Principles of Managing and Monitoring Financial Performance in Hospitality Industry

HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Investigate the principles of managing and monitoring financial performance.....................3
Apply the double entry bookkeeping system of debits and credits to record sales and
purchases transactions in a general ledger..............................................................................4
Produce a basic trial balance applying the use of the balance off rule to complete the ledger..8
TASK 2............................................................................................................................................8
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
Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.......10
TASK 3..........................................................................................................................................11
Identify specific legislation that a hospitality organisation has to comply and adhere to....11
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business decision making in the hospitality industry......................................12
TASK 4..........................................................................................................................................12
Interrelated business functions.............................................................................................12
Communication, Coordination and monitoring importance in strengthening value chain. 13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
This report is based on the hospitality industry and focuses on the services provided by
the industry to satisfy their consumers as it helps industry in boosting their revenues. Hospitality
industry contributes in the economy of the country and this industry consists of various areas
such as theme parks, hotel , restaurant etc. This report helps in understanding about the
importance of finance in the hospitality sector and how it helps in development of the
organisation. This report also includes about the impact of HR strategy on the industry and how
adequate work power helps in achieving the goals and objectives of organisation. This is report is
based on the Premier Inn Ltd. which provides wide range of services to their consumers and
how issues such as finance and HR strategies helps in satisfying the consumers (Anser, and et.
al., 2020).
TASK 1
Investigate the principles of managing and monitoring financial performance
Financial performance is explained as analysing the assets of the organisation which can
help in boosting their revenues and helps in implementing the changes which are required to
improve their overall performance. Premier Inn focuses on maintaining the records of the stock
and the receipts of the transaction made by the organisation as it helps in understanding the
demand and analysing the resources of the organisation. Financial performance helps in
analysing the utilisation of financial resources of the organisation and helps in formulating and
implementing the strategies for the effective and efficient use of resources. There are various
principles which is used by Premier Inn to manage and monitor the financial performance which
are mentioned below:
Maintain proper records of stock
This principle focuses on maintaining the records of stock which is going in and utilised by the
organisation as it helps Premier Inn in analysing the purchases made by them. Records also helps
in analysing the wastage of the resources and the cost incurred in the storage of the resources
(Chen and et. al., 2017).
Preparing financial reports
This principle focuses on preparing the report of the transactions made by the organisation.
Managers of Premier Inn prepares this report in order to analyse their loss and profit. Financial