Hospitality Business Toolkit: Financial Performance and HR Strategies

This report examines a hospitality business toolkit, using Ziaka restaurant as a case study. It investigates financial management principles, including budgeting, double-entry bookkeeping, and trial balance creation. The report explores the HR life cycle, emphasizing recruitment, onboarding, career development, and employee retention strategies, including performance management plans to address negative behavior and staff turnover. It also covers legal compliance, interdepartmental relationships, and communication methods within a hospitality organization. The report provides a comprehensive overview of essential business practices within the hospitality sector, offering insights into financial performance, human resource management, and operational strategies.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate principles of managing and monitoring financial performance......................3
P2 Double entry book keeping system of debits and credits to record sales and purchase
transaction in a general ledger................................................................................................4
P3 Produce basic trial balance applying use of the balance off rule to complete ledger.......5
TASK 2............................................................................................................................................7
P4 Different stags of HR life cycle and their importance for retaining and developing talent7
P5 Develop performance management plan for specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.........9
TASK 3..........................................................................................................................................10
P6 Identify specific legislation that a hospitality organisation has to comply and adhere to10
P7 Company, employment and contract law has a potential impact upon business decision
making in the hospitality industry........................................................................................11
TASK 4..........................................................................................................................................12
P8 Explain how different functional roles within the hospitality sector interrelate.............12
P9 Different methods of communication, coordination and monitoring applied within a
specific department of a hospitality organisation to strengthen value chain........................16
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................18

INTRODUCTION
Hospitality industry is that fields within service sectors including event planning,
lodging, cruise line, theme park, transportation and additional field in tourism section (Anderson,
and et. al., 2017). This sector in the most growing in country which contribute in quality of
services. Business toolkit is collection of practices of organisation which is based on incisive and
practical approach. This includes self evaluation, management processes, templates, action plans
for delivery of benefits to partners of enterprise. The given report is based on London based
restaurant named as Ziaka which is specialised in serving fresh salads, smoothies and blended
juice. This is located near gym that provide benefits to their consumers. This assignment covers
life cycle of HR of hospitality industry along with development of performance management
plan for given job role. It highlights legislation and interrelation of different functions along with
methods for communication, coordination and monitoring required for business.
TASK 1
P1 Investigate principles of managing and monitoring financial performance
Finance is regarded as significant factors in business where entire operations are managed
and financed appropriately. There are some principle made for managing and monitoring
financial performance are described below:
Principle 1: Budget should based on thorough analysis: As per business goals, mission,
vision manage of Ziaka should frame purpose of budget. They need to make strategy for
enhancing resources and reducing future obstacles.
Principle 2: Budget should be established properly: The manager should introduced and
established necessary resources for achieving goals and objectives and accordingly make proper
budget. They measure current financial performance and identify transaction errors.
Principle 3: Rectification required when financial results exceeds planned budget:
The manager of Ziaka need to identify and determine cause behind such variance of financial
results, evaluating strategies and taking corrective actions (Bowie and et. al., 2016).

Principle 4: Actual result should be compared with budget on regular basis: This helps
in identifying transaction errors, detecting changes and measuring financial performance. It is
responsibility of Ziaka manager to avoid unnecessary expenditures.
The actual source of income and types of expenditures is recorded on monthly basis
which is given below:
Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
Allowances Household utility bills
Thus, it is important for manager of Ziaka to prepare better financial statements for
managing and monitoring financial performance. Also they need to make trial balance, double
entry, working capital statements, ratios. This helps in knowing actual cash inflow and outflow.
Various Key Financial Terms
I) Sales- It is term of finance which consists of recording of sales transaction in terms of
credit sales and cash (Dirrigl Jr and Noe, 2018). This helps manager of Ziaka for collecting
details of quantity of goods received, sales made, expenses incurred and balance payable.
ii) Purchase- The purchase of inventory and stock available for sale is measured for
getting cost of goods sold. In Ziaka, initial inventory is 60,000 Euro and purchase is 90,000
Euro, then cost of good sold for month is calculated with ending stock at balance 50000:
(Beginning Inventory + Purchase – Ending)= Cost of goods sold
(£60,000 + £90,000 - £50000)= £100,000
iii) Types of Cost- Cost should be calculated for measuring and monitoring performance.
There are different types of cost such as fixed, variable, semi-variable. Fixed cost remain fixed
which does not vary with output such as depreciation, property tax, labour wages, rent. Variable
cost are those which fluctuate with output such as cost of goods sold, electricity bill, material
cost, labour cost. Semi-variable means which is partially fixed and partially variables.

P2 Double entry book keeping system of debits and credits to record sales and purchase
transaction in a general ledger
Double entry book keeping is the system which states entire transactions of business and
are recorded twice in books (Eltayeb, 2018). Here, total column of debit should be matched with
total column of credit. The accountant of Ziara need to follow accounting equation where assets
and sum of liabilities and equity of owner should be matched. For example:
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
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
37502 37502

P3 Produce basic trial balance applying use of the balance off rule to complete ledger
Trial Balance
It determines list of all general ledger accounts appeared in ledger of firm. Both debit and
credit should be equal in trial balance as debit shows expenses and losses and credit shows
incomes and gains (Ervin, 2016).
Steps of Trial Balance
Step 1: Preparation of worksheet that contains three columns
Step 2: Filling all accounts titles and recording balances in proper credit or debit columns
Step 3: Total of credit and debit columns
Step 4: Comparison of total of columns.
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
Clothes 17809 17809
Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
81389 81389 162778
Balance off Rule
When all business accounts are closed and unclosed are carried forward to further year at
end of accounting period is called balancing off (Godnov and Redek, 2018). This helps in
analysing performance of organisation for better outcomes.
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
52420 52420
TASK 2
P4 Different stags of HR life cycle and their importance for retaining and developing talent
The HR manager of any organisation plays an important role in retaining, introducing,
and developing best talented workforce. There are five stage for developing and retaining
workforce in restaurant business. For instance, recruiting chef within Ziara, HR manager perform
following steps which are described below:
Recruitment- It is first step of employee life cycle where manager has to make proper
strategic for recruiting workers (King and Lee, 2016). It includes identification of roles and
responsibilities which need to perform for particular job profile, advertisement at job portal,
preparation of documents for interview and selection of suitable one. HR manager of Ziara can
use online recruitment source.

On Boarding- In this stage, recruited employees decide time duration for staying in
chosen company. For retaining longer period of time, employee should be provided with 90 days
on boarding training which helps in building good relationship between old and new employees.
Career Development- It is responsibility of HR manager of Ziaka to provide career
development opportunities to employees as they need to analyse goals and align roles
accordingly.
Employee Recognition- The manager of Ziaka should keep happy to their working staff
by recognising their performance and providing them incentive, benefits for achievement.
On-boarding- It is the last stage of employee life cycle which states that whenever any
staff leave job then it demoralise other employee too. In order to get rid of such situation, proper
documentation should be done (Mejia and Torres, 2018).
The HR life cycle has following step which is given below:
Box 1: Advertisement should be placed in job portal related to job vacancy.
Box 2: Interview- The screening of resumes and profiles should be matched according to
requirement of company and candidates should be called for interview.
Box 3: It includes both good and bad questions. Such as
 Why do you want to work?
 What are your weak points which can impact work?
 What is your leadership style?
Box 4: Induction/On-boarding- The 90 days on boarding training should be conducted for
employees and induction programmes for new joiner in order to make them understand about
mission, vision, goals and others (Moeti, 2016).
Box 5: Performance Review- In order to retain staff for longer period of time, performance
should be evaluated on basis their work done, capability. This leads to contributing in consumer
satisfaction.
Box 6: Learning and Development- In order to enhance skills and capabilities of employees
learning opportunity should be provided. This helps in achieving goals and objectives of
organisation. This also improve performance and increase productivity of firm.
Box 7: Promotion/Succession Planning- The manager need to develop promotion plan in order
to satisfy their workers. This aid in retaining worker for longer period of time.

Box 8: Exit- Whenever any employee wants to quit or switch job then manager should identify
reason first and develop strategies for retaining them such as mentoring, positive culture and
creating open dialogue for solving such issues.
Box 9: Exit Interview- For identification of exit of employee, HR manager need to ask various
question such as:
 What is the reason behind leaving job?
 What was good part of your job in organisation?
 Did you find better opportunity in another company?
It is important for HR of Ziara to understand HR life cycle for hiring, retaining and
developing talented workforce. This helps in saving time, cost and resolving issues of talent
acquisition and retaining them for longer period of time. Through screening manager can select
best suitable candidates from wide pool of talent. It helps in knowing about reason for job
leaving which can be improved further through exit interview. Proper training and development
should be conducted for enhancement of skills, knowledge, experience and others.
For retaining worker, it is very important for manager of Ziaka to develop policies for
improving HR process. Different documents need to be evaluated such as business staffing plan,
job profiles, hierarchy structure of company and others (Pirani and Arafat, 2014). Performance of
each and every worker need to be measured by using proper approach. Through proper
discussion and solving of issues leads to increase in productivity, achievement of goals and
objectives. Learning can be done by observing seniors in order to give best performance.
P5 Develop performance management plan for specific hospitality job role applying techniques
to resolve both negative behaviour and overcome issues of staff retention
Performance Management Plan (PMP) is techniques used for enhancing and improving
productivity of organisation (Singh, 2015). The manager of Ziara need to identify cause root of
bad performance and taking actions for improvement. For example: for resolving issue related
with rude behaviour of employee with other colleagues, role play script has been conducted
among manager and employee in positive as well as negative manner, given below:
Script 1:
Manager: From last five to six days, I am observing that behaviour of Mr. Abraham has
become rude with colleagues.
Employee: Yes Sir, I had also noticed the same.

Manager: Do you know the reason behind it?
Employee: Yes Sir, due to high pressure of work, stress level has increased that turns his
behaviour negative towards work and company.
Manager: Okay, do you have idea about solving such issues.
Employee: Sir, it can be done by reducing work pressure and hiring some more members
in team.
Manager: Okay, I will discuss about this matter to senior authority and will take actions
for resolving it.
Script 2:
Manager: From last five to six days, I am observing that behaviour of Mr. Abraham has
become rude with colleagues.
Employee: Yes Sir, I also observed same as he talk rudely with everyone and refused to
perform his duty and responsibilities as assigned to him.
Manager: Do you know the reason behind it.
Employee: No sir, whenever I tried to ask him, he refused and give negative response.
Manager: So, what we have to do to improve him.
Employee: I think, some action should be taken for turning his positive behaviours.
Manager: I think we should give him notice of 10 days to change his behaviour and in
case he does not change then company can terminate him.
Employee: Yes sir, it is perfect idea to change his behaviour into positive.
There are various issues which arise in front of human resource manager while acquiring
talent in organisation in food and beverage sector. It is very difficult to attract talented candidates
for given job profile. Sometime, delaying in recruitment process leads them to go for another
company and get best job. Due to inappropriate salary offering leads issue for manager to acquire
talented employees for job performance. Lack of efficiency also create issues for organisation.
There are many employees who left job because of lack of training and development
programmes for them, salary, promotion. In order to retain them for longer period of time, their
issues and problems should be solved out as soon as possible.
The factors to a hospitality job in food and beverage sectors are as follows:

Cost Control- The inappropriate cost should be controlled by food and beverage sectors
and used those in another department. As it is large sector of hospitality industry which helps in
increasing profitability and productivity.
Customer Service- Customer should be provided with quality goods and service so that
they get attached to particular brand and organisation. Thus, this helps in increasing goodwill and
brand value of organisation.
TASK 3
P6 Identify specific legislation that a hospitality organisation has to comply and adhere to
There are various legislations that need to be followed by Ziaka for running their business
and its activities effectively. They are described below:
Health and Safety Work Act, 1974- In this act, employee should be given training
session for health and safety at workplace (Sobaih, Ritchie and Jones, 2012). This is
responsibility of Ziaka manager for ensuring health and safety of their staff while doing or
performing work.
Food Act, 1997- Such act cover different aspects of hospitality sectors such as Food
Premises Code for governing management of associated organisation for focusing on proper
hygiene of food items and handling. Ziaka need to focus on food procedure for providing high
quality foods. This begin from manufacturing, storing, preparing and serving beverage and food
to consumers.
P7 Company, employment and contract law has a potential impact upon business decision
making in the hospitality industry
The laws, policies which is related to company, employment and control impact on work
performance of employees, its relations and other activities (Anderson and et. al., 2017). Such
laws influence decision making for running business effectively and efficiently. Here, word
LAW illustrates where L shows individual lead for ensuring compliance, A represent person
having responsibility for compliance and W shows people who is not effected by legislations.

The legislations which has framed for running business also helps in reducing chances of
illegal activities. Being manager of Ziaka, various laws such as Health and Safety Act 1974,
Food Act 1997, has been evaluated for business. I have set code of conduct for running
organisation in ethical manner. After analysing market situation, I have analysed companies
which does not follow government legislation and charged heavy penalty are described below:
Companies Act or Regulation Result Fine
Clackmannanshire Council Health and Safety At Work Act
1974
Guilty £8000
Bupa Care Homes (BNH)
Limited
Health and Safety At Work Act
1974
Guilty £3000000
GMG Car Wash Ltd Employers Liability Compulsory
Insurance
Guilty £650
Kent County Council Control of Asbestos Regulations
2012
Guilty £200000
Award wining Green
fingers Ltd.
Construction Regulation 2005 Guilty £20,000.00

There are various legislations, ethical principles and regulations has formulated for
decision making in hospitality industry. This helps in running of business in effective and
efficient manner. As government has made compulsory for organisation to follow such act,
regulations, legislations in order to avoid from penalties, imprisonment and fine. There are
ethical principles such as: loyalty, honesty, trustworthy, fairness and others. This helps in
achieving goals and objectives of business in good manner (Bowie and et. al., 2016).
TASK 4
P8 Explain how different functional roles within the hospitality sector interrelate
There are different functional roles within hospitality industry for running business
smoothly. All department are interlinked with each other which specify various roles and
responsibilities. The organisation can achieve goals only by working with each and every
department together (Ervin, 2016). For this, theme and organisational chart need to be set up for
identifying each and every responsibilities of various department. It includes HR, Front office,
Finance, Marketing and many more for carrying out each and every task. Some of functional
roles are described below:
Theme Park:

(Source: Organisational Chart for Theme Park, 2008)
Illustration 1: Organisational Chart for Theme Park

Hospitality Sector:
(Source: Organisational Chart for Hospitality Sector )
Illustration 2: Organisational Chart for Hospitality Sector

Hotel:
(Source: Organisational Chart for Hotel Sector)
Illustration 3: Organisational Chart for Hotel Sector

P9 Different methods of communication, coordination and monitoring applied within a specific
department of a hospitality organisation to strengthen value chain
Communication is the process of sharing idea, information from one place to another
with use of proper channels (King and Lee, 2016.). In order to achieve vision, mission and goals
of business, it is essential to have proper flow of communication. Without effective
communication, business cannot run effectively. Some of the methods which can be used by
Ziaka according to communication occasion are described below:
After analysing various communication methods such as written document, group
meeting, text message, telephone call, whatsapp group chat and others. It can be concluded that
Ziara can use written document methods for their data and information. It is the method through
which sending of messages, instruction and orders is in written for with help of office memos,
manuals, reports, telegrams, bulletins and others. As it is suitable for longer period of time and
permanent record of evidence and can be used for future. It help in providing sufficient time for
thinking, acting and reacting. Ziaka can use this communication as legal documents and can send
to many people at single time. A good and proper written document helps in creating goodwill
and promote organisation in effective manner.
As per point view of author, it can be concluded that by adopting multiple methods of
communication such as written documents, group meeting, telephonic call and others,
organisation can perform its various activities in more efficiently. Thus, in order to develop
effectual communication, managers of Ziaka should adopts other methods rather than written

documents. It can be video call and group meeting methods, through which proper discussion
can be made with worker of various departments, to serve consumer in more efficient and
effective manner. They can also get opportunities to monitor entire performance and develop
policies for further improvement also. Each and every performance of organisation should be
manager, monitored and controlled in order to achieve goal and objective of business.
CONCLUSION
From above report, it can be concluded that hospitality industry helps in contributing
economic development of organisation and business. There are various methods of
communication which nee to be coordinated and monitored for evaluating performance of
concern. Ziaka has prepared trail balance, double entry booking keeping, incoming and out-
coming expenses for knowing about incomes, profits and losses, expenses of organisation. The
HR life cycles has been prepared in order to perform each and every task and activities
effectively and efficiently. Government has prepared various legislation that need to be followed
by undertaking for creation of brand value and goodwill in market place. The script has been
conducted for identifying both positive and negative response of employee and manager. Thus,
there should be proper and effective communication channel for flowing of information from one
to another for achievement of goals and objectives.