Principles of Managing & Monitoring Financial Performance in Hospitality Industry

Unit 4 - Hospitality
Business Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Principles of Managing & Monitoring Financial Performance ............................................3
P2 Double Entry Booking System .............................................................................................4
P3 Trial Balance and the use of balance off rule for leader .......................................................6
TASK 2 ..........................................................................................................................................7
P4 Various Stage of HR life Cycle ............................................................................................7
P5 Performance Management Plan ............................................................................................8
TASK 3 ...........................................................................................................................................9
P6 Specific Legislation for Hospitality Organisation ................................................................9
P7 Impact of Employment law and contract law on business decision making ......................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is wide category of different fields in service industry which include
the facility of food& drink services,theme park, lodging, event planning, transportation etc.
Different small & large hotels, resorts, motels, bars and restaurants are involves in such industry.
The main concentration of respective industry is on to provide quality service to audience. It also
involves activities related to planning, organising, coordination as well as analysing different
type of activities in effective & efficient manner. The topics that was cover in this report are
investigation of different principles of managing or monitoring financial performance,
application of double entry book keeping system of Dr/ Cr. To record purchase & sales
transactions in ledger. Preparation of trial balance applying the use of balance off rule to
complete the ledger. For this study, The Chelsea Harbour Hotel will be consider that is very
luxuries hotel in London. The main motive of this report is to analyse different stages of HR life
cycle applied to a specific hospitality job role & importance for retaining and developing talent is
also cover in this project. In this assignment performance management plan also include for
specific hospitality job role by applying techniques to resolve negative behaviour & outcome
issues regarding staff retention. Identification of specific legislation that hospitality industry has
to comply and adhere to are also cover in this report. And the last topic of project is explain with
the help of example how company, employment, contract law put impact on decision making in
hospitality industry.
TASK 1
P1 Principles of Managing & Monitoring Financial Performance
In order to analyse the performance of the company it is necessary to focus on each and
every financial activities which can helpful to manage and monitor the financial performance of
specific company. Without proper practice of profits , cash flow and high sales activities
companies can not become successful so that it is mandatory to ask the report to the company
accountant and financial department so that company can take care of each and every financial
performance and also mange and monitor it (Hertzman and Zhong, 2016). There are various
steps which are useful to maintain and control the financial performance of Chelsea Harbour
Hotel hotel which are discussed below-

 Prepare key Financial Statement – Every company need to prepare a balance sheet and
profit & loss account and both these statements are essential to measure the financial
performance of the company. All these statements give the overview of financial heath of
the company. The financial department of the Chelsea Harbour Hotel prepared a financial
statement and consider profit & loss statement and then prepare a balance sheet of the
hotel. Prepare Debtors Trial Balance – It is necessary to prepare debtors trial balance every
month which can aid to track the customers who really own them funds. With this help of
this statement, company can track the irregular accounts and also identify defaulters so
that they can get back money. Chelsea Harbour Hotel prepare aged debtors trial balance
statement so that hotel can maintain each an every record (Kozlov, 2017). Prepare Inventory Records - It is important to keep maintain the inventory record of the
company. There are various business that invest in machinery and other equipments those
are help to make work easy of the company. The Chelsea Harbour Hotel should maintain
a proper record of there inventory so that hotel can purchase the material according to
this. Prepare Working Capital Statements – To prepare working capital statement is essential
for the company so that company can calculate all types of financial rations which can
help to maintain the over all financial performance. The calculation of current and quick
ration is essential and Chelsea Harbour Hotel used to consider all these calculation
(Whalen, 2017). Prepare Fund & Cash Flow Statement –Fund flow and cash flow statement are
prominent for the company that consider how much liquid cash company contain. All
these statements intermediate the long term financing for the Chelsea Harbour Hotel
some activities easy to consider like repayment of long debts, allocation of resources and
business expansion etc.
 Overheads Analysis – To prepare only financial statement is not enough to mange the
financial performance of the company. Company need to consider all the overhead
expenses such as rent, salaries and other marketing and sales expenses. The Chelsea
Harbour Hotel also consider this analysis to manage and control fund activities (Pearson,
et. al., 2018).