Analyzing Carnival Corporation's Financial and HR Performance

This report provides a comprehensive analysis of Carnival Corporation & plc, a leading travel and leisure organization. It delves into the principles of financial performance, including finance arrangement, financial statement preparation, expenditure management, and risk factors. The report also examines key performance indicators (KPIs) for restaurants, such as food costs and kitchen labor. Furthermore, it explores the double-entry bookkeeping system and the balance-off rule, including the preparation of a trial balance. The HR lifecycle, encompassing recruitment, education, motivation, evaluation, and celebration, is discussed in detail, along with its importance in addressing staff retention issues. The report also outlines a performance management plan, including planning, implementation, evaluation, and feedback, to improve employee performance. Finally, it touches upon relevant legislation within the hospitality industry, emphasizing the role of management in fostering positive working conditions and resolving disputes. This report offers valuable insights into the financial, HR, and legal aspects of managing a large hospitality corporation like Carnival.

THE HOSPITALITY
BUSINESS TOOLKIT

Table of Contents

INTRODUCTION
Hospitality industry is the combination of various businesses which helps in providing a
wide range of services to the potential customer's. The main focus of this industry is to increase
the satisfaction level of the customers so that their experience is enhanced. The major motive of
hospitality industry is to provide quality service to their valuable customer's. Hospitality
industry is not only concerned with providing best services to the customer's but it is also related
to planning, coordinating and analysing various activities in the proper manner. This project
report will based on Carnival corporation & plc which is the top travel leisure
organisation(Cascio, 2015). Its headquarter is situated in Florida, United States. The major topics
covered in this file is monitoring and analysing the financial performance of Carnival
Corporation, HR life cycle, trial balance will be prepared and various laws, rules related to this
type of industry and the various communication methods used by the organisation for achieving
its goals and objectives.
TASK 1
P1
Principles are the combination rules and techniques used to analyse and interpret the
financial performance of the business organisation. These principles and rule directly helps in
improving and enhancing the performance of Carnival Corporation. With the help of this the
financial performance of the organisation can also be increased and the targeted goals and
objectives will be achieved in the effective and efficient manner. The various principles for
maintaining good financial performance are discussed below-
Arrangement of finance- It is very much necessary for Carnival Corporation to make
better plans for the arrangement of finance because this will directly lead to proper functioning
of the activities. With the adequate arrangement of finance the operations and activities of
Carnival can be carried out in the best possible manner and it will safe the organisation from any
uncertainty or risk (Performance & Financial Management, 2019). Carnival Corporation can
arrange its finance from banks or other financial institutions as from their the arrangement of
finance can be done by the Carnival corporation in the best possible manner. This is because
these financial institutions generally provide finance on low interest rates. So choosing this
method will be a profitable situation for the organisation.

Preparation of financial statement- Another important principle for managing and
controlling financial performance of the Carnival Corporation is financial statement such as
balance sheet and P&L account can be used in the chronological order by the accounts
department of the organisation. As this will help the organisation to make ascertain its financial
position for the future in the desirable manner.
Expenditure management- The day to day expenditure of the organisation must be
properly managed by the management of the organisation. Since the organisation is planning to
increase their ability in taking better decisions(Brealey and et. al., 2012). So proper management
of the expenditure will be one of the major important task for the company. The manager of the
Carnival Corporation can appoint team of professionals for managing and coordinating the
expenditure in the appropriate manner. As with the help of the team daily as well as yearly
expenditure can be managed in the effective and efficient manner.
Risk factor- The risks and uncertainty involved in the business of Carnival Corporation
must be known by the management. This is because if this is known than better plans for the
future can be made and the growth of the organisation can be increased. The best method for
identifying the degree of risk can be analysing the present and past situations of the organisation
and market in which the business is being conducted. As with the help of this Carnival
Corporation will be able to decrease the effect of risk and uncertainty in the sequential manner.
These principles will directly help the organisation in making proper guidelines for the
working structure of the organisation and also for managing the funds in the best possible
manner. The two KPI for restaurants are as follows-
Food Cost- The investment done on the purchases of food materials needs to be managed
in the systematic order. The food consumption per head can be analysed by calculating profit
margin of per customer(Chapman, 2011).
Kitchen Labour- This can be calculated by measuring the total food sale of the
organisation. The productivity of the kitchen department can be known by performance
indicator plan.
P2
Double entry Bookkeeping system- According to this system every activity is recorded in
two account. This means every financial activity will be recorded in two different nominal
account. The amount of the transaction will be shown in both debit and credit side of the

financial account. Organisation can use this method of recording transaction for ascertaining
their profit and loss during the accounting year (Doniņa, 2015).

3.
Balance off rule- According to this rule after the completion of the accounting year some
accounts are closed while some can be carried forward to next accounting year. But only those
accounts which are obstructed are carried to the next year this method is known as balancing off
method. The major motive behind using this type of method is to analyse and evaluate the
information which is discussed in journal and ledger. It will be difficult for Carnival Corporation
to close all accounts to evaluate their overall performance for the particular year.
The trial balance of the Carnival Corporation is given in the table(Foster, McCabe and
Dewhurst, 2010). The balance of the trial balance is matched after the completion of the year and
relevant information can be gathered. The major steps for making trial balance are mentioned
below-
Trial balance is the combination of various other ledger accounts which are shown in the
ledger of the business. These are generally calculated after the closing of ledger accounts. The
major purpose behind calculating trial balance is to know the figures are accurate or not. The
steps for making trial balance are-
 The closing balance of cash will be required after concluding of ledger accounts.
 Three columns will be made on worksheet which will be named as account name, debit
balance,etc.
 The account name will be filled along with the debit and credit balance in the respective
columns.
 Total balance of both the columns will be calculated but the amount of both columns
must be same.
 The last step is closing the trial balance after matching the amount of debit and credit
column. In case of any difference in the amount the errors and mistakes will be identified
and rectification will be done.

TASK 2
P4
The HR life cycle mainly consist of five stages from which every employee of the
organisation goes through.
 Recruitment- This is the very first stage of the HR cycle. Under this stage right
candidate is placed at the right job. The HR manager of Carnival Corporation can identify
their needs and wants of the employees in the organisation and on the basis of the needs
appropriate and suitable candidates can be chosen for F&B department. Before recruiting
the candidates for F&B manager can test the knowledge of the candidate regarding the
job role(Hassanien and et. al., 2010). Skilled and talented employees will save the
organisation from the chances of increase in employee retaining. The selection for the
F&B manager can be done after knowing skills relating to the management of F&B.
 Education- In this stage information regarding the roles and responsibility of the
organisation are given to the new employee. The HR manager of Carnival Corporation
can give training to the new employee to make them familiar with the culture of the
organisation and roles of F&B manager. Right information regarding the food and
beverage department must also be given to the new candidates so that they can know
what will be there responsibilities at the workplace. As by this employees will not have
the feeling of leaving the job and organisation.

 Motivation- The new employees of the Carnival Corporation can be motivated in a
proper manner. So that they can contribute in achieving the goals and objectives of the
organisation. The HR of the organisation can also appreciate its employee and F&B
manager for the good work done by the department. As this will motivate the candidates
to perform even better and appraising them for their performance in the F&B department.
 Evaluation- In this stage the performance of the employee is analysed and evaluated by
the superior of the organisation. After the evaluation measures for improvement can be
given by the superior of F&B manager in Carnival Corporation. If the HR manager is
able to evaluate the performance in a desirable manner than better relationship between
the F&B manager and its subordinates can be made and the work of the department will
not be hampered. (Hayes and Miller, 2011).
 Celebration- In this stage employees are appreciated for the work done and extra
benefits such as gifts, bonus can be given by the HR manager of Carnival Corporation to
boost the morale of F&B manager and its subordinates so that sense of belongingness
towards the organisation and department is created. This will directly help in proper
talent management of the organisation.
Importance of HR life cycle for overcoming issues of staff retention-
The importance of HR life cycle for solving the problem of increase in staff retention can
is proper use of HR cycle will assist in boosting the performance and morale of the employee's
and their individual goals will be easily achievable. So this will directly increase the sense of
belongingness towards the organisation and the chances of employee retention can be decreased.
P5
It is a negotiable tool for improving employee performance as it is also known as
performance action plan (Kusluvan and et. al., 2010). It can be used with strongest performers to
identify new ways in which they can contribute or with employees who are not meeting
expectation. In Carnival Cooperation Plc is facing a major issue i.e. waiter are not satisfied with
working environment and refuse to cooperate with team leaders. Performance management plan
for Carnival Cooperation Plc are as follows:
 Plan: It is a collection of different rules, regulations which enable them to accomplish
organisational goal in an effective manner. In context to Carnival Cooperation Plc, they
can develops a combination of rules and standards in order to deliver high quality of

food in an proper quantity By this, worker can get clear vision of work and enable them
to achieve pre determine goal.
 Implement: Applying the plan which is set by company in a real scene which refer as
utilising. In relation to Carnival Cooperation Plc, they can be very attentive to put them
in each business functions and assign them in each employees in order to work
accordingly. However, it help its staff to sput their full effort towards the assign task of
company.
 Evaluate: After implementing the plan, this stage is concerned with evaluation of
performance which enable them to take effective decision. In case of Carnival
Cooperation, they should properly monitor the work of employees and improve their
performance in order to gain goals. Thus, it enable its employee identify their
potentiality and can take disciplinary action to improve the shortcomings.
 Feedback: Once evaluation of performance is done, this stage occurs in which company
provide the facility to customer to give their feedback regarding company's performance.
In case of Carnival Cooperation chef follow-ups the feedback of customer and based on
that they take corrective course of action for accomplishing pre determine goal.
Therefore, it create positive attitude among its staff towards company which enrich
company's brand image and reduce employee turnover.
Organisations faces several disputes between employer and employee which impact its
working conditions. So, its a responsibility of manger to handle their employee and provide them
better working condition which increase company's profitability and productivity.
TASK 3
P6
Legislation refers to the preparation and enactment of laws by a legislative body through
its lawmaking process. IN this process it involves evaluating, amending and voting on proposed
laws and is concerned with the words used in the bill to communicate values, judgements and
purpose of proposal (Lockwood, 2010). Legislation plays a vital role in as it enable the company
to provide quality of service and achiev competitive advantage effectively an efficiently. Some
of the governing which Carnival Cooperation Plc can imply and adhere to are as follows:

 Food Safety Act, 1990: It main responsibilities is to ensure that food should be serve or
sold in better quality keep consumer hygiene and increase Carnival Cooperation Plc
productivity and profitability. Along with this, it enable them to advertise or promote
their product in a ethically manner which improves the morale and increase satisfaction
among customer. However, Carnival Cooperation Plc prefer to follow this act because it
helps in offering qualitative product with an affordable in order to accomplish pre
determined goal in an effective manner.
 Employment Act, 2002: This act contains new rules on maternity, paternity and adoption
leave and pay, and changes to the tribunal system in the UK. However, this act ensure
Carnival Cooperation Plc to treat their employees fairly in order to reduce conflict or
dispute and stop them from getting bad reputation from company. Along with this, it help
company to provide proper guidelines in a ethical manner and motivates employees to
build better working condition within workplace. Hence, Carnival Cooperation Plc opted
this act because it help the manager to maintain a healthy relation with employees in
order to attain high productivity and profitability.
 National Minimum Wages Act, 1998: It creates a minimum wage for employees or
workers which will be pay based on per hour basis and their ages. across the UK which
enable Carnival Cooperation Plc to provide fair reward in order to improve the morale of
employees (Maier and Hadrich, 2011). Moreover, it helps the company to identify labour
skills and use their potentiality effectively which improve the sales growth as well as
margin of profit. However, Carnival Cooperation imply this act to increase the living
standard of employees and provide motivation or encouragement through increment of
wages.
From the above mentioned legislation Carnival Cooperation Plc can imply in their
enterprise operation and can build effective relationship as well as can achieve long term goals.
P7
There are several legislation and regulations which provide proper guidance to company
in order to accomplish organisational goal in an effective manner. Each legislation has its own
positive and negative impact on business decision which effect the working culture within
workplace. Apart from this, there are several legislations and regulations which have negative
impact on business operation which function in hospitality sector (Manning, 2018). While

implementing the modification they should be very attentive and careful that it should not
impact the business decision making which hamper the work life cycle of company. Some
examples of several companies who have trapped into problems or major issues due to violation
of law:
 Wilko, a famous company which deals in home décor was fined £2.4 million when 35
year old employee was paralysed in an event where paint tins fall on him.
 A successful automotive car manufacturer, Jaguar Land Rover was penalised when an
employee lost leg during car bump on production line (Qiu, Shaukat and Tharyan, 2016)
 A leading food retailer KFC at Stockton Borough branches was fined for £1.5 million for
2 employees faced burn injuries.
 LSER and Wettons were penalised for £ 2m and £ 1.1m respectively for prosecution
that was brought by ORR and it caused death of a cleaner.
 Warburtons was fined for £2m in distroying the condition and handling the machine
under the act of regulation act 1998. During the operation process an employee arm got
trapped inside machine for around 25 minutes.
From the above mentioned examples it contain huge complexities which occurred in
organisations and it has a direct influence on their decision making process (McIntosh and
Harris, 2012). In relation to hospitality industry, there are several changes in regulations which
has important effect on objective of an organisation and this provoke company to introduce
modification in decisions which are implemented within workplace.
Critically reflect the potential impact of regulation, legislation and ethical principle Carnival
Cooperation decision -making.
Every company requires legislation and regulation which guide or enable them to be
more ethical and disciplined in order to improve the overall performance of company. But in
some cases, incidents are unpredictable which impact business performance and decision
making. At same time, legislation ensures the company to provide full treatment to injured
employee and provide basic amenities to them. By this, company can improve the morale of
employees and provide high level of satisfaction which enhance firm brand image and helps
them to gain competitive advantage.