Principles of Management and Monitoring for Financial Performance in Hospitality Business

Unit 4
Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysing principles of management and monitoring for financial performance.................1
P2. Application of double entry and book-keeping for recording purchase and sale in ledger...2
P3. Implication of trial balance and balance off rule for completing ledger...............................2
TASK 2............................................................................................................................................3
P4. Application of HR Life Cycle for Hospitality job role with its importance .........................3
P5. Developing performance management plan in hospitality job role for its implication to
resolve problems..........................................................................................................................4
TASK 3............................................................................................................................................5
P6. Identification of legislation that hospitality sector can follow..............................................5
P7. Examples for company, employment and contract law for their potential impact in
business decision-making............................................................................................................6
TASK 4 ...........................................................................................................................................7
Covered in PPT............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Hospitality sector is very wide area for service industry which involves housing, food and
beverage, events, tourism and travelling, parks, transportation, etc. This sector is well known for
its food and beverage facilities which enlarge its consumers for their luxurious lifestyle. It have
the capability to provide consumer satisfaction with various experiences for its target market.
The organisation which is selected for this project report is Ritz Hotel. It is rated with best 5 star
by its consumers for their comfortable living (Carpi and Pınar Şenoğuz, 2019). This project
covers financial and record transactions to minimise cost, manage the HR life cycle for
competitive strategies. Additionally, potential impact of legal and ethical consideration on
hospitality business. Importance of coordinating and integrating departmental functions are also
covered for industrial service sector.
TASK 1
P1. Analysing principles of management and monitoring for financial performance
Financial performance are managed by an organisation creates accuracy and confidence
in developing short and long term goals and objectives. This leads in growth and stability to
compete from its rivalries. The financial activities are monitored by the principles of
management in eliminating the delay for goal achievement. Some of these principles are
implemented by the managers of Ritz Hotel which are as follows:-
Principle of Consistency:- This principle states that financial transactions must be
managed consistently. The managers of Ritz Hotel implement this to manage and monitor the
monetary transactions in routine manner.
Principle of Justification:- This explains that the financial transactions are recorded for
the various ways and reasons to justify information in book-keeping and double entry. The
managers of Ritz Hotel implement it for determining the information which will lead to achieve
desired goal effectively (Čavlek, Ladkin and Willis, 2017).
Principle of Timelines:- It is referred as to manage transactions for achieving target on
the particular duration which reduce time wastage. The managers of Ritz Hotel frames the target
time on which its to be achieved by managing and monitoring the financial performance.
Principle of Documentation:- This principle is described as the essential element to
examine the transaction is necessary to record or not. This leads to prepare organised and
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complete document which is ready for its auditing. The managers of Ritz Hotel implement this
principle to maintain detailed record of all transaction and performance implied during
accounting period resulting for goal achievement.
P2. Application of double entry and book-keeping for recording purchase and sale in ledger
Profit and loss statement:- It is also known as income statement which records financial
transaction such as revenue and expense during an accounting period. The double entry system is
also termed as the book-keeping (Eden, 2015). This records all business transaction in either
debit or credit column.
Profit and loss statement of Ritz Hotel for January 2020
Effective recording of debit and credit:- These are the recordings done in two accounts
as debit and credit. These recordings are based on the journal entry rules which are as follows -
debit all receiver, credit all 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
Financial statements are recorded in accounting period to determine the implication of
potential decision-making on goal achievement. With, increasing modernisation people have
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