The Hospitality Business Toolkit

This toolkit provides information on the functioning of a hospitality business, including financial transactions, HR life cycle, and legislations. It covers topics such as managing financial performance, double entry bookkeeping, talent acquisition and retention, and compliance with specific legislations. The toolkit is designed to help students and professionals in the hospitality industry.

The Hospitality Business
Toolkit

Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Introduction to the financial transactions.....................................................................................1
Principles of managing and monitoring financial performance...................................................1
Principles of double entry bookkeeping system..........................................................................2
Producing a basic Trial balance...................................................................................................2
Analysing types of cost................................................................................................................3
Importance of accurate recording of transactions........................................................................3
Conclusion...................................................................................................................................3
ACTIVITY 2....................................................................................................................................4
Review of the different stages of the HR life cycle as applied to issues in talent acquisition and
retention.......................................................................................................................................4
Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent.......................................................................................................................4
Develop a performance management plan...................................................................................5
Recommendations........................................................................................................................6
ACTIVITY 3....................................................................................................................................6
Identify specific legislation(s) that hospitality organisations have to comply and adhere to, in
the daily transaction of business using examples to explain where applicable...........................6
Impact of company’s employment and contract law...................................................................7
Critically reflect on the impact of ethical issues..........................................................................7
ACTIVITY 4....................................................................................................................................7
Different functional roles within the hospitality sector and their interrelations with the helps of
organization chart.........................................................................................................................7
Several communication methods and levels used in organization...............................................8
A review of integration and coordination within the firm using examples.................................9
Effectiveness of several communication methods, monitoring and integration within the
particular department that could help to gain organizational objectives.....................................9
Recommendations and judgment on how coordination and integration increase overall
performance of business............................................................................................................10

CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
A hospitality business is a broad category of service industry in which business such as
accommodation, travel, food and beverages and others are included. The main aim of this report
is to build an understanding about the functioning of such business. For this purpose, an
organisation is considered which is Mr. Juicy (Ariza-Montes and et.al., 2017). This organisation
deals in producing and serving healthy salads, blended juices and smoothies. This organisation is
aiming to produce alternative products which are alcoholic spirits. The present report includes
the financial overview of this organisation along with HR life cycle of this company. At last,
various legislations are also analysed in this report which impacts an organisation.
ACTIVITY 1
It is important for every organisation to manage and control their finances so that they can
minimise their costs and can control the cash flows for this various financial statements are
prepared. Below task will overlook the various financial requirements and methods by which
those needs can be fulfilled.
Introduction to the financial transactions
In Mr. Juicy, financial accounts are developed for the purpose of gaining the advantage of
minimised expenses. This company follows the source documents of regular receipts and
vouchers which are collected while procuring the raw materials and selling the products. Apart
from this, the recording process of this company includes yearly report making. From these
reports and processes, it has been identified that Mr. Juicy’s financial transactions includes
procuring weekly raw materials from suppliers, yearly rent, daily sales revenue, wages to labours
and acquisition of equipment (Bergene, Boluk and Buckley, 2015).
Principles of managing and monitoring financial performance
There are various principles which can be used to manage and monitor the financial
performance, some of them in context of Mr. Juicy’s are mentioned as follows. Monthly cash
flow budgets must be developed, all transaction must be first recoded into primary book and then
final books and revenue recognition are the principle of managing the financial performance.
Apart from this, the principle of measuring financial performance includes principle of positive
liquidity, positive cash flow, Key performance indicators, return on investment and appropriate
net profit.
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Principles of double entry bookkeeping system
There are three principles of this system including separate entity concept in which Mr
Juicy’s has a separate legal entity from its owner. The another principle is accounting equation
which states that the Assets – Liabilities = Capital. The third and last principle states that every
transaction has an impact on other transaction which is called dual effect.
Balance sheet of Mr. Juicy’s
Assets Amount Liabilities Amount
Insurance 1200 Current liabilities 15000
Current assets 52000 Fixed liabilities 54490
Fixed assets 94000 Capital: 30000
NP: 47710 77710
Total 147200 Total 147200
From the above balance sheet of this company, it is clear that all principles of
bookkeeping system are followed in this company (Aragon-Correa, Martin-Tapia and Torre-
Ruiz, 2015).
Producing a basic Trial balance
Particulars Amount Particulars Amount
Rent 1000 capital 30000
Purchases 10000 Food supplies 2000
Insurance 1200 Sales 20000
Petty expenses 200 Sales of beverages 13000
Telephone and internet 2200
rates, water charges and refuse 950
wages and salaries 1740
Net profit 47710
65000 65000
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For the production of above trail balance, first all the vouchers and receipts were
scrutinized and recoded in journal book. From which, each and every transaction was further
recoded in ledger book according to the nature of the transaction. Using those ledger accounts,
each account balance was first identified as debit or credit and then lastly, recoded in above trial
balance.
The purpose behind developing this trail balance is to verify that whether the recording
procedure is appropriately conducted or not. If the total of both the sides (credit and debit) are
equal then the recording procedure is correct and with the observation of above trial balance, it
can be effectively said that all the recording procedure of this company are appropriately
undertaken.
Analysing types of cost
There are various types of costs which occur in an organisation. In the case of Mr. Juicy
which is a small scale organisation, the company mainly has three type of costs which are
variable, semi variable and fixed costs. All these costs are the key to effectively manage financial
performance of a business. All these costs must be segregated according to their nature and then
must be paid off according to the priority by which all liquidity in the company can be
maintained which will lead towards managed financial performance of a company (Lashley,
2016).
Net profit margin example:
NP margin = NP / Sales revenue*100
= 25000/105000*100
= 23.80%
Gross profit margin example:
GP margin = GP / Sales revenue*100
= 18500/105000*100
= 17.61%
Importance of accurate recording of transactions
It is important for an organisation to align their transactions with accepted accounting
principles. Dual accounting principle is a commonly accepted accounting principle according to
which debit and credit sides must be equal. In Mr. Juicy’s if company will follow this principle
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then they will be benefitted to seek investments from other party as their records will be
appropriate.
Conclusion
Financial management and monitoring helps an organisation to effectively develop their
financial records and check their financial ability to perform in a dynamic market. In context of
Mr. Juicy, it is recommended that they should also develop management accounts along with
financial records so that their internal structure will be improved.
ACTIVITY 2
Assistant talent acquisition manager of the respected company has analysed that there is
core requirement of development and improvement in performance of employees for this have
planned review overall annual performance of the company in order to determine issue and find
adequate solutions for same. In this regard, HR has reviewed overall post of counter attendant by
making use of HR life cycle which have been stated as below in detailed manner (Bowie and
et.al., 2016).
Review of the different stages of the HR life cycle as applied to issues in talent acquisition and
retention
Like every life cycle Human resource also has their own cycle which includes range of
stages. HR life cycle of counter attendant includes recruitment and selection at the initial stage.
At this stage, at this stage HR manager makes use of good recruitment methods for attracting
pool number of candidates towards them. These people are furthered interviewed by HR
manager for selecting them as the final employee for the same company. At this stage HR faces
issues in attracting more number of candidates towards. On-boarding and orientation, this is the
second stage at which HR manager of the company focuses enhancing familiarity of employees
with the company. Here, HR conducts orientation program for new employees where they are
personally introduced with the mission vision, rules and regulation of the company. Currently,
HR of Mr. Juicy is not conducting effective orientation program for employees where they are
not getting any kind of relevant information. This ultimately weakens their connection with the
company as a result these employees does not sustain longer within the company. Exit and
transition is the last stage where employees leave the company due to any reason that might
personal or professional (Manoharan and Singal, 2017).
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Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent
At each and every stage HR manager plays a significant role which supports employees
in their growth and also retains the talented workforce within the firm.
Recruitment and selection: At this stage, HR manager of Mr. Juicy makes uses most
popular online portal from where they can bring effective workforce. This helps company in
bringing skilled workforce who will further achieve organizational goals in quicker manner.
On boarding and orientation: At this level, HR basically enhances familiarity of
employees with organizational vision mission and working pattern. This makes it easier for them
to execute their work in the near future and attain their respective department as well as
organizational goals quickly.
Exit and transition: This is last stage, where effective performance of HR manager can
contribute in retaining actual employees who are planning to exit the company in quicker
manner. It can be further said that HR manager at this stage must remain polite to their
employees, understand their issue and then provide them proposed solution for the same so that
they can get influenced and sustain longer within the company.
Develop a performance management plan
Performance management is determined as the effective process by which manager of the
company manages, aligns, coordinate their work and attain strategic objectives in quicker
manner. In order to improvise above stated issues effective performance management plan has
been stated as below:
Plan: This is the first and foremost stage where HR manager of the Mr. Juicy develops
effective plan for its workforce in which proper instructions are provided to the employees. This
directly supports employees in developing their interest towards the company. It also reduces
negative behavior of the employees like demotivate, conflicts and miscommunication. As a
result, it increases employee’s retention rate within the company (Mackay, Chipato and Thom,
2016).
Monitor: It is another stage which states that HR manager monitors that whether the
overall developed plan and strategies has been implemented within the Mr. Juicy in rightful
manner or not. This monitoring contributes in review issues as well as problems that has been
faced by employees while executing their job roles. Here, by doing monitoring effectively HR
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managers can resolve problems at the same time so which enhances their productivity in rapid
manner.
Review: At this stage, top most authorities reviews overall performance of employees.
This is most useful in reducing employees turnover as they are having effective knowledge about
their issues and problems. Thus, required actions can be taken on timely manner.
Recommendations
On the basis of overall information, it can be said that HR manager of Mr. Juicy can
easily improvise their current processes as well as documents by reviewing stated
recommendations. It advised to HR manager of Mr. Juicy to arrange some meeting sessions for
employees as well as top management team where they can easily have conversation on the
issues and barrier associated with their job. This will directly provide opportunity for employees
to discuss their issues and HR can also provide required solutions for the same. As a result, it
will help Mr. Juicy in retaining its existing workforce within te company for longer period of
time.
ACTIVITY 3
Identify specific legislation(s) that hospitality organisations have to comply and adhere to, in the
daily transaction of business using examples to explain where applicable.
Talent acquisition manager of Mr. Juicy has analyzed that there is potential requirement
of few legal regulations which is essentially required to be adhered within the industry so that
they can sustain longer within the sector for longer period of time. Some main legislation among
them are stated as below:
Health and safety act 1974: This act is mainly associated with the safety of each and
every individual at workplace who works in this sector. It is essential for the manager of Mr.
Juicy to comply with this act in order to influence interests of its employees as they will feel
secured within the Hotel. It will also influence employees to sustain longer within the company
(Williams and Horodnic, 2017).
Liquor control act 2003: This is another influential act which simply states that all
companies dealing in hospitality sector to have control over consumption of liquor as well as its
sales within the hotel. In context of Mr. Juicy, it is essential for its HR manager to comply with
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this act in order to keep themselves away from any kind of harm. This will also support them in
gaining competitive edge within the sector.
Impact of company’s employment and contract law
Employment law is the legislation which controls the organizational activities of hiring,
firing, minimum wages and many more. This law impacts the decision making of an organization
as by due to this, the company has to pay their employees minimum wages which are mentioned
in this law which can even impact their profit margins.
Contract law is an organizational legislation according to which an organization can come
in a contract with other party by fulfilling all the necessary requirements. These requirements can
impact the decision making as according to this Mr. Juicy has to follow all the requirements or
essential of a contract.
Company law is an important legislation as well as regulation which is used by firms to
achieve targeted goals and objectives in an appropriate manner. With the help of this act Mr.
Juicy needs to define appropriate working environment by which they can give better goods and
services and able to make effective decision of business.
Critically reflect on the impact of ethical issues
Through using different types of laws and regulations it can be said that if Mr. Juicy is
able to follow than it will give better results and make effective image of them at competitive
marketplace and give best salad, juices and many more things by which they can get good results
in an effective manner (Solnet, Kralj and Baum, 2015).
ACTIVITY 4
Different functional roles within the hospitality sector and their interrelations with the helps of
organization chart.
There are several department which are interrelated with each other and have effective
impact on the overall activities of an organizations. Those functions are going to be discussed
below:
Customer service and food department: This functional role within the hospitality
sector always interrelated with customer services, wherein Mr. Juicy mainly provide their
services equally to each customer so that they can build effective relationship with them and
achieve targeted goals.
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Finance and marketing: It is considered as an essential function within hospitality
sector. In relation with Mr. Juicy finance department always gives particular budget to the
marketing team by which they can manage their needs and wants.
Illustration 1: Flat organisation structure
Source: 2019, Flat organisation structure
This organisational structure is used by Mr. Juicy in order to make effective coordination
and communication between the employees and customers as well. With the help of this they can
achieve desired goals and able to sustain at marketplace for effective time period.
Several communication methods and levels used in organization.
Mr. Juicy mainly used different types of level of communication method by which
business could get huge success and achieve targeted goals. There are several methods as well as
levels, those are going to be discussed below:
Monitoring: In order to monitor different types of tasks and levels within the business or
firm it is necessary for Mr. Juicy to evaluate several things to give better performance towards
several products. With the help of this communication method people can interact with each
other of this business and make effective decision to meets desired goals and objectives. Along
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with this, Mr. Juicy can take feedback from its employees and able to improve their skills to
make great value chain.
Coordination: This is an another level of communication method within the hospitality
organisation sector. It is considered as an most essential factor for business firms that helps them
to attain specified goals and objectives(Narangajavana and et.al., 2016). In regards with Mr.
Juicy as they dealing with different types of juices and salads so that this business require huge
coordination between each and every employees so they they can get huge satisfaction and
achieve business goals in an appropriate manner.
A review of integration and coordination within the firm using examples.
In today's scenario there are lots of firms and business who mainly deals with several
kind of product at marketplace to achieve their particular objectives. Thus, it is necessary for
those business organizations to have effective integration and coordination between the
employees so that they can perform well. Herein, MR. Juicy should carried out proper
integration and coordination towards workers so that they can make best products and achieve
high sales or revenue as well. Whereas,
Integration and Coordination refers to the directive approach that mostly relay to
employees and managers of an particular organization. With the help of effective coordination
firm or business able to take effective decisions and make new strategies for better plan. For
example if firm do not wants physical stores and decides to move properly than firm would
coordinate with managers and workers so that change could be opt. Thus, it is necessary for
firms to make effective integration and coordination to grab future opportunities and achieve
goals.
Effectiveness of several communication methods, monitoring and integration within the
particular department that could help to gain organizational objectives.
According to this, it has been analyzed that all departments are helpful for organization
towards achieving targeted goals and objectives in a perfect way. Herein, MR. Juicy required to
coordinate with each workers so that they can communicate with each other and measure overall
business activity to achieve targeted goals and objectives. Therefore, business organizations are
required to have these assorted departments for better growth and development of business
within the competitive scenario in a perfect way.
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Recommendations and judgment on how coordination and integration increase overall
performance of business.
Further improvement within the methods of coordination and integration to improve
business performance it has been recommended to MR. Juicy that they should conduct business
meetings for employees by which they can understood several policies and rules and achieve
specified goals. On the other side this juice business firm always talk about there mission and
vision to its employees so that they can make better ways and implements on new theories to
gain huge success. Thus, having assorted integration and coordination always maximize business
performance and encourage employees towards qualitative work (Narangajavana and et.al.,
2016).
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CONCLUSION
According to the above mentioned report it has been analysed that, HR life cycle plays
significant role in order to develop and retaining the talent within the business firm. Along with
this, there are different types of performers as well as individuals with different skills that gives
better ideas to them for achievement of particular business goals. It helps employees to improve
their working performance and they can make better strategies to increase effective growth of
business. Additionally, there are different types of legislations and laws which required to
followed by firm or business by which they can take effective decisions for future and improve
quality of goods and services. Moreover, it also identifies several roles and functions of
marketing department within the hospitality sector.
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REFERENCES
Books and Journals
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015. Sustainability issues and
hospitality and tourism firms’ strategies: Analytical review and future
directions. International Journal of Contemporary Hospitality Management. 27(3).
pp.498-522.
Ariza-Montes, A., and et.al., 2017. Incidence of workplace bullying among hospitality
employees. International Journal of Contemporary Hospitality Management. 29(4).
pp.1116-1132.
Bergene, A.C., Boluk, K. and Buckley, E., 2015. Examining the opportunities and challenges of
union organisation within the hospitality industry (pp. 195-212). London: Routledge.
Bowie, D., and et.al., 2016. Hospitality marketing. Routledge.
Lashley, C. ed., 2016. The Routledge handbook of hospitality studies. Taylor & Francis.
Mackay, S., Chipato, F. and Thom, G., 2016. Evaluation of UK Futures Programme. Final
Report on Productivity Challenge 3: pay and progression pathways in hospitality and
retail.
Manoharan, A. and Singal, M., 2017. A systematic literature review of research on diversity and
diversity management in the hospitality literature. International Journal of Hospitality
Management. 66. pp.77-91.
Narangajavana, Y. and et.al., 2016. Measuring social entrepreneurship and social value with
leakage. Definition, analysis and policies for the hospitality industry. International
Entrepreneurship and Management Journal. 12(3). pp.911-934.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.271-292.
Williams, C.C. and Horodnic, I.A., 2017. Regulating the sharing economy to prevent the growth
of the informal sector in the hospitality industry. International Journal of
Contemporary Hospitality Management. 29(9). pp.2261-2278.
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