Hospitality Business Toolkit: Introduction Report for ABC Catering

This report provides an introduction to a hospitality business toolkit, specifically tailored for ABC Catering, a company specializing in event organization. It covers essential aspects of financial management, including preparing financial statements, managing inventory, analyzing overhead costs, and creating budgets, along with an analysis of key performance indicators such as food costs and kitchen labor. The report then delves into double-entry bookkeeping and trial balance accounts. Furthermore, it explores the human resource lifecycle, encompassing attraction, recruitment, onboarding, retention, development, and separation phases. The report also discusses performance management strategies, including setting objectives, providing training, evaluating performance, and monitoring. Finally, it addresses methods to resolve negative behaviors and improve staff retention within the organization. The report aims to provide ABC Catering with insights to enhance its business strategies and achieve growth.

HOSPITALITY
BUSINESS TOOLKIT

INTRODUCTION
The hospitality industries are affiliated to the businesses of travelling and tourism with
the motive of providing essential services to travellers. In hospitality industries, there are various
businesses which are included in this section like hotels, conference centres, resorts, and theme
or amusement parks who are responsible for providing primarily food services and
accommodation facilities in these places. In this report, the industries which is taken for
explained the hospitality industries that is ABC Catering which is specialised in organising
events like birthday parties, weddings or family gathering. As they are in a growing position so
this report will help them to increase their enterprise. In this file, there is mentioned principals of
monitoring and managing, book-keeping system, different HR cycles and various legislation
which are applied on the hospitality industries. This study will ensures the ABC Catering to grow
in the market with a specific manner.
P1 .
Managing a financial presentation of a enterprise over a particular time period is the
essential function of every organisation to determine their profit and loss(Bharwani and Butt,
2012). Being a manager of ABC catering's this really important to measure financial
performance which will permit the company to formulate their business strategies that will result
in medium of exchange . Following are the rule which helps in managing and watching business
action :-
Preparation of key financial statements : It is the basic report that ABC catering's is
required to hold balance sheet, profit and loss account, ledger as it gives a summary about the
financial position of the organization throughout the year .It will help the organisations in
maximization of cost by reducing other expenses.
Preparation of inventory records: This would help ABC catering's to keep record of all
the inventory that they possess and is available for them so that the operations of the firm can be
carried out smoothly. It will also help them in determining the amount of wastage that incurred
over a period of time.
Analysis of overhead: It will help the business of ABC catering's to determine all those
cost that is not affiliated to their dealings and would help in allocating the money so that more
cost will not obtain and firm can earn maximum profitability.

Preparation of Budget: Budget preparation will help ABC catering's in determining the
investment that are to be made in near future and will help in controlling costs ,it will also help
the company in achieving their goals and objectives.
Risk factors : The risk and uncertainty that comes with the business must be analysed by
the manager of ABC catering's(Bharwani and Jauhari, 2017). This is because if the business
knows all about the risk that are involved in carrying out activities ,they will focus on reducing
the certainty of risk and can enhance their growth and profit margins . This principle will
immediately help the system in devising proper plan of the business constitution and also in
managing the fund in foremost way . The key action indicators for the ABC catering's are their
food cost and kitchen labour-
Food costs: Expenses through the purchase of food items necessarily to be managed in a
organized manner. The intake of food per head will help ABC catering's in calculating the profit
margins.
Kitchen labour: IT would help in measuring the amount of food that has been sold of the
organisation. To understand the level of productivity of the kitchen we can use the performance
signal plan.
P2.
Double entry book keeping bring up to the method of accounting that allows enterprise
dealing to involve two accounts for balancing the accounting correspond(Bharwani and
Mathews, 2012). Below, double entry system has been prepared:

P3.
Trial balance account mention the book keeping document scheme which draft the
balances of each miscellaneous ledger account of administration where debit balance is backhand

over debit coloum and credit balance is backhand over credit column and the total of two column
must be identical(Daskin and Tezer, 2012). Trail balance is prepared below:
TASK 2
P4
Human resource existence series refers to the managing, controlling, processing and
recruiting the employee's working inside the organization (Desai, 2013). HR state mostly
undergoes through diverse stage that helps the institution in developing and retaining of worker.
The manager of ABC catering's is required to hire highly skilled human resource in bidding to
manage smooth functioning of enterprise and to achieve long term vision of the company by
establishing human resource life cycle phases in the business. Currently the HR manager of ABC
catering is looking for a high skilled waiter who has great personality and be able to treat
customers as per the ir expectation to make them satisfied. These phases are as follows:-
Attraction- In order to become successful the manager of ABC catering's is required to
attract new and fresh talents that would help the company in fulfilling their targets. Attracting
new talent would support the company in increasing their growth and profitability as quickly as
possible and would also provide them competitive advantage from its competitors.
Recruitments: This phase of HR life cycle is the essential phase as it involves inviting
the candidates to apply for the job. The company like ABC catering's will focus more on their
recruitment process as to hire the most suitable waiters with required skills, knowledge and
experience that will support the company to achieve their long vision effectively with right arm
at right time. Appropriate recruitment of persons in the organisation will reduce the chance of
labour turnover.
On-boarding: It is the activity of enhancing the knowledge, skills, behaviour and attitude
of employee's within the organisation according to their designation to ensure smooth and proper
functioning of operations(Gin Choi, Kwon, and Kim, 2013). After hiring a suitable waiter for

the organisation the manager of ABC catering's must organise a training and development
programmes for newly recruited employee's so that they can feel comfortable with the working
environment and can perform task with their full potential to increase the growth and
productivity .
Retention: Under this step the manager of ABC catering's must ensure that the waiter of
the company are satisfied and requisite to support its top entertainer happy and content with their
job by supplying them a optimistic organization. The cost of substituting worker is very high as
it not only affect the presentation of the organization but also trouble the activity of different
departments(Jayawardena, and et. al., 2013). Here, HR is required to provide necessary training
to sustain employees within the company.
Development: Here, the manager of ABC catering must focus on organising different
different development programmes or learning programmes on regular basis for their employees
in order to increase skills and knowledge. This will help the fresh talents in supporting the
organisation to achieve their objectives and goals effectively.
Separation: This is the final phase of the HR existence series here the worker has
perform all their work and responsibilities and are prompt to retire. In this point of life cycle the
manager of ABC catering's must ensure that the retired waiters leave the organisation happily
without disrupting the organisation environment and the manager must focus on maintaining the
goodwill of the firm (Six Stages to Success with the Employee Lifecycle, 2018).
The stages of HR life cycle plays a vital role in retaining and developing the employees in the
organisation by arranging proper training and development for them so that the waiters in the
organisation can work with full their efforts and devotion . For retaining and developing the
employees in the organisation the company must ensure that they pet on the back of their
employees for their little works which will bring a sense of familiarity in the mind of the
employees and they will retain in the organisation for longer duration of time.
Significance of human resource life cycle in order to solving the problems of employees
retention
The human resource life cycle have great positive impact on the employees as the HR
managers motivated their employees by adopting various tools and techniques so that the
employees will do their hard efforts in order to achieve the organizational goals and objectives.
Also, HR life cycle is very helpful as it give assurance to the HR managers that all the problem

related to the employees will be solve which results higher level of morale of the employees.
Thus, HR life cycle provide higher level of employee retention in the organization as the
employees are satisfied from the working condition and environment.
P5.
Performance management is the process of managing the performance of employee in the
organisation. It involves continuous interactions between superiors and subordinates with the aim
to align the employee's with the performance which has be decided with the help to different
different categories. This involves regular and proper guidance to the employees in order to
increase their performance to achieve the organisational objectives. The HR manager of the ABC
catering's must focus on managing the performance of their employee's effectively in order to
reduce negative behaviour of their employees which will in turn result in employee retention in
the organisation(Köseoglu, and et. al., 2013). Following are the stages of performance
management plan which will help the manager of ABC catering's to achieve this are :-
Set performance objectives : In this pace the HR section of ABC catering's requisite on
setting the SMART objective that are easily defined and can be understood by newly appointed
candidates so that they works with the aim to achieve the targeted performance objective over a
period of time.
Provide training : After determining the objectives the next step of the HR manager of
ABC catering is to train them with the skills, knowledge that is required to perform the job role
for which they have been hired(Okumus, 2013). Providing training to newly appointed talents
may support the company to deal with the tough competition and would enhance their level of
performance.
Evaluate the performance: Further activities that the HR department of ABC catering's
is required to do is to assess the execution of worker after going through acquisition programme.
Compare actual performance with the standard: In this step , the actual performance
is compared to the performance that has been benchmarked by the HR departments in
accordance to achieve the organisational goals. Determining the gap will support the
organisation in improving the level of performance and taking all those appropriate step to
correct those gaps.
Monitor and control : Here, the manager of ABC catering's will focus on the gaps and
will plan and implement the strategies to remove those gaps. By implementing the improvement

plan the superior will keep monitoring the actions performed by the candidates and would guide
them on each and every steps so that it can enhance their performance.
Various methods to resolve negative behaviour and overcome issues of staff retention:
Elimination of negative behaviour from the organisation is very essential for the HR
manager of ABC catering's as it may cause hinder and conflicts among the candidates and can
lower their morale to perform effectively. This would also increase the cost of the company and
increase the rate of labour turnover(Ong, 2012). To resolve this issue following are the
techniques mentioned below :-
Proper Training : The main reason behind the labour turnover and negative behaviour
and attitude is improper training to the staff . To retain employee's in the company the HR
manager of ABC catering's must offer appropriate training to their employee's regarding their
work and organisation environment on regular basis .so that the candidates feels familiar to the
workplace and work appropriately.
Adopting personalised approach: This approach is very suitable for the company as it
will assist them to solving the issue of employee turnover and the negative behaviour of the
employees also. With the help of this technique they can maintain a balanced and healthy
relationship with their employees as by adopting this approach they will be able to know about
their employees demand and needs. It will motivate their employees as they will feel that they
are important part of the organisation which results higher success and growth of the business.
Feedback: In this technique company should focus on the taking feedback from their
employees that they are satisfies from the organisation rules regulations and processes or not. It
provide a chance to employees to share their opinions and suggestions to the mangers so that
they will improve this. It will direct impact on the employees mind which results higer
productivity and profitability of the company.
Review: It is the least stage of performance management plan as in this step the company
will evaluate their employees performance that it is match from organisation goals or not. For
this, they can 360 degree approach in which they will analyse the performance of its employees
by considering the feedbacks from customers, subordinated, suppliers etc. It will enable the
company to compare its employees performance in order to achieve the business aims and goals./

TASK 3
P6
To avoid the problems within the business it is important for the organisations to
understand their legal obligations (Oskam and Boswijk, 2016).. There are describe some of
these legislation which ABC Catering can apply and adhere in their organisation that legislation
are given below:-
 Food Safety Act, 1990: This act focusing on the quality of the food which is serving by
the hospitality industries. It is responsibility of this act to assure that food which is serves
by these industries in a better quality to keep their customers healthy, which helps ABC
Catering to increase their productivity and profitability. ABC Catering always give
preference to follow this rule as it is helps them to serves their customers quality products
with affordable price which improve their customers satisfaction and brand value as well
that helps them to accomplish its objectives and targets easily.
 Employment Act, 2002: This act comprise various new regulation and new disciplinary
procedures for the employees and employers. It include various new rules on maternity,
paternity and adoption leave and pay, and changes to the tribunal system in the UK.
These rules helps the ABC Catering to maintaining fair relation with the employees to
prevent themselves from any dispute which might bad impact on the reputation and
profitability of the company. Moreover, this legislation helps the company to provide
proper guidance to their employees in a right way and motivates them to work in the
better condition within organisation so they able to achieve their targets and goals.
 National Minimum Wages, 1998: It is related to the providing a minimum wages to
their employees which is based on per hour basis, across the UK(Peters and Kallmuenzer,
2018). This law enables the ABC Catering to provide fair remuneration to its employees
so they work honestly towards their organisational goals. Furthermore, it also assist them
to recognise every employee skills so they use their potentiality according to skills which
helps them to improve their productivity and profitability. However, ABC Catering
applied this act because it helps them to provide motivation toward their goals by
increase their wages and it also help them to increase the living standard of employees.

From the above described legislation it can be understood by ABC Categring that
applying these rules in the organisation can build effective relationship with the employees
which help to lead in a higher position(Pirani and Arafat, 2014).
P7.
The laws and regulations has a great impact on the business operations and decision
making. Business decision are greatly affected by the employment and contract laws as basis on
these are the greatly related with the organisational activities. There are described following
points about the effect of these laws over decision making of ABC Catering:-
 Company Law:- It is related to the rights and the relations of persons and business
which encompasses the formation, funding, governance, and death of a business. It
describe about the standard and rules that a company must follow to prevent themselves
from any dispute. The decision making process of ABC Catering greatly influenced by
Company Law, as they have to follow all the rules and regulations provided by
government in this Act. This law help them to deciding which activities can be done and
in which manner without getting involve in legal issues. This law has great impact on the
decision making of ABC Catering, while following these laws they have to expand more
funds in accomplishing the lengthy formalities of this law which create lack of fund issue
for them. Hence this law has negative impact on the ABC Catering.
 Employment Law:- This law is made by the government for maintaining the relationship
between the employer and employee regarding to the recruitment, holidays, working
environment and many others activities which are related to the organisational activities
done by the employees. For preventing themselves from any kind of dispute and for
maintaining their brand value ABC Catering needs to follow all the rules and regulations
of this law while making their business strategies and plans(Ramos and et. al., 2017).
Therefore, this law has positive impact on company because by following this law they
able to attract more customers in their organisation as this law helps them to decide the
accurate amount of wages and working hours of employees. Also, this law helps them to
maintain the equality within the organisation due to which environment of the
organisation will be favourable for employees which has positive impact on the overall
performance of the organisation.

 Contract Law:- It is related to the governs, interprets, and enforces agreements which is
related to an exchange of good, services, money and many more. The main purpose of
this law is providing an effective legal framework for the parties who are involves in
agreement to solve their conflict and regulate their obligations related to contract(Singal,
2014). This law also have positive effect on the decision making of ABC Catering as with
the help of this law they will get the idea of their working time period by a specific
agreement which helps them to complete their work on time and effectively.
Thus, it can be understand that the these all the laws have greatly impacted on the
decision making process. In relation to the hospitality industry, if the changes in the laws will
occur then the organisation decisions procedures will directly effected which will results the
lower level of the success of the business.
Critically reflect the potential impact of regulation, legislation and standard on decision making
In operating the organisational activities effectively it is essential for the company to
follow all the rules and regulations. It has great benefit for the company as it will help them to
create the ethical and disciplined environment within the organisation. But It has some negative
points also which have directly impact on the performance of the company as the continuously
changing position of these laws and regulations can impact on the business activities in a
negative manner also. For example if the inflation rate of the economy will increase suddenly
then company have the decreasing revenue from their activities.
TASK 4
P8.
The HR manager of ABC catering's must check interaction and inter-relationship
between the different structural departments of the organisations. Following are the points which
describe about the inter-relatedness about the departments:
Financial and marketing departments – Both finance and marketing departments go
hand in hand . To carry out the marketing activities the selling sector have to research finance
department for the funds. As finance departments looks into the matter of financial transactions
of the departments. So by keeping correct interaction with the finance departments, selling
departments can execute their operations and activities.