The Hospitality Business Toolkit

This report covers financial performance, double entry bookkeeping, trial balance, HR life cycle, performance management plan, legislation laws, and their impact on business decisions in the hospitality industry.

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Principles of managing and monitoring financial performance.............................................1
P2 Use Double entry book keeping system of recording business transaction in a ledger.........2
Purchase Account........................................................................................................................2
Mr. Joey Account........................................................................................................................2
P3 Prepare trial balance according to ledger...............................................................................3
P4 Explain the different stages of HR life cycle applicable to a job role...................................3
P5 Discuss Performance Management plan within organisational context................................5
P6 Discuss various legislation laws ...........................................................................................6
P7 Impact of laws upon business decisions regarding hospitality industry................................7
P8 Elaborate different functional roles within the hospitality sector..........................................7
P9 Elaborate the different methods of communication, coordination and monitoring related to
hospitality industry......................................................................................................................8
CONCLUSION................................................................................................................................9
.............................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The hospitality sector refers to wide range of services that includes accommodation,
lodging, food, cruise line and various other facilities. This report is based on Just Juicy deals
with various products such as juices, smoothies and beverages and its aim is to meet the needs of
customers by providing excellent quality of goods and services. This report covers financial
performance of a company and recording transactions in order to minimise the cost of
operations. The report also covers double entry system and book keeping to analyse the financial
position of a firm. This report includes life cycle of HR that includes recruitment, selection and
training and development of an employee and it also includes performance management plan.
The report also elaborates the functional roles of various department within hospitality industry.
P1 Principles of managing and monitoring financial performance
There are many ways to monitor the financial performance of business by using and
determining the use of available data. By analysing the financial ratios business owners and
managers can easily assess the performance of business and determine that it is underperforming
or not and also judge the probable changes in the suitable areas. For this, monitoring need to
closely allow and assessed by maximising the efficiency and waste that is helpful for business to
run it for longer period of time. For this, there are many methods in order to monitor the financial
performance of company which are discussed as under: Operating cash flow: Monitoring and determining the operations of cash flow is
important to understand in order to analyse the competence to pay for delivering the
routine of operating the expenses. For this, KPI is useful in order to compare the total
capital which is analysed and also revealed while generating the enough cash for the
support of capital investment for the advancement of business. Working capital: Cash which is immediately available is considered as working capital
and to calculate it, working capital can be subtracted by existing business liabilities from
assets. It will consider cash in hand, accounts receivables, short term investment and so
on. This method also consider KPI in order to inform about the business conditions which
are available for the operations of funds.
 Current ratio: While determining the working the capital, KPI is discussed and analysed
by subtracting from liabilities from assets ad the current ratio is divided from the total
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liabilities in order to provide and develop the understanding about the solvency of
business. For this, in order to meet the financial obligations they need to maintain suitable
level of credit ratings.
P2 Use Double entry book keeping system of recording business transaction in a ledger
Double entry involve the recording of accounting transactions in two sides that is debit
side and credit side. Each transaction has impact on both sides of account and debit is always
equal to credit side. In other words, it is a book keeping form of accounting in which transactions
are recorded at both sides. The increase in debit side show the positive balance while increses in
credit balance shows negative balance. According to dual aspect of accounting, asset is always
equal to the sum of liabilities and capital.
Sales Account
Particulars Amount Particulars Amount
To balance b/d 7500 By bank account 5000
By Mr. Joey account 2500
Total 7500 Total 7500
Purchase Account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
Mr. Joey Account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
To Ms. Rachel account 500
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Ms. Rachel account
Particulars Amount Particulars Amount
To balance b/d 500 By bank account 500
Total 500 Total 500
Bank account
Particulars Amount Particulars Amount
To Sales account 7500 By Purchases account 6500
By balance b/d 1000
Total 7500 Total 7500
P3 Prepare trial balance according to ledger
Trial Balance is prepared from the balances of ledger and its debit is always equal to
credit side. Trial balance is used for checking the arithmetical accuracy of a business and the
major use of trial balance is that it help in preparing the financial accounts of a business that is
trading and profit and loss accounts. It contain two sides that is debit and credit that give the
summary of accounting transactions.
Following trial balance is presented from the information given through ledger:
Particulars Amount Particulars Amount
bank account 1000 sales account 7500
purchases account 6500
Total 7500 Total 7500
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P4 Explain the different stages of HR life cycle applicable to a job role
Human Resources is an very important asset in an organisation and it plays a very
important role that describe the working of a people. The HR manager perform various functions
such as recruitment, selection, training and development of an employees. Choosing the right
person in right job at right time is very important for a manager. The HR life cycle describes the
stages of an employee's life cycle and it also assign role among different deparments. Training
and development help employees to acquire new skills and promote overall development of an
employee. The life cycle of Just Juicy includes various aspects like recruitment, selection and so
on and there is job opening for the position of manager. In the context of Just Juicy, the stages of
human resources life cycle are presented as follows:
Recruitment and Selection: Recruitment is the process of attracting potential resources
to fill empty position in a job and it is the first stage of life cycle that describe the process of
selecting the right person in a job. The manager create a strategic planning so that it can hire an
appropriate candidate for a suitable position. Just Juicy develop an interview protocol for vacant
position to be filled.
Onboarding: This is the most important part of life cycle to introduce new workforce in
an organisation so as to provide comfortable work environment to them. The manager of Just
Juicy explain the rules and regulations regarding the company and their procedure of working so
that it help them to get engaged with work. Also, this help employees to feel comfortable and
and and work with full potential.
Training and Development: It is very necessary to enhance learning opportunities
among them and to increase knowledge base so as to increase the efficiency of an organisation.
The manager of Just Juicy provides 60 days training to prepare them for higher responsibilities.
This inculcate confidence in them and provide career development in order to retain employees
for a long period of time.
Retention: This stage of life cycle give an opportunities to employers to give sense of
appreciation to their staff for achievement of predetermined goals in a limited time. The
manager of Just Juicy provide rewards and recognition to boost the morale of employees. This is
an effective way to retain employees and thereby improves their performance.
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Exit and transition: There are various reasons for employees to leave the office such as
for more pay, retirement, tends to have family responsibilities and many more. With reference to
Just Juicy, the manager ensures that all policies and procedures are followed in a effective way.
In order to hire marketing manager, the process of recruitment with reference to Just
Juicy are described below:
Step 1. Give advertisement for the post of marketing manager in classified newspaper or
its respective websites.
Step 2. The owner see that the candidate should fulfil the job position like bachelor's
degree in marketing, strong communication skills and so on.
Step 3. After step 2, the manager conduct a final interview round in order to select an
appropriate candidate.
Step 4. The manager conduct induction program to get familiar with the culture of
company so that they feel comfortable in the workplace.
Step 5. The manager of Just Juicy provide a training of 60 days to increase the efficiency
of employees and to increase the confidence skills among them.
Step 6. The manager provide reward system in order to increase job satisfaction.
Importance for retaining and developing talent
In today's era, talent development play a key role in an organisation. Career advancement
is necessary to every employee that provide vast opportunities in achieving long term and short
term goals. The manager of Just Juicy provide effective training so that they can work beyond
their potential and it help in achieving the task in a limited time. This increase the productivity
and efficiency of an organisation.
P5 Discuss Performance Management plan within organisational context
The performance management plan is necessary to evaluate the performance of
subordinates working in an organisation. Through rewards and recognition, they would feel
motivated and encourage them to work with greater capabilities. By using this, the manager will
come to know about the execution of work done by employees and would review their working
criteria by performance management plan.
Scenario 1:
Manager: I have seen that Mr. Lewis is not behaving properly from last month and there
are lots of complaints about him.
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Employee: Exactly sir, he has given a negative reply to his mentor today morning.
Manager: Do you have any idea of the reason of such rude behaviour?
Employee: I know the reason as he is facing a lot of work related issues from last month
this is why he is irritated.
Manager: Can you provide me the best possible solution regarding this problem.
Employee: One solution is that we could hire new employees to reduce his workload.
Manager: Thank you Lewis, I will discuss this with top manager.
Scenario 2:
Manager: I have noticed that Lewis is coming late to office from last fifteen days.
Employee: Exactly, I have observed this.
Manager: Do you know the reason behind his late coming?
Employee: I know the reason, Sir. Due to his his brother marriage, he is coming late.
Manager: So, how we can solve the problem?
Employee: We could take some strict action towards her that will not allow him to come
late.
Manager: I will warn him by calling personally and if again he is late then he will be
fired
Employee: Yes, this is the best idea of improving his habit.
Manager: Thank you Lewis.
Employee: Your most welcome sir, this idea will definitely improve him.
P6 Discuss various legislation laws
Government rules and regulation are very necessary for smooth operation of a business.
There are legislation laws that every business has to abide to achieve the objectives of business
efficiently. It is essential for manager of Just Juicy to have effective knowledge regarding these
laws. Mentioned below there are some laws:
Food Act, 1997: According to this law, the role of manager is to see that organisation is
providing good quality and standardised products to gain large access of customers. The manager
of Just Juicy is taking care of proper health and hygiene merchandise because now customers are
health conscious and to gain large access of customers.
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Liquor Control Act, 1987: The main objective behind this act is to minimise the use of
alcohol without the license provided by government. As per norms and regulations, organisations
has to act in a certain manner by abiding the rules and regulations in according to this law. As
Just Juicy provide juices and smoothies by taking care of health and hygiene in order to satisfy
the needs of customers. This promotes the sales and profitability of an organisation.
It is vital for a company to comply with policies and procedure in accordance to law as it
has major impact on performance of workers and their relationship. These laws are promoted for
the welfare and to create positive environment in the company. It is necessary for the growth and
awareness among the customers.
P7 Impact of laws upon business decisions regarding hospitality industry
There are different law pertaining to hospitality industry. Business decisions are affected
by various laws such as company law, employment laws and contract laws and proper code of
conduct is followed to achieve the predetermined goals of an organisation. The manager make
sure that company is abiding by rules and regulations that have direct impact on decision
making. The same is presented as follows:
Company law: According to this law, this state that company must follow the guidelines
to facilitate smooth operations of a business in an ethical manner. Company law is a corporate
body that provide legal practice, rights and legislations to be followed by a business enterprise.
This help the company to achieve goals effectively and efficiently and also provide assistance in
assigning the task among the subordinates in according to their specialised skills.
Employment Law: This law regulates the term and conditions regarding the relationship
between employers and employees and terms related to recruitment, holidays and many more.
The Just Juicy has to cover all the policies and procedures in accordance to employment law
before making any workforce plan. It also cover various aspects like their leaves, compensation
plan and pays and ethical manners so as to avoid misunderstandings between them.
Contract Law: It is an agreement between two or more person that is enforceable by law
to avoid dispute between them. This law contain all terms and conditions that organisation has to
follow for maintaining peace in an organisation. With reference to Just and Juicy, both
employees and employers has to follow this law to avoid conflict in the workplace.
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P8 Elaborate different functional roles within the hospitality sector
The aim of hospitality sector is to provide best and effective services to their customers to
gain customer satisfaction. Proper communication strategy plays an effective role to avoid
misunderstanding between them and to achieve the task in a limited time. There are various
departments in an organisation such as finance, marketing and so on that are interdependent to
each other. Each are assigned their roles in according to their specialised skills so that they could
work beyond their reach. Below the points describe the role of various functional departments
which are presented as follows:
Finance and Marketing department: Both these department are interconnected as their
opinions and views are regarded as important point of consideration. The financial department
handle all business transactions that includes sale, purchase, credit and cash transactions while
the marketing department prepare an appropriate plan to increase sale and profits of a business.
With reference to Just Juicy, they create an strategies to create brand awareness and thereby, this
increases the reputation of their business and provide growth opportunities.
Human Resource and Food and beverages department: The role of HR is to choose
the right person that matches the talent and skills of an employees and ensure proper functioning
in an organisation. Therefore, it is necessary for organisation to have proper coordination in the
workplace. The beverage department may convey the human resource to hire an skilled staff to
conduct the smooth operation of a business in order to gain competitive advantage within the
market.
Front office and Information Technology: Today, IT play an important role to
facilitate effective coordination in the organisation. In an era of digital technology, IT help in
conducting fast operation of a business and provide a quick and fast services to their customers.
Front office provides the daily information to the coordinators for achieving the task in a short
span of time.
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P9 Elaborate the different methods of communication, coordination and monitoring related to
hospitality industry
There are different methods of communication, coordination and monitoring their
performance to ensure control in an organisation. The vision, mission and goal of Just Juicy are
describes as below:
Vision: The vision of Just Juicy is become the leading player in food and beverage
industry across the globe.
Mission: The mission is of concerned firm is to gain large access of customers by
meeting their expectations by providing higher level of satisfaction.
Goals: The goal of respective firm is to provide good quality products and services to
satisfy the needs of customers.
Communication: It is a two way process that involve exchange of ideas, thoughts and
opinions through oral or writing medium. Communication play an important role to help
employees to achieve the task and also to facilitate the smooth operations of a firm. There are
various communication methods that are describes below:
Email: It is a written form of communication where the marketing manager of Just Juicy
collect the necessary information from various individuals working in an organisation to
formulate an effective marketing campaign.
Coordination: It is the process of integrating the activities and assigning duties and
responsibilities for conducting the smooth operation of a business. It is one of the key function of
management that help in accomplishing the objectives of a enterprise. Following method can be
used for effective coordination:
Optimum utilisation of resources: the manager of Just Juicy ensure proper usage of
resources so that it could bring transparency in the organisation. This help in timely completion
of task in a coordinated manner.
Strategic Planning: Planning is deciding an alternative and choosing the best alternative
among the course of action available. Through strategic planning, manager of Just Juicy can
assign the task among the subordinates and set target for achieving the goals.
Monitoring: It refers to monitor and check the performance of employees over a period
of time. Following are the methods of monitoring the working criteria are provided as follows:
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Performance Appraisal: It is necessary in an organisation to motivates employees and to
guide them. By evaluating the performance of subordinates, the manager of Just Juicy provide
various opportunities like assigning them for higher post and also increases their pay and other
additional benefits to encourage them so that they can work with greater capacity.
Formal Survey: Surveys are conducted to collect necessary information from the existing
employees for determining the performance gap of an employees. The manager of Just Juicy
help in monitoring the performance of employees that improve the value chain of a business.
CONCLUSION
From the above information, it can be inferred that human resource is an asset for any
organisation. Choosing the right person is very important to a company to achieve goals in the
given period of time . Maintaining the accounts by keeping the record of books with help of
double entry and ledger systems. The effective management of the respective organisation is
achieved by the interlinking of the factors and other departments with each other by proper
communication strategy, effective coordination and cooperation is necessary to facilitate the
smooth operation of a business.
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REFERENCES
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