Principles of Managing and Monitoring Financial Performance in Hospitality Industry

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Investigate the principles of managing and monitoring financial performance................3
P2 Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..............................................................................5
P3 Produce a basic trial balance applying the use of the balance off rule to complete the ledger
................................................................................................................................................7
P4 Review the different stages of the HR life cycle applied to a specific hospitality job role,
and their importance for retaining and developing talent.......................................................8
P5 Develop a performance management plan for a specific hospitality job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention...........10
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
..............................................................................................................................................11
P7 Using specific examples, illustrate how company employment and contract law has a
potential impact on business decision-making in the hospitality industry...........................12
P8 Explore how different functional roles within the hospitality sector interrelate.............13
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organisation to strengthen the value chain....14
CONCLUSION..............................................................................................................................16

REFERENCES..............................................................................................................................17
INTRODUCTION
Hospitality management is the process of managing the hotels and resorts that comes
under the hospitality sector. The manager of the hotel look after the management and make sure
that the hospitality provided to the customer must provide them with warmth and make their
guest feel welcoming (Etherton‐Beer and et. al., 2021). Hospitality management oversee various
task like housekeeping, room service, front desk, spa, guest service etc. The present report will
cover the Rosewood London hotel a hospitality service based in London England, UK. The
company was formerly known as Chancery Court opened in 2013. The company is owned by the
Rosewood hotel group. The hotel consist of 7 floors with 262 rooms. The following report
outlines the principles of monitoring financial performance along with its ledger and trail
balance. Different stages of HR life cycle and the importance for retaining and developing talent
of employees is mentioned in the report. The legal legislations related to hospitality sector that
rosewood should comply is discussed within the report. Different functional role and methods of
communication, coordination and monitoring are discussed in the report.
MAIN BODY
P1 Investigate the principles of managing and monitoring financial performance
Finance is the lifeblood of the organisation without which the no industry can operate its
activities. The term financial performance depicts that how efficiently the organisation is using
its asset in order to earn higher profits (Barik, Prusti and Mohapatra, 2020). Rosewood London
hotel regularly tends to manage and monitor its financial performance to improve their financial
shortfall zones and to generate higher revenue and profits. The below mentioned are the
principles of managing and monitoring financial organisation used by Rosewood London Hotel:
Preparation of funds and cash flow statements
For every organisation including hospitality industry it is mandatory to prepare their
yearly cash flow statements on the basis of each month. Preparing Fund flow statements are
essential for Rosewood London Hotel to recognise the liquid cash within the firm. The accurate
fund flow and cash flow statements yield the cash management of the company.

Preparation of key financial statements
The key financial statements of the organisation include balance sheet and P&L account
that is mandatory for every organisation to produce. These two helps in mo0nitoring the financial
health of the Rosewood over the whole years and also helps in comparison with previous year.
This gives better decision making power in investing money. The key financial statements of the
Rosewood include summarising, reporting and analysing the financial statement.
To attain the long term objectives and to manage the streamlined flow of cash in the Rosewood
organisation there are the principles of managing and monitoring financial performance that are
discussed below:
Identify and understand risk: the first principle is understanding and identifies the risk
associated regarding the financial performance of the firm. It is very essential for the Rosewood
London Hotel to control and managed the finance in order to mitigate the risk of loss. The
manager of the organisation is required to identify the risk which can influence the performance
of the finance of the organisation. In order to face the challenges regarding the risk of the finance
the manager of the organisation use the stocks and bonds as they provide them with the higher
returns.
Attention to the taxes: Paying taxes is not only mandatory factor but also an essential factor in
order to manage and monitor the financial performance of the organisation. The manager of the
Rosewood London hotel has to consider and pay attention towards it takes is that a required to be
paid by the organisation timely as it might influence negatively on the reputation or the brand
image of the organisation. For this company can hire the chartered accountant that will analyse
and manage all the tax related information of the organisation or install the financial planning
software that will be helpful in getting the taxes related data.
Categorize the finance: Principle of managing and monitoring finance of the organisation
include the categorising organising the finance of the organisation which includes break out of
the capital into the different areas such as in bank accounts, loans of the firms, brokerage
accounts etc. Organisation and by installing the software is related to the budgeting that will
solve the problem regarding the maintenance of the accounts. It is the role of the manager of the
financial department to manage all the financial performance of the organisation.