Detailed Analysis of Financial and HR Management in Hospitality Sector

This report provides a comprehensive analysis of financial and human resource management within the hospitality sector, using the example of a new restaurant, Fit & Fine. It covers key principles of financial management, including budgeting, and the application of double-entry bookkeeping to create a trial balance. The report also details the stages of the HR life cycle, emphasizing talent acquisition, onboarding, development, retention, and exit strategies. Furthermore, it evaluates different communication, coordination, and monitoring methods used in the hospitality industry, concluding with recommendations for effective management practices. The report includes practical examples like expenditure and income sources, interview questions, and HR process evaluation, providing a detailed toolkit for managing a hospitality business effectively.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
Principles of managing and monitoring financial performance.............................................3
Double entry book-keeping system and basic trial balance...................................................4
Balance of rule to complete the ledger...................................................................................6
TASK 2............................................................................................................................................6
Stages of HR life cycle for retaining and developing talent...................................................6
Importance of HR life cycle to management..........................................................................9
Judgement and recommendations of HR processes...............................................................9
Performance management plan............................................................................................10
Overview of the issues in talent acquisition and retention with food & beverage sector.. . .11
TASK 3..........................................................................................................................................11
Covered in PPT.....................................................................................................................11
TASK 4..........................................................................................................................................11
Different Functional Roles in Hospitality Sector.................................................................11
Different Methods of Communication, Coordination and Monitoring to Hospitality Industry13
Evaluating Different Methods of Making Communication..................................................14
Critical Evaluation of Different Methods of Communication..............................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality industry is one of the largest and most competitive sector that offer variety of
services such as accommodation, travelling, event planning, transportation and many more. It is
one of the most competitive sector which experience everyday a new concept for serving
customer in more efficient manner (Kysilka and Csaba, 2013). Current report is about a Fit &
Fine restaurant which is newly opened in London and offer healthy food like salad by mixing it
up with smoothies and juices. This report consists of a description about several principle used
for financial management along with double entry book keeping, trial balance and balance off
rule. In addition to this it also includes stage of HR life cycle and its importance along with
performance management plan. Apart from this it also describe about laws of hospitality industry
and its impact over decision making. At last it describe about different functionality role along
with communication and coordination methods applied in hospitality sector.
TASK 1
Principles of managing and monitoring financial performance
Financial performance is defined as the process of analysing the performance of a
company on the bases of its financial availability and profitability which support in performing
business operations effectively (Benckendorff and et. al., 2015). Fit & Fine restaurant offer
variety of healthy as well as tasty salad and other related dishes along with blended smoothies &
juices for providing a healthy benefit to fitness freak people. This restaurant is at Bishops gate
within London EC2N which is just next to the Gymnasium that also help it in attracting more
customers to their premises in order have healthy food as well as drinks.
But in order to perform its operations effectively it is very essential for the manager of
restaurant to manage and monitor its financial performance so that it will be able to achieve
maximum profit at minimum cost. So, in order to maintain and monitor financial performance of
restaurant effectively manager must follow below given principles: Principle 1: Budget must be prepared effectively:- The manager of restaurant must
focuses over enlisting the resources and finance which are required to perform the task

effectively in order to form up an effective budget plan. Manager of Fit & Fine restaurant
must try to measure the current financial performance to identify and rectify the errors
within financial transaction so that it will able to minimise its operational cost. Principle 2: Budget must be attainable, realistic and reasonable:- A budget plan must
be strictly formed for minimising the expenses but it should be formed in a way which is
realistic, easier to attain and reasonable. This will help manager of fit & fine restaurant to
perform its operation effectively without compromising over quality as well as
profitability. Principle 3: Budget should be made after thorough analysis:- As per this principle a
budget must formed after performing a thorough analysis within the organisational
operations and requirement (Bruce and Stephens, 2017). Manager of fit & Fine restaurant
must consider mission and objectives along with operations so that operations can be
performed within available fund toward the direction of its goals and objectives
 Principle 4: Action financial performance must be compared:- In order to monitor and
manage its financial performance, manager of Fit & Fine restaurant must regular compare
its present as well as budgeted financial performance. This comparison help in providing
information regrading the area which require improvement in financial operations.
There are some expenditure and income sources which fit & Fine restaurant have are
explained below:
Incomings (source of income) Outgoings (Types of expenditures)
Gifts Weekly food shopping
Benefits Drinks
Allowances Clothes
Gifts
Double entry book-keeping system and basic trial balance
Double entry book keeping system of accounting is defined as the concept which state
that every business transactions must be recorded as a correspondingly within two different
accounts named as debit and credit (Chung and Chung, 2018). By maintaining a double entry
book keeping the of Fit & Fine restaurant will be able to keep a better record of operations
performed by them. The accountant of restaurant must enter the information so that there must be

a proper information regarding the liability they have to pay and sources through which income
can be generated.
Particulars Debit Credit
Cash in hand (Overdraft) 10800
Cash sales 3250
Credit card sales 14795
Petty cash expenses 760
Free issues 675
New kitchen equipments 6450
Beverage purchases 12980
Food purchase 8600
Purchase return 300
Discount received 3200
Credit notes 180
Rent 2750
Utilities 469
Functions and events (Income) 5867
Wages 4690
Debtors 846
Till shortage 172
38392 38392
Trial Balance:- It is defined as accounting report which lists down the balance that has
been calculated within general ledger accounts. This includes two type of column named as
credit balance and debit balance (Ervin, 2016). Trail balance includes accounting elements like

equity, assets, liabilities, expenses, gains, losses etc. and total of both the side debit and credit
must be identical.
Particulars Debit Credit Transaction amount
Benefits 33000 33000
Gifts 30000 30000
Allowances 16900 16900
Household utility bills 2000 2000
Weekly food shopping 20000 20000
Clothes 43000 43000
Gifts 11900 11900
Drinks 3000 3000
Total 79900 79900 159800
Balance of rule to complete the ledger
The balancing off rule within accounts is a concept which state that all the statements of a
company get closed at the end of financial year and it is then forwarded to next year. This will
help Fit & fine restaurant to evaluate the financial performance of business so that proper
planning could be made to achieve more benefit in next year.
Particulars Debit Credit
Bank loan 11000
Cash in hand 12000
Capital 13000
Rates 1900
Trade creditors 12000
Purchases 12500
Sales 15000

Sundry creditors 1820
Debtors 11000
bank loan interest 1520
Other expenses 11900
Vehicles 2000
Total 52820 52820
TASK 2
Stages of HR life cycle for retaining and developing talent
Human resources management plays a crucial role within development or retention of
employees that further contribute toward the business success by performing their tasks
effectively (Bowie and et. al., 2016). By proper management of employees, Fit & Fine restaurant
will be able to position its business effectively within marketplace and also able to accomplish its
goals. But in order to properly manage human resources effectively manager of restaurant must
focuses toward adopting HR life cycle for developing a high skilled workforce. The HR life
cycle is given below that can be used by Fit & Fine restaurant in hiring and managing a new HR
executive:
Illustration 1: Employee life-cycle
(Source: Employee life-cycle, 2019)

Recruitment:- It refers to the process of selecting candidate out of available applicants
who meet with the qualification and skill requirement by the company for particular job vacancy.
In this stage manager of Fit & Fine restaurant will perform a talent acquisition in order to select
candidate who have required experience as well as skills that are needed for this HR executive
position (Filimonau and Delysia, 2019). This is can be done through evaluating the information
required by the applicant and taking their interview.
On boarding:- Once the appropriate candidates get selected its next step is to provide
those candidate an onboard training. During this training the HR will work over maintain a better
relation with new candidate and try to develop a sense of knowledge related to the policies and
procedure of restaurant. Throughout this process manager of restaurant will be bale to make new
employee familiar with the working environment and their task or jobs.
Development:- Under this step manager of Fit & Fine restaurant will provide several new
tasks as well as opportunities to new employees so that they can improve their skills or
capabilities (Jayawardena and et. al., 2013). In addition to this they may also arrange training
programs for employees in order to make them prepare for future challenges as well as growth
opportunities.
Retention:- In this stage the manager of Fit & Fine restaurant will perform several
activities in order motivate its employees to work harder and contribute toward the
accomplishment of business objectives. For employees retention they may provide rewards and
promotions over the performance of employees.
Exit:- this is last stage of HR life cycle in which manager of Fit & Fine restaurant will
take interview and feedback from the employee who is leaving job in order to determine the
reason behind this decision and improvement that are required to be made within the current
working condition (Kibirango, Munene and Mutumba, 2018). This support in improving the
weaker point so that restaurant will be able to retain employees and accomplish its goals and
objective on time.
Manager of Fit & Fine restaurant conducted an analysis as well as evaluation over hiring
of appropriate candidate for the vacant position of HR executive, which is given below:
Box 1: Job vacancy related advertisement will be placed through several communication media
which includes newspaper, job portals, social media sites etc.

Box 2: After getting number of applicant talent acquisition will be performed by analysing the
documents provided by the candidates as well as y conducting interviews.
Box 3: Interview Questions
 Do you consider yourself skilled enough to handle this position?
 Why would we hire you?
 Would you be able to tackle with people over phone calls?
 Do you have experience in writing formal letters?
Box 4: During on boarding and induction program manager of restaurant will introduce new
employees within existing one and make them familiar with the working environment as well as
task they have to perform within restaurant.
Box 5: For conducting performance review, manager will compare the before and after training
performance of employee for determining whether they get adopted to working culture or further
training is required.
Box 6: In order to conduct learning and development of employees, Fit & Fine restaurant will
provide training to new HR executive so that operations could performed effectively. This
training is related to legal aspects that restaurant must consider and policies over which
operations are performed.
Box 7: Promotion is a form of reward which is provided to employees over the work or job
performance given by them at workplace. It is very essential for the manager to promote or
reward its employee in order to keep them motivated and dedicated toward the work performed
by them.
Box 8: It is a situation when an employee decided to leave their job when they get retired or feel
demotivated to work at that place. For this employer formulate effective strategies to retain and
keep its employees motivated toward work.
Box 9: Exit interview questions
 Why you are leaving your job?
 Do you find any difficulty while working here?
 How good your relation was with manager?
 Would you like to give any advice or suggestion?
 What things you like and dislike about job?

Importance of HR life cycle to management
HR life cycle plays an essential role within the recruitment and management of
employees within the organisation. By applying HR life cycle, Fit and Fine restaurant will be
able to have following benefits:-
 HR life cycle will help restaurant in hiring skilled and competent workforce at job which
further support them in accomplishing their goals and objectives (Kysilka and Csaba,
2013).
 By following this life cycle, it will be able to retain the employees for longer period of
time by performing several activities for keeping employees motivated toward their job.
 In addition to this by providing regular training and development to the employees it will
be able to increase their skills and capabilities.
 By recruiting employees for longer period of time restaurant will be able to reduce the
chance of error as well as cost of recruitment on regular basis.
Judgement and recommendations of HR processes
In order to conduct HR processes in effective manner it is recommended to Fit & Fine
restaurant that it must provide regular training to its employees so that their skills as well as
performance can be improved. In addition to this, it must also reward and appreciate employees
over their performance in order to keep them motivated toward their jobs and responsibilities so
that objectives could be accomplished. Manager must also encourage employees to share their
issues or problem so that proper strategies could be formulate to remove them so that employees
could be retain for longer period of time.
Performance management plan
Performance management plan is defined as a tools or technique that consist of set of
activities that are decided by company with an aim to improve the performance of its employees
at workplace (Legrand and et. al., 2012). Being a newly formed restaurant it is very essential for
Fit & Fine restaurant to formulate an performance management plan in order to create a high
skilled and competent workforce that support in delivering high quality service. Fit 7 Fine
restaurant formulate an performance management plan for rectifying the issues that employees
are facing. Discussion performed by manager with its employees is explained below:
Script 1:
Manager: Hey John,

John:- Yes sir.
Manager: It has been noticed that you remain frustrated while performing work within
restaurant.
John: Yes sir, this is because the work pressure is too high and no one is their to guide us
regarding the tasks.
Manager: Okay, this issue will be resolve as soon as possible. Would you like suggest
something?
John: Yes sir, please add more member to team so that we can get required guidence regarding
over work.
Manager: Okay, I will hire more employees who can observe or guide your work. In addition to
this I will also arrange training session for you and your colleagues.
John: Okay thank you sir
Script 2:
Manager: I am observing that your are making more mistakes within your work.
Employee: Yes sir, I also feel this and reason is that I am facing trouble in handling work related
issues.
Manager: Do you have more work pressure which is affecting your perfoprmance..
Employee: No sir, I didn't get proper guidence about the area in which I have to work.
Manager: Okay, then I will arrange training session for you so that mistakes could be minimise.
Employee: Okay, thank you sir.
Overview of the issues in talent acquisition and retention with food & beverage sector.
Food and beverages industry is one of the most important and effective industry which
focuses on needs and wants of consumers because they majorly emphasis on consumer base.
Some important issues that face by that industry that are as follows:
Frequent changes in industry:
Food and beverages industry is one of the most dynamic industry in which changes
occurs frequently. Consumers are very demanding and want new attributes in their products so
that they can experience new attributes in that sector. In case of fit and fine restaurant they
emphasise on changing demand of consumers.
Relate factors to a specific hospitality job in food and beverages industry:

there are close relationship in factors and that industry so some issues arise in case of
selecting best candidate's in organisation. The cause of that issue is that consumer are most
demanding and want changes in taste and preferences that create hurdles before HR manager in
deal and satisfy their requirements.
TASK 3
Covered in PPT.
TASK 4
Different Functional Roles in Hospitality Sector
There are different roles which are played in every business. Likewise, the businesses
which come within the Hospitality Industry also have to perform several functional roles which
helps in the business in making the completion of their tasks in cost efficient and time effective
(Legrand, Chen, and Sloan, 2013). The following is the description of the interrelation of
different functional roles:
Illustration 2: Functional Roles
(Source: Functional Roles, 2018)