Comprehensive Report: Hospitality Business Toolkit - Finance, HR, Law

This report provides a comprehensive overview of financial management, human resource strategies, and legal considerations within the hospitality industry, using Oakman Inns & Restaurants and InterContinental Hotels Group PLC as case studies. Part 1 focuses on financial performance, including financial statement preparation, inventory records, working capital management, and variance analysis, with practical application of double-entry bookkeeping. Part 2 delves into the HR lifecycle, emphasizing recruitment, onboarding, development, retention, and offboarding, with a specific performance management plan developed for a Catering Executive role. Part 3 addresses legislation, standards, and ethical considerations relevant to the hospitality sector. Finally, Part 4 explores the various functional roles within hospitality departments and their interrelations, along with communication methods. The report includes journal entries, ledger accounts, and a trial balance to illustrate financial concepts and concludes with key findings and references.

THE HOSPITALITY BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 Managing Finance and Transactions.................................................................................1
Investigating principles of
managing and monitoring
financial performance.................................................................................................................1
Applying double entry
book-keeping system for recording sales and purchase transactions in general ledger.............2
Producing basic trial balance......................................................................................................6
PART 2 Managing HR Life Cycle within Human Resource Strategy............................................7
Reviewing different stages
of the HR life cycle applying to job role and importance of retaining employees....................7
Developing performance
management plan for a job role and techniques for resolving issues in firm.............................8
PART 3 Legislation and Ethics in Hospitality Industry................................................................10
Identifying specific legislation that hospitality organisation has to adhere to 320...................10
Illustrating how company,
employment and contract law has impact on decision-making of business.............................10
PART 4 Hospitality Functions and Departments...........................................................................12
Exploring different functional roles within hospitality sector interrelate.................................12
Explaining different methods of communication, coordination and monitoring applied within
department.................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality sector is highest income-generating sector of UK. Present report deals with
hospitality firms such as Oakman Inns & Restaurants for part 1 and rest parts for Inter
Continental Hotels Group PLC. Report will discuss about the principles of monitoring
financial performance, along with preparation of journals, ledgers and trial balance. HR life
cycle and techniques for resolving issues among employees will be discussed. Performance
management plan will be made for Catering Executive job role. Legislation, standards and ethics
will be explained. Moreover, different functional roles of departments and its interrelation will
be enumerated along with communication methods.
PART 1 Managing Finance and Transactions
Investigating principles of
managing and monitoring
financial performance
The principles for monitoring and managing financial performance in Oakman Inns &
Restaurants are as follows-
Preparation of financials-
It is the basic need of hospitality firm to prepare financials in order to ascertain correct
position of business with ease. The balance sheet, income statements are prepared from
accounting records which are maintained by company quite effectually. Thus, financial health
can be analysed (Pacheco and Tavares, 2017).
Producing records of inventory-
Equipments, raw materials are heavily used in Oakman Inns & Restaurants. It is required
to keep records of items of inventories so that no wastage may be made and proper utilisation
takes place. Purchase and use of stocks can be evaluated through it.
Working capital management-
Periodic review of working capital is required so that quick conversion of assets may take
place into cash. The perfect ratio between current assets and current liabilities are required for
meeting daily operational requirements of firm.
1

Variance analysis-
The variance analysis is used for monitoring performance so that deviations if any of
actual performance with that of budgeted performance is found, improvements can be done in a
better manner.
Applying double entry
book-keeping system for recording sales and purchase transactions in general ledger
The transactions for Oakman Inns & Restaurants are as follows occurred on October
2018
 Oct 2 -Contribution of £50000 and computer costing £520500
 Oct 4 -Office supplies for £4000
 Oct 10 -Advertising obtained loan from bank at 12 % 4-year loan for £20000
 Oct 12 -Utility bills for £2750
 Oct 15 -Paid 3000 on account of purchase of office supplies on credit
 Oct 24 -Advertising services costing £18300
 Oct 27 -Payment received £5500 on advertising services
 Oct 30 -Personal usage by owner £6000
Journal entries
Date Particulars LF Dr Cr
02/10/18 Cash a/c Dr 50000
Computer a/c Dr 20500
To Capital a/c 70500
(Being business gets
additional capital)
04/10/18 Office Supplies Dr 4000
To Accounts Payable 4000
2

a/c
(Being purchases made
on credit)
10/10/18 Cash a/c Dr 20000
To Bank borrowings
a/c 20000
(Being loan taken from
bank)
12/10/18 Utility Bills a/c 2750
To Cash a/c 2750
(Being bills paid in
cash)
15/10/18
Accounts Payable a/c
Dr 3000
To Cash a/c 3000
(Being paid credit in
cash)
24/10/18
Accounts Receivable
a/c Dr 18300
To Advertising services 18300
(Being earned money
for services)
27/10/18 Cash a/c Dr 5500
To Accounts
Receivable a/c 5500
(Being cash received)
3

30/10/18 Drawings a/c Dr 6000
To Cash a/c 6000
(Being amount
withdrawn for personal
purpose)
130050 130050
Ledger accounts
Cash a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Capital a/c 50000 12/10/18
Utility Bills
a/c 2750
10/10/18
Bank
borrowings a/c 20000 15/10/18
Accounts
Payable a/c 3000
27/10/18
Accounts
Receivable a/c 5500 30/10/18 Drawings a/c 6000
Bal c/d 63750
75500 75500
01/11/18 Bal b/d 63750
Computer a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Capital a/c 20500
4

Bal c/d 20500
20500 20500
01/11/18 Bal b/d 20500
Capital a/c
Date Particulars Amount Date Particulars Amount
02/10/18 Cash a/c 50000
02/10/18 Computer a/c 20500
Bal c/d 70500
70500 70500
01/11/18 Bal b/d 70500
Office supplies a/c
Date Particulars Amount Date Particulars Amount
04/10/18
Accounts
Payable a/c 4000
Bal c/d 4000
4000 4000
01/11/18 Bal b/d 4000
Accounts Payable a/c
Date Particulars Amount Date Particulars Amount
04/10/18 Cash a/c 3000 04/10/18 Office 4000
5

supplies a/c
Bal c/d 1000
4000 4000
01/11/18 Bal b/d 1000
Advertising services a/c
Date Particulars Amount Date Particulars Amount
24/10/18
Accounts
Receivable a/c 18300
Bal c/d 18300 18300
01/11/18 Bal b/d 18300
Bank borrowings a/c
Date Particulars Amount Date Particulars Amount
10/10/18 Cash a/c 20000
Bal c/d 20000 20000
01/11/18 Bal b/d 20000
Utility Bills a/c
Date Particulars Amount Date Particulars Amount
6

12/10/18 Cash a/c 2750
Bal c/d 2750
2750 2750
01/11/18 Bal b/d 2750
Accounts Receivable a/c
Date Particulars Amount Date Particulars Amount
24/10/18
Advertising
services a/c 18300 27/10/18 Cash a/c 5500
Bal c/d 12800
18300 18300
01/11/18 Bal b/d 12800
Drawings a/c
Date Particulars Amount Date Particulars Amount
30/10/18 Cash a/c 6000
Bal c/d 6000
6000 6000
01/11/18 Bal b/d 6000
Producing basic trial balance
Trial Balance
7

Particulars Dr Cr
Cash a/c 63750
Computer a/c 20500
Capital a/c 70500
Office Supplies 4000
Accounts Payable a/c 1000
Advertising services a/c 18300
Bank borrowings a/c 20000
Utility Bills a/c 2750
Accounts Receivable a/c 12800
Drawings a/c 6000
Total 109800 109800
PART 2 Managing HR Life Cycle within Human Resource Strategy
Reviewing different stages
of the HR life cycle applying to job role and importance of retaining employees
HR life cycle is termed to as an employees' journey starting from its recruiting to various
phases and his exit from firm. The stages of life cycle overlaps with that of HR responsibilities.
The stages of HR life cycle for the company are as follows-
Recruit-
It is the first stage of employee when he is recruited in firm and requires pre-screening of
employees by scheduling interviews so as to acquire talented candidates best suits for the profile.
Streamlining of hiring process needs to be done for hiring employees (What is employee life
cycle?. 2018).
Onboard-
It is arrived when employees who have accepted offer of placement becomes part of firm.
They are guided along with firm's policies, job duties to be performed and training process to be
undertaken.
8

Develop-
Feedback is being given to employees who become well-equipped with organisation so
that performance may be improved. Regular check-ins are made for up scaling performance of
Catering executive in Oakman Inns & Restaurants.
Retain-
Once employee has acquired necessary skills and then it is required to retain them for
continual development in job role. Evaluation, training and recognition are crucial for retaining
them in the firm.
Off-board-
This is the last stage where employee leave job due to being recruited at new job, lay-
offs, retirement, termination for violating rules of business etc (Filimonau and Mika, 2017).
Proper procedures need to be followed by HR of Oakman Inns & Restaurants regarding off-
boarding.
The significance of HR Life cycle is crucial for Oakman Inns & Restaurants as it deals
with valuable asset which are of its employees. It provides consistent series of steps throughout
employee's careers and employer is able to analyse data which employees give their opinions
during off-boarding from organisation leading to enhancement of HR policies. It is required for
retaining top-notch talents in firm so as to enhance productivity in a better manner.
Developing performance
management plan for a job role and techniques for resolving issues in firm
Performance Management Plan for Catering Executive
Target Area Concern for
performance
Expected
standard
Agreed
improveme
nt actions
Support Review Reviewing
notes
Expected date to
achieve
Difficulty in
maintaining
organisational
skills
Two deadlines
have been
missed.
Complaint
received by
Catering Head
who did not
To meet
deadlines,
manage
workload in
effective
manner.
Prioritising
Operating
To-do
check list
for
prioritising
work and to
respond to
Training
under the
senior
official in
catering
department
and to work
Reviewing
within 3
weeks.
Training
completed,
to-do check
lists prepared,
tasks are
prioritised
and
Standard
performance to
be achieved
within 7 weeks
of time period.
9

attained message
to an email sent.
tasks to keep
the food
quality
standard in
firm.
emails
within 2
business
days
under him
for getting
tasks
completed
in a timely
manner.
reviewing
within
stipulated
time.
Accuracy in
quality food
research
Inaccuracy is
being repeated
involving errors
in adhering to
food standards
To produce
accurate
data and
enable
meaningful
analysis
Double
checking of
work and
keeping
record of
research
and check
to provide
accuracy in
it
Training in
research for
producing
handful for
results and
time
managemen
t training.
To be
reviewed
within 4
weeks
Training
conducted
and attended,
daily analysis
of work and
data produced
for getting
desired
results.
Standard to be
accomplished
within 8 weeks.
The staffing issues can be resolved in firm are as follows-
Promoting equality and diversity-
The issues arise between co-workers should be treated in accordance to the viewpoints
being gathered. Proper analysis of viewpoints must be adhered so that equality and diversity can
be managed in a better manner (Lugosi and Jameson, 2017).
Managing multicultural team-
Multicultural team consists of employees from different culture, opinions, beliefs and
background. The difference in opinions leads to arouse of issues which needs to be managed in
company in order to enhance culture quite effectually.
PART 3 Legislation and Ethics in Hospitality Industry
Identifying specific legislation that hospitality organisation has to adhere to 320
There are various legislation which affects hospitality organisation up to a major extent
which are detailed below-
10