order to operate and run a organisation effectively. This is important for company
to follow this act in case of running a business. One Aldwych Hotel is following companies act
for running its enterprises that influences decision making as it maintain the profitability and
increase productivity by following all regulations.
Employment law : Employment is the part of organisation in which job opportunities are
given to employees for performing specific task and completing goals effectively. This is
important law which is required to follow by all companies in order to attain business goals and
objectives. One Aldwych Hotel is following employment law in which it provide employment
opportunities to all people that helps to improve organisational productivity and profitability.
Task 4
P8 How different functional roles in hospitality sector interrelate
In a business organisation different roles and responsibilities are performed by
management that helps to complete the task and attain business objectives. Every organisation is
having different structure which is followed to complete task and increase profitability. The
organisational functions of One Aldwych Hotel are interrelated that are as defined:

HRM with marketing department : Employees are main part of organisation which is
recruited by HRM department by conducting interview round and selecting best employees. This
is related with marketing department as marketing manager ofn One Aldwych Hotel get
information from HRM department which is required to select best candidate. Marketing
department give advertisement regarding vacancy, profile and relation information where HRM
department receive best employees by selecting best one for suitable position.
Research with managing department: Research is another function which is needed in
mostly organisation and it helps to improve the organisational productivity. Thus is related
managing department as HR manager of One Aldwych Hotel get information from research
department what are expectation of customers and how it can improve productivity. Both
functions are used to run business continuously and improve profitability (Cunha, 2019).
HRM with finance department: HRM conducts interviews round, training and
development programme and many other activities by implementing plans. This function is
related to finance department because this department manage funds and fill the requirement of
required finance. HRM function take finance from finance department in order to conduct all
functions effectively and increase profits.
Finance with marketing: Both functions are also interrelated such as marketing
manager of One Aldwych Hotel get funds from finance department that helps to run a business
effectively. Both functions are connected because in lack of finance marketing activities are not
possible to perform and with out marketing funds cannot be rise. Therefore, organisational
productivity and profitability increases by performing all actions.
P9 Different methods of communication. Coordination and monitoring in specific department
Communication and coordination is important for organisation which helps to complete
the task and increase profitability effectively. Number of employees are working in organisation
where effective communication is important because it helps to connect employees with each
other and make efforts to solve the problems collectively. The meaning o9f coordination is to
maintain a coordination between employees so task can be complete and maintain good
performance. In One Aldwych Hotel, management is playing a significant role as it influences
employees by communicating, coordinating and monitoring the performance.
There are different methods which are used by One Aldwych Hotel to communicate and
coordinate the activities in order to monitor performance that are as defined:

Text message : This is useful method which is used to communicate and sharing the plan
effectively that helps to manage the good performance. It can be used by One Aldwych Hotel in
order to communicate with employees through messaging. When ever, management make plans
and wants to share any information them this method is used that helps to increase the
organisational productivity (Findlay and et. al., 2019).
Group meeting : This means collection of people who shares information and ideas by
conducting meeting in which all people are collected to share information. This method is
consider as best method to communicate because there is no chances of fraud and leaking the
information. In One Aldwych Hotel different meetings are conducted by management such as
board meeting, general meeting, monthly meeting etc. in which all employees is required to
present and they share information with all that helps to attain the business goals (Egan and
Haynes, 2019).
Telephone: Telephone are the boon of technology which is helps to connect one people
to other and share information effectively. If people are living outside and there is need to share
information then telephone is consider as good method of communication which helps to
improve the organisational productivity and profitability. In One Aldwych Hotel, all employees
keep in touch by using telephone method through which all informations are pass on and
productivity of such hospital industry increases effectively (Henry, 2019).
Mails : The another way of communication is mail which is formal, used to coordinate
and communicate with people effectively. In One Aldwych Hotel, managers and employees are
using emails to communicate and coordinate that helps to operate and run functions effectively.
The managers are maintaining good performance and increasing profitability by retaining
employees (Anjum and et. al., 2019).
Effectiveness of communicating method
All methods in relation to communication and coordination are effective as One Aldwych
Hotel management are using group meeting, telephones and mails to share the information from
top to bottom level. For instance, research department understand the requirement of customers
and coordinate with production department so that kind of hospitality services can be provide to
them effectively. Moreover, HRM department understand the vacancy and get help to marketing
in order to provide information regarding vacancy that helps to get pool of candidates. All

employees of chosen organisation get connect with each other and perform their functions
effectively so goals can be achieved efficiently.
CONCLUSION
From the report it can be concluded that HR life cycle is the main important part of any
business that covers sequence of the stages employees go through and roles are tasked to perform
well by focusing on stages. Different stages such as attraction, recruitment, on boarding, en
ablement, development, retention and separation are used in HR life cycle that helps to perform
well in organisation and increase profitability. Different principle in relation to financial
management are used by management that helps to cover information manage the transactions
effectively. Trial balance is the document which is prepared by mangers in order to involve day
to day transactions and increase business profitability. Moreover, legislations must apply by
companies in relation to contract and employment that influences employees and retain them for
long period.

REFERENCES
Books and Journals
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and burnout: a meta-analysis. Anatolia. 30(3). pp.328-345.
Figueroa-Domecq, C., and et. al., 2020. Technology double gender gap in tourism business
leadership. Information Technology & Tourism, pp.1-32.
Cunha, M. N., 2019. An investigative study of customers’ experience in customized customer
contact services in Oporto hotels.
Findlay, P., and et. al., 2019. Influencing employers so more people break free from poverty
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Egan, D. and Haynes, N. C., 2019. Manager perceptions of big data reliability in hotel revenue
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Henry, V., 2019. The Correlation Between Employee Job Satisfaction and Leadership Style by
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