Unit 4 The Hospitality Business Toolkit

HOSPITALITY
BUISNESS TOOL-
KIT

Table of Contents
TASK 1............................................................................................................................................4
P1. Investigating various principles of managing & monitoring financial performance.......4
P2. Application of the system of book-keeping related with debits & credits for recording of
sales & transactions related with purchases in a general ledger............................................5
P3. Produce a basic trial balance applying the use of the balance off rule to complete the
ledger......................................................................................................................................6
TASK 2............................................................................................................................................7
P4. Review of different stages of a HR life cycle that can apply to a specific hospitality job
role & its consequence for development & retaining of talent...............................................7
P5. Development a performance management plan...............................................................8
TASK 3..........................................................................................................................................12
P6. Identify specific legislations that a hospitality organisation has to comply...................12
P7. Company employment & contract law can posses a prospective impact on the process of
business decision making.....................................................................................................13
TASK 4..........................................................................................................................................14
Covered in PPT.....................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Hospitality is a sector that is having very fast growth prospective in the present scenario
of economy. There are various departments that are part of the hospitality industry such as
accommodation, lodging facilities, food and beverages etc. In this report there is a new outlet
that is named “Organic Coup”. The major differentiation feature of this new outlet will be the
healthy menu that has been developed keeping in mind the changing preferences of their
customers (Andringa, Poulston and Pernecky, 2016). It is very necessary to develop an
understanding of all the functions that organisation have to understand so that there can be
proper coordination among all the activities. It is necessary to understand the financial
performance with use of double entry, trial balance, reviewing different stages. This report is
discussing topics such as HR cycle, double entry system, employment laws etc. There is need
for discussing various roles in hospitality sectors & ways that are applied in the organisation
TASK 1
P1. Investigating various principles of managing & monitoring financial performance
For evaluation of performance business organisation that are considered in the hospitality sector.
There are various ways to evaluate the financial performance of organisation as discussed below:
Preparation of cash flow statements: There is preparation of cash flow statements that are very
essential part of business organisations. It can also help in managing the financial performance
(Baxter and Bereziat, 2017). It also helps in calculation of ratios such as liquid ratio, current
ratio, profitability ratios etc. All these are give a insight about the overall financial structure of a
organisation.
Preparation of inventory records: There is a requirement to keep a record of all the
inventories that are kept in a business. It is very helpful in prevention of wastage of resources in
a organisation. There si a justification that can be made between raw material requirements for
calculating further business operations and functions.

Different business transactions in case of Organic Coup:
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420
P2. Application of the system of book-keeping related with debits & credits for recording of
sales & transactions related with purchases in a general ledger
Double entry system refers to a system that is used for recoding of various business transactions
in an organisation (Filimonau and Delysia, , 2019). It is also used for the purpose of
understanding the transactions that have a major effect on overall running of business. It consists
of such transactions that are having impact on debit & credit side of financial accounts of a
business as discussed below:
All records of book keeping have to be prepared in such a way that there is proper inclusion of
all the transactions even if it is not impacting the business in a broader view, such as petty
transactions such as small amount of payment

Trial balance is always prepared at end of every financial year at the time when all business
accounts are being closed. After that such accounts that are not completely settled have to be
carried forward for the next year. Major aim of preparing a trial balance is to balance of the
balance that is part of every business (Cheah and Li,, 2018).
P3. Produce a basic trial balance applying the use of the balance off rule to complete the ledger
Trial balance has ledger list off a business organisation. In the present scenario there is a
trial balance of consist of transactions related with Organic Coup. This business was started in
the year 2017 and it ahs gained lot of popularity since then. Below discussed is the trial balance:

TASK 2
P4. Review of different stages of a HR life cycle that can apply to a specific hospitality job role
& its consequence for development & retaining of talent
After considering all stages in a business. Human resource has to take care of life cycle that is
impacting the stages of employment in a organisation. In case of Organic Coup there are some
stages that are discussed below:
Attraction: It is the first stage of a life cycle in which HR manager has is working as a
part of food & beverage organisation. There are managers who are willing to attract employees
who are talented enough so that they can contribute towards achievement of their organisational
objectives in a smoother manner (Golubovskaya,, Robinson and Solnet, 2017). It becomes
necessary to attract top talent for the purpose of having a competitive and skilled workforce.
Recruitment: it is the function that is having association with right type of employee at a
right position in the organisation. It is necessary for every employee that is being hired for a
particular position as the required skills for performing their overall job responsibilities. If a
employee is over qualified then it might lead to under utilisation of human resource in the
organisation (Kamruzzaman 2020). On other hand if employee is lacking the skills for
performing the job function then it might lead to de-motivation of employee and lot of pressure.
So, it is the responsibility of human resource department in Organic Coup that while performing
the function of recruitment right employee should only be selected for a particular job role. This
function is related with having right employee who can contribute towards effective performing
of all the functions.
On boarding: in this process there is effort made to introduce a new employee in overall
business organisation. It is orientation of employee to their new workplace that is helping them
in getting a overview of new work place in which they have to work. In Organic Coup attempts
are made to cater a positive workplace environment so that employees are feeling comfortable
and satisfied with their working environment.
Enablement: In this stage HR posse’s responsibility of making a detailed view of
responsibilities of human resource departments. In this step there are various session that are
taken by a employee. In present scenario Organic Coup is organising various conferences that

are helping their employees in getting familiar with all rules and in this all the information for
newly hired employees
Development: At this point managers have the responsibility of individual development
of employees. In Organic Coup attempts are made to make employees understand their
maximum potential and then get opportunities to develop up to fullest (Naik, and Kanade,
2019). For further growth all platforms are provided by the organisation. It keeps self esteem and
self actualisation needs of employees satisfied and they are not willing to leave, that in turn
beneficial in terms of reduction of employee turnover.
Separation: This is last stage in the whole HR cycle where all functions are for
attainment of success (Newhouse, and Weeks., 2017). Various employees are working in
different department in Healthy life for attainment of objectives of organisation.
P5. Development a performance management plan
Performance development is a plan that is prepared in every organisation and is very
useful in development of a basic scenario that will be used for the purpose of hiring of
employees in the organisation (O'Shea,and Link, 2019). In Organic Coup performance
development plan is prepared that can help in understanding how employees growth can be done
as discussed below:
Job role Time
period
Development
focus
Development
strength
Developmen
t of needs
Development
Action
Time
Durati
on
Experienc
ed
managers
at the
middle
level of
organisati
on
Jan 2020-
March
2020
Improving all
the skills that
are present in
employees and
preparing
them in
enhancement
of their present
skills by
making then
Skills such as
those related to
solving
problems of
employees and
providing them
expertise of
performing
various
functions have
Improving
the ability of
managing
and leading
of change.
It is also very
helpful in
learning of
skills for
some specific
Manager has to
make sure that
employees
should realise
that what is their
potential and
then work
accordingly.
15
days

ready for
reaching to
higher position
of
organisation.
to be provided
to employees.
functions
such as
learning to
make some
special juices
and salads in
organic coup.
Having
expertise in
performing
cross
functional
operations.
First level
manager
Feb 2020-
March
2020
Developing a
employee and
assigning them
with new roles
and tasks
(Sheng and
Hu, 2020).
There has to be
training given
with reference
to manage
various short
term projects
in due course
of functioning
by the
employees.
Providing
mentoring to
all members
who belong
to various
functional
departments
of the
organisation.
Working with
team members
for the purpose
of creation of
plan that has to
be further
adopted in
organisation.
Such as manager
has to make
plans of
listening and
laying
communication
every team
member for
creation of plan
20
days

to be
implemented
further. There is
requirement to
take regular
feedbacks from
employees and
test their level of
learning.
Manager
of food &
beverage
departme
nt
March
2020-
May 2020
Experienced
staff of
managers
who will be
competent
enough to
handle all the
teams in a
more effective
way
Effective skills
of
management.
So that
services can be
provided on a
timely basis. In
hospitality
industry two
factors that are
time &
equality helps
a outlet to get a
differentiation
feature which
helps them in
surviving for a
longer duration
of time.
Providing
timely
guidance to
all the
workers in a
more
appropriate
manner so
that if there
are any
issues that
can be
resolved as
early as
possible.
Helping and
guiding the staff
members so that
they can be
motivated
enough to serve
their customers
in best possible
manner.
10
days

Recommendations:
There can be more improvement in a organisation that can be done with regards to management
of activities and functions of organisation (Stansfield, , 2018). At each stage there is a need of a
project development plan that can assist management and provide a future prospective how
various plans have to be undertaken in a organisation for the purpose of development of
employees.
TASK 3
P6. Identify specific legislations that a hospitality organisation has to comply
Some of the legislation that a have to be adopted by various organisations such as Organic Coup
that is part of hospitality industry (Strobl and Kronenberg, 2016). It is very essential for all
companies to follow all the rules and acts that have been adopted by this organisation as
discussed below:
Food Act 1990 - It is an act that has to be implemented by companies while they are
developing their food menu. All the guidelines mentioned in this cat have to be compulsorily
adopted by this organisation as this is related with the safety & health related issues of their
customers.
Equality Act, 2010- According to the act, working employees have to be paid equally. It
means that there can be no discrimination made amongst employees while formation of their
policies regarding pay, incentives, compensation and such type of related policies.
Discrimination practises such as related to sex, religion, culture etc. In Organic Coup the
management is very fair with treating all employees equal at all levels (Takele, , 2019). It helps
them in having a satisfied workforce and also in creation of a workplace that is offering a
positive environment to all their employees.
Liquor control act 2003: it is a Act that was implemented in the year 2003. This act was
enacted so that there is no mis-use of liquor. It is applied that companies those are offering such
drinks to people. It is the act has established for consumption and sales control. It is representing

companies that are offering their customers. If there is any harmful content in drinks offered by
organic Coup has to be eliminated.
Health and Safety Work Act, 1974- It is Act that is related with the customers safety
working in a organisation. It is responsibility of managers in a organisation that they have to
make sure that all employees are safe (Cheah, Ho, and Li, 2018). All stakeholders such as
employees, customers, shareholders are safe and secure while they are working in a organisation.
In Organic coup, there are proper establishments of fire extinguisher, proper knives, freezer
gloves, microwave gloves etc. Are some of security measures that have to be adopted by all staff
in various functional departments such as front office, administrative staff members, kitchen staff
etc.
Minimum Wages Act, 1998: Accordance with this act, companies are willing to
implement this act fort a minimum wage criteria that has to be set for employees. There is a
criteria that has been set by government where based on certain factors such as employee age,
level of complications in a work, hours of work, overall job responsibilities there are some of
minimum wages that have been set by government under this cat. In organic cupid all such
regulations are properly implemented so that employees are satisfied and they are not willing to
with to any other organisation in long run.
P7. Company employment & contract law can posses a prospective impact on the process of
business decision making
It is necessary that companies have to consider all regulations that are helpful for them in talking
timely decisions. In organic coup, there are some decisions that have to be taken timely so that
all opportunities are availed. Decision making is a important process that can have a effect on
how various functions are being managed and controlled. There are certain laws that pose an
impact on productivity and this process of decision-making as discussed below:
Employment laws: In every organisation employees are the most crucial part of
stakeholder group. All functioning is based on how employees are contributing towards
achievement of laid targets. In organic coup all the policies and procedures are in relation with
expectation of employees. When all laws of employment are properly adopted then it leads to
having a satisfied working staff.
Company laws: Company law is posing a impact on decision taken at each stage and is
affecting all the policies. In Organic coup, management is making sure that all the sections and

laws that are part of company law have to be properly implemented in their organisation.
Company law assist in functioning of every organisation.
Contract laws: These are laws that have a impact on the process of decision making.
Contract law consist of different types of laws that can have a impact on how various decision
are taken when different contracts are being made in course organisation functioning. Contact
law consist of laws such as supplier contact, employee contract etc. All the contracts have to be
made only after effective consideration has been given to clause mentioned in this contract act.
TASK 4
Covered in PPT

CONCLUSION
From the discussed topics it can be idea that hospitality is a industry that is growing and
changing very fast. There is a requirement that this industry has to be properly used for overall
growth of economy. Performance management plan is playing a very crucial role in
improvement of employee performance standards and providing them direction of work. There
are various legislations that have to be properly adopted so that it can further help in coordination
of different functional units. Such high interrelationship and coordination actually helps in
satisfying customers by providing them with their requirements and demands.

REFERENCES
Books and Journals
Andringa, S., Poulston, J. and Pernecky, T., 2016. Hospitality entrepreneurship: a link in the
career chain. International Journal of Contemporary Hospitality Management.
Baxter, D. and Bereziat, C., 2017. Developing resource efficiency through online training: The
case of a small hospitality business in Scotland. In Diálogos bilaterales entre
investigadores de la Glasgow Caledonian University (Reino Unido) y la Universidad de
Alicante (España): Estudios interdisciplinares (pp. 27-43). Revista Mediterránea de
Comunicación.
Cheah, S., Ho, Y.P. and Li, S., 2018. Business model innovation for sustainable performance in
retail and hospitality industries. Sustainability, 10(11), p.3952.
Cheah, S., Ho, Y.P. and Li, S., 2018. Business model innovation for sustainable performance in
retail and hospitality industries. Sustainability, 10(11), p.3952.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism management, 71, pp.234-245.
Golubovskaya, M., Robinson, R.N. and Solnet, D., 2017. The meaning of hospitality: do
employees understand?. International Journal of Contemporary Hospitality
Management.
Kamruzzaman, M., 2020. Inbound Tourism, Hospitality Business, and Market Structure
[Summary].
Naik, N.K.K. and Kanade, S.R., 2019. HRM IN HOSPITALITY INDUSTRY: AN
OVERVIEW. Advance and Innovative Research, p.136.
Newhouse, W. and Weeks, S., 2017. [Project Description] Securing Property Management
Systems: Cybersecurity for the Hospitality Sector (Draft) (pp. 10-10). National Institute
of Standards and Technology.
O'Shea, M. and Link, C., 2019. Implementing augmented learning and teaching design for
impact: exploring the use of digital gamification in tertiary sport and hospitality
business curriculum. International Journal of Innovation in Education, 5(3), pp.165-
181.
Sheng, L. and Hu, W., 2020. Tourism and hospitality market structure: A theoretical
discussion. The Social Science Journal, pp.1-8.
Stansfield, M.L., 2018. Hospitality artisans and sustainability. Hospitality Insights, 2(1), pp.7-9.
Strobl, A. and Kronenberg, C., 2016. Entrepreneurial networks across the business life cycle: the
case of Alpine hospitality entrepreneurs. International Journal of Contemporary
Hospitality Management.
Takele, Y.S., 2019. The Role of Public and Private Sector for Sustainable Tourism and
Hospitality Business Development in Ethiopia: A Case Study in Addis Ababa.
In Handbook of Research on International Travel Agency and Tour Operation
Management (pp. 201-215). IGI Global.