The Hospitality Business Toolkit

This document discusses the importance of financial principles, human resources strategies, and legal and ethical considerations in the hospitality sector. It explores the management of the HR life cycle and the potential impact of laws on a hospitality business. The document also provides insights into the Sunshine restaurant, its financial management principles, and the preparation of a performance management plan. It concludes with a discussion on the impact of legal and ethical considerations on decision making in the hospitality industry.

The Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Importance of financial principle to manage and reduce cost in hospitality sector....................1
To match balances of accounts and to reduces chances of errors managers prepare trial
balances to maintain their accounts. ...........................................................................................2
TASK 2............................................................................................................................................3
Managing Human Resources life cycle within the context of HR strategy of the hospitality
business toolkit............................................................................................................................3
TASK 3...........................................................................................................................................6
The potential impact of legal and ethical considerations on a hospitality business...................6
TASK 4............................................................................................................................................6
Covered in PPT...........................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Hospitality is a sector of business in which individual provide various services to their
target market customers. At present time companies attain benefits by incorporating hospitality
business. In order to understand the concept of hospitality Sunshine restaurant has been taken
Sunshine restaurant is situated in London and running hospitality business in market area.
Business entity is established to provides healthy salad, juices and other services to their
potential customers. In this report essential requirements of financial principle importance of
human resources strategies in running hospitality business has been covered. Requirement of
various communication tools for better coordination and necessity of laws in incorporation of
business has been identifies.
TASK 1
Importance of financial principle to manage and reduce cost in hospitality sector.
Finance is a term which is used to manage monetary values of particular entities.
Financial transactions are the collection and recording of data which is related to monetary term .
For properly run business in competitive environment managers need to maintain proper
accounting records to run this organization efficiently. Manager uses vouchers, bills, receipts, to
record data of daily business transaction. They follow systematic process of recording
transactions, they use software which help in analysing, collecting summarizing and recording
transactions (Yusupova and Pozdeeva, 2018).
To proper allocation of business resources managers specific principle of finance. These are
mention below:
 Principle of time value: This principle use to identify value of money in present and
future business transaction. Sunshine restaurant apply this principle as they believe that
present value of money is more valuable and worthy then future money.
 Risk and return: This principle based on the rule , the more risky project they invest the
higher rate of return they earn and vice versa. Sunshine entity invest in risky as well as
secure projects according to the situation and availability of financial capital (JuneYan,
and Subramanian, 2018)
Following are the principles follow by business organization to record transaction:
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Manager of Sunshine restaurant uses double entry system to record their data for this
purpose they apply these principles:
 Principle of dual effect: This principle states that every transaction has put two sided
effect. Every debit side transaction create credit on other parties ledger and vice versa.
 Separate entity: This principle states that business entity is different from their owner, it
has its own account , ledger in accounting system( Maddeaux, 2019).
To match balances of accounts and to reduces chances of errors managers prepare trial balances
to maintain their accounts.
Steps of preparation of trail balance:
 Preparation of journal , collection and recording of transactions.
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 In this step ledger has been prepared by accountants.
 In next step statement of trial balance has been prepared and balance of each ledger
account has been recorded in debited and credited side.
 In last step balance of debit ad credit side are identified if both side are equal it defines
there will be no error and if balance are mismanaged then error find out and method of
error deduction are used to maintain the level of debit and credit side
(Fotiadis ,Mombeuil and Valek,2018)
Organisation uses marginal costing method to identify cost and profit.
Statement of marginal costing
Particular Amount £1000 @ 100 per
unit
Amount
Sales 100 100000
- Variable cost ( 30%) 30 30000
Contribution 70 70000
- Fixed cost 50000 50000
Net profit 20000 20000
Importance of accurate record transaction:
Accurate recorded transactions refers as transactions and data collected from various
sources must be reliable and correct and accurate. As accurate data help in reducing wastage time
of collecting and maintaining records of data. It is essential principle of accounting system which
every organisation needs to apply for their daily transaction process. Manager of Sunshine
restaurant use to emphasis their subordinated to collect data in accurate from as this will help
item to identify services which help in increasing their profit. It will help business in keeping
records and data which uses as source of proof during auditing process.
Conclusion
Hospitality business is related with providing services related to food, travelling, soft
drinks, event planing ,advisory services related to tourism etc. To successfully run business in
market lace they need to apply financial management principles and prepare strategies related to
systematic process of accounting of transactions. This will help in collection of data in a
systematic way which help in growth of running organisation.
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TASK 2
Managing Human Resources life cycle within the context of HR strategy of the hospitality
business toolkit
Human resources are the most essential resources of an organisation. Success of an organisation
depends on how effectively business entities hiring their workforce. In hospitality business
organisations HR strategies play vital role as customers get attracted by with quality of products
and services provided by business entities. Specially in case of hotels, restaurants business, as
these business only run their entity in HR life cycle included 5 stages. Each employee passes all
stages of employee life cycles. Managers prepare policies and strategies influences their
workforce after analysing stages of their employers life cycle. Stages of HR life cycle are
describe as follows:
 Recruitment: It is the first stage of human resource life cycle, at this stage managers hire
new individuals to there organization. To hire best employee for Sunshine restaurant ,
manager select specific application and then conduct interview and technical test of their
skills of making and serving foods to customers (Mita, A., 2016).
 On boarding: At this stage business entities introduced their new joineries with entire
team. It is essential part of each employees life cycle. At this stage employees make
social relationship with their managers and team members which help them in increase
team spirit and quality of work of the employees. Manager of Sunshine restaurant uses to
plans event and induction function to new employees which help in enhancing work
performance and quality and services to customers.
 Development: At this stage employees get comfortable with organization environment.
Manages conduct various training programs to enhance skills oft their employees. It is
essential process of any food and beverage industries as with the changes of time
customers references changes specials in food items. Manager of Sunshine restaurant
after analysing market conditions ,conducts various campaign and training program
which help their workers to learn new food items and they get influence to invent new
food and drinks items which attract customer (Liu, and Pennington-Gray, 2015).
 Retention and exit: It is the last stage of human resource life cycle. At this stage
employee wants to change their job due to various reasons. They may have salaries
issue , job designation and others. In Sunshine restaurant ratio of employee turnover is
not so high still workers and employers exit with job as they find better job designation
and salary compare to there present organisation.
To optimum utilization of human resources of Sunshine restaurant manager of this entity used to
prepare performance management plan which will help there department to control and evaluate
performance of employees
Performance Management Plan
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It is a systematic process which helps managers to enhance performance level of their workforce
by which organisation can achieve their goals. Following are the steps of preparation of
performance management (Poddubnaya and Shipilov,2019).
Identification of
issues
Involvement of
employees
Set clear goal Training
programme
Review of
performance
It is the first step
of preparation of
plan. Managers
firstly identify
causes and issues
of low
performance of
employees.
After
identification of
causes , managers
conduct meeting
and ask with their
employers
receives to solve
out various ways
of overcome
problems.
In this step
managers set
target to to each
employees and
department
overall.
At this point
mangers prepare a
report of those
activities and
campaign which
help in increasing
skills of
workforce of the
organization.
After planning all
essential steps of
performance
management plan
at this step
managers decided
to analysis work
performance of
their employees
they review and
compare
differences
between act and
target market
performance and
then implement
policies which
help in reducing
target and actual
performance.
valid judgments and recommendations on how processes and documents at each stage of the HR
life cycle can be improved using examples (Spillane, 2017).
HR life cycle play important role in an running business organization. To improve
performance of human resources of organizations, manager will be uses various strategies which
help in controlling turnover ratio of employees and maintaining coordination among employees
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for this purpose they need to provide promotion, incentive, bonus policies, personal
recommendations which help in enhancing and motivation workforce of the organization
(Wagemann,Buche, and Siewert, 2016.).
TASK 3
The potential impact of legal and ethical considerations on a hospitality business
Sunshine restaurant run their business in London. To frequently run their business
organization they need to follow ethical and legal rules implemented by government of United
Kingdom. The organization implement their policies according to following laws:
Minimum Wages Act 1998: This act was implemented to provides minimum wages of
workers of an particular business entity. As per these laws every worker is in titled to get
minimum remuneration. Manager of Sunshine restaurant give remuneration to their workers
regarding these laws. It will help in solving conflicts related to remuneration among workers
(Zopiatis, and Theocharous, 2018).
Income and Corporation Act 1970 This act were be implemented on 1970. Government
implies carious rules and legal polices by which they impose tax liability on various entities and
individuals. Manager of Sunshine restaurant pay their tax liability and different tax regarding
society and welfare tax according to the mention in these laws.
Impact of various law on decision making of an organization:
 Contract law: Main purpose of enforcement of this law is to reduces conflicts arising
between vendors and customers regarding their services. This act will define each and
every elements methods and process of trading transactions. Manager of Sunshine take
decision after considering all the rues and regulations implemented regarding this act as
formulated policies regarding trading.
 Company law: This act play essential role in decision making process as mangers of
Sunshine restaurant prepare strategies and policies as per their laws. Even organization
incorporated there business as company by applying all the process and submission of
documents regarding this law (Yan and Subramanian, 2018,).
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From the above analysis it has been identified that legal and ethical rights pay essential par of an
organization as managers prepare all plans and policies after considering ethical and various
legal acts.
TASK 4
Covered in PPT
CONCLUSION
From the above analysis it has been concluded that individuals invest their capital in
hospitality sector as these industries are more profitable in compare to others. Hospitality sector
includes various services. Food and beverage is one of the most popular business in hospitality
sector. Individuals process food and drinks services to their potential customers. In order to
achieve sustainable competitive advantage among rivalry industry, food and beverage industries
needs to implement financial policies and principle in their daily routine business. They also
needs to uses human resources strategies to influence their workforce regarding work .To
maintain goodwill in market place organization need to follow riles and regulation of various
laws.
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REFRENCES
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accounting information systems on the performance of Mexican micro, small and
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Plan'. The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality.
Emerald Publishing Limited, pp.297-311.
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Research Project and East Midlands Oral History Archive. Archives and Records, 40(3),
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Quarterly, 33(4), pp.464-466.
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26.
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American Library Association Annual Conference. Orlando, June 2016. Technical
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Wagemann, C., Buche, J. and Siewert, M.B., 2016. QCA and business research: Work in
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Yan, L.X. and Subramanian, P., 2018, June. A Review on Exploiting Social Media Analytics for
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Communication Technology (pp. 331-342). Springer, Cham.
Yusupova, S. and Pozdeeva, S., 2018, June. Controlling the functioning of the hotel business.
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