Managing and Monitoring Financial Performance in Hospitality Sector

This document discusses the principles of managing and monitoring financial performance in the hospitality sector. It covers topics such as cash flow statements, marketing expenses analysis, and competitive analysis. It also explores the different stages of HR applied to specific job roles in hospitality and their importance for employee talent development. The document further discusses the performance management plan for the job role of front office manager in Velvet Drinks. It provides insights into specific legislations adhered to in hospitality organizations and how employment and contract law impact business decision making. Lastly, it explains how different functional roles within the hospitality sector interrelate with other departments.

Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Principles of managing and monitoring financial performance with the help of table...1
P2 Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger.................................................................................................2
P3. Prepare trail balance to complete the ledger....................................................................3
P4 Review the different stages of HR applied to the specific hospitality job role and their
importances for retaining and employee talent development.................................................3
P5 The performance management plan for the job role of front office manager in the Velvet
Drinks.....................................................................................................................................4
P6. Specific legislation adhere within hospitality organisations............................................5
P7 Illustrate how company employment and contract law has a potential impact upon business
decision making in hospitality................................................................................................6
P8 Different functional roles within the hospitality sector interrelate with all other
departments.............................................................................................................................7
P9 Different methods of communication, coordination and monitoring within hospitality
organisation............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The hospitality sector of the United Kingdoms is most popular for its rapid growth and
effective management. Within the market of hospitality services there is a huge demand of quick
service restaurants and food and beverage cafes which provides the quality services to the
consumer in the lesser time. The report below is discussed thoroughly on the aspects of Velvet
Drinks , it is a well renowned company of providing the beverage and food in the hospitality
industry. This report paper includes, the management and business plan, governmental and legal
legislations and formative interlinking between different roles and the functions in hospitality
sector of the UK. In addition to this, this paper involves all the methods of communication,
coordination and monitoring.
P1. Principles of managing and monitoring financial performance with the help of table
In order to perform business in effective manner many suitable questions are asked which
need to answered and these questions are asked regarding the financial services and monitoring
of business activities. As without suitable profit no business can become successful and because
of this, business owner need to ask about the regular report from an organisation and their
accountants in all the relevant areas. Few prominent ways to monitor the financial performance
of an organisation are discussed as under: Preparations of funds and cash flow statements: These statements plays an important
role in the reports of business which provide information regarding the liquid cash which
come into business. For this, there are many receivables which are pronounced as
revenues in balance sheet but after the close analysis it is revealed that there are only few
way to be converted into hard currency and because of this, business can run with the
suitable earnings and not the imaginary ones. Analysis of marketing expenses: This report or section depicts the expense or money is
spend on promotion and advertising. For this, the returns justify the expenses on the
unwanted cost for an organisation. Here, it is also analysed that how much the money is
spend on the marketing approaches. For this, various questions are answered in order to
evaluate the financial performance of business.
 Competitive analysis: Financial indicators of an organisation are need to be compared
with those competitors which are considered to be fare. For this, their competitors are
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capable enough to control the cost and also increases the revenues in various ways which
are related with the competition of business and company. For this , there is a
requirement of quick learning and need to catch up with remaining industry.
P2 Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger
The accounting process helps in the recording of business transaction which are recorded
in the ledger books and Double entry books of accounts of the company. These books keeps
record for the debit and credit for the transactions of organisations. The application of
bookkeeping in both the segments with relation to Velvet Drinks with the context of real facts
and figures.
Sales account
Particulars Amount Particulars Amount
To balance b/d 7500 By bank account 5000
By Mr. Joey account 2500
Total 7500 Total 7500
Purchases account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Mr. Joey account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
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Ms. Rachel account
Particulars Amount Particulars Amount
To balance b/d 500 By bank account 500
Total 500 Total 500
Bank account
Particulars Amount Particulars Amount
To Sales account 7500 By Purchases account 6500
By balance b/d 1000
Total 7500 Total 7500
P3. Prepare trail balance to complete the ledger
Trial balance can be referred to as the integration of general ledger accounts constituted
in the business ledger. This list consists of the names of nominal ledger accounts and their
respective values. Following trail balance represent the balances of above given ledger accounts:
Particulars Amount Particulars Amount
bank account 1000 sales account 7500
purchases account 6500
Total 7500 Total 7500
P4 Review the different stages of HR applied to the specific hospitality job role and their
importances for retaining and employee talent development
The Human resources of an organisation involves all those factors which are responsible
for managing the work force of the company. The life cycle of a job and its characteristics within
the organisation are determined by the HR management. Thus the whole life cycle of HR is
dedicated to the job roles, the retaining and effective survival of an employee and the major
element required for the growth of talent and skills of existing people of company. In relation to
Velvet Drinks the life cycle of HR engages the management in to various stages from a job role
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opening to the selection and skill development of each particular candidate. Here the respective
job is introduced for the position of Front office manager. This will include the recruitment and
selection, on boarding and orientation, exit and transition as the whole life stages of this job role.
Recruitment and selection – The process for getting the right candidate on the post of
front office manager in to the company will be done through recruitment and selection. It is the
foremost stage in human resource. The recruitment will be performed by calling out the potential
candidates through various online and offline channels and choosing them for selection to
further rounds of interview and assessments. The selection process will include the identification
of suitable candidate for the job and qualifying those job aspirants who can prove themselves as
an efficient asset to the organisation. The hr manager of Velvet Drinks will use the external force
of recruitment and selection process for the following job role.
On boarding and orientation – The on boarding process in hr is used to retain new
candidates for the determined period of time. Thus the orientation of new employees is
considered as the introduction and first interaction with the internal environment of the
respective enterprise. It is performed to make sure about the positive environment of the
company as well as to build effective relationship with the new and potential employees. The
people of Velvet Drinks are generally enforced to be in the training period for the beginning 30
days. This helps them to understand and to be comfortable with the culture and environment of
organisation.
Exit and transition – This is considered as the last stage of the Job role of an employee,
due to the exit of the current employee from the company. This process of human resource is
performed in two factors first is exit which referred to the permanent termination of the work and
the second is transition where the employee either gets a temporary dismiss from their duty or
get posted somewhere else in different department or location. This process results in high
demotivation in existing co workers. Thus the situations like this in Velvet Drinks should be
analysed efficiently and management should emphasise on the lesser exit and transition of the
existing workforce.
P5 The performance management plan for the job role of front office manager in the Velvet
Drinks
The performance management plan is essential for enhancing the capabilities of the
organisation people to perform better and handle the adverse conditions. This process is used as
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a tool for the effective future performances, thus the hard elements of the process gets evaluated
by the management plan for performance in Velvet Drinks. The certain measures are taken by
the respective manager in respect of enhancing the quality work and solving the issues regarding
work.
Scene 1:
Manager: I m noticing Mr. Jack is not behaving properly with other subordinates, since
they have been observed on the front office, even a customer has complained about their
responsiveness .
Employee: you are absolutely right sir, even I hear them yesterday, talking in an ill
mannered tone with the bar tender .
Manager: Are you aware about the reason behind their bad behaviour?
Employee: Yes sir, I had a conversation with him in the morning and he seems to be
frustrated with the extensive work pressure.
Manager: Do you know how to correct this?
Employee: Yes sir, I do have one solution for this and its about hiring new people in his
team so he can divide his heavy work load accordingly.
Manager: Thank you Sam for this solution I will discuss about it with higher
management.
Scene 2:
Manager: From past 1 month I have been observing regular delayed arrivals of Jack
Employee: Yes sir, I have also seen him coming late.
Manager: Is there anything you know about this indiscipline of him ?
Employee: Yes sir, he shifted his accommodation to a new place and the transportation
services from there are very less.
Manager: What actions we can take to reduce this unpunctuality?
Employee: We should have to monitor him strictly and give him necessary warnings
Manager: Alright Sam this sounds like perfect idea. We can give him strict notice period
of 10 days to come on time, if he wouldn't be punctual in the 10 days we will then ask him for
the resignation.
Employee: Yes sir this will be suitable to cure this situation.
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P6. Specific legislation adhere within hospitality organisations
The smooth and effective working of the respective venture Velvet Drinks, it is necessary
to follow the certain rules and regulations that are mentioned in the law and constitution. These
legislations are mentioned as below:-
Food Act 1997: This act states on the fact to provide the fresh and quality graded food
products to the customers and using the quality ingredients in a hygienic environment while
preparing the food. Thus it is necessary for the Velvet Drink's management to oblige such laws
and legislation to work efficiently without any barrier.
Liquor Control Act 1987: In this act all the beverage offerings are affected in certain
manner. As this act is imposed to monitor and control the alcoholic use in beverage providing
industry. As the Velvet Drinks offers shakes, soft drinks, smoothies and all kinds of non
alcoholic drinks this law does not act as a barrier in the services oand food of the respective
organisations.
This is a regulation for the food and beverage sector that they have to comply with all the
respective laws and legislations for effective and ethical way to do the business. As these laws
are designed to support the growth of business and ensuring the good conditions of the society. It
is essential for a growing food service organisation like Velvet Drinks to practice and perform
their operations within the regulatory frame work of legislations which are implemented by the
government and higher legal bodies of the respective nation.
P7 Illustrate how company employment and contract law has a potential impact upon business
decision making in hospitality
Application and implementation of the laws helps in performing the business more
effectively and hassle free. The legislations and rules which effects the decision making of the
business is generally based on the three important pillars of operations which are the
company,employee and contract .
 Company Law:- The company law is all about the standards of the work within the
organisation and to mange the efficient code of conduct. The decision making process of
managements within the Velvet Drinks is evaluated and practised under the rules and
policies of the company's law. The effective regulation which promotes the operational
success of the organisation such as the food processing units, paying respective taxes on
the time.
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 Employment Law:- The law of employment undertakes the important factors of the
employee and employer. This legislation is enforced to build effective relation ship
between the employee and the organisation. The Velvet Drink is obliged to comply with
all the employment laws while hiring a personnel and putting the person onto the
preferred job.
 Contract Law:- This law is comprised of the certain agreement and legal statements
which takes place within the organisation for all the deals and operations with the
external factors. The contract law is imposed to maintain the transparency and ethical
code of conduct among all the stake holder of the company.
P8 Different functional roles within the hospitality sector interrelate with all other departments.
The different departments have their respective responsibilities and roles which are
needed to be performed by them to make the operations of organisation more effective and
efficient. These functions of hospitality sector are practised by strategic approaches in a way to
achieve the goals and objectives of the company, the interrelation of these factors with different
departments are as follows:
Front office and housekeeping department:- the connection of housekeeping and front
office has an ultimate bondings, which is necessary to maintain a proper amount of coordination
and control with each other as most of the functions of front office such as customer queries,
picking - dropping and providing other services are directly connected with the house keeping as
the staff of housekeeping will assist the consumers in further process.
Human resource and Food & beverages department:- The HRM within the
organisation has a work to select and hire new candidates and creating a balance equation of
work force within the organisation. Thus the department of food and beverage has a duty to
provide the raw ingredients, preparing the standard food dishes. All those function need a
specialist in the cooking segment. Thus the hiring of new chefs, waiters, getting the new
equipments for monitoring the workers. Thus all are the important functions of HR and that's
how all the functions inter relate to these departments.
Production and Marketing department:- The marketing manager of the respective
organisation can not market the goods which are not manufactured, and the production manager
can not produce new units of the products if the marketing manager does not increases the sales
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and marketing of the particular product thus how with this instance the interrelation among both
the departments gets a clear image of effective dependence of both the factors on each other.
P9 Different methods of communication, coordination and monitoring within hospitality
organisation
In the hospitality sector there are majorly 3 factors as communication, coordination and
monitoring. These factors are needed to be managed effectively in order to get the efficient
outcome from the operations. The good communication among employees helps in setting up of
effective coordination and the coordination between all the working levels of the organisation
helps in achieving the growth standards of the company which are determined by the vision ,
mission and goals of it which are as follows:
Vision – To become the top cafe chain in the hospitality sector of United Kingdoms
Mission – To provide the efficient food and beverage services and scale up the production and
marketing in the respective market place
Goal – The goal is to get the maximum value in profitability while providing the best in quality
services and offering standard food and beverages.
The methods of these factors can be used by the management of Velvet Drink to
strengthen the operational factors within its value chain.
Communication:- it is an effective process of exchanging thoughts, ideas and guidelines
within the organisation at every respective department on their operational level. The formal
communication channel is followed within the organisation and that is performed by using the
methods such as:
 Email:- It is a kind of online written communication which is used by the managers to
communicate with the other departments as well as with their subordinates to get the
quick information regarding the query or to generate the information all by them selves.
 Meetings:- the use of meeting is the most formative way of communication in meeting
mostly a manager presents the idea and plan and other people discuss about it and give
their opinions on certain topic.
Coordination:- the overall process of synchronising of each and every factor of the
company to work together in a desired way is know as the coordination. The coordination in
Velvet Drinks is attained by these methods:
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 Sound planning:- This method is extensively used at velvet drinks where ever action is
fixed by the time and assigned criteria this takes help by doing effective planning of
functions.
 Effective communication:- this is the another method of coordination where it is
attained by motivating the other employees by the certain gestures and ideas of the
manager within the organisation.
Monitoring:- the observation and continuous checking of the respective task process,
staff , department or any element which is used to enhance the quality and profitability of the
organisation. :
Formal survey:- This strategy is used by the velvet drinks in order to perform the
effective monitoring on the marketing level. Getting aware of the opinions of consumer of the
organisation helps in modifying the changes which tends to the growth and effective capturing of
the market. Noting the feedback, taking reviews of consumers helps efficiently to do the
monitoring.
CONCLUSION
On the basis of discussion done in the above report, it can be analysed that companies
which carry out operations within the confines of hospitality sector are required to execute the
stages of HR life cycle. This provides aid in recruiting skilled and proficient employees which
can help in achievement of business goals in due course of time. Apart from this, communication
aids the manager in setting networking with employees pertaining to an organisation.
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