Unit 4 The Hospitality Business Toolkit

Unit 4 The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Examine the key principles for managing & determining financial performance...........3
P2 Application of double entry book-keeping system of both credit and debits to record
purchase as well as sales transactions into a general ledger...................................................4
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger......................................................................................................................................4
TASK 2............................................................................................................................................5
P4. Analyse various phases of HR life cycle which is applied to a particular hospitality job
role along with their significance for developing as well as retaining talent.........................5
P5. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.........6
TASK 3............................................................................................................................................7
P6 Examine particular legislation which a hospitality business entity has to comply...........7
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process.........................................................................................................8
TASK 4............................................................................................................................................9
P8 Various functional roles which are interrelated within hospitality industry.....................9
P9. Discuss various ways of communication, monitoring & coordination application within in
hospitality sector in order to strengthen the value chain......................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books & Journals.................................................................................................................12

INTRODUCTION
In today's competitive world, hospitality industry is one of the largest and biggest sector
which includes various departments such as restaurants, food and beverage, lodging as well as
accommodations. It has been observed that success of business organisations are highly depend
on the leisure activities and time (Anderson and et. al., 2017). This is the department which have
basic knowledge and understanding about different activities along with linking together. In the
present report, a new salads and drink store is open which is named as “Healthy life”. This outlet
is generally based on the preferences of individuals who have a motive for healthy lifestyle and
avoid junk & fast foods. For a business entity, it is quite essential to enhance the basic
knowledge about the principles in order to manage the financial performance with the assistance
of double entry system, trial balance. Along with this, in this report various stages of Human
resource cycle are going to be reviewed along with some legal legislations and policies which is
associated with employment contract.
TASK 1
P1. Examine the key principles for managing & determining financial performance
To examine organisational performance, various crucial questions have been asked which
requires to be answered just like whether the organisation is running into a smooth way? Is the
business entity is successful at competitive marketplace? There are Various methods used by
managers to monitor financial performance of an organization which are going to be discussed as
follows:
Developing key financial statements: It refers to the first and basic report which needs to
be prepared by every business organisation such as P&L account, balance sheet and many other
financial reports. It helps in examining the financial performance as well as position of the
organization at competitive marketplace (Belarmino and Koh, 2020).
Creating inventory records: It has been analysed that there are different business entities
which highly invest in raw material, equipment’s, tools as well as machinery. Along with this, it
will also maintain exact inventory records so that stocks and resources when needed by managers
can easily be identified.
Business transaction

P2 Application of double entry book-keeping system of both credit and debits to record purchase
as well as sales transactions into a general ledger
Double entry system is that system of accounting which states that every monetary
transaction of enterprise must be written in two accounts or we can say that every transaction of
business have two sided effects that are credit & debit. This is the widely used system to record
business transaction. It have some principals this book keeping system aerial balance which are
discussed below
 Book keeping has prepared in that way by which it includes various account to record
transaction of business. These accounts are journal, ledger, trial balance and final
account of business (Deale, 2017). There is proper record of each and every transaction.
 Trial balance is prepared in the end for closure of all accounts . The main purpose of this
is to find errors in recording of transaction
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger
Trial balance refers to the list of ledger mainly consist of general ledger accounts
including ledger of an organization. It is the list which contains name as well as value of every

nominal ledger account & balance. Every nominal ledger account hold credit as well as debit
balance.
TASK 2
P4. Analyse various phases of HR life cycle which is applied to a particular hospitality job role
along with their significance for developing as well as retaining talent
By analysing the various method of business organisation, HR plays a very important role
in every organisation. They provide employment opportunities to the individual and also facing
challenges while managing employees. In context of Alibi health drinks, the different role of HR
manager which is mentioned below:
Recruitment and Selection: This term refers to the process of recruiting and selecting
the right person for achieving the organisation goal (Fettermann, Echeveste and Tortorella,
2017). Both term are appropriate as recruitment is useful in hiring a right kind of employee in
order to achieve the organisational requirement and selection is the process of selecting the right
kind of person at the right time for the achieving the goal of the organisation. In discourse to
Alibi health drinks, the HR manger emphasised on job profile which fulfil the requirements of
employees because the satisfaction level of employees helps in retaining them for a longer

period of time. Also company promote the vacancy at highest level in order to attract more and
more candidates.
On boarding and orientation : Herein, the manager of company will describe rules,
policies and procedures to newly hired candidates as well as vision and mission of the business
organisation. Here, Manager explains rules and regulation of the company as well as how to
work in business organisation. In context of Alibi health drinks, the supervisor provides pleasant
environment to employees in order to retaining them for a long period of time. The healthy
working condition helps in increasing performance of employees in the workplace. For example,
it is important for manager to give appropriate orientation and induction to candidates such as
criteria of serving which helps in retaining for a longer time period (Filimonau and Delysia,
2019).
Exit and transition: It refers to the situation and circumstance in which employees exit
from the organisation. There are various reasons behind this such as conflicts, grievances,
unsuitable environment etc. In context of Alibi health drinks, the manager take feedback of
employee in respect of their experience and problem face in the organisation. For example, the
supervisor of company take feedback of employees to know the reason behind increasing in
employee turnover rate. And also take appropriate steps to reduce the improper management of
the business organisation. The supervisor of company emphasised on taking suitable managerial
action that helps them in retaining employees for a longer period of time. So it is important for
manager to take effective decision in order to increase the performance of employees and
reducing their turnover rate.
P5. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.
Performance management plan is that process of which is used for achieving
organization strategic objectives with the help of maintain supportive and cooperative
environment in the organisation by effective management of employees . Alidi health drinks is
suffering from a huge employee turnover ratio which means firms employees are not satisfied
with It and leaving job in regular process. Company have to overcome from this situation and for
this they needs to use performance management system in there HR department which help them
in making good plan for there employee to coordinate with them and reducing employee
turnover (Gretzel, 2018).

Plan: Plan is a set of framework which is use to achieve goals and objective which a
person or organisation set for there growth and development. Here it is used for retaining the
employee in the organization . For reducing the chances of employee turnover firm use plan in
there HR department for eliminating chances of conflict and demotivation in organisation.
This will also help the company in establishing a good coordinated environment which can boost
the motivation level of employees of firm and facilitate in high productivity and profitability to
organisation in there business.
Monitor: Monitoring is the process of regular check on the performance of employee in
the organisation for analysing there talent and help them in performing there job. Monitoring is
that function where HR department of organization monitor the performance of employee for
there g personal in organisation growth and pass instruction to their employees for specialization
in work . Alibi is facing the issue of employee termination so it has to do clear monitoring of
there employee and must analysis that what are the reasons for there dissatisfaction in
organization (Häusler, 2017). Those reasons must be removed form the firm atmosphere for
bringing motivation and reducing the chance of employee turnover which will bring experienced
persons in the organisation by retaining talented persons.
Review: Review of overall plan is must for every organisation this is because it involve
the top level management of company which have huge experience in there work . Review also
help organisation identifying omission in previous stages so it is also the work here . Alidi can
use this in reviewing the performance of individual in their organisation for there performance
appraisal which will help in reducing employee turnover
TASK 3
P6 Examine particular legislation which a hospitality business entity has to comply
Legislation means rules and regulations imposed by government body in a country. These
are important to follow and adopt by everyone to safe- guard interest and protect citizens and
society. It can be declared as crucial source of law. In healthcare sector, legislation is strictly
needed to protect and regulate public health. Certain legislation are there which has to be
followed by Alibi health drinks because people purchase product only when proper guidelines
and laws are followed by organisation. Some of the important laws are mentioned below-

Health and safety act 1974- Health is most important to people and public. This law
states that there should be a proper rules and regulations and which should be used when dealing
with heath sector (Hertzman and Zhong, 2016). In context to Alibi health drinks, adoption of this
act will increase their goodwill of a firm as well as product. So, company's health drinks will get
a boost in their production if entity apply this act in their product and resources.
Liquor Control Act 2003- This law states that alcohol should be absorbed and
consumed with in a limit. It is a myth of people that liquor and alcohol is a drug and bad for
health. But this is not complete true because there are many liquor which have a positive impact
on body if consumed properly. In relation with Alibi health drinks, many subordinates as well as
workers are there who consume alcohol and disrupts the work environment. So, there should be
strict rule that alcohol that no one will consume liquor and alcohol while working in the
organisation (Jasnoff and Sheikh, 2019).
Food act 1990- Food act is another legislation which is to be followed by entities who
are in FMCG sector. This law states that there should be a proper disclosure of information
regarding the food product and sources. Quality, natural resources are some of the important part
which a customer expect from entity. So Alibi health drinks adopt this act and get advertised as
well as label their product with government trademarks or logos. Thus, this will increase trust of
customer regarding product.
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process.
Effective business decisions can be taken by those food service firms who follows strict
and appropriate rules and regulations in there curriculum of business for improvement. Alibi
health drinks can take suitable decision in there working environment for achievement of there
predetermined goals. decision making have its direct influence on business performance of
company which impact on profitability of firm. There are some internal and external factors
which can effect company decision policy . These factor are laws regarding employment,
company and contract.
Employment law : Employment related laws have there huge impact on business
decision because employees are the major part of organization as no firm can work without them
so every organization must consider their employees in there decision making (Levand, 2017) .
This law have also its major impact on Alibi as human resources are must for this health drink

giant which deals in food services. Performance of employees is must for organization as there
performance level direct impact on profitability of company as good performance leaded in
increase profits and vice-versa. so employee play an important role in firms decision making
process
Company law : Company law is related to the law which a company has to follow while
doing its business . This law is consist of general rules and regulation which a company is
suppose to follow in there day to day business environment. Laws have there different impact on
a firm decision making powers. Alibi is dealing in health drinks which is directly related to
health of their customers. So it has require to form strict rules and regulation in company by
which company can provide good quality of there product which can help them in building trust
of there customers on organization (Lub and et. al., 2016).
Contract law: Laws always have major impact on business decision of a firm. Contract
is an agreement which is implied by the law of nation where organisation is operating its
business. Number of contracts which have there effect on decision making of company. Alibi
health drinks have to analysis these contracts by proper utilization of there resources and should
make decision according to them.
TASK 4
P8 Various functional roles which are interrelated within hospitality industry.
Various roles are included which lead to effect on the operations and activities of
company. In context to Alibi, the health drinks which have various function that are required to
perform in the proper manner. These companies which deals in this sphere are interrelated to
each other and further departments in the organisation. This includes the several functions of
Alibi health drinks which could offer healthy drinks in the different market area. In addition to
this, the functional roles of this sector involves budgets which are to be managed and provides
customer service. The interconnections of this sector are described as under:
Finance and Marketing: This plays a significant role in the functioning of the
organisation as well as it also helps in managing the budgets and financial resources of
marketing so that they encourage the functions and services of company which are provided to
them. (Mejia and Torres, 2018) Moreover, this company provides high quality drinks and foods

to its various customers. However, this enhances the needs and requirements of various
departments within the organisation that gives the proper budgets to them.
Customer service and Food department: This function is very helpful in processing the
good relations among them. With reference to Alibi heath drinks, the supervisor of this company
provides the available products and services to its various customers so that it could develop the
good relations between them. This function of company is useful in several departments so that
they could interconnected with the services of customers and department of food. The sector of
customer services necessarily want the business resources that helps to fulfil the needs and
demands. Further, it also helps in offering the high quality services to its customers in order to
gain the profitability within the organisation. In addition to, this also helps company in providing
the food and healthy drinks with proper feedback from the customers (Nayak and Taylor, 2018).
Moreover, the department of operations helps in developing the good customer relations with
each other.

P9. Discuss various ways of communication, monitoring & coordination application within in
hospitality sector in order to strengthen the value chain.
There are different methods which accelerating the value chain of business organisation
and it involves coordination, communication as well as monitoring. Thus, it is essential to use
appropriate methods in order to accelerate the performance of work as well as improve the value
chain. Different ways used in particular sector to strengthen the value chain which is given
below:
Communication :This method is useful in rendering the effective data as well as
information to the employee of company. This will assist in operating its business functions and
activities in appropriate manner in order to achieve the goal and objective of the company
(Nelson, 2018). In context of Alibi health drink, it is essential that employees of company adopt
transparent strategy, plan and procedures for operating its business functions and activities to
perform a job. It will also assists in operating its business in effective manner to accomplish goal
as well as objective of the organisation. Apart from this, communication plays an important role
in every organisation. Through communication, tasks and works are defined in appropriate
manner thus it assists the company in motivating and influencing its employees to strengthen the
performance of work and value chain in appropriate manner. For this process, company adopt
face to face communication channels for executing their task and work in suitable manner and it
leads to impose positive impact on performance of employees. In discourse to Alibi health
drinks, the manager use written communication method for delivering and transferring data and
information in an effectual manner.
Coordination: Herein, it is crucial for supervisor of company to coordinate the task of
employees in an appropriate manner to accomplish goal and objective of the organisation. Value
chain system is a process in which different factor of the company jointly work in order to
achieve goal and objective of company. In context of Alibi health drinks, the manager of
company emphasised on offering training to employees in order to perform its task in suitable
manner.
Monitoring: It is essential for organisation to monitor actions and tasks for measuring
performance of the company (Pirani and Arafat, 2016). Monitoring is a procedure in which
organisation compare its actual and desirable performance to take corrective action for
measuring actual performance of employees. In context of Alibi health drinks, the supervisor

emphasised on various methods such as benchmarking and observation to monitor as well as
control performance of their work. It is important for employees to give exact feedback to
employees to increase skills and knowledge of employees to perform their job in appropriate
manner.
CONCLUSION
With the help of above discussion, it has been concluded that HR life cycle plays very
essential role in order to retain and develop talent in a business organisation. In context of this,
by examining weak performance as well as skills, an effective performance management plan
has been developed which is beneficial for improving the performance of staff members. Apart
from this, some laws & legislations are examined and described which is required to be adopted
by business organisation in order to take effective decisions for running the business in a
successful manner. At the end, it has also been explained that there are different roles in
hospitality industry and by adopting different communication and coordination method for
doing their business functions.

REFERENCES
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