East London Catering: Hospitality Business Toolkit Report Analysis

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on financial management, human resources, and legal compliance within the context of East London Catering. It begins by outlining principles for managing and monitoring financial performance, including budgeting and double-entry accounting, exemplified with journal entries, ledgers, and a trial balance. The report then delves into the HR lifecycle, specifically for a Head Chef role, detailing attraction, recruitment, induction, motivation, retention, and termination stages. A performance management plan is also presented. Furthermore, the report explores relevant legislation, such as the Health and Safety at Work Act, and its impact on decision-making, alongside different functional roles, communication methods, and coordination strategies within the hospitality sector. The document covers various aspects of hospitality management and provides a practical application of these concepts.

UNIT-4 HOSPITALITY
BUSINESS TOOLKIT

TABLE OF CONTENTS
Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Principles of managing and monitoring financial performance..................................................1
Double entry................................................................................................................................2
Ledger..........................................................................................................................................3
Trial balance................................................................................................................................6
PART B...........................................................................................................................................7
Different stages of HR life cycle applied specifically to hospitality job role..............................7
Performance Management Plan...................................................................................................8
PART C.........................................................................................................................................10
Specific Legislation that organisations have to comply............................................................10
Impact of company, employment and contract law on decision making..................................11
PART D.........................................................................................................................................12
Different Functional roles and their interrelation......................................................................12
Different methods of communication, coordination and monitoring........................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The hospitality business basically involves the addressing of the different aspects that are
associated with the formulation of different tasks and to also address the requirements of
different department such as finance, marketing etc. (Cheng and et.al., 2017). The current report
will evaluate the different methods of monitoring the financial performance in the organisation
and also develop proper double-entry and other relevant tools. Further the report will evaluate
the different stages of HR and then develop a performance management plan. This will be
followed by the evaluation of the necessary legal aspects and lastly the evaluation of different
monitoring and communication tools will be done in the report.
PART A
Principles of managing and monitoring financial performance
There are a variety of principals that needs to be referred to in order to improve the financial
recording and performance. Some of them can be discussed in the context of East London
Catering as:
 Preparation of effective and accurate budgets so that all the potential resources available
and the potential areas of expenses can be easily calculated. In East London Catering, this
facilitates the overall work that is to be completed and also helps in the better
ascertainment of the costs that might be incurred (Ahmed and Manab, 2016). East
London Catering can regularly measure and control their problems through this.
 The statements and budget should be attainable and realistic ensuring that no unnecessary
expenses are recorded in the organisation and no out of proportion costs are included.
The accountants at the East London Catering can ensure that the overall expenses that are
included in the budget are realistic and the different categories are the one which can be
actually attained. This can help the company in developing a better management
approach towards the finances of the company.
 The preparation of the budget should be after an exhaustive evaluation of the different
techniques and performances that are to be included so that correct budgets and
statements can be developed. The preparation of the budget is a very detailed process and
activity at East London Catering as well where the key is to ensure that the overall
budgets that are prepared are formulated after adequate consideration and in a
comprehensive manner.
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Double entry
Journal:
Journal entry for the year ending 2019-2020
Date Particulars Debit Credit
04/03/20 Cash A/c Debit
Capital A/c Credit
30,000
30000
05/03/20 Rent A/c Debit
Cash A/c Credit
10000
10000
06/03/20 Washers and Dryers a/c debit
Cash A/c Credit
Accounts Payable Credit
25000
10000
15000
07/03/20 Insurance policy a/c debit
Cash A/c Credit
1200
1200
09/03/20 Purchase A/c Debit
WH Adams Ltd A/c Credit
15000
15000
11/03/20 Laundry Fee A/c Debit
Cash A/c Credit
200
200
15/03/20 Telephone and internet A/c Debit
Rates, water charges and refuse A/c Debit
Cash A/c Credit
2220
950
3170
16/03/20 Wages and Salaries A/c Debit
Cash A/c Credit
1740
1740
18/03/20 Cash A/c Debit
Sales (Food) A/c Credit
20000
20000
20/03/20 Cash A/c Debit
Sales (Bevgerage) A/c Credit
13000
13000
2

Ledger
Capital
Dr £ Cr £
04/03/20 Cash 30000
Expense (Store Rent)
Debit £ Credit £
05/03/20 Cash 1000 0
Creditor (Supplier of Washer and Dryer)
Debit £ Credit £
06/03/20 Assest (W&D) 15000
Assest (Washer and Dryer)
Debit £ Credit £
06/03/20 Cash 10000
06/03/20 Creditor (Supplier) 15000
Creditor (WH Adams Ltd)
Debit £ Credit £
09/03/20 Expense (Food supplies) 8000
09/03/20 Expense (Beverages) 7000
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Exp (Wages and Salaries)
Debit £ Credit £
16/03/20 Cash 1750 1750
Sales (Food)
Debit £ Credit £
0 18/03/20. Cash 20000
Sales (Beverage)
Debit £ Credit £
0 20/03/2020 Cash 13000
Cash
Debit £ Credit £
04/03/20 Capital 30000 05/03/20 Store rent 1000
18/03/2020 Sales (Food
supplies) 20000 06/03/20 Assest (W&D) 10000
20/03/2020 Sales (Beverages) 13000 07/03/2020 Exp (Ins) 1200
11/03/2020 Exp (Laundry fee) 200
15/03/2020 Exp (Tel & Int) 2220
15/03/2020 Exp ( Rates, Water and
refuse) 950
Total 63000 16/03/2020 Exp (Wages and Salaries) 1740
Normal Balance 45690 Total 17310
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Expense (Insurance)
Debit £ Credit £
07/03/2020 Cash 1200
Expense (Food Supplies)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 8000
Expense (Beverage)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 7000
Expense (Laundery Fee)
Dr £ Cr £
11/03/2020 Cash 200
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Expense (Tele and Internet)
Debit £ Credit £
15/03/2020 Cash 2220 2220
Exp ( Rates, Water and refuse)
Debit £ Credit £
15/03/2020 Cash 950 0
Trial balance
Trial Balance
East London Catering
31/03/2020
Account Dr Cr
Capital 30000
Cash 45690
Expenses (Store rent) 1000
Expenses (Supplier) 8000
Expense (Beverage) 7000
Expense (Insurance) 1200
Expense (Laundry fee) 200
Expense (Tel and Int) 2220
Expense (Water and refuse) 950
Expense (Wage and Salaries ) 1740
Assets Washer and Dryer 25000
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Creditor (WH Adams Ltd) 15000
Creditor (Washer and Supplier) 15000
Sales (Food) 20000
Sales (Beverages) 13000
Total 93000 93000
PART B
Different stages of HR life cycle applied specifically to hospitality job role
The stages of an HR life cycle are evasive and helps in the better management and retention of
the employees in the organisation so that decision-making can be improved leading to
improvement in the performance as well. The five stages that can be implemented for the role of
Head Chef in the East London Catering are:
Attraction and recruitment: At this stage the different candidates that are suitable for the role of
Head Chef based on their qualifications and other details will be interviewed so that one
candidate can be clearly selected (Khalatur and Zubkova, 2018). The recruitment must be
according to the job requirement for instance, the hiring of Head Chef would mainly require the
evaluation of the work experience that they have i.e. what are the different kind of cuisines and
menu on which they have worked and the number of subordinates that they have led in the past.
This will help in the selection of correct candidate.
Induction and education: The induction and education is the second stage where after the
employee is selected, they are introduced to the general culture of the organisation, the work
environment etc. In this stage, if required, the necessary training and education is also imparted
to the employees hired. For Head Chef, they will be made familiar with the work environment of
East London Catering and then the required training such as the heavy and slow seasons,
favourite dishes of the company etc. all are collectively imparted making them familiar. This will
help them in operating in a better manner.
Motivation and career planning: The third stage is the critical stage where an employee needs to
be kept motivated and dedicated towards the work that is going on in the organisation
(Karnaukhova and Polyanskaya, 2016). Here the main aim is to minimise the employee turnover
and for the role of Head Chef this stage is very important. The hiring of Head Chef is an
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exhaustive process and if it is done in a recurring manner then this will inflict the performance of
other employees as well. Therefore, the different employee benefits that are integrated with this
role must be evaluated and the career plan and growth must also be presented before the Head
Chef so that they can evaluate the financial and career growth that they will be able to attain in
this company.
Retention and Evaluation: Loosing an employee is not a very good symbol and this can also
lead to the failure of the overall process of hiring and recruitment. The employees and their
performance needs to be regularly evaluated so that if there is any situation of over or under
performance then it can automatically be addressed by rewards or punishments. For role of Head
Chef it is essential to evaluate the manner in which they are fulfilling their work roles and
requirements of managing the overall process. Appreciation, to whom-so-ever it is due must be
awarded regularly and accordingly they must be reprimanded as well if required.
Separation or Termination: The termination or separation of the employees is the last stage that
concludes the HR cycle. Here if the performance of the employee is consistently bad then they
might be terminated (Ingenhoff, 2018). Separation can occur if the employee wishes to leave the
organisation and has served the notice period adequately. Head Chef may be either removed or
they may retire after full term employment based on their performance.
Performance Management Plan
The performance management plan for the current job role in consideration i.e. Head Chef in
East London Catering can be done in following manner:
EMPLOYEE
INFO
POSITION
HELD Head Chef HR REP
EMPLOYMENT DATE 04/04/2020 DATE OF REVIEW 05/08/2020
BEHAVIORS
QUALITY UNSATISFACTOR
Y SATISFACTORY GOOD EXCELLENT
Works to Full Potential √
Quality of Work √
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Work Consistency √
Communication √
Independent Work √
Takes Initiative √
Group Work √
Productivity √
Creativity √
Honesty √
Integrity √
Coworker Relations √
Client Relations √
Technical Skills √
Dependability √
Punctuality √
Attendance √
STRENGTHS / TRAINING NEEDS
DETAIL EMPLOYEE'S GREATEST STRENGTHS
The major strength of the employees lies in the creativity and team coordination that they
are able to integrate in the work done. This collectively improves the work that is being
performed and also the overall performance in the company.
DETAIL ASPECTS REQUIRING IMPROVEMENT
The communication skills need to be developed along with the technical skills which need to
be further improved in the candidate. The dependability skill also needs to be inculcated in
order to meet the demands in a better manner.
GOALS
ACHIEVED GOALS SET IN PREVIOUS REVIEW?
The Head Chef has been working on the improvement of the communication skills
altogether and this has helped in the achievement of the overall goals in the job roles that
have been set up and the work duties that have been allotted to them.
GOALS FOR NEXT REVIEW PERIOD
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The technical skills of the employee need to be worked upon and hence the next review will
be based on the assessment of that particular aspect.
COMMENTS AND APPROVAL
EMPLOYEE COMMENTS REVIEWER COMMENTS
Next Review data 05/12/2020
EMPLOYEE
SIGNATURE
REVIEWER
SIGNATURE
HR REP
SIGNATURE
The negative behaviour here is indicated only by the overall lack of certain skills that needs to be
developed. Overall the negative behaviour is symbolised by the implementation of negative
politics or by if the organisation lacks practices of equality and diversity. This will also lead to
the addressing of the issue of increased employee turnover and accordingly manage the different
aspects that are associated with the business operation. There are a variety of techniques that can
be adopted for resolving the negative behaviour such as the employee motivation techniques, fun
activities requiring collaboration etc. The employee turnover can be addressed by the
implementation of techniques such as better rewards and returns policy where employees with
good performance or record can be identified and then rewarded, emphasising on employee
satisfaction etc. These practices can be adequately removed by the implementation of the overall
justified work policies and methods.
PART C
Specific Legislation that organisations have to comply
There are many legal rules and regulations that the East London Caqtering have to comply with
in order to work within the legal boundaries and comply with all the major laws and regulations
that have been developed within the legal framework (Ferris and et.al, 2020). Some of those laws
that have to be complied with compulsorily can be illustrated in following manner:
Health and Safety at Work Act, 1974: The Health and Safety Act basically regulates that the
overall health and safety of the employees that are working in the workplace must be kept
secured and protected in order to clearly segregate the different rights as well the duties that are
available to them and does the same for employers as well. In case of East London Catering as
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