Hospitality Business Toolkit Report - BTEC HND in Hospitality

This report, prepared from the perspective of a hospitality manager at East London Catering, analyzes key aspects of the hospitality business. Part A focuses on the principles of monitoring and managing financial performance, including budgeting, journal entries, and trial balances. Part B delves into the HR life cycle, specifically addressing attraction, recruitment, onboarding, development, retention, and separation, along with a performance management plan and techniques to resolve negative behavior and improve employee retention. Part C examines relevant legislations within the hospitality sector and their impact on business decision-making. Finally, Part D explores interrelations between functional roles and methods of communication and coordination to strengthen the value chain within a hospitality organization. The report provides a comprehensive overview of financial, HR, and legal considerations crucial for effective hospitality management.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
Part A...............................................................................................................................................3
Principles of monitoring and managing financial performance..................................................3
Journal entries and ledger............................................................................................................4
Trial balance................................................................................................................................7
Part B...............................................................................................................................................8
Develop a performance management plan and apply techniques to resolve negative behaviour
...................................................................................................................................................10
Part C.............................................................................................................................................12
Legislations with respect to hospitality organization ...............................................................12
Impact of business laws upon the business decision-making...................................................13
Part D.............................................................................................................................................13
Interrelation between different functional roles........................................................................13
Various methods of communication, coordination and monitoring applied within a specific
department of a hospitality organization to strengthen the value chain....................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The hospitality industry is the most competitive industry currently as it focuses on
offering services with respect to accommodation, transportation, food and beverages and more.
In this report, East London Catering which is the engaged in event management is taken as an
organization. This report elaborate on the various ways for managing the financial performance
along with recording the financial transactions with the objective of minimizing the cost within
the industry. It also covers HR life cycle and the performance management plan for improving
the employee retention. This report provides an insight about the various laws which are required
to be considered by hospitality industry and the effect of contract, company and employment
laws on it. Also, it also provides an insight about the significance of coordination and integration
within different departments. This report is prepared considered myself as the hospitality
manager of East London Catering.
Part A
Principles of monitoring and managing financial performance
The financial performance analysis means analysing and interpreting the performance
level of the business on the basis of its financial viability and profitability. It becomes very
important to judge the financial performance of the business which helps in forming business
strategies. The below given points are the key principles which provides support in measuring
the performance level which are stated below.
Principle 1: Budgets should be effective and accurate
The financial manager of the company must focus on preparing the list of all the
resources and finances which might be required to perform the required task with the help of
effective budget plan (Khalatur and Zubkova, 2018). The East London Catering need to measure
the performance level of the company financial terms in order to identify and rectify the mistakes
within the financial business transaction which helps in minimizing the operational cost.
Principle 2: The budget should be set that are attainable and reasonable
The budget plan prepared by the company should be strictly formed with the objective of
minimizing the expenses and also it should be prepared in such a manner which is realistic,
attainable and reasonable. This will help East London Catering to perform their business
operations effectively without making any changes to its quality and profitability.
Principle 3: Budget should be created after complete analysis

Under this principle, the budget should be prepared after carrying out the complete
analysis with respect to the business operations and the activities carried out. East London
Catering is required to consider their mission and aim which will help in better performance of
the business operation with the available funds.
Journal entries and ledger
General Journal
Date Account Name Dr (£) Cr (£)
04/03/202
0 Cash 30000
Capital 30000
05/03/202
0 Store rent 1000
Cash 1000
06/03/202
0 Washer and Dryers 25000
Cash 10000
Creditor (Supplier of
Washer and Dryer) 15000
07/03/202
0 Insurance Policy 1200
Cash 1200
09/03/202
0 Food supplies 8000
Beverage 7000
Creditor (WH Adams
Ltd) 15000

11/03/202
0 Laundry fee 200
Cash 200
15/03/202
0 Tel & Internet 2220
Cash 2220
15/03/202
0
Rates, Water Charges
& Refuse 950
Cash 950
16/03/202
0 Wages and Salaries 1740
Cash 1740
18/03/202
0 Cash 20000
Sales (Food) 20000
20/03/202
0 Cash 13000
Sales (Beverage) 13000
Ledger
Capital
Dr £ Cr £
04/03/20 Cash 30000

Expense (Store Rent)
Debit £ Credit £
05/03/20 Cash 1000 0
Creditor (Supplier of Washer and Dryer)
Debit £ Credit £
06/03/20 Assest (W&D) 15000
Assest (Washer and Dryer)
Debit £ Credit £
06/03/20 Cash 10000
06/03/20 Creditor (Supplier) 15000
Creditor (WH Adams Ltd)
Debit £ Credit £
09/03/20 Expense (Food supplies) 8000
09/03/20 Expense (Beverages) 7000
Exp (Wages and Salaries)
Debit £ Credit £
16/03/20 Cash 1750 1750

Sales (Food)
Debit £ Credit £
0 18/03/20. Cash 20000
Sales (Beverage)
Debit £ Credit £
0 20/03/2020 Cash 13000
Cash
Debit £ Credit £
04/03/20 Capital 30000 05/03/20 Store rent 1000
18/03/2020 Sales (Food
supplies) 20000 06/03/20 Assest (W&D) 10000
20/03/2020 Sales (Beverages) 13000 07/03/2020 Exp (Ins) 1200
11/03/2020 Exp (Laundry fee) 200
15/03/2020 Exp (Tel & Int) 2220
15/03/2020 Exp ( Rates, Water and
refuse) 950
Total 63000 16/03/2020 Exp (Wages and Salaries) 1740
Normal Balance 45690 Total 17310
Expense (Insurance)
Debit £ Credit £

07/03/2020 Cash 1200
Expense (Food Supplies)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 8000
Expense (Beverage)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 7000
Expense (Laundery Fee)
Dr £ Cr £
11/03/2020 Cash 200
Expense (Tele and Internet)
Debit £ Credit £
15/03/2020 Cash 2220 2220
Exp ( Rates, Water and refuse)
Debit £ Credit £
15/03/2020 Cash 950 0
Trial balance
Trial Balance

East London Catering
31/03/2020
Account Dr Cr
Capital 30000
Cash 45690
Expenses (Store rent) 1000
Expenses (Supplier) 8000
Expense (Beverage) 7000
Expense (Insurance) 1200
Expense (Laundry fee) 200
Expense (Tel and Int) 2220
Expense (Water and refuse) 950
Expense (Wage and Salaries ) 1740
Assets Washer and Dryer 25000
Creditor (WH Adams Ltd) 15000
Creditor (Washer and Supplier) 15000
Sales (Food) 20000
Sales (Beverages) 13000
Total 93000 93000
Task B
Review the stages of HR life cycle
The human resource management is the formal structure which is responsible for
managing the workforce in an organization. The HR activities goes through various phases
which provides assistance to the company in retaining and developing employees of the
company. Currently, there is vacancy for accountant in the organization so to select the required

personnel, the HR life cycle can be followed effectively. A detailed analysis of the HR life cycle
is given below.
Ill
ustration 1: The six stages of the employee lifecycle. (Source:
Six Stages to Success with the Employee Lifecycle. 2018)
The above chart states about the various stages of HR life cycle which provides
assistance to the businesses in retaining and developing the existing employees. In this
accountant job is taken as an example.
Attraction: For becoming successful, it becomes essential to maintain a position in the
market in order to attract the right talent which will help the organization in achieving their
desired targets along with the quality of work (McCracken and et.al, 2017). Thus, for attracting
the highly skilled employees it is important for East London Catering to provide attractive
compensation along with other benefits in the workplace.
Recruitment: this is a very crucial stage for East London Catering as it essential for it to
recruit right candidate at the right place. The human resource manager must select the candidate
having the required and relevant knowledge and experience in the respective field so that the
candidate would be able to manage the financial transactions and other accounts related work
effectively. Thus, recruitment stage is very essential for the company.

On-boarding: In this stage, the selected candidates are undergone the process of
developing the knowledge base of the employees, enhancing skills and behaviour and attitude of
the employees in respect to the job profile and designation (Albalaki, Talab and Majeed, 2018).
This helps in exercising smooth flow of business operations. After selecting the candidate, East
London Catering is required to organize proper training and development programme for the
accountant with the objective of developing an understanding in respect to the ways functions are
being performed.
Development: For maintaining or enhancing the quality of work and the performance
level of the employees it is important for East London Catering to concentrate on encouraging
the professional development in the organization by introducing different types of learning
programs with the aim of upgrading the knowledge and skills of the existing workforce. This will
help the newly appointed accountant to gain knowledge about the new methods of undertaking
the work which will assist them in performing the task effectively.
Retention: In this stage, East London Catering must work on keeping the top performers
of the organization happy and satisfied by meeting with their needs and creating the positive
work culture. The cost of replacing the existing employees with the new requires to incur huge
cost as it not only affects the performance of East London Catering but it will also disturb the
workings of other departments as well and mostly importantly the finance department as it is the
centre of the business as it manages the funds of the organization.
Separation: In this last stage of HR life cycle process in which the workforce attains the
point where they have all their tasks and responsibilities and are now ready to retire. East
London Catering must take a final feedback from the accountant who is leaving the job and any
improvement they might think require to for improving the current working conditions. This
provides help in improving the weaker points of the company which will help in retaining the
employees and achieving the goals.
Develop a performance management plan and apply techniques to resolve negative behaviour
Performance management plan
The performance management refers to the continuous process of interaction between the
managers and the employees with the objective of aligning the performance of the employees
based on the set criteria. It includes timely monitoring and guiding the performance of the
employees for achieving the future goals and objectives (Allan and et.al, 2019). East London

Catering must work towards effectively managing its employees with the objective of
eliminating the negative behavior which results into increasing employee retention. The below
stated steps of performance management plan will help East London Catering in achieving this:
Set performance objectives
Under this, the HR department of East London Catering must examine the work
performed by the accountant who has been recently appointed which will help in determining the
areas of improvement. After monitoring and evaluating the performance, the company must set
the SMART performance objectives based on which target is set up in accordance with the
objectives as per the job role.
Provide training
After identifying the area's improvement, it is important for the human resource
department organize the training program with the objective to provide help to the newly
appointed accountant for sharpening their skills as per the job role. It will help in improving the
performance in an effective manner.
Evaluating the performance
The next step after providing training is that the human resource department is required to
evaluate the performance of the accountant after undergoing the training. This will help the East
London Catering in determining the effectiveness of its training program.
Comparing the actual performance level with the set benchmark
In this step, after proper examination and evaluation of the current performance of the
new accountant, the result is being compared with the performance objectives which is being set
by the human resource department. This will help in identifying the gap between the actual
performance and the planned one which will be used by East London Catering in taking up the
appropriate and corrective measures for reducing this gap.
Target area Steps for achieving
the target
Measurement of
success
Time required
Level of accuracy in
financial data
management
Providing proper
training and
development sessions
to the candidate with
respect to the job done
By analyzing the
financial data and
reports being prepared
by the head of that
department.
2 weeks