Principles of Managing and Monitoring Financial Performance in Hospitality Business

This document discusses the principles of managing and monitoring financial performance in the hospitality business. It covers topics like double entry book-keeping, trial balance, and budgeting. It also explores the stages of the HR life cycle and their importance in retaining and developing talent. Additionally, it discusses the specific legislation that hospitality organizations need to comply with and the impact of employment, company, and contract law on business decision making.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigation of the principles of managing and monitoring financial performance..............1
P2 Application of double entry book-keeping system of debits and credits to record sales and
purchase transactions in general ledger.......................................................................................2
P3 Production of a basic trial balance applying the use of balance off rule................................3
TASK 2............................................................................................................................................5
P4 Reviewing stages of HR life cycle which is applied to a specific hospitality job role and
their importance in retaining and developing talent....................................................................5
P5 Development of performance management plan for a specific hospitality job role applying
techniques to resolve problems....................................................................................................6
TASK 3............................................................................................................................................7
P6 Identification of specific legislation that a hospitality organisation has to comply...............7
P7 Illustration of the way in which employment, company and contract law has potential
impact upon business decision making........................................................................................8
TASK 4............................................................................................................................................8
Covered in PPT............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality sector can be defined as the industry in which different types of services such
as travel, tourism and others are offered to the clients. While operating business under this sector
it will be very important for all the entities to make sure that all the requirements of clients are
fulfilled so that growth for business could be acquired. In order to operate all the operational
activities properly the managers are also required to pay attention towards the way which is
followed by them to operate business (Benckendorff and et.al., 2015). The organisation which is
selected for this report is Marriott Hotel which is one of the largest hotel of United Kingdom.
This report covers various topics which are managing finance, human resource, recording
transactions, development of performance management plan etc. Along with this, impact of legal
and ethical considerations and importance of coordinating and integrating various functions in
hospitality organisations are also covered in this report.
TASK 1
P1 Investigation of the principles of managing and monitoring financial performance
It is very important for all the organisations to manage and monitor financial performance
and for this purpose all of them are required to follow appropriate principles. Some of them
which are focused by Marriott Hotel are described below:
Consistency: It is one of the main principle which is required to be focused by all the
organisations to manage financial performance (Ebi and et.al., 2014). It is taken in to
consideration by managers of Marriott Hotel for the purpose of managing and monitoring
presentation of business in monetary terms.
Justification: According to this principle all the organisations should record justified
information in the books of accounting. In order to manage and monitor financial performance
this principle is focused by Marriott because it allows the managers to analyse actual information
and form effective decisions accordingly.
Timelines: This principle states that all the managers within the organisations are
required to complete all the tasks in a specific time period and meet timelines of the tasks. It is
used by accounting professionals of Marriott so that they can manage and monitor performance
of business and analyse that all the tasks are performed properly or not.
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Documentation: It is also an essential principle which is required to be followed by
entities such as Marriott for the purpose of managing and monitoring financial performance. It
guides managers to keep detailed information of all the transactions which are made by the
organisation during the year (Filimonau and Delysia, 2019).
P2 Application of double entry book-keeping system of debits and credits to record sales and
purchase transactions in general ledger
Profit and Loss Statement:- This is financial statement which collects revenue an
expense during an accounting period of monthly, quarterly and yearly basis. This statement is
also known as income statement. The double entry system is also termed as book-keeping. This
is described as the process for business transaction to record accounts in debit and credit column.
Profit and loss statement of Marriott Hotel for January 2020
Effective recording of debit and credit:- This is described as the process of recording
transaction through two different accounts which are debit and credit. These recordings are
further classified on the journal entries rules which are debit the receiver, credit the giver; debit
what comes in and credit what goes out; debit all expenses, credit all incomes. This recording
helps to maintain the data in systematic manner with proper presentation.
Manual addition to computer software to record financial data together with
information
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Financial statements are prepared in an accounting period to analyse and determine the
potential decisions for organisational goal achievement. Nowadays, with the changing and
developing atmosphere people have also started to maintain their accounts through electronic
media to reduce the efforts of book-keeping (Jarratt and et.al., 2019). The activities performed on
computer leads to record transactions with truth and fare representation. This management of
accounting provides the accurate data with speedily, convenient manner which is easily
understandable.
P3 Production of a basic trial balance applying the use of balance off rule
Trial Balance is the collection of ledger accounts formed and arranged in this statement
with debit and credit account. It is usually prepared at the end of accounting period for the
preparation of final statements. The balance off rule is the process of recording total debit
account equally to the total of credit account. This means that all the ledger accounts are to be
balanced till the end of accounting period.
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Trial Balance for Marriott Hotel
Role of Trial Balance in identifying rectification of errors:- The Trial Balance plays
very efficient role in analysing and determining the rectification of errors as it tally the ledger
account with debit and credit through suspense account. It helps managers to rectify errors with
prompt decision-making (Jasnoff and Sheikh, 2019).
Components of Trial Balance:- The parts involved in Trial Balance are account name,
number, debit and credit column. The managers of Marriott Hotel apply these components such
as list of account, total balance of debit and credit, company name.
Uses of budgets to plan and control:-
Income Stream:- It is the revenue generated by organisation through profit-margin. The
managers of Marriott Hotel consists of income as their capital generation on investment, high
rate of return on risk, etc.
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Fixed cost and variable cost:- The fixed cost is expressed as the expense which are
fixed and don't fluctuate with change in output. Some of this cost is incurred by Marriott Hotel
on loan, wages and salary, etc. The variable cost is referred as the cost which varies with
fluctuation in output. Managers of Marriott Hotel incur these cost on their consumption of direct
material, labour, etc.
Pricing strategies and setting realistic goals:- The pricing strategies are considered as
the cost incurred by organisation on production of product which is to be consumed by
consumers with profit-margin. Managers of Marriott Hotel implement cost plus pricing strategy
as it describes that cost plus profit-margin for maximisation of profits (King, Russell and
Bulsara, 2017).
TASK 2
P4 Reviewing stages of HR life cycle which is applied to a specific hospitality job role and their
importance in retaining and developing talent
Marriott Hotel an international hotel which directs and controls broad portfolio for its
franchising. The HR manager implement the life cycle to manages its role for effective and
efficiency in achievement of goal and objectives.
HR Life Cycle:- This is described as the different stages of employee goes to perform its
work for a particular company. The HR manager of Marriott Hotel concentrates on employees
for their internal strength to compete with competitors for its stability and success. This life cycle
is further classified through various stages which are as follows:-
 Recruitment:- This is the process through which employee provide the application for
vacancy in an organisation to be recruited at specific job (Louis, 2015). The HR manager
of Marriott Hotel can use this process to recruit employees for the right vacant to perform
various actions as reception, housekeeping, staff, chef, etc.
 Selection:- In this process applied application from the employees are selected for the
best suitable requirement for job with good qualification and experience. The HR
manager of Marriott Hotel use this to identify the best candidate through interview for job
which can perform the specified task.
 On boarding and Orientation:- This process is considered with explanation of
employee for their job criteria with their working place, role, designation, etc. The HR
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manager of Marriott Hotel acknowledge the employee with their hotel atmosphere with
rules and regulations, etc.
 Exit and transition:- In this process the employee is retired or moved from the job as
being performed its activity. The HR manager of Marriott Hotel retries the existing
worker and select the new employee for the job which increase efficiency to accomplish
the target.
Different recruitment methods:- Performance management, training and development,
succession planning and maintaining employee motivation to retain staff are the various methods
for recruitment process. Performance management is judgement that activities performed by
employees meet the desired goals or not (Mariani and et.al., 2018). Training and development is
expressed as the process to train employees which increase efficiency in their performance to
achieve target.
P5 Development of performance management plan for a specific hospitality job role applying
techniques to resolve problems
Performance Management Plan:- This pan is referred as the process to examine the set
of activities performed by employee results in goal achievement or not with effectiveness and
efficiency. The HR manager of Marriott Hotel implement this plan to direct and control the
performance of worker for mission or target achievement. The main job role selected is Food and
Beverage manager to maintain the food and drinks facility properly which attracts consumers to
survive as luxury lifestyle. This manager focus on several issues which are customer service,
removing plastic packaging from paper or cloth, snacks and drinking facility in rooms etc.
Plan:- Plan is described as the strategic decision making to reduce the mistakes or
obstacles which delays in goal achievement. The food and beverage manager of Marriott Hotel
further focus on above described issues to determine the corrective measures to reduce it. This
leads to maintain interior designing with qualified and communicating skills manpower which
attracts mindset of clients.
Track or monitor:- This tracking is referred as the process to monitor the working style
of employees with motivation for effective and efficient goal achievement. The Food and
Beverage Manager of Marriott Hotel tracks the activities performed by the worker in particular
duration which impacts the target (Martínez and et.al., 2014). This manager further monitors the
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decisions for proper arrangement of facilities and amenities inside the room, almirah with snacks
and beverages, tables with refreshments and tea bags, etc.
Review:- In this process the manager review and evaluate all the activities are properly
managed and organised to meet the desired result as per the demand of clients. The Food and
Beverage manager focus on the actions of manpower and determine their working style with
fluency and eagerness which are also provided with incentives and voluntaries.
From the performance management, it is clarified that the negative behaviour of
employees and their absenteeism is positively managed through extra efforts which leads to
targets accomplishment effectively and efficiently. Managing multicultural team work leads to
understand each other through co-operation and co-ordination which results in success and
stability of Marriott Hotel.
TASK 3
P6 Identification of specific legislation that a hospitality organisation has to comply
Legislation is the statutory law which is governed by the regulations of UK government
are imposed on organisation to monitor the health and safety issues for manpower of an
organisation. The hospitality industry also faces these challenges of legislations which involves
such as cybercafe, employment protection, etc., are very essential to be followed by organisation
while achieving its goals otherwise high penalties are charged by government. Some of these
legislations are described as under:-
Environmental Legislation Act, 1974 :- This is described on the basis of environmental
issues such as air, noise, water and atmospheric pollution which affects the health of business
manpower, society, animals, etc. The managers of Marriott Hotel focus on reducing
environmental pollution which results in achievement of goals with legal and lawful objectives.
Food Safety Legislation Act, 1990:- This legislation provides the main responsibilities
of business for their food services. This is to ensure that business serve or sell virus protected,
pure food, quality product which consumers would expect. The managers of Marriott Hotel focus
on food law regulations to deal with consumer food safety with health issues.
Consumer legislation Act, 2019:- This is also known as consumer protection act
amended by government for the right of consumers to deal their problems regarding business.
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The managers of Marriott Hotel implement this legislation act to identify the problems of
consumers which delays in consumer satisfaction for goal achievement.
P7 Illustration of the way in which employment, company and contract law has potential impact
upon business decision making
Organisation have potential impact on their strategic decision-making concepts through
the legislations governed (Smith, 2014). These rules and regulations governed by governments to
ensure control over business for restricting the illegal and unlawful objectives to accomplish
their goals. The managers of Marriott Hotel implement these employment, company and contract
law to restrict the harmful actions for society and manpower while achieving its objectives.
These laws are further described below:-
Employment Law:- This law is the process of rules and regulations imposed by
government for employers and employees. This law impacts about the decision of hiring
employee and what activity to be performed. The manager of Marriott Hotel implement this law
as it builds the relationship between employer and employee which is beneficial in
accomplishment of organisational goal and objectives.
Company Law:- This law is imposed to direct and control the actions of company on
legal and lawful objectives of government in maximising its profits. The managers of Marriott
Hotel implement this company law for occupational safety, health and welfare, etc. which
motivates employee to work with motivation.
Contract Law:- This is considered as the agreement with legal and lawful objective
through proposal and acceptance for an agreement. The managers of Marriott Hotel implement
this law to perform various agreements with accordance of government rules and regulations.
TASK 4
Covered in PPT
CONCLUSION
From the above project report it has been concluded that hospitality sector is a
combination of different businesses which are hotels, resorts, tourism companies etc. It is very
important for all the entities to make sure that all the operational activities are performed by them
in systematic manner so that possibility of unsatisfied customers could be reduced. The key
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elements which should be focused by all the enterprises are managing financial as well as human
resource. For this purpose, companies are required to record all the transactions properly and
generate performance management plan. There are various types of legislations which are
required to be focused by all the entities in order to reduce possibility of negative implications of
them. Some of the laws are contract, employment and company. For all the hospitality sector
departments it is very important to make sure that they are coordinating with each other so that
tasks that are planned by them could be performed in systematic manner.
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REFERENCES
Books and journal
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Ebi, K. L., and et.al., 2014. A new toolkit for developing scenarios for climate change research
and policy analysis. Environment: Science and Policy for Sustainable Development.
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Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism management. 71. pp.234-245.
Jarratt, D., and et.al., 2019. Developing a sense of place toolkit: Identifying destination
uniqueness. Tourism and Hospitality Research. 19(4). pp.408-421.
Jasnoff, G. R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of
Undergraduates Employability Toolkit. In EdMedia+ Innovate Learning. (pp. 158-161).
Association for the Advancement of Computing in Education (AACE).
King, C., Russell, K. and Bulsara, C., 2017. Promoting student belongingness:'WANTED'-the
development, implementation and evaluation of a toolkit for nurses. Australian Journal
of Advanced Nursing, The. 34(3). p.48.
Louis, T. A., 2015. Expand the toolkit!. The American Journal of Bioethics. 15(4). pp.40-42.
Mariani, M., and et.al., 2018. Business intelligence and big data in hospitality and tourism: a
systematic literature review. International Journal of Contemporary Hospitality
Management.
Martínez, J., and et.al., 2014. Vitaki: a vibrotactile prototyping toolkit for virtual reality and
video games. International Journal of Human-Computer Interaction. 30(11). pp.855-
871.
Smith, W., 2014. The Social Work Leadership Toolkit.
Sriprahastuti, B., 2018, January. POLICY ANALYSIS ON INTEGRATED CHILD CENTER-
CORPORATE SOCIAL RESPONSIBILITY: CASE STUDY ON HOSPITALITY
BUSINESS SECTOR IN INDONESIA. In Proceedings of The International
Conference on Social Sciences (ICSS). (Vol. 1, No. 1).
Zhang, K., and et.al., 2016. Current and future potentialities of critical hospitality studies:
Conference workshop report. Hospitality and Society. 6(1). pp.77-82.
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