Principles of Managing & Monitoring Financial Performance in Hospitality Industry

This assignment investigates the principles of managing & monitoring financial performance in the hospitality industry. It explores the application of the double entry book-keeping system to record sale and purchase transactions in a general ledger. It also covers the production of a trial balance using the balance off rule.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Investigate about the principles of managing & monitoring financial performance........1
P2) Apply double entry book-keeping system to record sale and purchase transaction in a
general ledger.........................................................................................................................2
P3) Produce trial balance applying balance off rule to complete the ledger..........................4
LO2..................................................................................................................................................5
P4) Review the different stages of HR life cycle...................................................................5
P5) Develop a performance management plan for a specific hospitality job role..................6
LO3..................................................................................................................................................7
P6) Identify specific legislation that hospitality organisation has to comply and adhere......7
P7) Illustrate, how company employment and contract law has potential impact upon business
decision-making.....................................................................................................................8
LO4..................................................................................................................................................8
Covered in PPT.......................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality Industry can be explained as the industry which delivers different kinds of
facilities to their customers. The services which are included in it are lodging, food & beverages,
art and culture, travelling and tourism and many more. This types of industries are important in
current scenario because they are able to meet out the expectation of public who loves to travel
to new places. This respective assignment is based on Holiday Inn which is a British owned
American Hotel industry. This hotel was incorporated in 1952 by Kemmons Wilson whereas its
headquarter is in Denham, United Kingdom.
This respective report will contain multiple number of information which can easily
allow to resolve any of the issue related to hospitality industry. Firstly, proper investigation will
be conducted where ways will be determined that how overall cost can be reduced. The role of
HR life cycle plays the crucial role to mange work which will be determined in it. Various legal
aspects related to hospitality industry will have a huge role within this particular file.
LO1
P1. Investigate about the principles of managing & monitoring financial performance.
In present scenario, the business transaction is crucial unit for organisation as it helps to
determine whether company will earn profit or not. This are the things which is mainly measured
by focusing on assets, liability, income & expense statement. In context of Holiday Inn, their
management team has the responsibility to manage each and every work related to financial
transaction. It is will allow them to reduce overall cost which can improve their profit. There are
some of the business and they are:
 Sales: It is of two types, i.e., cash sales and credit sales. It cash sales, organisation gets
the opportunity to collect fund at the same time. In case of credit sales, it will not allow
company to collect money at the same time (Benson and et. al., 2020).
 Purchases: This types of transaction are also two types and the they are cash & credit
purchase. Talking about Holiday Inn, they are one of the company which likes to
purchase product at credit.
 Receipts: In context of Holiday Inn, this will be the document of proof which can allow
them to identify about product which has been transferred or received.
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 Payments: This is also an important aspects to determine about the expenses as salaries
and payment to suppliers are required to be done by Holiday Inn.
Talking about financial performance, it is one of the accounting process which allows to
identify about net inflows and outflows of cash where mainly transaction takes place between
creditors, debtors and many more. Different tools to measure the performance are:
 Key performance indicators: All of the activities which are required to run business can
be easily evaluated in it.
 Cost-to-profit ratios: It is related with investment and its outcome. Here, company like
Holiday Inn will have to evaluate that how much profit they have earned during the
specific time period (Financial performancem, 2019).
 Return on investments: This tool is crucial as it simply allows to identify about the
return which they get after delivering the service.
P2) Apply double entry book-keeping system to record sale and purchase transaction in a general
ledger.
In present scenario, double entry system is the most important accounting system within
the business organisation as it allows to identify about credit and debit sales. Talking about
Holiday Inn, they are one of the organisation which uses double entry book keeping system to
determine about profit and sales. Below, statement has been shown in detail:
Purchase A/C
Date Particular Amount Date Particular Amount
01st Feb To Kate's Kitchen 5051 28th Feb By balance c/d 34553
01st Feb To Mathew 29502
Total 34553 Total 34553
Archway Kitchen A/C
Date Particular Amount Date Particular Amount
6th Feb To Bank 5001 01st Feb By purchase 5001
Total 5001 Total 5001
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Lewin A/C
Date Particular Amount Date Particular Amount
14th Feb To Meganne 2008 01st Feb By purchase 29550
17th Feb To Bank 29550 28th Feb By balance c/d 2008
Total 31558 Total 31558
Bank A/C
Date Particular Amount Date Particular Amount
6th Feb By Kate's Kitchen 5001
28th Feb To balance b/d 34553 17th Feb By Harry 29552
Total 34553 Total 34553
Beverage A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 11203 28th Feb By balance c/d 42493
10th Feb To sale 8966
22nd Feb To sale 10614
17th Feb To sale 11710
Total 42493 Total 42493
Sales A/C
Date Particular Amount Date Particular Amount
3rd Feb By Beverage 11203
3rd Feb By Food 1824
10th Feb By Beverage 8996
10th Feb By Food 1687
17th Feb By Food 1611
17th Feb By Beverage 11710
28th Feb To balance b/d 49360 22nd Feb By Beverage 10614
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22nd Feb By Food 1715
Total 49360 Total 49360
Food A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 1824
10th Feb To sale 1687 28th Feb By balance c/d 6837
22nd Feb To sale 1715
17th Feb To sale 1611
Total 6837 Total 6837
Jones A/C
Date Particular Amount Date Particular Amount
14th Feb By Bank 2008
28th Feb To balance b/d 2008
Total 2008 Total 2008
P3) Produce trial balance applying balance off rule to complete the ledger.
Trial Balance: It is the most important accounting statement of business organisation
which allow to have a overview about ledger. It is one of the statement where high chances
occurs to rectify the mistakes which has been done at the time of preparing the statement. In
context of Holiday Inn, their financial department must ensure that balance of debit and credit
remain same to ensure about accounting standards (Nelson, 2018). It is also necessary for the
company to prepare balance sheet which plays huge role for the company. Some of the important
elements of trial balance are:
 Here, debit and credit side should have equal balance to meet out the requirement.
 It is a accounting system where two columns are prepared i.e., debit side and credit side.
 It is helpful for preparing other important accounting statement which helps to determine
whether goals can be accomplished or not.
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Budget: This is the statement which is prepared by business organisation in order to
determine about the future plans and capital they requires to conduct business activity. It is
necessary for Holiday Inn to reduce unnecessary expenses for enhancing the overall profit. Also,
it will allow to plan a financial stability for association and they are:
Income streams: This source allows to determine about the income which has been
included within the company.
Fixed cost and variable cost: This cost are parallel in nature as fixed cost never changes
and on the other side variable cost changes as per the changes in additional unit.
Margin target: It is simply a target which company mainly sets for the purpose of
earning the profit and according to that respective prices are determined. This is not limited up to
here, but it also control the budget and through which several activity can be performed (Olson
and Rajagopal, 2017). Those activities are:
 Inventory costing: It is necessary for company like Holiday Inn because it will allow
them to maintain the stock.
 System of waste management: This directly allow to reduce the percentage of waste
material which directly uplift the standard.
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LO2
P4) Review the different stages of HR life cycle.
In any of the organisation, the role of Human resource management is huge as they are
the one who allows to accomplish the goals. In context of Holiday Inn, their management will
have to ensure that all of the work is being performed as per the requirement of a company.
Some of the stage of HR life cycle are:
Recruitment and selection: This is the primary stage which is needed to be followed by
the company like Holiday Inn. Here, they will try to select some of the best candidate who can
perform as per their requirement. The candidate should be select as per the required criteria.
On boarding and orientation: Here, in this respective stage, it becomes the duty of HR
management team of Holiday Inn to assign duties. The duties and work must delegated as per the
requirement of business and experience with selected candidates (Jarratt and et. al., 2019).
Exit and transaction: It will be also important for HR manager to use different strategy
for the exit of employees. Manager will try to use strategies like retirement, transfer and many
more.
Number of types of recruitment process are their through which recruitment can be done
and those process are:
Internal recruitment: This is the process of requirement where HR team of Holiday Inn
will hire existing employees for new position within the company.
Promotion: This is given to the existing employees as part of up-gradation in job profile.
This is based on past performance.
Employee referrals: This process is required to be done by the HR management where
they hires new employees with the help of existing employees.
In present scenario, retaining the employee plays the crucial role and HR team of Holiday
Inn has the number of ways to retain them and they are:
Performance management: It is necessary for HR to evaluate the employees on the
basis of their performance they have shown within the organisation (Bagdasaryan, 2019). In
Holiday Inn, if employees will be evaluated on the basis of their performance then they can
easily all them to take a strong growth. Also, benefits and appraisal can be provided to
employees who performs per the requirement of a company.
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Training and development: Whenever any of the employees within Holiday Inn is not
able to perform as per the requirement, HR team can provide them the training to improve their
performance.
P5) Develop a performance management plan for a specific hospitality job role.
In order to identify about the performance of employees, HR team of Holiday Inn can
focus towards number of activities and they are:
Objectives Delivering training Review performance Monitoring & control
Focusing on
the promotion
on equity and
diversity
Here, proper training is
required to be delivered
by Holiday Inn, where
they are required to guide
their employees
regarding the acceptance
of different people from
different regions, culture,
sex and many more.
It is the responsibility of
HR manager of Holiday
Inn, to review the
performance of every
employees. Also, benefits
should be given on that
respective circumstances
(Richardson and Smiseth,
2019).
It is necessary for HR
manager to focus and
monitor on the
performance of
employees which will
allow to give equal
opportunity to
everyone.
Giving more
focus on
Managing
multicultural
&
international
teams
In present scenario,
company like Holiday
Inn is performing their
business activity on
different part of the
world. It is necessary for
business organisation to
to give proper training to
the employees through
which desire result can
be obtained.
On the basis of past
performance, management
can review the performance
and according to that they
must give training to the
employees. Also, rewards
must be given to each and
employees on the basis of
their employees.
Team should be
managed and
monitored and
according to their
attitude and
performance, their
promotion and
appraisal should be
done.
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LO3
P6) Identify specific legislation that hospitality organisation has to comply and adhere.
Law and regulations are the most important concept for any organisation because it gives
idea about decision making process. Discussing about Legislation, it is laws which are
commenced by body of Parliament which binds everyone to follow all of those laws and policies.
On the other side, Regulations are simply administrative laws which is to considered by
everyone. Here , administrative law is formed by the legislative body (Kim And et. al., 2018).
Standards are considered as the most important body where they sets the specific target which is
needed to be complete by any of the organisation. Some of the laws that are needed to be
considered by an organisation are:
Environment legislation: Here, it is necessary to see that any of the organisation do not
conduct those activity which can create pollution in the environment. Hotel like Holiday Inn
must work to reduce the percentage of wastage.
Food and safety legislation: The law related to food & safety law was introduced in the
year 1990 which gives the guidelines about the quality of food product. Holiday Inn must be able
to focus more on hygienic food and even quality must be considered in it.
Cyber security: As per cyber security law, any of the personal information related to
customers should not be shared by Holiday Inn with outsiders.
Consumer legislation: This legislation was introduced for the purpose of developing
awareness among the employees.
Employee legislation: In Holiday Inn, all of the employees must be given equal
opportunities to perform respective task (Foster and Carver, 2018).
P7) Illustrate, how company employment and contract law has potential impact upon business
decision-making.
Different laws have different impact upon the business, so it is necessary that all of the
work must be performed as per the requirement. It is essential for any of the company that proper
laws and regulations must be followed to meet out the standard.
Company law: The law to govern any business is known as company law. It simply
allows to understand about process required to conduct any of the business activity in any of the
situation. In any of the organisation, decision making process is very essential because it helps to
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decide whether goals can be accomplished or not as per the requirement. The impact of decision
making on business is very important it mandates to follow the complete process which is
lengthy and time consuming too. It means company law have sometime negative impact as well.
Employment law: This law tries to ensure that relation of employees and employer
should be maintained. This law may have a positive as well as negative impact upon businesses.
The positive impact that Holiday Inn can get from employment law is that they will be able to
make their employees work as per the criteria set by the law (Jasnoff and Sheikh, 2019). It will
allow to meet out the targets on time.
Contract law: Here, law defines about the relation between contracted parties. It is binds
Holiday Inn and their customers to complete the obligation once they enters into the contract. In
simple words, relations can be maintained easily in it.
LO4
Covered in PPT
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CONCLUSION
From the above file, it can be concluded from the file that hospitality is the most
important sector which can easily uplift the standard. It is necessary that in any of the situation
company should work according to accounting standards and system which can give them the
idea to take corrective decision. On the other side, HR management is the department in
hospitality industry who can hire those employees who can their best to achieve the target on
specific time period. Different laws and regulations are very important which can give the way to
take corrective decision as per the requirement of situation.
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REFERENCES
Books & Journals
Bagdasaryan, R., 2019. The Structure of the Trial Balance. Integrated Science in Digital Age:
ICIS 2019. 78. p.103.
Benson, T. and et. al., 2020. The development and validation of a toolkit to measure consumer
trust in food. Food Control. 110. p.106988.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
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).
Kim, K.H. And et. al., 2018. Effects of corporate social responsibility on corporate financial
performance: A competitive-action perspective. Journal of Management. 44(3).
pp.1097-1118.
Nelson, G. S., 2018. The analytics lifecycle toolkit: A practical guide for an effective analytics
capability. John Wiley & Sons.
Olson, E. D. and Rajagopal, L., 2017. Event Management Training Toolkit.
Richardson, J. and Smiseth, P.T., 2019. Effects of variation in resource acquisition during
different stages of the life cycle on life‐history traits and trade‐offs in a burying beetle.
Journal of evolutionary biology. 32(1). pp.19-30.
ONLINE
Financial performance. 2019. [Online] Available through:
<https://www.investopedia.com/terms/f/financialperformance.asp>
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