Principles of Financial Performance Management in the Hospitality Sector

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Principles of financial performance management............................................................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................................................................................................................................5
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
TASK 4............................................................................................................................................8
P8. Interrelation between different functional role within hospitality sector.........................8
P9. Different methods of communication, coordination and monitoring within hospitality
organisation............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality sector is a flourishing corporate sector which encompasses accommodation,
restaurant, recreation, lodging, travel and tourism and so on (Chan and Hon, 2020). The current
assignment is on “Juicy Pulp” which is a newly opened juice and smoothies centre functioning at
Moorgate in London EC2Y. This venture is being converted into a thriving entity. It holds
specialisation in salads that are offered with blended juices and smoothies. The business mentor
of this entity has come up with the idea of integrating alcoholic spirit with the current beverages
to give competition to the nearby bar. The report includes principle of management of financial
performance along with performance management plan. Further, it contains HR life cycle and
impact of laws on business decisions. At last, methods of monitoring, coordination and
interaction are covered.
P1. Principles of financial performance management
Financial performance is defined as the extent to which an entity is able to employ the assets in
an effective manner to facilitate high revenue generation (Rhou and Singal, 2020). There are
several principles which provide aid in monitoring as well as management of financial
performance. These principles are discussed in context of Juicy Pulp as follows:-
Making key financial statement reports:
This principle is keen upon development of essential financial statements such as Profit & Loss
and Balance Sheet with a view to provide an overview of the current financial performance of
the organisation. By preparing such reports, Juicy Pulp will be able to gain knowledge of the
areas whereby the entity can facilitate improvements to inflate the performance next year.
Maintain proper records of stock:
This principle is keen upon maintenance and development of proper records of the purchases
done by the company in terms of raw materials and other essentials. This provides Juicy Pulp
with knowledge regarding the wastage that has taken place during the inventory purchase and
stocking process.
Evaluating the overhead cost:
This principle is keen on gaining an insight into the extra expenditure done by entity over and
above the expenses associated with organisational operations. Through maintenance of all the
records of the extra expenses, Juicy Pulp will be able to ascertain the cost of those expenses that
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