Principles of Monitoring and Managing Financial Performance in Hospitality Industry

This document discusses the principles of monitoring and managing financial performance in the hospitality industry. It covers topics such as inventory records, financial statements, trial balance, HR life cycle, talent retention, performance management plan, specific legislation, and the impact of employment and contract law on business decision making.

HOSPITALITY
BUSIENSS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Determine the principles of monitoring and managing the financial performance..............1
P2. Application of double entry book keeping system in order to record sales and purchase
transactions in general ledger......................................................................................................2
P3. Develop a basic trial balance by using balance off rule to complete the ledger...................3
TASK 2............................................................................................................................................3
P4. Analyse the various stages of HR life cycle which are applied on the specific job role and
also describe its importance for retaining and developing talent................................................3
P5. Produce a performance management plan by applying techniques to eliminate negative
behaviour and overcome various problems of staff retention.....................................................5
TASK 3............................................................................................................................................6
P6. Analyse specific legislation which suitable organisation need to comply............................6
P7. Analyse how the company employment and contract law has suitable impact on the
decision making of business........................................................................................................7
TASK 4............................................................................................................................................8
Covered in PPT...........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry relies under wide category which include various services such as
lodging, food, drinks and addition to this, some of them offer event planning, transportation,
cruise line and so on. In hospitality industry, a leader is must which helps their employees and
staff in guiding and directing them for their future success and for this, they examine each and
every factor which helps in achieving growth and success (Bowie and et. al., 2016). This report
is based on Simpsons Beverages which is a UK based company and deals in healthy drinks such
as healthy salad juice, smoothies, drinks and so on. In addition to this, it is going to focus on few
areas such as managing financial activities and records and also assess the management of HR
life cycle which is useful in analysing the strategies of HR. In addition to this, it also determine
the influence of legal considerations on hospitality sector and also explain the importance of
coordinating various functions of hospitality industry. At last, the purpose of this report is to
offer opportunities to spread business awareness and also enhance their sales in relation with
healthy drinks.
TASK 1
P1. Determine the principles of monitoring and managing the financial performance
To manage the performance of business many important questions are asked which are
required to be answered such as is business run in smooth manner? Success or fail? Suitable
drivers for growth etc. for this, there are many important methods in order to manage the
financial performance of an organisation which is mentioned as underneath: Preparation of inventory records: There are many businesses which greatly influenced
the investments, machinery and equipments (Mariani and et al., 2018). For this, they also
maintain suitable inventory records as it helps in providing relevant information about the
stock and basic requirements in order develop final product and also analyse the wastage
of any machinery and equipment at any point of time. It will also tell the need of
purchasing raw materials and also analyse the stock turnover and various ratios. Preparing key financial statements: It is the basic report in which every organisation
need to prepare financial statement and balance sheet. It is not only the significant
indicators in order to offer suitable performance to business but they also need enactment.
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They also provide an overview of the financial conditions of business and also depict that
owners came to know regarding that the account of company is fare or not.
Business transaction
P2. Application of double entry book keeping system in order to record sales and purchase
transactions in general ledger
Double entry and book keeping system states the business transaction in order to record
the amount in at least two accounts. This system need all kind of relevant transactions in which
amount enter as debits and are equivalent to the entered amount as credits (Jarratt and et. al.,
2019). Its primary principles are considered as under:
 The book keeping records include appropriate tally of income of business which consider
transactions and sales as it results in payment which can be either done on priority basis
or at some other point in future.
 Classifying these expenses into different sections such as materials, capital, promotion
and advertising.
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 Keeping the record of expenses as if business incurs the payment is made at over time
such as invoice of materials which permit pay terms within 15 to 30 days and utilisation
of bills with specific due date.
 If business make probable written record of not getting the payment, book keeping
system is established in order to keep probable records of payments which are received
on the accounts of customers.
P3. Develop a basic trial balance by using balance off rule to complete the ledger
Trial balance is the listing of ledger account which consider general ledger of business.
This list consider the name and value of each nominal balance and ledger account (Ma, Cheng
and Hsiao, 2018). Every nominal ledger account hold either debit and credit balance.
TASK 2
P4. Analyse the various stages of HR life cycle which are applied on the specific job role and
also describe its importance for retaining and developing talent
By analysing the various areas of business, HR department has its own life cycle which
consider various stages of employment and also useful in determining those challenges which
occurs at the time of managing employees (Foster and Carver, 2018). In terms of Simpsons
Beverages, Restaurant Manager is considered who take care of restaurant and handle various
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operations at managerial level such as managing employees, regulate billing and so on.
Therefore, few stages of HR life cycle is discussed as under: Recruitment and selection: It is a procedure for determining the job and examining the
need of suitable position and both of the terms are interconnected as selection helps in
opting and choosing efficient candidates for the specific job role and recruitment means
hiring the skilled and knowledgeable candidates to perform job role (Lub and et. al.,
2016). In order to hire candidates in Simpsons Beverages always analyse the specific job
position and and also fulfil the need of employees because satisfaction among staff is
helpful in developing and retaining Restaurant Manager within the cafe. For example,
currently, organisation is facing many problems in order to attract talented employees
which helps in retaining them for longer period of time and for this, company make
promotion regarding its vacant position in order to attract consumers towards it. Onboarding and orientation: This procedure describes the offering education and
guidance to employees as for this, managers will develop suitable rules and regulations
for the newly hired employees which consider vision, mission and values with it.
Therefore, here, staff members can to know about the working conditions, various norms
and so on (Köseoglu and et. al., 2019). For this, while following this function, Simpsons
Beverages should consider that they show good and positive image of company to those
candidates who applied for the post of Restaurant Manager and also offer healthy
working environment in order to regulate within the organisation as it is helpful in
retaining and developing the staff. For example, the managers of Simpsons Beverages
does not give appropriate orientation and induction to their employees such as how to
treat guest, reserve seats, take bookings, billing records etc. and due to this, employees
does not get retained within the company and for this, company need to hire expertise to
provide relevant orientation to candidates by which they gets retained for long time.
 Exit and transition: This procedure describe the exiting of employees from an
organisation and reason can be anything for it. Here, managers of Simpsons Beverages
can organise exiting interview for employees who leave company and in this, they will
ask suitable questions regarding the experience of employees and their problems. For
example, they can conduct suitable interview because the turnover rate of employees gets
increases and by analysing this, they can take appropriate actions like improper
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management of employees, dissatisfaction among workforce etc. and for this, company
can take appropriate actions to retain their employees.
P5. Produce a performance management plan by applying techniques to eliminate negative
behaviour and overcome various problems of staff retention
Performance management plan is a process which is helpful in managing, aligning and
coordinating with workforce and also useful in achieving strategic objectives. By analysing the
issues which are faced by Simpsons Beverages is turnover of employees and to retain them,
company should overcome various negative factors which occurs. Here, Performance
management plan is developed by HR manager to make appropriate plans regarding the retention
of employees and for this, major steps are discussed as under: Plan: It is considered as the major step which is useful in setting and analysing the
priorities that helps in offering proper guidance and direction helps in developing and
retaining talent (Papetti, Christofle and Guerrier-Buisine, 2018). In respect of this, HR
manager should make appropriate plans and regulations which is useful in approaching
the negative behaviour such as conflicts and demotivation among employees. By
considering the above job role, HR manager will develop suitable strategies and plans in
order to retain Restaurant Manager and also encourage in overcoming the destructive
nature. Monitor: This element is helpful in analysing the suitable plans and strategies which are
developed to enhance the number of employees and also retain them for longer period of
time. Due to this strategy, motivation skill of HR manager gets increased and also
overcome suitable hurdles which helps in fostering the performance and reducing the
turnover of employees (Cunningham, 2019). After making suitable strategies and plans,
performance of Restaurant manager is analysed by HR in order to overcome the negative
behaviour. Currently, Simpsons Beverages is facing problems which is concerned with
their staff turnover and due to this, performance and productivity of an organisation gets
affected. Therefore to overcome this issue, they can use employees retention techniques
like developing relations, offering suitable training, working conditions and so on which
is helpful in eliminating the work load and also make probable coordination and
cooperation among employees to perform particular job role.
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 Review: It is determined as the final stage of Performance management plan, which
describes that performance of employees can be reviewed and monitored by top
management. For this, the performance of Restaurant Manager is overlooked and various
hurdles are also analysed. It is important to analyse the performance and take corrective
measures to eliminate turnover of staff.
TASK 3
P6. Analyse specific legislation which suitable organisation need to comply
In order to run smooth business, companies need to follow suitable laws and legislations
which are made by government to operate their business and its activities in appropriate manner
(Herity and et. al., 2018). These laws are fulfilled by Simpsons Beverages for their smooth
functioning of organisation and also take suitable measures for the safety and security of
employees and customers that are the important part of an organisation. Therefore, it is important
for Simpsons Beverages to follow all the rules and regulations which are useful in the operating
activities of company and few of laws are discussed as under: Health and safety act: This act is related with the safety of each and every employee who
work within an organisation. For this, it becomes the duty of department manager to
maintain safety and security of their customers and employees. It is also helpful in
building the good image of an organisation within the marketplace (Jasnoff and Sheikh,
2019). This law aid in attracting more customers in relation with Simpsons Beverages,
they need to follow suitable rules and regulations which consider safety of people who
are present in the premises of company in order to meet the requirements of customers. Liquor control act: It is developed to control the consumption of liquor and sales of an
entity. This act is introduced with the aim of reducing the misuse of alcohol as it depicts
that those restaurants who provide alcohol and other liquor to their potential customers
have suitable and complete knowledge regarding the drinks. Thus, it is also important for
Simpsons Beverages to provides suitable training to their workforce to provide
appropriate amount of alcohol.
 Food act: It is important for company to consider this act if they want to offer healthy
food services to their respective customers. This act provide suitable rules which is useful
for company and restricts them not to offer harmful services to their respective
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customers. It is significant for Simpsons Beverages to undertake this act as due to this,
company offer healthy drinks to their customers and also create healthy and good
relationship with their customers. This act is useful in achieving competitive advantage
over their rivals in order to earn suitable profit.
P7. Analyse how the company employment and contract law has suitable impact on the decision
making of business
It is essential for restaurants that they follow suitable policies and norms because it is
helpful in taking good business decisions. Therefore, it is important for Simpsons Beverages to
take appropriate business decisions in order to achieve effective goals and objectives. For this,
decision making is considered as the important function of business and helps in doing better
business performance. For this, few laws are discussed as under: Company law: This law is considered as important law in order to take business
decisions for the attainment of goals and objectives. For this, different rules and norms
are developed which focus on the good and bad influence on the decision making of
company (Anderson and et al., 2017). Therefore, it is important for Simpsons Beverages
to offer good products which are helpful in taking better business decisions. For example,
aim of Simpsons Beverages is to develop and become the leader in offering healthy
drinks. Contract law: There are different laws which influences the decision making process of
company. For this, contract represents the agreements which are imposed by law as there
are many contracts which impacts the decisions of Simpsons Beverages and these are
helpful in conducting smooth business operations. Therefore, it is important for an
organisation to undertake employment law as it impacts the functioning and decisions of
company.
 Employment law: Workforce of company is important and also termed as the important
part of an organisation which is useful in improving goals and objectives and plays
significant role in decision making of company (Higgins-Desbiolles, Moskwa and
Wijesinghe, 2019). It is also important that the platform of company and its related
activities should be accurate and suitable for Simpsons Beverages as due to this, they can
easily achieve goals and objectives. Requirement of staff and their overall performance
put major impact on the business decision making which is considered by Simpsons
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Beverages as it becomes their duty that their employees does not work under any harmful
environment.
TASK 4
Covered in PPT
CONCLUSION
Thus, it is determined that managing and monitoring the financial performance is
important for healthy balance sheet of company and for this, various entries system are recorded
for the sale and purchase of products. In addition to this, HR life cycle is significant to develop
and retain employees in the company. In regard of this, weak criteria of entity is determined
which helps in enhancing and reviewing the performance of workforce. Additionally, suitable
legislations and laws are discussed which are followed by company as it helps in taking suitable
decisions.
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REFERENCES
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Herity, J and et. al., 2018. Global business practices for mainstreaming
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Ma, E., Cheng, M. and Hsiao, A., 2018. Sentiment analysis–a review and agenda for future
research in hospitality contexts. International Journal of Contemporary Hospitality
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Mariani, M and et al., 2018. Business intelligence and big data in hospitality and tourism: a
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