Comprehensive Report: Unit 4 - Hospitality Business Toolkit Analysis

This report provides a detailed overview of the hospitality business toolkit, examining key aspects of financial performance management, including the principles of monitoring financial stability and the application of the double-entry bookkeeping system. It also explores the trial balance process and the stages of the HR lifecycle within the hospitality industry. Furthermore, the report develops a performance management plan and outlines relevant legislations for hospitality organizations, encompassing employment and contract law, and the interrelation of different functions within the sector. Finally, it discusses methods of communication, coordination, and monitoring in a hospitality department, offering a comprehensive analysis of the toolkit's components and their practical applications in the industry.

UNIT 4 THE HOSPITALITY
BUSINESS TOOLKIT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Investigation of principles for management and monitoring of financial performance..............1
Application of double entry method for book-keeping system...................................................2
Trial balance by the use of balance off rule.................................................................................3
Stages of HR life cycles...............................................................................................................3
P5: Performance management plan.............................................................................................5
P6: Legislations for hospitality organizations..............................................................................5
P7: Associated legislations..........................................................................................................6
P8:Employee relation...................................................................................................................7
P9: Communication and monitoring............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality business consists of fields insides the services industry which includes the
different services like food, drinks, lodging, tourism & travelling and also event planning.
Majority businesses in the hospitality industry are, hotels, restaurants and bars. This project will
help in the investigation of and suppose which is use for monitoring the financial performance of
hospitality industry. With the help of this project the double entry book keeping system of debit
and credit which is used for recording the sales and purchase transactions in the hospitality
industry's general Ledger. With the help of this project a basic trial balance approach will be
applied for completing the letter with the help of balance off rule. This project will provide a
review of the different stages of HR life cycle and its application in the hospitality industry. In
this project a performance management plan will be developed more specifically towards the
role of a manager in the hospitality industry. In this project the different legislations of the
hospitality organization is specified. With the help of some examples this project will illustrate
the employment and contract law. This project will also illustrate how the different functions and
role of hospitality sector interrelate. With this project the different methods of communication,
coordination and the monitoring application in a particular department is understood.
MAIN BODY
Investigation of principles for management and monitoring of financial performance
The main concern of financial performance in a hospitality organization is the monitoring
a performance educational strategy a management process of the behavioural aspects. It is the
preparation of different techniques and systems which is utilized but accomplishing the goals and
objectives of the organization. The principles how managing and monitoring consist of such
elements in the organization which is connected with its financial profitability and stability.
Organizations for attaining the long term goals and their objectives Utilize different methods and
measures so that the principles of financial performance can we monitor. The measure taken by
the financial principles are,
Understanding Risk :
Understanding of risk is considered as an essential factor which is used for controlling
and managing of the financial performance of an organization (Jumady, Sugiarto and Latief,
2021). With the help of these managers are enabled to determine the risk involved with the
financial performance of to organization. Managers can utilize the options of stocks and bonds
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and also the investment made in the markets for getting higher return during their activities while
facing challenges and risks.
Paying Attention to taxation :
Paying taxes is very important for the organization as it can affect the image of the
company with a negative influence with. For the management of taxes organization and their
managers utilize financial planning software which helps them to gain tax related information.
Organizing finances :
For the management of financial performance open hospitality organization the managers
make an evaluation of the bank accounts brokerage accounts loans on farms end vehicle. The
financial planning software helps the manager for assisting then with budgeting and also
providing suitable solutions of the problems (Guzmán and Santos, 2021).
Application of double entry method for book-keeping system
Double entry method in book keeping is a system which helps in recording of
transactions for all kinds of business. According to this method entries are recorded in at least
two accounts either debit or credit. This system allows the amount to be recorded as debit which
should be equal to the amounts which has bee recorded as credit. Bookkeeping is considered to
be an important activity in the management off businesses which try to maintain accuracy in
their financial records. For an organization for the preparation of each budget and also
compliance of the tax which is evaluated regarding the business performance and also helps in
the decision-making for the future process. The double entry method provides a clear picture of
all the finances of an organization and also is essential for protecting the business from manual
data entry errors which can be generated in financial statements prepared by the managers.
In a hospitality organization there are many transactions which are either related to sales
or purchase. The double entry method of book-keeping has different ways of treating these
transactions in their own particular way. They can be explained with the help of examples,
paying the employee's salary of $5000, the hotel will have to debit the wages in the expenses
account and credit the cash account. This shows how with the help of double entry method the
risk of errors is minimized as there are two records of the transactions.
For example, the hotel had a customer enjoying the services for 5 days and per day
charge of the hotel is $300. There for the accounts of the organization will make two entries in
the current situation. The accounts receivable will be debited with $1500 and the revenue
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accounts of the organization will be credited. This shows how with the help of double entry
method the risk of errors is minimized as there are two records of the transactions (Laitinen,
2018).
Trial balance by the use of balance off rule
A trial balance is the statement of accounts which helps in recording all the ledger
balances and distribute them into two categories, debit and credit. This is made at a particular
specific time which may or may not be the end of the financial year. Trial balance helps in
categorizing the activities in some different heads which makes it easier for the further steps to
be proceeded with. A trial balance has four columns, serial number, particulars, debit and credit.
It is a worksheet which classifies the different types of ledgers. The total debit and the credit
balance should be equal.
The trial balance provides an arithmetical accuracy due to the nature of double entry
system. The double entry system is the system in which a transaction will occur in two entries of
equal and opposite nature. Hence this results in the total of debit and credit to match with each
other. The successful implementation of conducting the trial balance indicates the arithmetical
accuracy within the books of accounts. It provides a categorized view of the ledgers and balances
which broadens the aspect of the transactions. It acts as the perquisite for preparation of the
financial statements of accounts (Zahra, Putri and Pakawaru, 2020).
SL .No. Particulars Debit Credit
1. Cash £125000
2. Accounts Receivable 400000
3. Allowance 50000
4. Due from funds 40000
5. Inventories 95000
6. Prepaid Expenses 900000
7. Investments 20000
8. Plant and Property 6100000
9. Accumulated depreciation 1500000
10. Accounts Payable 150000
11. Accrued Expenses 55000
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12. Deferred Revenue 75000
13. Bonds Payable 3000000
14. Fund balance 2850000
Total 7680000 7680000
Stages of HR life cycles
Attraction, Recruitment and Selection:
Attraction comprehends the organization’s brand and what can shape the potentials of the
employee. It shapes the brands opinion and attract potential employees. Recruiting is the process
of finding and building a nice team to perform the tasks of each role effectively and efficiently.
In a hospital work culture, the employees need to be quick and decisive in nature which an HR
should monitor before selecting. Selecting is the process of choosing the best candidate for the
specific job who can perform their tasks prominently.
Induction, Orientation and On boarding:
The stage two starts with the employer conducting an induction session with the newcomers and
familiarize them to the goals and ambition of the organization. It is important for the new
employees to be inspired form their title and adopt the culture of the organization. The HR’s
should never make promises in the offer letter which the organization might fail to offer.
Career planning and development:
Once the employees start their job it is very important for the organization to appreciate and
reward their employees for their achievements. For the development of the employees HR should
categorize the employees by the interests which will increase productivity (Baratashvili, 2019).
Retention:
There is a lot of money and time wasted by the organization on the new employees, hence
retention should be avoided as it starts the whole process again. The employees can be best
retained by offering them things which they desire.
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P5: Performance management plan
There are several performance management approaches that can be implemented by the
hospitality industry to guarantee its efficient working towards the target in such a way that it is
able to utilise organizational strength and then with the utilisation of appropriate strategy weak
areas can be overcome. In order to achieve this several performance measuring tools can be
implemented which are able to monitor employees work productivity in context to the company
requirement (Murphy and et.al, 2018). This is an important step because of the fact that in the
current time companies are having a large number of customer base and because of which it has
to take several approaches by which organizational services can be provided to a large number of
clients. By this several businesses can guarantee that it sales have been achieved while also
maintaining customers high level of engagement with the Corporation that will result in higher
customer loyalty and hands the chances of Grand can be reduced. With the development of
several key performance indicators overall companies performance and employees productivity
for fulfilling customer requirements can be insured and this is being achieved with the the
implementation of appropriate working of approaches. Employees working hours can be e
monitor by the corporate to analyse there performance within the business and hence on that
basis future targets can be decide it for the employee accordingly. Wireless employees level of
work productivity can also be analysed through feedbacks which are been given by the
customers on the basis of services which they achieved and hence on this basis several employee
motivation approaches can be implemented accordingly employee engagement that will
empower the employees to take suitable measures to increase its performance within the
company to attain higher targets.
P6: Legislations for hospitality organizations
There are several legislations with the hospitality industry has to follow because these
legislations are being developed by the government to ensure safe level of organizational
working for employees and high quality of service for the customers. These include legislations
like food certificates which has to be taken by hospitality industry because it provide food
options to the customers (Afsar, Shahjehan and Shah, 2018). Therefore it has to take appropriate
licensing that is being used to showcase the quality standards of food services which are being
provided by the hospitality industry to their customers. While also there are other set of
government legislations which have to be fulfilled by the hospitality industry and these changes
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comprises of legislations like employment regulations. It is necessary for the corporate because it
has to guarantee that its employees are working as for the desired work productivity to maintain
a high quality of services which is being provided to the customers. While also at the same time
ensuring that employees level of engagement with the cooperation in terms of taking suitable
steps to meet the customer demands. Therefore in order to achieve this appropriate measures
have to be taken like setting fixed working hours for the employees providing minimum number
of leaves like medical parent and many more and this has to be achieved while providing a
minimum pay as per the customer requirements through which employees can be insured that
their requirements are being fulfilled by the corporate and hence their loyalty towards the
company can also be increased (Jalilvand, 2017). With that there are several associated
hospitality standards which also have to be followed and this comprises of star rating that is
being provided to the hotels on the bases of services which they provide to the customers. It is an
important step for the corporate that it choose appropriate measures by which the level and
quality of services that is being provided to the customer is improved.
P7: Associated legislations
Hospitality industry is having a large number of supply chain through which it is being able to
maintain a uniform high operational quality by which its services are being provided to the
customers. Therefore in order to maintain a uniform quality standard it has to take suitable
measures by which overall work productivity can be enhanced but also at the same time in
sharing that all the associated regulations are being maintained. In order to all new required
criteria of providing efficient organizational services to the customer. In order to accomplish this
several criteria’s have to be taken into consideration during the strategy development process
which include elements like developing working strategy as per the employment regulations
(Pham, Tučková and Jabbour, 2019). These regulations have to be properly analysed by the
corporate in terms of identifying appropriate apologies through which employees are being
provided with suitable flexibility to make improvisation within their working process. This is an
important step because since the hospitality industry tends team operate in market which is
having a diversity in customer base and due to which to take appropriate measures to ensure high
customer satisfaction level. The decision making process of the organization is also being
affected due to the fact that it has to guarantee that all the legal criteria’s are being fulfilled
otherwise the business has to face financial penalties which will affect its goal achieving
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capabilities. It is important for the corporate that it is being able to choose an appropriate path by
which overall high work productivity is being accomplished. Also with companies tend to be
operating within the hospitality industry have to develop business partnerships by which several
business expending approaches can be implemented.
P8:Employee relation
Hospitality industry tends to provide wide range of services to a large number of customer base
and due to which in order to maintain quality standard services several departments are being
made within the business. This include various departments like the front desk which is
responsible for identify customer requirements and also to provide a proper briefing about that
type of services which they can achieve (Murphy and et.al, 2018). This is an highly beneficial
staff for the corporate because it has to guarantee that organizational services are being provided
at as per the customer requirement hence the front test is responsible for showcasing the
requirement to the housekeeping department. This is an important step because the housekeeping
department comes into direct contact with the customers and hence with efficient bidirectional
communication it can improvise its working is the organizational requirements to attain desired
target within minimum efforts. This is an important step because the housekeeping department
comes into direct contact with the customers and because of which it has to guarantee that it is
able to implement suitable improvisation. Within its working process by which goal achieving
capability of the corporate can be increased and hence with that customers level of engagement
with the corporate can be increase. This is an important step for the businesses operating within
the hospitality industry that it take suitable steps by which high work productivity can be
accomplished and with that this becomes significant because of the fact that with this approach
overall final quality of services that is being provided to the customers can also be improved.
The management within the industry has to take appropriate measures have to be taken, like
developing teams and implementing innovative approaches irrespective to the traditional
approaches of working to accomplish higher organizational targets.
P9: Communication and monitoring
Communication is an highly important factor within the hospitality industry because the
employees have to establish communication to implement Information sharing by which the
overall time consumption in providing proper services to the customers on the basis of their
requirements is being reduced. While also at the same time various monitoring approaches have
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also been implemented within the organization working because with this approach can
guarantee that it is working as per the developed strategy and is having high level of customer
engagement. These monitoring approaches can be implemented with the use of key performance
indicators that can be reviews that are being provided by the customers regarding the services
which they achieved overall revenue collection of the corporate increase in number of customers
and various other approaches by which increment and decrement in company's performance in
the Marketplace can be analysed (Uysal and Sirgy, 2019). This is an important for the
corporations which are working within the hospitality industry because it has to take several
efforts by which the overall final quality of service which is being provided to the customers is
improve by which it can ensure our customers that their requirements are being fulfilled and
hence the chances of goal achievement is also being increased. In the current time Since
companies are using technological advancements like project management software by which it
is being able to guarantee that task distribution among employees is being done equally and as
per their expertise so that work load distribution among employees can be equal and hence the
chances of overall goal achievement can be increased by enhancing work productivity. While
also several internal communication platforms are also being developed by the corporate,
through which it tends to implement information sharing for achieving high work productivity.
CONCLUSION
With the help of this project it can be concluded that management of financing recording
of transactions is very essential for the hospitality sector, along with that the management of the
human resource life cycle is also necessary. This project illustrates the potential impact of all the
legislation and ethical considerations which and hospitality organization needs to follow. This
budget expense the importance of coordination and integration of different functions of
departments within a hospitality organization. The meaning of this project is to understand the
different methods of communication and coordination and the application of monitoring in
hospitality organization. This project also shows how important is the principles of managing
and monitoring financial performance with the help of the double entry method. Double entry
method helps in recording the sales and purchase of transactions.
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REFERENCES
Books and Journals
Afsar, B., Shahjehan, A. and Shah, S.I., 2018. Frontline employees’ high-performance work
practices, trust in supervisor, job-embeddedness and turnover intentions in hospitality
industry. International Journal of Contemporary Hospitality Management.
Baratashvili, I., 2019. HR MANAGEMENT INNOVATION. European Science Review. (9-10).
pp.77-80.
Guzmán, C. and Santos, F.J., 2021. From Cooperative Principles to Performance.
Jalilvand, M.R., 2017. The effect of innovativeness and customer-oriented systems on
performance in the hotel industry of Iran. Journal of Science and Technology Policy
Management.
Jumady, E., Sugiarto, S. and Latief, F., 2021. Management performance analysis based on total
quality management principles. Point Of View Research Management. 2(1). pp.10-18.
Laitinen, E.K., 2018. Entry-based financial statement analysis for small firms. International
Journal of Management and Enterprise Development. 17(1). pp.36-52.
Murphy, K. and et.al, 2018. A review of high performance work practices (HPWPs) literature
and recommendations for future research in the hospitality industry. International
Journal of Contemporary Hospitality Management.
Murphy, K. and et.al, 2018. A review of high performance work practices (HPWPs) literature
and recommendations for future research in the hospitality industry. International
Journal of Contemporary Hospitality Management.
Pham, N.T., Tučková, Z. and Jabbour, C.J.C., 2019. Greening the hospitality industry: How do
green human resource management practices influence organizational citizenship
behavior in hotels? A mixed-methods study. Tourism Management. 72. pp.386-399.
Uysal, M. and Sirgy, M.J., 2019. Quality-of-life indicators as performance measures. Annals of
Tourism Research. 76. pp.291-300.
Zahra, F., Putri, W.I.P. and Pakawaru, I., 2020. THE EFFECT OF THE IMPLEMENTATION
OF ACCOUNTING AND THE USE OF ACCOUNTING INFORMATION ON THE
PERCEPTION OF BENEFITS OF ACCOUNTING INFORMATION AN EMPIRICAL
STUDY IN BUSINESS MEDIUM IN PALU. Tadulako Social Science and Humaniora
Journal. 1(1). pp.1-12.
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