Principles of Monitoring and Managing Financial Performance in Hospitality Sector

This document provides an in-depth analysis of the principles of monitoring and managing financial performance in the hospitality sector. It covers topics such as inventory records, cash flow statements, trial balance, HR life cycle, specific legislations, and the impact of employment and contract law on business decision making. The document offers valuable insights for students studying hospitality management.

HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
TASK 1............................................................................................................................................4
P1. Investigation of principles of monitoring and managing financial performance.................4
P2. Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..................................................................................6
P3. Produce a basic trial balance applying the use of the balance off rule to complete the
ledger...........................................................................................................................................6
TASK 2............................................................................................................................................7
P4. Review various stages of HR life cycle that apply to a specific hospitality job role & its
importance for developing and retaining of talent......................................................................7
P5. Development a performance management plan ..................................................................8
TASK 3..........................................................................................................................................10
P6. Identify specific legislations that a hospitality organisation has to comply.......................10
P7. Describe that how company employment and contract law has a potential impact on the
business decision making..........................................................................................................11
TASK 4..........................................................................................................................................12
COVERED IN PPT...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Hospitality sector is one of fastest growing sector of business which consist of
departments of foods & beverages, lodging, accommodation etc. success of business is depend
on leisure time and activities. This department must have basic understanding of various
activities and linking together. In this report a new drinks and salads outlet named as “Healthy
life”. This is a new outlet that is based on changing preferences of people towards healthy
lifestyle instead of junk and fast foods (AWADALLAH, and SAAD, ., 2018). It is very
important to develop a basic understanding of principles of managing financial performance with
helps of trial balance, double entry system, review of different stages of HR cycle, specific
legislations for hospitality organisations, laws related to employment contract. Further there is
explanation of roles of hospitality sector and methods of coordination, communication &
monitoring applied in a organisation.
TASK 1
P1. Investigation of principles of monitoring and managing financial performance
To evaluate performance of business organisation there are many critical aspects that
have to be considered by a organisation in hospitality sector (Banoobhai-Anwar,2016). There are
different ways of monitoring & managing the overall financial performance of present
organisation as focused below:
Preparation of inventory records: Keeping adequate records of inventory is very
important for business in tracking of overall wastage of resources as it leads to pile up of stock. It
also assist in disclosing requirements of raw materials and calculation of input & output ratios.
Preparation of cash glow statements: Cash glow statements are most essential part of
every business organisation as they are type of liquid assets available with business. They are
useful in making justification between notional earnings & actual earnings for a organisation.
Various business transactions in case of Healthy life:

Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420

P2. Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger
Double entry system is very useful for business transactions in two accounts (Conlon,
2018). This is a system which requires that all business transaction has a impact on two sides of
financial statement that debt & credit side. Basic principles of atrial balance are discussed below:
 Records of books-keeping have to be prepared in a way such that it includes various
income statements such as transactions. It is also very helpful in making transactions not
received, immediate payments, book keeping systems.
 Trail balance is prepared at the end of year, here all business accounts are finally closed
and carried forwards to the next year this process is called balancing off. Main purpose of
balance off is to used the information that is added on journals and ledger.
P3. Produce a basic trial balance applying the use of the balance off rule to complete the ledger
Trial balance consist if ledger list in a business. List consist of name & value of each
nominal ledger accounts (Fakir and Ahmed, 2017). Each ledger account will hold credit and
debit balance. In relation with Healthy life below mentioned is the trial balance:

TASK 2
P4. Review various stages of HR life cycle that apply to a specific hospitality job role & its
importance for developing and retaining of talent
Considering all various stages of business, Human resource has to address lief cycle that include
various employment stages and also face these challenges that arise on course of managing of
employees, in context of Healthy life, different stages of human resource cycle is discussed
below:
Attraction: This is first stage of this cycle where HR manager is working on food &
beverage organisation. Managers are working towards hiring of skilled employees (Gamma,
2016). It is very important to attract competent people so that restaurant can have skilled
workforce.
Recruitment: This function is related with having right employee who can contribute
towards effective preforming of all the functions. Manager in Healthy life has made various
benefit and compensation policies for their prospective employees.
On boarding: This process is having relation with introduction of new employees in
business environment. It is a type of orientation programs for new employees in every
organisation. In healthy life, manager ensures that this function is performed in a healthy life.
Entablement: this is the stage where HR has the responsibility of describing overall
procedure of recruiting of employees and introduction them to the workplace. This session is
very important in making employees develop an understanding of culture, value, mission &
overall vision of the restaurant. In present case, orientation is conducted as a conference where
information is conveyed to newly hired employees (Ionel, 2016).
Development : At this stage managers of restaurant have the responsibility of career
development of working staff in the organisation. In Healthy life, various career development
sessions are started by managers for increasing level of employee involvement & engagement
(JENEFA, 2019).
Separation: This is last stage in the whole HR cycle where all functions are for
attainment of success. Various employees are working in different department in Healthy life for
attainment of objectives of organisation.

P5. Development a performance management plan
Performance development plan is very useful in improvement of overall skills and quality
of individuals working in a particular restaurant. In case of Healthy life it can be said that
performance development plan is very useful on understanding projected growth of a employee.
A sample performance development plan is mentioned below:
Job role Time
period
Development
focus
Development
strength
Developmen
t needs
Development
Action
Time
Durati
on
Experienc
ed Middle
level
managers
Jan 2020-
Feb 2020
Improvement
of overall
effectiveness
in present job
role &
preparing
them for
senior leader
position. and
preparing for
potential
senior
leadership role
Skills of
Problem
solving and of
Functional
expertise
Improvement
in the overall
ability to
lead and
manage
change
having
expertise in
performing
cross
functional
operations.
Manager has to
speak to
amanetgsr
regarding
varioyus issues
for leveraging of
their stregtn and
helping them in
gaining of
expertise.
10
days
First level
manager
Jan 2020-
March
2020
development
of new
employee and
assigning them
new brand
role
Ability of
Project
management
for driving
success
mentoring all
the team
members
Working wih
every team
meebrs fir
creation of plan.
Maanager has to
parctsie for
lsitening of
skills and taking
10
days

communicatio
n skills
regular
feedbacks.
Food &
beverage
manager
March
2020-
April
2020
Experienced
manager
who is able to
handle teams
in a effective
manner
Good
management
skills
Providing
services of
food and
beverage
effectively
Providing
guidance to
their
workers in
effective
manner
Guiding &
helping all the
workers for
providing them
best services to
customers.
15
days

Recommendations:
Improvement in working of individuals in the organisation can be achieved management
of activities. There is requirement of continuous management of teams to provide better services
to customers. At every stage of project development plan there is requirement of skills of
managers for providing better services to their customers (Jones, Hillier and Comfort, 2016).
TASK 3
P6. Identify specific legislations that a hospitality organisation has to comply
There are various legislations that have to be fulfilled by Healthy life for proper
operation's in hospitality industry (Korstanje, Raj and Griffin,eds., 2018). It is very necessary for
companies to adopt some rules that are developed by government for smooth conducting of
business functions. There is requirement that various safety & security measures are taken for
ensuring security of customers & all the related stakeholders. Healthy drinks have to adhere to
below discussed laws:
Food Act 1990- This is a act which is very significant for companies to adopt this cat for
developing their food products according to customer requirements. They offer various
guidelines that have to be implemented by all outlets functioning in the industry (Malapane,
2019). In case of Healthy life, it becomes crucial for them to follow them for long term survival
in the market and also for having health & safety of their customers who will ultimately
consuming their products.
Equality Act, 2010- According to this act it is very important for all the working staff of
the organisation must be given equal treatment. There is a need that no discriminatory policies
based on gender, religion, culture, caste, colour, sex is being practised by top management in the
organisation. In case of Healthy life if such type of discriminating policies are followed then it
might posses a negative impact on mentality of employees. Also, if any is making complaint
regarding prevalence of such practise then it will lead to huge fines & penalties being paid by
healthy life.

Liquor control act 2003: This is act which has been established for the purpose of
controlling of sale & consumption of liquor by people. This is act which has been introduced for
purpose of eliminating the misused of alcohol (Mazikana,2019Morris, 2019). It basically
represent all companies that are offering alcohol to people, it is very essential for customer to
posse knowledge about what they are drinking in a particular drink. In case of Healthy life also,
it becomes very essential for this brand to make sure that they are mentioning in detail all the
ingredients which is being used in their particular drink. This is going to eradicate their
customers about overall benefit and nutritional capacity they are consuming in a drink.
Health and Safety Work Act, 1974- This act is related to safety of all individuals
working in organisational it is the responsibility of department managers to maintain safety &
security if employees, customers and all associated stakeholders. In case of Healthy life,
managers have made adequate attempts to keep safety equipments which will be provided by
managers such as fire extinguisher, gloves for washing of dishes, gloves for freezer, proper
knives and equipments, etc. it is make suer that all the staff members & employees are feeling
safe while they are working in the outlet Healthy life (Oduori, 2017).
Minimum Wages Act, 1998: According to this act companies must hire employees and
they should fulfil the criteria of minimum wages as mentioned in this act. These criteria are fixed
by government while they are enacting this cat based on taking into consideration various factors
such as age of employee, their level of work, working hours and many such related criteria. In
Healthy life, employees who belong to age group of 25 or more than that must be paid 7.80
hourly basis. Employees of age group 18 to 20 must be paid 5.90 and between 21-24 should be
paid 7.30 per hour. If any organisation is not following this criteria then they have to pay heavy
penalties. For a new organisation such as healthy life there can be a negative impact on their
brand image in the market and it will posses impact on long term survival of the organisation.
P7. Describe that how company employment and contract law has a potential impact on the
business decision making
It is very important for all companies to consider all the rules and regulation that can help
in making timely business decision. In case of Healthy life there are certain decisions that have
to be taken in order to attain various business objectives. Decision making is very important part
of all business functions which affect functioning of Healthy life. Companies are affected by

various laws related to employment and contract laws that posses huge impact on maintenance of
overall profitability & productivity in a organisation.
Employment laws: Employees in every organisation are one of the most important
stakeholders as they help in achievement of objectives. Various decision are based on these
employment laws which ave to be compulsorily adhered in every organisation. These acts are in
consideration with expectation and demands of employees. For achieving overall objectives it so
very necessary to consider meeds of employees so that a satisfied workforce can make required
contribution towards achievement of organisational objectives (Su, Pan, and Chen, 2017).
Company laws: Company laws are affecting al the decisions of organisation at every
stage and of every department all the policies and rules in organisation are made after
consideration to these laws. It is very necessary for Healthy life to make suer that all such laws
are properly followed so that company does not has to face any serious implications of non
compliance. Company law is very useful in development of various participles affecting
functioning of organisation.
Contract laws: There are different types of laws that posses impact on overall decision
making process. Contract law is related to various type of contracts that are taking place in the
regular functioning of a organisation. All such contracts are regulated by various laws present in
contract law. Various different contracts such as contact with suppliers, employees etc. are made
and are very crucial for effective functioning of Healthy lief. All such contract have to be made
only after adequate consideration is being done to provisions present in contract law.
TASK 4
COVERED IN PPT

CONCLUSION
Considering the above mentioned report, it is summarised that HR life cycle mainly plays
an effective role for every single business organisation as it helps in managing the talent in much
effective and in efficient manner. Including this, it is also summarised that all the different weak
points like skills and more are effectively managed with the help of performance management
plan. Away with this, it consists of a number of legislations and laws that may lead firm to take
appropriate decisions in specified time frame. Away with this, it is also summarised that various
effective roles within hospitality sector helps company to enhance the communication and
coordination in an effective and in efficient manner as well.

REFERENCES
Books and Journals
AWADALLAH, N. and SAAD, S.G., 2018. E-Procurement as a new trend in Hospitality
Industry: A descriptive study in Egyptian Hotels. Astra Salvensis.
Banoobhai-Anwar, I., 2016. The role of e-commerce in five-star hotels in the Cape Town
Metropole (Doctoral dissertation, Cape Peninsula University of Technology).
Conlon, K., 2018. An examination of the factors which influence a positive customer experience
within the Irish hospitality industry (Doctoral dissertation, Dublin, National College of
Ireland).
Fakir, J. and Ahmed, R., 2017. The Opportunities of Career Development in Tourism Industry in
Bangladesh. Journal of Business Studies Quarterly, 8(4).
Gamma, K., 2016. Behavioral and Attitudinal Customer Loyalty in the Power Sector. Zeitschrift
für Energiewirtschaft, 40(4), pp.211-232.
Ionel, M., 2016. Hospitality industry. Ovidius University Annals: Economic Sciences
Series, 1(1), pp.187-191.
JENEFA, L., 2019. A BRAND REPUTATION A MILESTONE! USING E-WOM
MARKETING. Global Journal of Product and Brand Management, 1(1).
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality
industry. International Journal of Contemporary Hospitality Management, 28(1),
pp.36-67.
Korstanje, M.E., Raj, R. and Griffin, K. eds., 2018. Risk and Safety Challenges for Religious
Tourism and Events. CABI.
Malapane, T.A., 2019, April. A Risk Analysis of E-Commerce: A Case of South African Online
Shopping Space. In 2019 Systems and Information Engineering Design Symposium
(SIEDS) (pp. 1-6). IEEE.
Mazikana, A.T., 2019. The Impact of E-Commerce on Brand Awareness and Brand Promotion
of the Zimbabwe Tourism and Hospitality Sector. Available at SSRN 3502523.
Morris, J.A., 2019. Honduras: Caudillo politics and military rulers. Routledge.
Oduori, F.N., 2017. New service development strategy and process: considering concepts from
financial sector in an analysis of the hospitality sector in Kenya (Doctoral dissertation,
Stellenbosch: Stellenbosch University).
Su, L., Pan, Y. and Chen, X., 2017. Corporate social responsibility: Findings from the Chinese
hospitality industry. Journal of retailing and consumer services, 34, pp.240-247.