Hospitality Business Toolkit: Financial, HR, and Communication Report

This report provides a comprehensive analysis of the hospitality business, focusing on a restaurant named 'Tasty and Munchy.' It begins by investigating the principles of managing and monitoring financial performance, including risk and return, profitability, and diversity principles, along with an overview of key financial terms. The report then delves into the application of the double-entry bookkeeping system and credits to record sales and purchase transactions, including a trial balance. The second task examines the HR life cycle, applying its stages to a specific job role (accountant), and developing a performance management plan. The report also touches upon the interrelation of functional roles within the hospitality sector and explores different methods of communication, coordination, and monitoring within a specific department. The analysis includes recommendations for maintaining records and highlights the importance of talent acquisition, including issues faced by HR managers during the hiring process, such as background screening and recruitment process outsourcing.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Investigation of the principles of managing and monitoring financial performance...............1
2. Application of double entry bookkeeping system and credits to record sales and purchase
transactions..................................................................................................................................2
3. Formulation of a basic trial balance applying the use of the balance off rule.........................3
TASK 2............................................................................................................................................4
1. Different stages of HR life cycle applied to a specific job role...............................................4
2. Development of a performance management plan for a specific job role...............................6
TASK 3............................................................................................................................................8
1 Covered in PPT.........................................................................................................................8
2. Covered in PPT........................................................................................................................8
TASK 4............................................................................................................................................8
1. The way in which different functional roles within hospitality sector interrelates..................8
2. Different methods of communication, coordination and monitoring applied within specific
department of a hospitality organisation....................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality sector is concerned with service delivery activities such as lodging,
transportation, event planning, travelling, cruise line etc. Food and beverage industry is also a
small part of it in which different types of eating and drinking items are supplied to the
customers (Bawack, 2018). For all organisation that are related to this sector it is very important
to fulfil requirements of clients so that business can be operated appropriately. A restaurant Tasty
and Munchy which is serving healthy salads with smoothies and juices to the customers has
been opened in London. Different aspects of the business are being discussed under this
assignment such as financial, human resource, legislations, law and communication.
TASK 1
1. Investigation of the principles of managing and monitoring financial performance
There are various types of principles that are used to monitor and manage financial
performance of businesses. Some of them that can be implemented by Tasty and Munchy are as
follows:
Principle of risk and return: This principle guides the organisations as well as investors
to analyse the return and risk which is concerned with a business project. It can help Tasty and
Munchy to analyse and maintain financial performance of the restaurant as it can help to assess
its risk and return.
Profitability and liquidity: According to this principle the organisations should analyse
profitability and liquidity of a project before investing in it. Tasty and Munchy uses it to estimate
that the business is profitable or not.
Diversity principles: This principle is mainly used to minimise the risk by maintaining a
portfolio. It is implemented by Tasty and Munchy to analyse risky situations that may take place
in future (Chand and Slath, 2018).
A.
Incomings Outgoings
Wages Shopping of food items
Gifts Gifts
Benefits Clothes
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Allowances Bills
Beverages
Purchase of lunch
B. Financial terms:
Sales: The exchange of a product or services with money is called sales. For Tasty and
Munchy sales is the process of offering food and beverage items to the customers and collecting
money from the customers.
Purchase: Buying something and paying money is called purchase. Tasty and Munchy
purchases items to make smoothies, juices and healthy salads by offering money to the suppliers
(Sharda and Kalgotra, 2018).
Input cost: It is the total amount which is spent by an organisation in order to create a
product or service. For Tasty and Munchy it is the expenses that are made by it to make juices,
smoothies and healthy salads.
2. Application of double entry bookkeeping system and credits to record sales and purchase
transactions
Double entry book keeping system: It is a system of book keeping in which records are
maintained which shows the double effect of each financial transactions. The basic principle of it
is that in any transaction there are always two entries. One entry is known as credit entry and
other is debit entry. The formula is Assets = Liabilities + Equity
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
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Beverage purchases 12970
Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
Total 37502 37502
Trial balance: It includes the list of all debit and credit transactions occurred during a
period. It involves two column schedules, one includes debit balances and other includes credit
balances (Ellis, 2012). It includes the list of account names and balances taken from general
ledger. It is prepared after the general ledger and before the financial statements.
Particulars Debit Credit Transaction amount
Wages 5468 5468
Gifts 6600 6600
Benefits 5195 5195
Allowances 6530 6530
Shopping of food items 6847 6847
Gifts 1689 1689
Clothes 2358 2358
Bills 3541 3541
Beverages 4562 4562
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Purchase of lunch 4796 4796
Total 23793 23793 47586
3. Formulation of a basic trial balance applying the use of the balance off rule
Balance off rule: When the balances of general ledger at the end of one financial year
are carry forwarded to the next financial year with the remaining balance of the accounts. This
helps in transferring the remaining balance of current year to the next year.
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
Total 52420 52420
Steps to be followed while formulating trial balance:
 First of all a statement with three columns is formulated for particulars, debit and credit.
 In second stage all the ledgers are closed and their balance is forwarded in next year and
then transactions will be recorded in trial balance according to their nature.
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 All the expenses and assets will be recorded in debit side and incomes and liabilities will
be recorded in credit side.
 At last total is calculated and it is analysed that both the sides matches to each other or
not.
TASK 2
1. Different stages of HR life cycle applied to a specific job role
HR Life cycle: The HR life cycle can be analysed with the help of following infographic:
Importance of HR life cycle:
All the stages of HR life cycle are very important for Tasty and Munchy because it helps
in talent management and overcoming the issues of staff retention. In restaurant there is a
requirement of an accountant. To management the talent and retain staff HR life cycle is
essential as it can help to conduct all the activities such as recruitment, selection, interview etc.
in appropriate manner. Example for all of them is as follows:
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Stage 1: It is the first stage of HR life cycle in which vacant positions are analysed by the
managers and then applications in news papers, job portals are given. As Tasty and Munchy is
looking for accountant who is going to be placed in finance department. It is beneficial for the
restaurant as it helps to analyse requirements of employees.
Stage 2: It this stage selection for interview is done by the managers in which skilled
applicants are selected with the help of their resume. Those individuals are selected for
interviewing process who have required skills for accountant. Main benefit of this stage for Tasty
and Munchy is that it helps to select best candidates.
Stage 3: At this stage interviews are taken and different types of questions are asked by
the managers. These can be related to their field of interest or any other aspect. It is beneficial for
Tasty and Mumchy because in this stage all the selected candidates are interviewed and nest of
them is hired.
Stage 4: When accountants are selected by the managers then induction programs are
held for them so that they can get detailed information regarding their job roles and
responsibilities. Major benefit of induction is that it helps to provide information regarding the
job profile to the new workers so that they can work appropriately.
Stage 5: As new employees starts working after induction and their performance is
reviewed by the top authority so that they can analyse that accountant is working well or not.
Performance reviews are mainly provided on the basis of efforts of employees to accomplish the
tasks successfully. Performance reviews are beneficial for Tasty and Munchy because it help to
measure performance of employees.
Stage 6: Learning and development is the next stage of HR life cycle in which proper
training is provided to the existing employees so that they can work more effectively. This stage
have a main benefit of enhancing work quality of staff.
Stage 7: If employees work hard then they get promoted. This stage is beneficial for
Tasty and Munchy because it helps to motivate the workers.
Stage 8: When staff members are not satisfied with their salary or having other issues or
they got some other opportunity then they choose to exit.
Stage 9: It is very important for the organisation to conduct exit interview so that reason
behind the exit decision can be analysed. It is beneficial for the HR as well as the organisation
because it can help to retain skilled workers.
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Recommendations: It has been recommended to Tasty and Munchy to maintain different
documents such as staff register, performance reports etc. All of them can help to monitor and
measure life cycle stages of human resource manager as it can help to keep detailed information
of the restaurant.
2. Development of a performance management plan for a specific job role
Performance management plan: It can be defined as a plan which is used to manage
and monitor performance of the organisation as well as the employees (Jagarlamudi, Wangand
Eriksson, 2018). For Tasty and Munchy performance management plan is being formulated in
which two different scripts are formulated. Both of them are based on the scenario of “employees
always look very scruffy in their uniform”. These are as follows:
Script which should not be adopted:
Manager- Tell me why does we wear a uniform?
Accountant- Sir, because it serves professionalism.
Manager- Yet there is a stain and and tie is also missing. I have noticed that your
uniform always looks scruffy why so?
Accountant- I am sorry sir I did not noticed it.
Manager- Take care of it else have to take some serious actions.
Accountant- Yes sir.
Script which should be adopted:
Manager (to employee)- Good morning. Mr Henry (Accountant)
Accountant- Good morning. Sir.
Manager- May I ask you what purpose does uniform serves?
Accountant- Sir, it promotes unity, professionalism and commitment.
Manager- Then why do you have a stain on your shirt and your tie is also missing.
Accountant- I am sorry sir. I will take care of it now.
Manager- Okay.
Talent Acquisition: It can be defined as the process of acquiring skilled individuals for
the organisation so that productivity of the company can be enhanced. There are various types of
issues that are faced by the Human resource manager of Tasty and Munch while hiring
accountant. All the issues are as follows:
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Back ground screening: It is the main issue which is faced by recruiter in talent
acquisition process. While hiring accountant for Tasty and Munchy the HR have faced this
problem because now a days it has become more important to screen the background of the
applicants so that it can be analysed that they are able to work with the organisation or not.
Recruitment process outsourcing: It helps organisations to create greater efficiencies
and reduce cost during both strong and weak economy. While HR managers of Tasty and
Munchy are looking for accountant for the restaurant then they have faced this issue because it
requires higher money and all the companies are not able to bear higher costs.
TASK 3
1 Covered in PPT
2. Covered in PPT
TASK 4
1. The way in which different functional roles within hospitality sector interrelates
Different types of organisational structures are followed by the organisations that are
operating in hospitality industry (Scholz-Wäckerle, 2016). All of them are related to each other.
It can be understood with the help of following charts:
Organisational structure of Tasty and Munchy:
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Organisational structure of Hospital:
Organisational structure of hotel:
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Organisational structure of theme park:
All the roles and responsibilities of hospitality sectors companies interrelated with each
other. There is a higher authority on all the departments who provide guidance to all other
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functional departments and the employees. All the workforce is require to follow the instructions
of the top authority and all of them follows hierarchy of power (Kozlov, 2017).
2. Different methods of communication, coordination and monitoring applied within specific
department of a hospitality organisation
Explanation of different methods of communication:
There are various methods that are used by Tasty and Munchy for coordination,
communication and monitoring. All of them are as follows:
Text message- It is a very useful mode of communication, Tasty and Munchy company
uses this tool to communicate with employees about schedule of meeting, cancellation of
meeting, reminding employees about appointments (Latimer, 2014). Customers are also
addressed through text messages about discounts, offer, new products that company is
introducing. They are also asked to give feedbacks about the purchase they made. This helps in
saving time and cost, also it ensures a systematic flow of information in the organisation.
Graph- These represent the growth structure of company. Tasty and Munchy use this to
monitor profits and losses of the the company, sales and purchase the company made in a year
along with the progress made on a project (Graph. 2019). All sort of comparative information
which company later used to analyse the cost incurred and overall organisation performance can
be understand with the helps of graphs. This uses multiple charts like column chart, pie chart, bar
chart to represent the company's data.
Group Meeting- when group of people come together to discuss about something is
what the group meeting is about. Tasty and Munchy company often organise group meeting to
gain collective knowledge about employee's perceptive (Nightingale, 2014). In a meeting all the
members put forward their views and take initiatives to solve a problem. Group meeting ensures
coordination amongst employees.
All the above described method help Tasty and Munchy to strengthen its value chain as
they can help to communicate, coordinate and monitor all the activities that are performed by the
organisation.
Analysis of different methods of communication:
Tasty and Munchy is using different methods for communication such as group meeting,
graph and text message in order to strengthen its value chain and achieve organisational goals.
All of them helps to resolve the problems such weak communication , employee turnover etc.
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When problems are resolved then organisational objectives can be achieved and value chain can
be strengthen (Kibirango, Munene and Mutumba, 2018).
Critical analysis of different methods of communication, coordination monitoring:
Kitchen hierarchy of Tasty and Munchy is dealing with some specific issues such as
remote working, lack of desk space and language barriers (Rollins, 2014). These problems can
be resolved with the help of methods of communication, coordination and monitoring by
discussing them with the employees and taking appropriate actions to resolve all of them. All of
them can also be used to evaluate their behaviour.
CONCLUSION
From the above project report it has been concluded that hospitality sector is concerned
with service delivery system. Hotels, restaurants etc. are the part of this industry. For all them it
is very important to analyse different aspects of running a business such as finance, HR,
legislations and communication. It can help organisations to execute operational activities
appropriately and achieve business goals.
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REFERENCES
Books and Journals:
Bawack, R., 2018. Academic Libraries in Cameroon: Achieving Agenda 2030 Goals.
International Information & Library Review. 50(1). pp.63-66.
Chand, M. and Slath, A., 2018. Impact of Food and Beverage Service Practices on Customer
Satisfaction in the Food Outlets, Chandigarh, India. International Journal of Hospitality
& Tourism Systems. 11(2).
Ellis, T., 2012. Canadian Light Source Hitting its Stride. Synchrotron Radiation News. 25(3).
pp.35-35.
Jagarlamudi, K. K., Wang, L. and Eriksson, S., 2018. Doxorubicin effects on leukemia and
breast cancer cells in culture on the TK1 protein levels using AroCell TK 210 ELISA: a
tool for drug development. Nucleosides, Nucleotides and Nucleic Acids. pp.1-8.
Kibirango, M. M., Munene, J. C. and Mutumba, A., 2018. Makerere University Business School
co-evolution journey: the role of extraordinary performers. Emerald Emerging Markets
Case Studies. 8(3). pp.1-16.
Kozlov, D. A., 2017. The concept of neuroagents in hospitality industry and tourism. Journal of
Environmental Management & Tourism. 8(4 (20). pp.835-842.
Latimer, R. W., 2014. Harvey Houses of Texas: Historic Hospitality from the Gulf Coast to the
Panhandle. Arcadia Publishing.
Nightingale, A. J., 2014. Questioning commoning.
Rollins, A., 2014. Doctors earn the nation’s trust. Australian Medicine. 26(8). p.17.
Scholz-Wäckerle, M., 2016. Economic pluralism for the lecture hall.
Sharda, R. and Kalgotra, P., 2018. The Blossoming Analytics Talent Pool: An Overview of the
Analytics Ecosystem. INFORMS Analytics Body of Knowledge. pp.311-326.
Online
Graph. 2019. [Online]. Available through:
<https://whatis.techtarget.com/definition/social-graph>
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