Principles to Manage and Monitor Financial Performance in Hospitality Business

This study material discusses the principles to manage and monitor the financial performance of a hospitality business. It covers topics such as financial statements, cost analysis, inventory management, and more. It also emphasizes the importance of coordinating and integrating various functions within the company for higher growth.

Unit 4 - Hospitality Business
Toolkit

TABLE OF CONTENT
INTRODUCTION................................................................................................................................3
PART- A ...............................................................................................................................................3
Principles to manage and monitor the financial performnace of the entity......................................7
PART -B................................................................................................................................................8
HR life cycle stages and their importance for retaining and developing talent ...............................8
Performance management plan for overcoming issues in negative behaviour staff retention.........9
Legislation to be adhered by hospitality organisations..................................................................10
Impact of employment law and contract law on business decision making...................................11
Interrelationship of various functional roles within hospitality sector...........................................11
Methods of communication, coordination and monitoring for strengthening value chain............12
CONCLUSION..................................................................................................................................13
REFERENCES ..................................................................................................................................15

INTRODUCTION
Hospitality business sector is one of the most competitive industry evolving in recent
competitive global level, where new skills and high specialised trained staff are in demand For this
report case scenario, East London catering venture has been taken for analysis which is growing
brand in recent time periods. The study will be explaining management of finance, transaction
recording for minimizing costs on wider domains for strengthening accuracy. Report will be
discussing HR life cycle stages and its role in improving workforce retention on wider domains
actively. Further, potential impact of legal and ethical considerations within company business will
be analysed for strengthening productive diversity on profound horizons. Importance of
coordinating and integrating various functions of departments within company also plays strong
role in enriching higher growth. Report will in depth further address this fact by analysing focus on
department’s interrelation, strategies to build communication, coordination and monitoring value
chain strength.
PART- A
In £
Date Particulars Debit Credit
01/01/21 Cash A/C dr. 30000
To Capital A/C 30000
05/01/21 Rent A/C dr. 1000
To Cash A/C 1000
06/01/21 Washers and dryers A/C dr. 25000
To Cash A/C 10000
To Creditor A/C 15000
07/01/21 Insurance Premium A/C dr. 1200
To Cash A/C 1200
09/01/21 Purchase food A/C dr 8000
Purchase beverages A/C dr. 7000
To WH Adams A/C 15000
11/01/21 Laundry fees A/C dr. 200
To Cash A/C 200
15/01/21 Telephone and Internet Expenses A/C dr. 2220

To Cash A/C 2220
15/01/21 Rates, water charges and refuse A/C dr. 950
To Cash A/C 950
16/01/21 Wages and salaries A/C dr. 1740
To Cash A/C 1740
18/01/21 Cash A/C dr. 20000
To Sales food A/C 20000
20/01/21 Cash A/C dr. 13000
To Sales beverage A/C 13000
Cash A/C
Date Particulars J.F Amount Date Particulars J.F Amount
01/01/21
To Capital
A/C 30000 05/01/21
By Rent
A/C 1000
18/01/21
To Sales
food A/C 20000 06/01/21
By
Washers
and dryers
A/C 10000
20/01/21
To Sales
beverage
A/C 13000 07/01/21
By
Insurance
Premium
A/C 1200
11/01/21
By
Laundry
fees A/C 200
15/01/21
By
Telephone
and
Internet
Expenses
A/C 2220
15/01/21
By Rates,
water
charges
and refuse
A/C 950
16/01/21
By Wages
and
salaries
A/C 1740
31/01/21
By
Balance
c/d 45690
63000 63000
Capital A/C
Date Particulars J.F Amount Date Particulars J.F Amount

31/01/21
To Balance
c/d 30000 01/01/21
By Cash
A/C 30000
30000 30000
Rent A/C
Date Particulars J.F Amount Date Particulars J.F Amount
05/01/21
To Cash
A/C 1000 31/01/21
By Profit
and loss
A/C 1000
1000 1000
Washers and dryers A/C
Date Particulars J.F Amount Date Particulars J.F Amount
06/01/21
To Cash
A/C 10000 31/01/21
By
Balance
c/d 25000
06/01/21
To
Creditor
A/C 15000
25000 25000
Creditor A/C
Date Particulars J.F Amount Date Particulars J.F Amount
31/01/21
To Balance
c/d 15000 06/01/21
By
Washers
and dryers
A/C 15000
15000 15000
Insurance Premium A/C
Date Particulars J.F Amount Date Particulars J.F Amount
07/01/21
To Cash
A/C 1200 31/01/21
By Profit
and loss
A/C 1200
1200 1200
Purchase food A/C
Date Particulars J.F Amount Date Particulars J.F Amount
09/01/21
To WH
Adams
A/C 8000 31/01/21
By Profit
and loss
A/C 8000
8000 8000
WH Adams A/C
Date Particulars J.F Amount Date Particulars J.F Amount
31/01/21
To Balance
c/d 15000 09/01/21
By
Purchase
food A/C 8000

09/01/21
By
Purchase
beverages
A/C 7000
15000 15000
Laundry fees A/C
Date Particulars J.F Amount Date Particulars J.F Amount
11/01/21
To Cash
A/C 200 31/01/21
By Profit
and loss
A/C 200
200 200
Telephone and Internet Expenses A/C
Date Particulars J.F Amount Date Particulars J.F Amount
15/01/21
To Cash
A/C 2220 31/01/21
By Profit
and loss
A/C 2220
2220 2220
Rates, water charges and refuse A/C
Date Particulars J.F Amount Date Particulars J.F Amount
15/01/21
To Cash
A/C 950 31/01/21
By Profit
and loss
A/C 950
950 950
Wages and salaries A/C
Date Particulars J.F Amount Date Particulars J.F Amount
16/01/21
To Cash
A/C 1740 31/01/21
By Profit
and loss
A/C 1740
1740 1740
Purchase beverage A/C
Date Particulars J.F Amount Date Particulars J.F Amount
09/01/21
To WH
Adams
A/C 7000 31/01/21
By Profit
and loss
A/C 7000
7000 7000
Sales food A/C
Date Particulars J.F Amount Date Particulars J.F Amount
31/01/21
To Profit
and loss
A/C 20000 18/01/21
By Cash
A/C 20000

20000 20000
Sales beverage A/C
Date Particulars J.F Amount Date Particulars J.F Amount
31/01/21
To Profit
and loss
A/C 13000 20/01/21
By Cash
A/C 13000
13000 13000
In £ In £
Particulars Debit Credit
Cash Account 45690
Capital Account 30000
Rent Account 1000
Washers and dryers Account 25000
Creditor Account 15000
Insurance Premium Account 1200
Purchase Food Account 8000
WH Adams Account 15000
Laundry fees Account 200
Telephone and Internet Expenses Account 2220
Rates, water charges and refuse Account 950
Wages and salaries Account 1740
Purchase beverages Account 7000
Sales Food Account 20000
Sales Beverage Account 13000
93000 93000
Principles to manage and monitor the financial performnace of the entity
 This can be done by managing the inflows and outflows of cash such that the liquidity
position is maintained in the business.
 Preparation of the financial statements due diligently by avoiding fraud and misconduct.
 Properly incorporating the cost benefit ananlysis such that the expenses of the company can
be minimizes while maximizing the operational efficiency of the business.
 Management of the inventory levels in the company such that the operating cycle can
smoothly and efficiently operate in the business.
 Maintenance of the aged debtors in the business so that the bad debts and provisioning could
be estimated.

PART -B
HR life cycle stages and their importance for retaining and developing talent
HR has central role in structuring policies to bring on wide rise in employability among
company departments, for enhanced brand value and operatively expand towards new horizons. HR
life cycle stages describe in depth focus, for boosting employees satisfaction and retaining talent.
East London catering venture focuses on following steps, within HR life cycle stage, for overall
development and higher specific productive diversity.
 Recruitment: This stage being first step has high importance to recruit best skilled
employees and deliver strategic fundamental growth in services, where hospitality sector
demands best trained employees. External recruitments are done for enriching wider scale
connective determinants towards innovation and upscale working horizons informatively.
 Induction: At this step employees selected above go through induction phase, which brings
on wide range of training as per competitive hospitality sector aspects. Induction plays
strong role to strengthen core values, enriching wide scale productivity among workforce (A
Guide to the HR Lifecycle, 2018).
 Career planning and development: To increase detainment and development of talent
actively among workforce, this stage plays crucial role where career planning is done
technically to evolve on higher competitive benchmarks.
 Retention: This step heads on focus towards retention of best talent by motivating new
skills, bringing on dynamic diversity and inculcating change for long term periods.
Retention should be focused on by analysis towards new scale connective paradigms,
towards new horizons and for functional strength.
 Separation and termination: HR at this step of life cycle focuses to analyse why any
specific employee is leaving company, and demand for promoting positive atmosphere is
worked on. Termination formalities are done by keeping up with accuracy benchmarks,
building rapport with employee which enhances company goodwill on longer time frame.
Importance of retaining and developing talent in relation to HR life cycle can be understood
as widely crucial, for evolving towards new benchmarks. Higher commitment among employees
enriches company goodwill on longer time frame, for up scaling new ideas and bringing on
technical shift towards potential goodwill. East London Catering venture will be able to employ
best skilled workforce by implementing strategic vision within HR life cycle (12 HR Trends for
2020, 2019).

Performance management plan for overcoming issues in negative behaviour staff retention
Performance management plan plays strong role in overcoming negative behaviour among
workforce and in strengthening staff retention productively. Performance management plan will
critically idealise best skills, to be trained within employees among workforce, restore competitive
talent and stronger staff retention. East London Catering with usage of project management plan
will plan up to pertain focus towards new potentialities and foster business growth opportunities, to
raise new higher benchmarks.
Performance management plan for new employee hired in production department will be according
to following steps.
 Planning: At first stage new performance goals will be planned for learning and talent
development, in role of employee recently employed in hospitality team.
 Coaching: Advanced technology will be implemented at this step, for higher scale training
among reaching new hospitality benchmarks. This will enable smart professional hospitality
services to be developed among employee in hospitality team, as per East London catering.
 Reviewing: New skills such as smart communication skill, high commercial acumen being
trained among new employees within hospitality teams will be reviewed critically at this
step.
 Action: At this step of performance management plan, new derivatives being analysed
among skills will be worked on for reaching higher advanced goals, motivation development
in employees.
Strategies for overcoming issues in negative behaviour and staff retention:
 East London catering venture must hold brainstorming sessions and creative meetings to
enhance functional growth towards effective staff retention. This brings on fundamental
pace towards developing coordination among employees, reducing negative behaviour and
enhancing staff retention. HR department must take specific focus towards building on best
training sessions for employees, to yield on productive diversity for keeping up motivation.
(Top 6 HR Trends in 2020 – Transforming the Future of Work, 2019).
 East London catering venture must hold dynamic understanding towards specific focus on
best training methods for effective staff retention and competitive skill diversity. Also this
factor relates with overcoming staff turnover issues, by strategically heading on high scale
retention by productive diversity growth in workforce.

Legislation to be adhered by hospitality organisations
Hospitality sector is vividly growing on varied dynamic business scenarios, where
companies need to adhere large of hospitality laws and regulations aspects. Client’s safety
standards and hygienic control measures play strong essential role for potential dynamic growth
towards untapped horizons actively. Legislations plays strong role in general hospitality law
covering range of issues, including risk management and enrichment of brand goodwill actively
Hospitality sector being highly competitive, brings on varied pace for legal laws and compilations
to be conducted for serving customers, with best hygiene safety standards functionally (10 best
innovative HR practices from 2020 you need to know, 2021).
 Employee welfare: Unique employment attributes in hospitality industry enables to form
permanent commitment among employees, where employees should be given best
standards. Management has role to guard employees against violation of wage and overtime
laws, which enriches guard safety profoundly. Maintaining proper records among
employees, plays crucial role for higher yielding synergies within business goals and to
restore motivation.
 Risk exposure: Hospitality sector service providers face risk of lawsuits based on breach of
contract in relationships, with suppliers and guests where negligence factor creates chaos.
East London catering by creating best safety standards, hygienic working scenarios for all
employees will be able to adhere faster competitive hospitality standards requirements by
customers Laws to avoid exposure and even closure of business should be monitored for
strengthening diversity, which also requires conducting verification activities.
 Legal compliance: Laws on best guest relationships and maintenance of public health
through creation of food hygiene standards is essential where services must be adhered as
per compilation requirements. Service providers within hospitality sector where East
London catering has wide scope to evolve on legal compliance, for technical growth in
revenue benchmarks. Food safety act and regulations, hazard analysis and critical control
points must be adhered while serving people with varied range of smart hospitality standards
(Martin, Nguyen-This and Mother, 2021).
 Food safety and client service: East London catering should adhere to food safety
parameters where ensuring best client welfare services legally make company goodwill rise.
It becomes crucial to ensure hygienic conditions and offer best security measures in serving
food and assure best quality products are being delivered. Operators need to know legal
duties, refrain best food safety measures and keep hygienic standards at stated benchmarks
for overall procedures growth.

Impact of employment law and contract law on business decision making
Company employment law and contract law has profound role in business decision making
for enriching productive development, where hospitality sector demands legal compliances to be
adhered informatively. Knowledge of hospitality regulations aims to protect business reputation
actively. Leaders and managers within top management specifically head on focus towards
compliance of employment laws, contract laws for best decision making where long term vision is
developed actively. East London catering venture as one of the widely growing hospitality sector
aims to keep all laws based on legal compilations to be adhered, form best decisions towards
implementation of advanced resources. It can be also analysed that employment laws and contract
laws have direct correlation on business decision making, as it heads on fundamental growth for
keeping up goodwill goals (.Mother and Nguyen-This, 2021).
 Legal safety standards also form strategic role for imperative diversification towards new
fundamental aspects, where hospitality sector actively evolves on wider technical pathways.
For example, hotels have to provide access to varied disabled patrons, and specific focus
should be pertained towards business legal compilations. By not attending to legal laws,
lawsuits and protests can rise which further also hampers goodwill of brand, for not
respecting clients requirements. Business decision making has profound impact as legal
employment laws and contract laws compliance requires higher investments, also to pertain
focus on varied determining new horizons.
 Impact of employment laws and contract laws on best decision making holds high
importance for functional varied growth towards untapped horizons. This can be evaluated
with focus on strong employment laws compliance where best decision making strategies
need to be framed, as per competent marker demand for strengthening loyal commitment.
HR professionals need to adhere to best legal laws formulation, provide best safety
standards available for all employees which enhances competitive strength in brand
( Elsharnouby and Elbanna, 2021).
Interrelationship of various functional roles within hospitality sector
Interrelationships of various functional roles within hospitality sector can be understood to
be widely crucial for overall productive growth, enriching keen synergies into new horizons among
technical growth. East London catering venture by assessing focus on interrelationship among
various functional roles will be able to competitively expand on untapped market horizons,
 Marketing and promotion functions: Hospitality sector being one of the most diversified
industry heads on advanced scale technical promotions, where marketing department has

strong correlation with promotion functions. Marketing and promotion departments’
interrelationship explains profound focus towards diverse aspects towards bringing on
customers oriented preferences. This can be understood as one of the most crucial
interrelationship, where best target marketing gives push to strategic promotion goals among
diverse competitive global world. Planned budget from marketing department is used for
promotion, based on latest market demands for active diversification and competent market
growth.
 HR department and production: Hospitality sector functional role within producing best
resourceful services are often connected with hiring best skilled human resource in all
departments. This brings on focus towards dynamic flow and interrelationship between HR
department and production, for technical productivity and to reach towards untapped
horizons. Best skilled employees recruited by HR department are an asset for company to
produce better and serve better, where East London has varied scope ton diverse domains
excellence (Hayes, 2021).
 Finance and sales department function: The finance department has strong
interrelationship with sales department at hospitality sector, where main fundamental goal to
reach at target revenue benchmarks are developed. Budget formation, inputs and outputs are
informatively monitored to strengthen future operations goals in diverse domains for
technical productivity. This in depth connectivity between finance and sales functions play
strong fundamental role to deliver new quest horizons, for higher profitability and
operational excellence.
 HR and marketing departments: Both department correlation bring on varied range of
efficacy in commercial expertise for customer satisfaction profound growth. Retaining best
skilled employees by HR department in correlation with marketing functional requirements,
generates base for future operational growth. Vision oriented services among customers
have dynamic impact on wide scale scenarios within hospitality sector, where East London
aims to employee best human resources in marketing department (Kumar, 2021).
Methods of communication, coordination and monitoring for strengthening value chain
Communication, coordination and monitoring methods play wide essential role for
strengthening value chain actively towards dynamic paradigms within hospitality sector. Methods of
communication functionally enhances coordination determinants among departments, where up
scaled fundamental role to monitor operations functionally plays strong role (Mont Andon and et.al,
2021).

 Face to face communication is the most effective method for strengthening productive value
chain among departments, to evolve on wider phenomenons actively. By evolving on this
method of communication employees and departments among various aspects are worked
on, for which new imperative focus is developed. Direct contact, group meetings within
organisation structure are some of the most essential coordination methods for strengthening
value chain actively. It can be in depth understood communication and coordination are
some of the critical working scenario, where East London catering venture heads on to
evolve on competent fundamentals. The monitoring techniques within strengthening value
chain are also another scenario, where smart fundamental scale goals are headed on.
 Methods of monitoring such as technical monitoring, functional monitoring and business
process monitoring are some of the best monitoring techniques for imperative productive
growth. Monitoring play crucial role to evolve on competent efficacy among business
operations actively, which generates varied range of effective decision making goals. It can
be in depth analysed that methods of communication, monitoring plus essential role for
diversity of business strategies evolvement. East London catering venture will be able to
keenly bring on varied range of connective work goals, by heading on wide range of scaled
operations.
 Value chain can be effectively evolved by heading on key metrics, taking proactive
decisions and using latest communication channels for effective diversity. East London
catering venture will be able to cater diverse fundamental progression, towards untapped
horizons for technical goodwill evolution. Value chain also competently gives economic
rise towards new vision oriented aims, brings motivation among employees in workforce
and instil connective diversity. There is also productive diversity evolved on key decisions,
leveraging wider arenas where workforce motivation specifically gives rise to varied range
of fundamental efficiency.
The above discussed methods of communication, coordination and monitoring have in depth
concluded various horizons for practical implementation towards new untapped parameters. East
London catering venture by evolving on best communication, coordination and monitoring will be
able to pertain higher strategic advancement in value chain growth (Jiang, Zheng and Lu, 2021).
CONCLUSION
From the above report, it can be concluded that management of finance and recording of
transactions plays profound role to enrich transactions viability within minimising costs responsibly.
Human resource is the most essential department, to keep workforce skills retained for longer time

period and inbuiilt motivation within longer time frame. East London catering venture HR
department aims to keep vivid skills evolved among employees and strengthen its aims, by keeping
best working goals in operations. The study further concluded human resource cycle stages whcih
are recruitment,induction, career planning and development, retention, separation and termination.
Report has also concluded further performance management plan aspects, where retention strategies
are evoved on by heading towrads new talent management development. Study further concluded
legal and ethical considerations have vast impact on hospitality sector businesses, where risk
exposurr, employee welfare and legal compliance are some of the most specific arenas. Report
further concluded importance of verbal communication, regular team meetings as some of the most
essential functions along with monitoring to strengthen value chain.

REFERENCES
Books and Jorunals
Elsharnouby, T.H. and Elbanna, S., 2021. Change or perish: examining the role of human capital
and dynamic marketing capabilities in the hospitality sector. Tourism Management, 82,
p.104184.
Hayes, D.K., 2021. Human-Resource Management in the Hospitality Industry.
Jiang, J., Zheng, L. and Lu, C., 2021. A hierarchical model for interpersonal verbal
communication. Social Cognitive and Affective Neuroscience. 16(1-2). pp.246-255.
Kumar, S.V., 2021. A Study on Adept Soft Skill & Knowledge Accompanying Hospitality Employee
Retention Behavior During Covid-19 Lockdown Phase. Anais Brasileiros de Estudos
Turísticos-ABET.
Martin, L., Nguyen-Thi, U.T. and Mothe, C., 2021. Human resource practices, perceived
employability and turnover intention: does age matter?. Applied Economics, pp.1-15.
Montandon, J. E., and et.al, 2021. What skills do IT companies look for in new developers? A study
with Stack Overflow jobs. Information and Software Technology. 129. p.106429.
Mothe, C. and Nguyen-Thi, T.U., 2021. Does age diversity boost technological innovation?
Exploring the moderating role of HR practices. European Management Journal.
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