Unit 4 The Hospitality Business Toolkit

This document discusses the key principles for managing and determining financial performance, the application of double entry book-keeping system, HR life cycle, legislation, and various functional roles in the hospitality industry.

Unit 4 The Hospitality
Business Toolkit
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INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Examine the key principles for managing & determining financial performance................4
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........................................................5
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger...........................................................................................................................................6
TASK 2............................................................................................................................................7
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..............................7
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..............8
TASK 3............................................................................................................................................9
P6 Examine particular legislation which a hospitality business entity has to comply................9
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process..............................................................................................................9
TASK 4..........................................................................................................................................10
P8 Various functional roles which are interrelated within hospitality industry........................10
P9. Discuss various ways of communication, monitoring & coordination application within in
hospitality sector in order to strengthen the value chain...........................................................11
CONCLUSION..............................................................................................................................12
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INTRODUCTION
Hospitality industry is a wide industrial organisation that involves different types of roles
such as food and drinking, lodging, transportation, travelling, event planning, cruise line, theme
parks and more. It is a service industry that provides different type of entertainment facilities to
customers in order gain high profitable advantages (Kapoor, 2019). This industry is mainly
responsible to provide primary food and Accommodation services like resorts, hotel, conference
centre etc to consumers. It is one of the fastest growing and leading industrial sectors in today’s
economy. It has been identified that it is a multi-billion-dollar enterprise that offer diverse range
of services to customers according to their interest. This industry employs large number of
individuals through which they also increase economy of a nation. Present report has been
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conducted on can “Vigor life”. It provides different types of healthy food and drinking option to
customers. It promote healthy living in order to lead individual towards healthy lifestyle. In this
report discussion has been made on key principal as to manage as well as determined financial
performance of an entity. Along with this double entry bookkeeping system is being also
discussed in this report along with trial balance. In addition to this HR life cycle and
performance management plan concept is being defined in the present report. Project also
includes particular legislation that is applied on hospitality sector along with different types of
functional roles.
TASK 1
P1. Examine the key principles for managing & determining financial performance
In order to conduct organisational function as well as activities in a well defined minor it is
essential for an organisation to manage their financial performance in a best effective manner. In
this entity is required to determine their financial performance by evaluating their past financial
statements and further develop proper financial plan in order to conduct organisational activities
in a well-defined manner. In order to manage financial performance company by taking
advantage of different types of financial tool as well as techniques can fulfil their operation.
Mentioned below some of the effective methods are being define.
Developing key financial statements:
Development of key financial statements is one of the most prominent tasks that are
required to be undertaken by financial manager of an entity. In this manager is authorised to
formulate proper P&L account, balance sheet, ledger and other essential financial reports. In this
they are required to determine past performance and developed current financial strategies in
order to ensure high competitive advantage with the Marketplace.
Creating inventory records:
This has been identified that inventory is considered as one of the most essential element
for any entity. As by managing inventory company can effectively able to conduct the process of
production and process related to maintenance of raw materials, tools and machines in best effect
of manner. In this inventory manager is authorised in an organisation to properly execute
inventory records and make sure that proper stocks and resources are available in entity.
Business transaction
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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 bookkeeping system is an accounting system in which each and every
transaction of business amount required to be required in minimum of two accounts. In this
entity is required to ensure that all the business transactions amount are entered credit and debit
in an accurate manner (Finance, Global and Presidency, 2019). In order to manage all the
financial accounts an organisation is required to properly understand the concept of double entry
bookkeeping system. With the help of this company can effectively able to who conduct the
financial performance best effective manner. Mentioned below there are some effective
principles associated with bookkeeping system is being define.
 Bookkeeping system is required to be prepared in a way that must include the entire
business transactions amount in a debit and credit balance. All the essential account like
trial balance, journal, financial accounts of business are required to be mention in a book
keeping as to properly execute organisational financial activities.
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 Trial balance at the end is required to be made in order to close all the accounts in an
appropriate manner. Main motive of this is to identify errors that may be made while
recording of transactions among the accounts.
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger
Trial balance is mainly defined as a statement of all the credits as well as debit in a double
entry account book. It mainly involves list of all journal ledger account total. It is essential for an
organisation to mentioned business transactions along with the final date of accounting period.
By formulating trial balance company can effectively able to maintain all their financial accounts
balance in an appropriate manner that further stimulates them towards effective management of
financial data.
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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
In order to ensure high efficiency within an organisation HR department play most
important role in every organisation despite of their size and performance. In relation with Vigor
drinks HR manager of company is required to undertake different type of strategies in order to
effectively manage employees and best effective manner.
Recruitment and Selection:
It is one of the most important and initial stage of HR life cycle in which HR manager is
entitled to recruit and select potential candidates for the right place within entity. In addition to
this HR manager also hold the responsibilities to provide proper training and guidance to
employees in order to increase their skill and knowledge. This will help them to effectively
increase organisational workplace efficiency while fulfilling main motives of entity in best
effective manner. This has been identified in context with Vigor drinks that HR manager
effective analyse job requirement of company and recruit candidates from different locations.
Along with this HR manager attract employees by informing that about different benefits that are
being offered by company this will help them to retain employees for longer period of time and
increase productivity of entity.
On boarding and orientation :
On boarding and orientation is a significant aspect of HR life cycle in which HR manager
is authorised to inform newly hired employees about the policies rules regulation and procedure
of company. In addition to this HR manager is also hold the responsibilities to provide
information to employees related to the main mission and vision of company. In context with
Vigor drinks HR manager of company make sure that employees are informed with all the
essential information related to company. With the help of this they make sure that employers are
clear about their roles with the help of which employees can effectively able to perform their
functions without any confusion.
Exit and transition:
It is a stage in which employees exit from an entity. Exit involves different types of reason
such as conflict, personal, grievances and bad work environment. In relation Vigor drinks it is
essential for HR manager to regularly undertake feedback from their employees. With the help of
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this they can able to resolve their issues and problems that have been face by them with in
organisational workplace environment. With the help of this they can reduce workplace issue and
can formulate positive work environment through which performance of employees can be
facilitate. Manager is also required to provide proper guidance and motivation to employees with
the help of which company can effectively able to increase their production and profitability.
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 one of the most essential statistical tool with the help of
which in organisation can effectively able to accomplish that determine goals as well as
objectives in a well effective manner. It also helps entity to manage different types of aspects and
resolve issues in a well defined manner. It has been identified that, Vigor drinks is facing with
the issue high labour which is affecting overall performance and productivity of company in
number of manner. In order to overcome this situation HR manager is entitled with the
responsibility to develop effective performance management plan in order to make significant
decrease in high rate of employee turnover. Mentioned below there are some of measures with
the help of a proper plan can be made.
Plan:
It is the first stage in the framework of performance management plan in which company
device goals and objectives that are required to be accomplished. In this roles and responsibilities
are decided for each and every individual. As to overcome the issue of labour turnover HR
department of Vigor drinks formulate a plan in which they aim towards reducing conflicts and
increase motivation within work structure of company. In addition with this plan also include
establishment of positive and healthy working environment with the help of employees
performance can be boost.
Monitor:
This is a second stage in which HR manager is required to have regular check upon the
performance of employees. In this they are also authorised to monitor that activities of
performance management plan are being undertaken according to the devised plan. In order to
overcome the issue of labour turn over a plan has been formulated by HR department. Thus with
the help of monitoring process they can effectively able to ensure that all the activities are being
conducted in a best effective manner.
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Review:
Review is important stage in plan in which is required to involve top management as to
review of all the stages being done that are included in performance management plan. With the
help of this success of plan can be ensured through which company can fulfil their objective of
reducing labour turnover.
TASK 3
P6 Examine particular legislation which a hospitality business entity has to comply
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 Vigor 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
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. In context to Vigor 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.
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process.
In order to perform organisational activities and functions in best effective manner it is
essential for an organisation to ensure that all the relevant rules and regulations are implemented
in their workplace environment. This will not only benefit entity to ensure effective functioning
but also help them to increase their business image in external marketplace which automatically
increases profitability of company. Mentioned below there are some relevant laws and
employment contract that are required to be applied by HR manager of Vigor drinks.
Employment law :
Employment laws have significant impact of upon decision making process of
organisational entity. Negligence of employment law can lead organisation to face many
penalties and fines. For this entity is required to make sure that the essential and relevant
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employment laws are being applied in their workplace structure. In this it is essential for Vigor
drinks HR manager to make sure that all the employment law related to employee safety and
customer safety measures are being implemented in organisation (Aina, Abubakar and
Alshuwaikhat, 2019). With the help of this company can effectively undertake the process of
decision making and can further move towards more opportunities.
Company law :
Company Lawis define different types of measure and rules that are required to be abide
by companies in order to perform their daily basis functioning. In context with Vidor drinks it
has been identified that company operate their functions in food and beverage sector of a
hospitality industry. Thus they are required to abide all essential company law.
Contract law:
In order engage into any contract organization is required to have proper understanding of
contract law. In relation with Vigor drinks it is essential for manager to make sure that they have
applied all the rules and regulations covered in contract law before entering into a contract.
TASK 4
P8 Various functional roles which are interrelated within hospitality industry.
There are different types of functional roles that are mainly interrelated with hospitality
industry in order to ensure more success. It is essential for an organisation to have formative
relationship between all functional departments. As with the help of this, company can
effectively able to perform their work while ensuring high productivity. In context with Vigor
drinks it has been identified that company involved different type of functional roles. In this HR
manager is required to make sure that there is positive interrelation within all the departments as
there is effectively lead organisation towards higher success:
Finance and Marketing:
Both marketing and Finance Department act as a key essential departmental unit within
entity. As both of these department aim towards increase profitability of organisation. Funds are
most important aspect within any organisation. Finance unit of Vigor drink effectively formulate
proper budgets and allocate appropriate funds to every department. As Marketing department is
engage in the process of conducting different marketing campaigns in order to attract customers.
The proper financial support has been provided by Finance Department to Marketing
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department. Marketing department benefit Finance Department by providing them information
related to finance sources. This interrelationship help company to increase their overall
profitability.
Customer service and Food department:
Customer service and food department are one of the most important segment for Vigor
drink as both of these department perform their work towards a common objective which is to
satisfy customer needs and best effective manner (Arevalillo, 2019). Customer Service
Department of respective organisation aim towards resolving customer issues and provide them
with qualitative services. In this customer service engaged in the function of taking regular
feedback from customers they provide the same information to food department. With the help
of this food department developed high quality products as per according to customer taste with
the help of this interrelationship both the departments fulfil main objective of organisation which
is to increase their profitability.
P9. Discuss various ways of communication, monitoring & coordination application within in
hospitality sector in order to strengthen the value chain
With the help of taking advantage of different methods organization can effectively able to
accelerate efficiency of their value chain. In this company is required to ensure that there is
proper coordination, monitoring and communication prevailing in their working place. As with
the help of this they can stimulate high performance of employees. Mentioned below there are
some of the significant based through which value chain:
Communication :
Communication is one of the most important tools as well as technique through which
organisation ensure effective and smooth functioning. With the help of proper communication
company can effectively able to fulfil their goals and objectives. In relation with Vigor drinks
company manager is required to make sure that there is proper communication bridge with
proper transparency. With the help of this sharing of information and data can be done within
workplace of organisation in best effective manner. With the help of proper communication
manager can also able to encourage motivation among employees with the help of which they
can automatically able to strengthen their value chain.
Coordination:
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In order to conduct all the operations within workplace organisation is required to ensure
that there is proper coordination prevailing in entity. As by performing operations with
ordination employees can effectively able to fulfil organisational goals and objectives in a best
effective and efficient manner. In relation with Vigor drinks it is essential for a manager to
provide proper training and developing measures to their employees and motivate them to
perform their operations and functions with coordination.
Monitoring:
In order to ensure implementation of all the required activities organization is required to
properly monitor all the essential functions (Konakoglu, Hełdak, Kurdoglu, and Wysmułek,
2019). In this HR manager of Vigor drinks is responsible to make sure that all the activities of
plan are being conducted as per according to the planning. With the help of this corrective
actions can be undertaken in time effective manner. This also stimulates organization to
accomplish desirable actions. In addition to this it is essential for manager to undertake regular
feedback from their employees. With the help of this they can provide assistance to employees in
time effective manner through which accomplishment of goals can be done in a best effective
way.
CONCLUSION
As per according to the above mentioned reported it has been analysed that, hospitality
sector is one of the leading and growing industrial industry that aid overall economy in a best
effective manner. It involves different type of roles through which satisfaction to customers are
provided. It has been analysed that in order to manage all the functions within hospitality
industry HR manager play essential role. With the help of this performance of employees can
also be increased. It is essential for organisation to make sure that all the laws and legislations
have applied in workplace structure as with the help of this company can safeguard themselves
from being got caught into any legal penalties. There are different types of functional roles in an
organisation those who perform their functions with effective coordination as this
interrelationship help company to ensure or high growth and profitability.
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