Hospitality Business Toolkit: Financial Performance and HR Analysis

This report examines the financial management and human resource strategies within the hospitality industry, using Fire and Ice as a case study. It covers principles of monitoring financial performance, including cost analysis and the application of the double-entry bookkeeping system. The report also addresses the HR life cycle, focusing on talent acquisition, retention, and performance management plans, including examples of effective and ineffective approaches. Furthermore, it explores the importance of different functional roles and communication methods within a hospitality organization, considering legal and ethical considerations to achieve organizational goals and strengthen the value chain. The report provides a comprehensive overview of financial and HR practices, offering insights and recommendations for improving operational efficiency and employee management within the hospitality sector.

HOSPITALITY
BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Determine the principles of monitoring and managing financial performance......................1
Apply the double entry book keeping system of debits and credits for entered sales and
purchase transactions..............................................................................................................2
Formulate a basic trial balance applying the use of the balance off rule to complete the ledger4
TASK 2............................................................................................................................................5
Different stages of the HR life cycle applied to a specific hospitality job role and their
advantages for retaining and development talent...................................................................5
Create a performance management plan for the role of hospitality industry.........................6
TASK 3............................................................................................................................................7
Specific legislation of the organisation of hospitality industry..............................................7
TASK 4............................................................................................................................................7
Different functional roles with in the hospitality sector interrelate........................................7
Different methods of communication, coordination and monitoring applied within a specific
department of a hospitality organisation..............................................................................10
Analysation of different methods of communication, coordination and monitoring in
achieving organisational goals and strengthening value chain ............................................10
Critical analysis of communication, coordination & monitoring methods along with justified
recommendations..................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The hospitality industry is a broad group of business that provides different type of
products and services regarding to different sector. It is a unique sequence because it relies so
heavily on discretionary income and free time. This hospitality industry can divided into many
sectors and these sectors mainly focus on customer services (Bowie and et.al., 2016). For this
report chosen organisation Fire and Ice, which is based on UK. It is specialise in blended juice,
ice cream, smoothies ans salad. This assignment going to manage finance and entered transaction
to minimise costs responsibility in the reference of hospitality industry. For maintain books there
is applying double entry bookkeeping system to record transactions from general ledger. Apart of
assess how to manage the human resources life cycle with in the context of HR strategy. In
addition illustrate of potential impact of legal and ethical consideration in hospitality industry.
Identify the importance of coordination and integration of different functions of departments
regarding to hospitality industry.
TASK 1
Determine the principles of monitoring and managing financial performance
Finance is a term which is related to study of system of money, investments and other
financial instruments. It will categorise into three parts – Corporate finance, public finance and
personal finance. There is monitor and control activity of finance so there is following these
principle which is helping to management -
Principle 1 – Actual result should compared to budget on daily basis – For preparing budget it
can analysed with actual performance of company because many time budgeted amount and
actual amount has much more difference. It will create problem to control activities of company.
Principle 2 – Establish budget in proper way – According to this principle there is address all
incomes and expenses in budget for achieve desired goals and objectives. Therefore, the manager
of Fire & Ice should measure financial performance on daily, monthly, regularly and yearly
basis. It will help to reduce errors and make it in perfect way (Bruce and Stephens, 2017).
For instance, there is all incomes and expenses are recorded in particular side to shows
performance of Fire & ice -
(a) Recording all expenditures and incomes with the help of table
Incomings Outgoings
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Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
Drinks
As per the above table it is recommended that Fire & Ice can prepare budget for monitor
and control performance of company. On the basis of this take appropriate decision and it will
help to know actual cash flow and cash outflow.
(b) Explain following terms as per hospitality industry
 Types Of Cost – It is a set of cost which is incurred to different types of cost for monitor
and measure performance of company on every stage. It will be categorise in several
terms for business output such as cost accounting, financial accounting, corporate
accounting and budgets. Therefore main types of cost are discussed below -
Fixed Cost – It is an expenses which does not changes randomly on production volume and it
will remain same for long time perspectives. It is less controllable than variable cost due to based
on volume and operations (Chung and Chung, 2018).
Variable Cost – It is a corporate expenses which is depended on quantity and production. It will
not remain same due to changes in production quantity and price of materials.
 Purchase – It states of a business or an organization for activity of get goods and services
to achieve desired goals and objectives. Furthermore Fire & Ice can purchase all
inventory and other products which is used by company and calculate cost of goods sold
= (Beginning inventory + Purchase – Ending inventory) = Cost of goods sold
(£70,000 + £100,000 - £30,000) = £140,000
 Sales – It is a basis word of finance which is incurred of all sales transactions in terms of
credit and cash sales. It will important for Fire & Ice to take all summary about different
products which is sold by company like juices, smoothies and salad.
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Apply the double entry book keeping system of debits and credits for entered sales and purchase
transactions
Double entry book keeping system – The double entry book keeping system means all
transactions are recorded in a minimum of two accounts. It is required to all transactions amounts
are entered in their related column like debit amount in debit side and credit amount in credit
side. At the end all amounts must be equal and these amounts are entered through accounting
equation - Assets = Liabilities + Owner's equity
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Beverage purchases 12970
New kitchen equipments 6540
Food purchase 7900
Free Issues 575
Discount received 2300
Credit notes 190
Purchase Return 200
Utilities 475
Rent 2850
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
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As per the above report it is analysed that all debit and credit amounts are equal as per the
entered amount in right column (Ervin, 2016).
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
Formulate a basic trial balance applying the use of the balance off rule to complete the ledger
Balance off rule – It is prepared at the end of the financial year to calculate all
remaining amounts of all ledger accounts. These balances are categorised according to debit and
credit balance and it will forward for next year.
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
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Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420
Steps of drawing trial balance -
There is described each steps of producing trial balance in systematic manner, which is
described below -
 In trial balance all transactions are taken from ledger accounts and the amounts are taken
from debit and credit side balances.
 After taken all transactions it will entered in trial balance in appropriate formate and right
column according to item (Foster and Carver, 2018).
 Many companies are prepare it on daily basis, monthly and yearly basis for find out all
errors.
 It will help to solve all mathematical errors and enter amount in debit and credit side and
check all amounts in cross way.
TASK 2
Different stages of the HR life cycle applied to a specific hospitality job role and their
advantages for retaining and development talent
It is very important for any company to retaining and developing talent in the order to
hired skilled and capable employees. In the context of Fire & Ice business, HR department can
adopt HR life cycle for recruit new employees as per the requirement and follow five stages and
it will help to retain workforce. There is including recruitment, on-boarding, career development,
employee recognition and off boarding (Higgins-Desbiolles, Moskwa and Wijesinghe, 2017).
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For hire new waiters under serving department will following recruitment process in following
manner -
For hiring, developing and retaining talented work force, it is important for HR life cycle
provide helps to manager of Fire & Ice in order to recruit new talented employees. With the help
of this resolving all problems which is related to talent acquisition and retention. HR life cycle
can sources to broaden and reach to efficiencies of an organisation.
In order to retain worker there is recommended to manager of Fire & Ice for create
strategies and strong policies for HR processes. They must concern about to follow appropriate
approach for measuring performance of every worker. After analysis it is getting that there is
need to talk with those employees who can not survive with their job role. It would help to create
another policies for those employees and engage them in new task.
Create a performance management plan for the role of hospitality industry
Performance management plan helps to manage performance to all employees which is
recruited newly in an organisation. It it important to track their performance and focus on
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performance improvement plan at the work place. With the help of this apply all strategies and
policies which is related to performance and help to organisation for getting appropriate result.
Script 1: The process which should not be adopted:
Manager: Hey Adam.
Adam: Yes Sir.
Manager: I have noticed that you are continuously coming late for the job.
Adam: Sorry sir.
Manager: This type of behaviour will not be tolerated. It is last warning for you.
Adam: Sir, I am dealing with personal problem but I will try to come on time from
tomorrow.
Manager: I don't want any excuses. Be on time tomorrow.
Adam: Okay
Script 2: The process which should be selected:
(manager calls employee in the cabin)
Adam: May I come in sir?
Manager: Yes. Be sited.
Adam: Thank You sir.
Manager: Are you in some trouble as I have noticed that you are coming late to the
office. Is everything OK.
Adam: There is some personal problem. This will never happen again. I will come on
time to the office.
Manager: Good. You may take time and sort out your problem. leave now.
Adam: Thank you sir.
Talent Acquisition – It is the process of finding and getting skilled human labour for fulfil needs
of organization. In the context of HR profession talent acquisition usually mention to the talent
acquisition department relating to human resource department. The company Fire & Ice can
create a team for hire new talent as per requirement. It is important for restaurant because it helps
to recruit new employees according to company and help to find them in modern time. There are
following problems which are face by company to hire new talent -
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 Lack of effective branding – Company branding remain an important but not always, it
is important to have a clear picture of restaurants brands internally. It is used by company
to show standard and position in the market.
 Lack of understanding between the recruiters and hiring manager – It will create
problem for hiring manager because many time they can not understand language of each
other. There are identified lots of problem in the recruiting process, set of right skills. As
per the requirement of waiter, they can relate to different backgrounds.
TASK 3
Specific legislation of the organisation of hospitality industry
Covered in PPT
TASK 4
Different functional roles with in the hospitality sector interrelate
In hospitality sector organisational structure of different types of organisation interrelates
with each other. This interrelation can be understood with the help of following charts:
Organisational structure of Fire and Ice:
Organisational structure of Hotel:
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Organisational structure of Hospital:
Organisational structure of theme park:
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From all the above charts it can be analysed that organisational structure of different
hospitality sector organisations such as restaurants, hotels, hospitals and theme parks interrelates
with each other. These charts reflects that in all of them owner is on the top of the chart which
means that all the power is in the hands of owners. They guide all the other members to conduct
operational activities. They are responsible to distribute responsibilities to other staff members
such as managers, general managers, assistants and others. For all of them it is very important to
work according to their guidance so that business can be operated and executed in appropriate
manner.
Different methods of communication, coordination and monitoring applied within a specific
department of a hospitality organisation
There are various methods that are used for the purpose of communication, coordination
and monitoring in HR department. Some of them that are used by Fire and Ice are as follows:
One to one meeting – Miscommunication among staff members can be considered as the
basic main reason behind ineffective business. This problem can easily be resolved by
conducting one to one meetings. It will remove different type of confusions which may present
between HR personnel like differing knowledge of organisation's policy (Lub 2016).
Group meeting – Department of human resource has to interact with various entities like
personnels, employer, potential workers etc. They are involved in more than one activity like
resolving conflicts among employees, communicating issues of staff members to management,
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recruitment & selection etc. Maintaining coordination within the division and with outsiders is
can be improved by having group meetings. It will bring all HR personnel on same page and they
will get information about work done by other members of the department. Better coordination
in human resource wing will result in rapid solution on an issue as it make positive impact on
daily operations.
Video call – Applications like SKYPE is one of the best method of monitoring
performance of employees. Organisation can put a camera and LED screen in interview room.
They can ask HR personnel to take interview of applicant, it will assist them in keeping an eye of
workers as well as help it checking that applied candidate can be considered for a job post or not.
Proper monitoring will result in selection of right applicant and it will increase overall
productivity of restaurant.
Analysation of different methods of communication, coordination and monitoring in achieving
organisational goals and strengthening value chain
One to one meeting – Restaurant want to increase their revenue. One to one meetings
among HR professionals will help them understanding right set of skills which should be present
in potential and existing employees (Moeti, 2016).
Group meeting – Sound coordination in workers of human resource department is
essential for earning more money. HR personnels cannot directly impact profits of restaurant by
group meeting can help in communication flaws of every single worker.
Video call – Consistent increment in revenue is not possible without appropriate
monitoring of HR professionals. They are responsible for bringing right person in the
organisation so if their performance in not monitored on continuous basis to methods like video
call then it may hinder company's growth.
Critical analysis of communication, coordination & monitoring methods along with justified
recommendations
One to one meetings - Housekeeping division work in remote conditions. One to one
meeting among employees can help others workers of same division in understanding various
hazards (Schwager, Decker and Kaltenegger, 2016).
Group meeting – Assuring that work in done in allotted time is possible when employees
of housekeeping division do their job after conducting group meeting. This method should be
used more often for reducing confusions among them and stop duplication of work.
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Video call – Video call is very effective in analysing that whether housekeeping staff is
using cleaning tools in right way or not. This method should also be used at the of evaluating
their behaviour.
CONCLUSION
From the above project report it ash been concluded that there are various types of
businesses are operated under hospitality sector these are hotels, theme park, hospitals and
restaurants. For all of them it is very important to follow the government legislations so that
business can be operated smoothly.
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REFERENCES
Books and Journals
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Bruce, J. and Stephens, C. A., 2017. Bridging secondary and postsecondary leadership
experiences: A toolkit for leadership learning facilitators. New directions for student
leadership. 2017(155). pp.95-106.
Chung, G. and Chung, D., 2018. WOW the hospitality customers: Transforming innovation into
performance through design thinking and human performance technology. Performance
Improvement. 57(2). pp. 14-25.
Ervin, S. A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2017. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to 2015.
Current Issues in Tourism. pp. 1-30.
Kysilka, D. and Csaba, N., 2013. Employee turnover in the hospitality industry. Anale. Seria
Stiinte Economice. Timisoara. 19. p.377.
Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Schwager, P., Decker, N. and Kaltenegger, I., 2016. Exploring green chemistry, sustainable
chemistry and innovative business models such as chemical leasing in the context of
international policy discussions. Current Opinion in Green and Sustainable Chemistry.
1. pp. 18-21.
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