The Hospitality Business Toolkit

This document is a comprehensive study material for the hospitality industry, focusing on topics such as financial performance, HR life cycle, performance management, and legislation compliance. It provides insights into principles of monitoring and managing financial performance, double entry bookkeeping system, HR life cycle stages, performance management plan, and laws affecting the hospitality sector. The document also discusses the interrelation between different functional roles within the industry.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Principles of monitoring and managing financial performance.......................................1
P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger.................................................................................................2
P3. Prepare trail balance.........................................................................................................3
TASK 2............................................................................................................................................4
P4. Review the stages of HR life cycle..................................................................................4
P5. Develop a Performance management plan and apply techniques to resolve negative
behaviour................................................................................................................................6
P6. Legislations that a hospitality organisation must comply and adhere to..........................7
P7. Potential impact of company, employment and contract law over business decision
making in hospitality sector....................................................................................................7
P8. Interrelation between different functional role within hospitality sector.........................8
P9. Different methods of communication, coordination and monitoring within hospitality
organisation............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is one of the vastly growing sectors in the modern era. The present
project is based upon a newly opened business which is turning into a flourishing organisation at
Moorgate in London EC2Y. The name of the entity is “Sip & Whip” and it specialises in
inventive, healthy salad which are being served with a wide variety of blended juices as well as
smoothies. The opening of a gym nearby has inflated the trade for the company. Further, the
business mentor for Sip & Whip has come up with the idea of blending the juices and smoothies
with alcoholic spirit to serve as a healthy alternate to the wine bar in nearby vicinity.
The report consists of principles of managing and monitoring financial performance.
Further, it encompasses HR life cycle along with the performance management plan. Besides
this, the legislation affecting hospitality organisation and influence of certain laws over decision
making of company is covered in the assignment. Lastly, methods for communicating,
coordinating and monitoring are included.
P1. Principles of monitoring and managing financial performance
Financial performance can be referred to as a measure of the extent to which a firm can
make use of its assets with a view to generate high level of revenues as well as profits. As an
Accounts Assistant, it is important to conduct evaluation of the financial performance of the
organisation with a view to ascertain whether the venture is meeting the targets for which it was
developed. In this regard, each company takes into account certain essential principles which
provide assistance in monitoring as well as management of financial performance. These
principles are discussed in context of Sip & Whip as follows:-
Preparation of key financial statement:
This is considered to be the basic report that an organisation such as Sip & Whip needs to
prepare. Financial statements include Profit & Loss Statement along with Balance Sheet. Both of
them together present a picture of the financial standing of the company at any point of time.
These will provide Sip & Whip with knowledge of the areas whereby the entity can facilitate
reduction of cost through elimination of extra expenditure.
Preparation of inventory record:
This principle requires a firm such as Sip & Whip to maintain records of company stock
and other materials bought by it. This provides assistance in ascertainment of overall wastage
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that took place. Looking upon this, Sip & Whip would take measures to ensure that least wastage
takes place in future course of time.
Evaluation of overheads:
There are a number of extra expenses that are incurred by an organisation but they do not
hold relation with the operations of the organisation. By keeping a proper record of the
overheads, Sip & Whip would be able to cut down the extra expenses that tend to hamper the
profitability of the corporation.
P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger
Double Entry Bookkeeping can be referred to as that system of accounting whereby a
transaction executed by the business involves two or more accounts to be affected in order to
ensure that the accounting equation gets balanced. An example of the double entry book keeping
system for recording the sales as well as purchase transactions is given underneath:-
Sales account
Particulars Amount Particulars Amount
To balance b/d 7500 By Bank account 5000
By Mr. Joy account 2500
Total 7500 Total 7500
Purchases account
Particulars Amount Particulars Amount
To bank account 6000 By Balance b/d 6500
To Ms. Raechel account 500
Mr. Joy account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
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To Ms. Raechel account 500
Ms. Raechel 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 trail balance
Trial balance can be referred to as a book keeping system which consists of a record of
balances of each general ledger account of the company. Hereby, an account with debit balance
is written in the debit side while an account having credit balance would be written in the credit
side. Lastly, the total of the 2 columns must appear to be same. The trial balance for the ledger
prepared above is as follows:-
Particulars Amount Particulars Amount
Bank Account 1000 Sales Account 7500
Purchases Account 6500
Total 7500 Total 7500
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TASK 2
P4. Review the stages of HR life cycle
The human resources in the organisation act as the back bone to it in performing all the
tasks and operations in the business. The work force in the organisation that is the most
important and foremost element to carry out the organisational activities is called as the human
resources. It has been observed that an effective human resource can be a productive asset for
the business. Thus to manage the human resource in the company it is essential for the human
resource management to understand and effectively manage the people of Sip and Whip. There
are multiple stages of HR which helps to determine all the functions of this department within
the company.
(Source: HR life cycle, 2020)
The above illustration acknowledges the manager with the facts regarding each and every
stage of Human Resources. These elements involves certain phrases of the HR department within
Sip Whip company.
Attraction: it is essential for the company to work smartly and earn the most effective
part of the market. Thus with the enhanced market share, the goodwill and revenue of the
company gets increased that provides it a strong infrastructure and efficient level of mass
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Illustration 1: HR Life cycle

popularity. These all factors of a company are quite helpful in to attracting new and potential
candidate for the job opportunity. The large number of job applications in a company gives the
HR manager way too many alternatives to select the best and most appropriate candidate for the
job, that would lead to an easy and effective way to gain the organisational goals and objectives.
Recruitment: The recruitment process in the human resource management is the most
crucial as well as critical stage of an HR life cycle. Recruitment includes all these factors which
are a part of interacting with a new and potential candidate. The recruitment of employees is the
process that involves calling out of candidates for the interview and segmenting them according
to the need and demand of the vacancy of the firm. All the element of traditional recruitment is
thus followed by Sip and Whip.
On-boarding: The on boarding step involves the development of knowledge, skills,
behaviour, and responsiveness of the employee. This evolvement helps the candidate to work
effectively and efficiently. Sip and Whip held productive programmes of training and
development in the organisation that enables to establish good connections of the employees
with respective company.
Development: It is essential to develop and grow the standards of work of the employees
in the organisation. This helps in the effective development of the organisation as well. For
instance, the counter sales person of Sip and Whip has the basic skills to make the bills, taking
payments and writing the orders of consumer. The HR management of Sip and whip here gives
them a new and enhanced training of public interaction, this will lead to a positive and
interactive approach of the sales person that would ultimately increase the goodwill and brand
value of the company in the market.
Retention: The step of retention gives a proper balance among all the people of
company. The distribution of rewards within the top performers and spreading of positive
publicity within the organisation regarding achievement of any employee helps in retaining them
for a long period of time. This is the major and most effective stage of Human Resource cycle.
Separation: The last stage of HR life stage is the separation that emphasises on the
retirement of existing employees. Those people who worked whole life of theirs in a single
company deserve a period for self relaxation. Thus in separation HR enforces its aged and other
specific persons to take the retirement where company reward s the individual for their lifelong
effective services towards the company and its operations.
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P5. Develop a Performance management plan and apply techniques to resolve negative
behaviour
Performance management is defined as the process through which superiors and
subordinates set networking with each other such that the performance of employees can be
enhanced. Sip & Whip has recently hired an Accounts Assistant for which the company needs to
prepare this plan in order to make sure that the gap underlying between their actual and desired
performance can be filled. Thus, the performance management plan for enhancing his
performance by a significant margin is presented as underneath:-
Performance Management Plan for newly appointed Accounts Assistant
Objective Provide Training Review performance Monitoring & control
Gain
comprehensibil
ity of
terminologies
and concepts of
Accounting
Development
of knowledge
of Accounting
Provision of on the job
training to upgrade his
skill, knowledge and
competence
After 2 months Gap between current and
desired output will be filled
by provision of training
and reading materials of
Accounting
Enhancing
Financial data
Handling skill
The employee would be
working under the
supervision and guidance
of Senior Accountant to
incorporate and enhance
financial data handling
skills
After 4 months Effective guidance and
training under the
supervision of Accounts
Assistant.
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P6. Legislations that a hospitality organisation must comply and adhere to
There are certain laws that a hospitality firm such as Sip & Whip needs to comply with in order
to ensure long term existence in market place. Below explained are certain legislation which
needs to be considered by the concerned company:-
Alcohol Licensing Act, 2003:
As per this law, the alcoholic content within the new range of smoothies and juices should be in
accordance with the provisions of this act. Further, Sip & Whip should have the license to sell
alcoholic content within the premises. This will ensure the organisational offerings are given to
customers while acting in the best interests of law.
Management of Health and safety at Work Regulation, 1999:
As per the provisions of this act, it is important for a company such as Sip & Whip to take into
account effective health and safety measures so that the employees protection can be ensured
within the premises at all times. When proper safety measures are taken, the company is able to
retain the employees for a long period of time in future context of time.
P7. Potential impact of company, employment and contract law over business decision making in
hospitality sector
Business decisions are largely affected by the company, employment and contract law.
The same is discussed in context of Sip & Whip as follows:-
Company Law:
This is a statute which talks about the standards as well as conduct that a corporation needs to
maintain while conducting operations within the market place. The decisions and activities of Sip
& Whip are ensured to be adhering to the provisions of company law. This law even informs the
company about the instances or activities that count as illegal or unethical as per legal
regulations. Thus, the entity takes such decisions which are in accordance with the provisions of
company law.
Employment Law:
This is the statute which seeks to regulate the relationship between the workforce and the
employer through governance of the conditions associated with recruitment, selection, training,
working atmosphere and so on. The management of Sip & Whip ensures that it takes into
consideration all the laws and guidelines before stipulating the workforce policies or practices.
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Thus, the decision making of entity related to the development of workforce plan is largely
affected by this law.
Contract Law:
This law seeks to provide the guidelines for two or more parties which enter into a contract with
any specified intent. Sip & Whip is a food and beverage company and thus it needs to enter into
contracts with suppliers and a few other parties. For this purpose, the respective company goes
through the guidelines mentioned in this law so as to ensure that none of the provisions are
breached and the contract does not become void in any case.
P8. Interrelation between different functional role within hospitality sector
Hospitality industry seeks to gain high satisfaction from customers through the
stipulation of effective products and services to them. In this relation, Sip & Whip leverages the
relationships between the various types of functional roles to attain a competitive advantage at
market place. Such interrelation is explained as follows:-
Financial and Marketing:
Both these functional departments interact with each other in an effective manner. In this
regard, it has been analysed that marketing department requires funds for carrying out
promotional and advertising activities. These funds are provided by financial department. With
this amount, marketing executes promotional campaigns and marketing plans. These help to set
networking with a large base of customers, thereby making them aware of the juices, salads and
smoothies sold by Sip & Whip in market. Further, this department will create awareness among
the people about the new alcoholic smoothies and juices of the company.
HR and Sales:
HR department within the confines of Sip & Whip holds the responsibility of managing
the people in an effective manner. In this regard, the sales department within the entity consists
of individuals who need training to upgrade their existent level of knowledge base and skill set.
In this regard, HR department conducts training sessions for sales personnel. With this, the sales
team is able to employ effective tools to increase the revenues for Sip & Whip.
P9. Different methods of communication, coordination and monitoring within hospitality
organisation
Communication:
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This is a process of disseminating data by way of written, oral or verbal ways. It plays a crucial
role in the success and growth of each and every company. Sip & Whip executes communication
through 2 methods, defined beneath:-
 Email: This is a type of communication method whereby the data is shared via the usage
of electronic media. Through this, the manager of Sip & Whip is able to communicate
with the employees and provide them with necessary information.
 Meetings: In this method of communication, the company calls for formal gathering of
employees in order to discuss important information about the organisation with them.
The information about new product launch is communicated by Sip & Whip through this
method.
Coordination:
This can be referred to as the process of setting sync between the business activities in order to
derive positive outcomes. To set this, Sip & Whip makes use of 2 methods outlined as follows:-
 Sound planning: Through the stipulation of sound strategies and plans, Sip & Whip is
able to set coordination between the different functions of business and even ensure that
the employees work as per the organisational requirements. This provides aid in
accomplishing the goal and objective of company in due course of time.
 Effective communication: Through the usage of strong communication, Sip & Whip
ensures coordination within the workforce. As a result of this, the employees are able to
work in a collaborative manner for the achievement of corporate goals.
Monitoring:
This can be defined as the procedure of keeping a check upon the performance delivered by
workforce during a specific course of time. Sip & Whip use 2 methods to carry out monitoring
which are defined as follows:-
 Performance appraisal: Hereby, the entity evaluates the performance of employees by
comparing the actual and desired state of the output. This helps in determining the gap
between both and monitoring the reasons behind the occurrence of such gap.
 Formal survey: This methods aims to collect data from current employees in order to
determine the conditions as well as aspects that result in performance gap for Sip &
Whip. The entity then take measures to ensure improvement in the reasons behind the
gap so that the gap can be minimal in future.
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CONCLUSION
On the basis of above discussion, it can be said that the main emphasis of hospitality
sector is over the fulfilment of needs and wants of customers in the long run. To effectively run a
hospitality organisation, the management requires certain prerequisites. These prerequisites
integrate to form the toolkit for a business. Further, it has been analysed that performance
management presents the company with a chance to enhance the performance of employees
through provision of training or effective guidance.
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REFERENCES
Books & Journals
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Paradigms and Directions for the Future. CRC Press.
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hospitality industry. Worldwide Hospitality and Tourism Themes. 5(2). pp.132-150.
Jumah, L. and Sulo, T., 2014. Influence of Job Assignment on Employee Turnover in Selected
Medium Sized Hotels in Kisumu City. African Journal of Education, Science and
Technology. 2(1). pp.39-45.
Kasemsap, K., 2017. Mastering social media in the modern business world. In Social media
listening and monitoring for business applications (pp. 18-44). IGI Global.
Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
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Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Pirani, S. I. and Arafat, H. A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production. 132. pp.129-145.
Silverstein, D., Samuel, P. and DeCarlo, N., 2013. The innovator's toolkit: 50+ techniques for
predictable and sustainable organic growth. John Wiley & Sons.
Weinstein, A. and Morritt, R., 2012. Segmentation strategies for hospitality managers: Target
marketing for competitive advantage. Routledge.
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