The Hospitality Business Toolkit

This document is a comprehensive study material and toolkit for the hospitality business. It covers topics such as financial transactions, managing financial performance, HR life cycle, legislation compliance, and more. The document provides an introduction to the hospitality business and focuses on the case of Dining Divas restaurant. It includes activities on financial transactions, principles of managing and monitoring financial performance, double entry bookkeeping system, trial balance, types of cost analysis, importance of accurate recording of transactions, HR life cycle, performance management plan, specific legislation compliance, and ethical issues impact. The document is suitable for students studying hospitality management or related courses.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................2
ACTIVITY 1....................................................................................................................................3
Introduction to the financial transactions within hospitality business....................................3
Principles of managing and monitoring financial performance.............................................3
Principles of double entry bookkeeping system.....................................................................3
Producing a basic Trial balance..............................................................................................4
Analysing types of cost..........................................................................................................5
Importance of accurate recording of transactions..................................................................5
Conclusion..............................................................................................................................5
ACTIVITY 2....................................................................................................................................6
Different stages of the HR life cycle as applied to issues in talent acquisition and retention6
Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent.................................................................................................................6
Develop a performance management plan.............................................................................7
Recommendations..................................................................................................................7
ACTIVITY 3....................................................................................................................................8
Identify specific legislation(s) that hospitality organisations have to comply and adhere to, in
the daily transaction of business using examples to explain where applicable......................8
Impact of company’s employment and contract law..............................................................8
Critically reflect on the impact of ethical issues....................................................................9
ACTIVITY 4....................................................................................................................................9
Covered in PPT.......................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality business considered as a wide category of services industry which includes
different types of business like foods and beverages, accommodation, travel and many more.
Main purpose of this assignment is to develop better understanding of assorted functions towards
business. On the basis of this purpose Dining Divas restaurant has been selected as an
organisation (Jasnoff and Sheikh, 2019). This business deals with large number of providing
healthy salads with different types of food items and smoothies as well. Now a days this
restaurant is planning to produce herbal tea. This assignment includes HR life cycle of respective
restaurant and overview of the organisation. Lastly, there are different types of legislations that
directly influence organisation.
ACTIVITY 1
It is essential for firm to control and manage every financial activity in the firm so that
they are able to reduce their cash floes and control their costs as well, by which they can make
effective financial statement for business. There are several financial methods and requirement
which fulfils the needs and demand (Mariani and et.al., 2018).
Introduction to the financial transactions within hospitality business
In context with Dining Divas restaurant, financial statement has been formulates for the
aim of attaining advantages of reducing cost. In order to procuring raw materials and selling their
product this restaurant mainly follows source documents of continuous vouchers and receipts. In
addition to this, respective restaurant always follow particular working process by which they
can keep yearly report of their financial statements. Thus, it has been concluded that financial
transactions of Dining Divas involves every day sales revenue, obtain raw material from the
suppliers along with labour wages and acquiring machines or equipment (Nayak and Taylor,
2018).
Principles of managing and monitoring financial performance
There are different types of principles which could be used while monitoring and
managing overall performance of finance in Dining Divas restaurant. Moreover, all kind of
transactions should be first recorded into the primary book as well as final books. Along with
monthly cash flow budget should be prepared. All these are helpful to manage financial
performance in respective business. Additionally, measuring principle of financial performance

includes Key performance indicators, positive liquidity, investment return, positive cash flow
and net income (Filimonau and Delysia, 2019).
Principles of double entry bookkeeping system
Separate entity concept includes three types of principles in which Dining Divas
restaurant follows separate legal entity from its owner. There is another principle is equation of
accounting which shows that Assets – Liabilities = Capital. Last and third principle presents that
each transaction has directly influence other transaction which is known as dual effect.
Balance sheet of Dining Divas
Assets Amount Liabilities Amount
Insurance 1200 Current liabilities 15000
Current assets 52000 Fixed liabilities 54490
Fixed assets 94000 Capital: 30000
NP: 47710 77710
Total 147200 Total 147200
According to above balance sheet, it has been clearly specified that each value of
bookkeeping system are followed by Dining Divas.
Producing a basic Trial balance
Particulars Amount Particulars Amount
Rent 1000 capital 30000
Purchases 10000 Food supplies 2000
Insurance 1200 Sales 20000
Petty expenses 200
Sales of
beverages 13000
Telephone and internet 2200
rates, water charges and
refuse 950
wages and salaries 1740
Net profit 47710

65000 65000
According to the above specified trail balance, firstly all receipts and vouchers was
recorded into the journal book. By which every transaction were recorded in ledger book as per
the nature transaction. By using those sorts of ledger accounts, each account balance were
defined as credit or debit and at the end trial balance has been recorded (Wiltshier, Griffiths and
Clarke, 2019).
Thus, main purpose beyond formulating this trail balance is to sustain that procedure of
recording is perfectly recorded or not. It the total of credit and debit is equal then the procedure
of recording is correct and by observances above trail balance this can be said that, all procedure
of recording of this restaurant are perfectly undertaken.
Analysing types of cost
There are assorted kind of costs which arise into the business firm. In regards with Dining
Divas which is small level restaurant, has three types of cost that are fixed costs, changeable cost
and semi variable. All these costs are considered as the key for managing financial performance
of a restaurant business. Along with all these assorted costs must be isolated as per the nature
that should be paid off according to priority by which respective business can maintain their
financial performance (Benson and et.al., 2020).
Net profit margin example:
NP margin = NP / Sales revenue*100
= 25000/105000*100
= 23.80%
Gross profit margin example:
GP margin = GP / Sales revenue*100
= 18500/105000*100
= 17.61%
Importance of accurate recording of transactions
It is necessary for firm to line up their overall transactions in related with principles of
accounting. Herein, Dual principle of accounting accepted properly by which credit and debit

side must be equal. In regards with Dining Divas, restaurant will follow this principle which
would be beneficial to seeking fund investment from the other and they will be recorded.
Conclusion
Monitoring and financial management is very helpful for an organisation in order to
formulate financial records also check their ability of financial performance into the dynamic
market. In relation with Dining Divas, it has been recommended that they should formulate
effective management accounts with financial records so that internal structure of this restaurant
could be improved.
ACTIVITY 2
In context with Dining Divas, Assistant talent acquisition manager of this restaurant has
been identified that there is core need of formulates and improvements within the employees
performance. For this they have to make plan through reviewing overall annual performance to
identify problems and resolve them by applying effective solutions (Farrington, Antony and
Gorman, 2018). In regards of this, HR has looked entire profile of counter attendant through
using HR life cycle which is going to be discussed below:
Different stages of the HR life cycle as applied to issues in talent acquisition and retention
Human resource life cycle generally includes several range of stages. Herein, counter
attendant HR life cycle comes under the selection and recruitment at first stage. In this stage, HR
manager use effective recruiting methods for attracting large number of people among them.
These candidates are further examined by HR manager so that they can select best employees for
an organization. Along with HR faces several problems and issues towards attracting people. On
the behalf of second stage that is on-boarding and orientation at which HR manager of business
firm generally focuses on increasing acquaintance of workers with the organization. For this, HR
mainly conduct so many training and developing sessions for their employees and that they can
improve their mission, vision, goals and able to achieve them (Belarmino and Koh, 2020). Now a
days, respective restaurant is not conducting such kind of programs for their employees as they
are not able to get correct information. This type of weakness towards their connections with
employees gives very bad results so that employees are not able to sustain for long time in the
organization. Last stage includes transition and exist where employees leave organization
because of any reason it could be professional or personal.

Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing
and retaining talent
According to the every stage, HR manager plays important role which is fruitful for
employees towards their growth also it helps to retain overall talent of workforce within
organization.
On boarding and orientation: According to this level, HR mainly increase employees
familiarity with firm, working pattern and mission or vision statements. It is easy for workers as
they can easily execute their work in future and able to attain desired goals or objectives
frequently (Fyfe, Seaman and Bent, 2018).
Recruitment and selection: In this stage, HR manager of Dining Divas develop online
portal by which they can easily bring effective workforce. It is helpful for firm to bring
applicable workers so that they can achieve goals properly (Peters, Loke and Ahmadpour, 2020).
Exit and transition: In this last stage, HR manager gives effective performance in order
to retain employees who are able to make plan frequently to achieve goals. Furthermore, it cold
be said that HR manager should have polite nature to their workers so that they can easily
understand overall issues and able to get effective solutions. It influence firm in a positive way.
Develop a performance management plan
Performance management is based on appropriate process through which manager of
firm able to coordinate, manage and aligns and able to achieve their targeted goals in a proper
manner. In order to execute above mentioned problems, performance management plan has been
described below:
Plan: In this initial stage, HR manager of respective organization able to formulates
effective plan for its workforce in which they provide proper guidelines to their employees. With
the help of this employees can get support and increase their interest among work. It helps to
overcome negative behavior of employees such as demotivate, miscommunication and conflicts.
As a output, it enhance retention rate of employees into the organization (Ma, Cheng and Hsiao,
2018).
Review: According to this stage, high authorities reviews on overall performance of
workers. It helps to overcome turnover of employees as they are having huge knowledge related
with issues and their problems. Along with it helps to take proper actions on time.

Monitor: In this last stage, HR manager of respective firm able to monitor every
situation towards developing effective strategies. This type of monitoring contribution helps to
overcome employee's issues when they face while joining. Through doing this HR manager can
resolve their each issues and increase firm's productivity.
Recommendations
According to the above mentioned information, it has been concluded that HR manager
of Dining Divas could easily execute on their recent process along with documents through
recommendations. Now it has been recommended to HR manager of respective restaurant that
they should have effective communications with their management and employees so that they
can discuss their overall issues with each other and get necessary solutions in a short period of
time. As per the result, it would help respective business organization so that they can sustain at
marketplace for long period of time (Higgins-Desbiolles, Moskwa and Wijesinghe, 2019).
ACTIVITY 3
Identify specific legislation(s) that hospitality organisations have to comply and adhere to, in the
daily transaction of business using examples to explain where applicable.
Talent acquisition manager in Dining Divas, has been identified that there are huge
requirement to some regulations which is used by industry in order to sustain for long period of
time at marketplace. Some of the legislation are mentioned below:
Liquor control act 2003: This is very effective act in which all organizations are dealing
in hospitality sector in order to manage sales of business at marketplace. In relation with Dinning
Divas, it is much important for HR manager to use this act for keep themselves away from such
issues. With the help of this they can get competitive advantages and able to increase their
productivity (Groen and et. al., 2019).
Health and safety act 1974: This act refers to the safety of people at workplace who are
working in the public sector. Thus, it is essential for managers of respective firm to influence
large number of employees towards work so that they can sustain for long period of time.
Impact of company’s employment and contract law
Employment law: This law controls different types of organizational activities such as
firing, hiring, minimum wages and so on. Thus, it impacts on decision making policies of firm.

On the basis of this, company required to pay minimum wages to their employees in order to
achieve profit in a perfect way (Pratt-Chapman and Burhansstipanov, 2018).
Contract law: According to this organizational law they generally come with the contract
by which they can fulfill their all over needs and wants. Thus, this law directly influence decision
making process which is made by Dinning Divas. Therefore, they are needed to follow it.
Company law: It is considered as an important regulation which is commonly used by firm
to achieve desired results and goals. Through following this this law respective restaurant is able
to provide huge product and better services to consumers in a perfect manner.
Critically reflect on the impact of ethical issues
In order to use different regulations and laws it has been specified that, respective
organization is able to use these laws in order to gain better results and develop proper image
within the market area. As it deals with large number of food items so there is probability to
achieve huge profit (von Richthofen and Fischer, 2019).
ACTIVITY 4
Covered in PPT

CONCLUSION
From the above mentioned assignment it has been analyzed that, HR life cycle plays vital
role through retaining workforce talent for firm in an appropriate manner. In this assignment,
there are different kinds of individual as an performer who have different kind of skills and
knowledge towards effective work. Through applying large number of skills they can bring
better solutions for overcome sorts of issues in a perfect way. It helps firm to achieve targeted
goals. Furthermore, there are lots of strategies that helps business to gain successful growth in an
appropriate way. Moreover, there are lots of laws and legislation which are followed by firm to
take perfect decisions for the betterment of future. It increase overall productivity of business
within hospitality industry.

REFERENCES
Books and Journal
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