Hospitality Business Toolkit

This toolkit provides insights on managing and monitoring financial performance, understanding the HR life cycle, and following laws and regulations in the hospitality industry. Learn about key financial statements, double entry book-keeping system, trial balance, recruitment, onboarding, retention, performance management plan, and company, contract, and employment law.

Hospitality Business
Toolkit

Table of content

INTRODUCTION
Hospitality industry refers to a broad scope of fields in the service industry that involves
food, drink service, theme parks, transportation, travelling, airline, living accommodations, case
designing and many additional fields within this industry. It is the level of assistance that is
provided by the hotel staff to facilitate the buyers i.e. clients. It includes various sectors like
hotels, casinos, amusement parks, events and other tourism- related services. This study is based
on Oakman inns and restaurant Ltd. that offers healthy food, rooms, wines, beers and cocktails
and it includes how to come through finance and record to minimise cost that is responsible for
hospitality sector and also manage the human resources life cycle within the HR scheme. It also
explains the actual effect on legal and ethical considerations in this sector. At last it describes the
importance of coordinating and integrating different purpose of departments within the
hospitality sector to grow their enterprise and revenues for longer term (Zvereva, 2019).
LO1
P1.
For successful organisation it is very beneficial to manage and watching the financial
performance. Regular monitoring the financial resources helps to earn more profits, regular flow
of cash, strong sales numbers etc. without managing no business can survive for long term. There
are various ways to monitor and managing financial performance of an organisation. Formulation of key financial statements- It is the primary methods or reports that a
industry needs to produce and maintain i.e. balance sheet and profit & loss account. This
process gives an financial overview and helps in knowing the monetary condition of the
business. It also helps in earning more profits and minimise the waste of resources that is
used in producing and manufacturing the offerings and knowing the stock and turnover of
a business (Singh, 2015).
 Preparation of funds and cash flow statements - It is an important process by which an
industry can manage and monitor their financial performance in the current market place.
In this cash flow and fund flow statement play a major role that provides a information
regarding how much liquid cash is coming into the business. It also shows a many
receivables that was marked as revenue but at the time of making cash and fund flow
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statements it reveal that they are some type of hard currency and their business can run
with proper earning not with notional ones(Foster and Carver, 2018).
Business transaction
P2.
Double entry Book-keeping system refers to an accounting that means every business
require to record their business transactions and amounts in a minimum two accounts. Every
transaction of business affect the accounting equation of a industry. In this the amount of both
side i.e. debit and credit side must be equal. It has several principles of double entry system that
are as follows (Jarratt and et. al., 2019).
 The basic principle of book-keeping is recording all the transaction that is related to
business such as amounts, dates, gain, losses, expenses and sources of all revenues. It
helps the manager and owner for longer sustainability and smooth running of a business.
 It assures the arithmetical accuracy of books of accounts that means every debit equal to
the amount of credit. It prevents frauds and errors can be rectified easily.
 It is scientific in nature that gives an appropriate results easily. In this business and owner
both are separate entity.
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 Records of all expenses and losses helps in payment on due date like invoice of materials
that permits pay within 15 days to one month and utilises the bills on maturity date. It is
an important principle of every business (Vitikka, 2018).
P3 .
Trial balance defines the listing of every general ledger accounts that helps in making the
ledger of a business. In this list includes the name of every nominal ledger account and their
value that they hold in nominal ledger balance. Every account of ledger holds a debit balance or
a credit balance. It includes final debit and credit balance, account number as well as description
of an account (Mariani and et. al., 2018).
LO2
P4 .
HR life cycle refers to a concept of human resource management that explains the
various steps of an employee's time in the business and their roles and responsibility of each
department of human resource. Every steps represent a challenge and opportunities in front of a
company. In context of Oakman inn and restaurant, manager can take care of their human
resources to increase the productivity and efficiency of work of all employees and hiring a best
employee i.e. food and beverages service provider who provide a best service to their customer
by using various steps of HR cycle that are as follows (Anderson and et. al., 2017).
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 Recruitment – It is a process of finding the right talent for a vacant position within the
organisation. In this sourcing candidates that means exploring the resources that lead to
recruiters to a pools of skilled candidates. It is the first step for every company to hire a
best candidate for a right time and at a right place. In context of Oakman inn and
restaurants, manager want to appoint a food and beverages service provider to the
customers which is very beneficial to attract more customers because they have excellent
communication and HRM skills and to retain within the organisation. At the same time
company can face some issue in recruiting the candidates and retaining for longer time
within the organisation. To overcome this issue company can use attractive promotional
tools with clear information regarding the vacant jobs in the market (Jasnoff and Sheikh,
2019). On boarding – It is a process of integrating the new hire into the organisation and
familiarising it with their roles, responsibility, products and services. It gives an
opportunity to new employees in the organisation culture but it is very difficult to ensure
retention. In Oakman inn restaurant, manager appoint the food and beverage service
provider and on the on boarding day new hire know the culture, role and responsibility of
a company. In this firm having issue of retaining the new hire for longer time because of
more work load. To overcome this issue company can familiarise with the new one while
and take take their feedback on regular basis this help in retaining the employee for
longer time.
 Retention and exit – Retention is the crucial step in the human resource life cycle. It is
very essential for a company to retain their worker while providing healthy environment
and for increasing the sales and profit of the organisation. And exit is the final stage
where the employee can decide to leave the organisation. In Oakman inn restaurant ,
manager facing issue in retaining the employee in the business for longer time for this
company can analyse some solution like taking regular feedbacks for their employees
problems and resolve them while taking best action. In this manager also take telephonic
interview of existing employees to know their working experience at the workplace
(Ervin, 2016).
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P5.
Performance management plan is refers to a process of organisation that is used to align
their skills workers and resources for completing the strategic objectives and priorities in a very
effective and efficient manner(Ali, Ryu and Hussain, 2016).
Objectives Activities to achieve
objectives
Time frame
Effective Communication It is very important for
improving the performance of
an employees by effective
communication. For this
manager of Oakman inn &
restaurant organising seminars,
telephone exercise and
memory test activity. By using
this employees and staff
members improve their
communication skill and better
their performance.
It can be done for short period
of time where manager can do
activities timely that improve
the communication and
employees work productively.
Motivation To improve the performance
of employees performance
manager can motivates
employees by evaluating the
programs and provide some
bonus and incentive for good
working.
It can be done on regular basis
because to improve the quality
of work with more efficiency
and effectiveness.
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LO3
P6 .
For successful organisation it is very necessary to follow some rules and regulation that
was generated by government of a country. In hospitality industry, laws are relating to food
services, restaurant, bar, spa, meetings and many more. This type of law included various sectors
like hotels, restaurants that are most common in this industry. In Oakman inn & restaurant,
manager can follow some rules that are relate to the success of a business that are described
below. Health and Safety at Work Act – This act generally defines the responsibility on
employers, employer, provider of goods , contractors, persons in control of work land
site, and those person who manages and maintain. In this manager have the
responsibility towards the safety of their employees, their suppliers of goods and their
clients that help in the productive working by the employees and also earns more and
more profits and market growth in the market place. Manager of Oakman inn &
restaurant follow the law of health and safety at work this ensure that they provide a safe
environment to their working employees and provide a healthy foods and provides a safe
technique in making the foods that is not harm the employees and their customers that
helps in attracting more and more customers and increase the brand image of the
industry in the market place(Fettermann, Echeveste and Tortorella, 2017). Food Act – This law relates to the providing the best quality food that lays down a
specific guidelines for consumer safety, protection of consumer health and standard of
food sector. In this manager focus on providing the best and high quality foods to their
customers that does not harm the persons health. In context of Oakman inn & restaurant,
they provide a best quality food and beverages to their customers that helps the company
to increase the image of the brand in the industry as well as maximise profits margin by
increasing the sales.
 Sale and Supply of Alcohol Act – The core aim of this act is to minimise the harm from
using the alcoholic beverage by managing and organising the way of its sold, supplied
and consumed. And the main objective of making this law is to minimise the harm of
unlimited and inappropriate drinking, including public nuisance, disorder, crime and
negative public health outcomes. In context of Oakman inn & restaurant, manager can
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provide proper and effective training session for their employees who working the drink
department and ensure that they use the alcohol on an appropriate amount that does not
harm the employees and the consumers (Nayak and Taylor, 2018).
P7.
It is very beneficial for a company to follow company, contract and employment law that
will helps in increasing the proficiency as well as helps in appropriate decision making.
Oakman inn & restaurant follow all the rules i.e. related to company, employment and contract
that have been explained below(Lub and et. al., 2016). Company law – It is an important law for a company to operates it business activity
effectively and this laws are made up according to the needs and requirements of a
business. It also impact the decision making of the company. In context of Oakman inn &
restaurant manager can follow properly the company law in this company can make
decisions according to the welfare of the sector and proper functioning of the activities
provides a healthy working environment (SOUKAYNA, ILIAS and MOHAMED, 2019). Contract law - This is an essential law which affect the decision making of the business.
In this law businesses are either providing a services or a products. It involves the terms
and conditions that is pertains to transacts between business and clients. Manager of
Oakman inn & restaurant follow this law in smooth running of a business operation and
their sales of product and services decision making.
 Employment law- This law is established for the benefit of the worker who are working
in the organisation. If a company cannot follow this rule it affect the decision making of
the business in a bad sense. In Oakman inn & restaurant, manager should follow the
employment law where they treat their staff members equally according to their work and
provide a healthy working environment. This law create a great impact on the image of
the restaurant and increase the employee satisfaction that will retain the worker for
longer time(Higgins-Desbiolles, Moskwa and Wijesinghe, 2019).
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LO4
Covered in PPT
CONCLUSION
From the preceding explained report, it has been concluded that managing and
monitoring the financial performance helps in proper running of business and properly making
the balance sheet and different entry system like sales, purchase and other functions of the
business. And HR cycle helps in appointing and retaining the employees for a longer period. It
also build a performance management plan to for effectively accomplishing their job task and for
this company can follow some rules and regulation for the company and employees. Further, it
explains the interrelation between different function for smooth running of a business and
various methods that helps in earning more profits.
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REFERENCES
Books and journal
Ali, F., Ryu, K. and Hussain, K., 2016. Influence of experiences on memories, satisfaction and
behavioral intentions: A study of creative tourism. Journal of Travel & Tourism
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Anderson, W. and et. al., 2017. The dialogue and advocacy initiatives for reforming the business
environment of the tourism and hospitality sector in Tanzania. Tourism Review.
Ervin, S.A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
Fettermann, D.C., Echeveste, M.E.S. and Tortorella, G.L., 2017. The benchmarking of the use of
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Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2019. How sustainable is sustainable
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Jasnoff, G.R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of Undergraduates
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Mariani, M. and et. al., 2018. Business intelligence and big data in hospitality and tourism: a
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Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’
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Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality
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Singh, R., 2015. Empirical examination of the impact of total quality services on hospitality
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SOUKAYNA, B., ILIAS, C. and MOHAMED, B., 2019. A FRAMEWORK FOR THE
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