Hospitality Business Toolkit: Financial, HR, Legal, and Communication

This report provides a comprehensive analysis of the hospitality business, focusing on various key areas. It begins with an investigation into the principles of managing and monitoring financial performance, including sales, purchases, and cost analysis. The report then delves into the HR life cycle within the hospitality sector, examining talent management, staff retention, and the development of performance management plans. Furthermore, it explores relevant legislation and its impact on decision-making, along with communication, coordination, and monitoring methods to strengthen the value chain within hospitality organizations. The report incorporates practical examples, such as Savoury & Dietary Restro, and concludes with recommendations for improvement across all assessed areas.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Investigate the principles of managing and monitoring financial performance......................1
b) Explaining following terms as pertains in hospitality industry.............................................2
c) Double entry book-keeping system of debits and credit records sales and purchasing
transaction in a general ledger.....................................................................................................2
d) Basic trail balance applying the use of the balance off rule to complete the ledger...............3
TASK 2............................................................................................................................................4
a) Different stages of HR life cycle of hospitality and importance for retaining and developing
talent............................................................................................................................................4
b) Importance of HR life cycle to strategic talent management and overcoming issues of staff
retention.......................................................................................................................................5
c) Judgements and recommendations of HR processes and documents can be improved for
effective talent planning throughout HR life cycles...................................................................6
d) Performance management plan for hospitality job role and techniques for resolving both
negative behaviour and overcoming issues of staff retention.....................................................6
TASK 3............................................................................................................................................8
a) Legislations of hospitality organisations ................................................................................8
b) Company, employment and contract law potential impact upon business decision making..8
c) Potential implications of regulations, legislations and standards upon decision making.......9
d) Potential impacts of regulations, legislations and ethical principles upon decision making. .9
TASK 4..........................................................................................................................................10
a) Different functional roles within hospitality sectors.............................................................10
b) Different methods of communication. Coordination and monitoring applied to hospitality
for strengthening vale chain......................................................................................................12

c) Different methods of communication, coordination and monitoring within department of
hospitality organisation for achieving organisational objectives and strengthening value
chains.........................................................................................................................................13
d) Different methods of communication, coordination and monitoring within department of
hospitality organisation and recommendations.........................................................................13
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Hospitality industry is wide and involve several areas such as planning of events, theme
parks, lodging, travelling, accommodation facilities, cruise line and so on. Respective sector is
fast growing which result in development of economy by providing job opportunities and better
living standards (Bowie and et.al., 2016). The given assignment is based on Savoury & Dietary
Restro which is located in London and offering in salads, smoothies and blended juice for health
conscious people. Below mention report is going to explain principles of managing and
monitoring financial performance. Along with the, different stages of HR life cycle within
respective industry as well as develop performance management plan for performing job role.
Apart from this, it will also discuss rules and legislation which have to be followed by hospitality
association. Moreover, relation within various function of hospitality company will be
highlighted as well as methods for communication, coordination or monitoring needed for
business will be discussed.
TASK 1
a)
There are some principles of managing and monitoring financial performance are as
follows :-
Actual financial outcomes should be compare with budget on regular basis – it is
important to compare financial result with budget on timely basis so that financial performance
can be measured, unnecessary cost will be avoided, transactions will be adequately supported
and so on.
Budget must be establish for providing tool to – It assist in measuring present financial
performance, discover significant transaction errors and so on. Apart from this, it will assist in
detecting substantial modifications in circumstances as well as business conditions (Singh,
2015).
Preparation of working capital statements and financial rations – It is necessary for
the company to put together regular working capital statements as well as periodic calculations
of current and quick ratios. Because it will help in identifying how many assets they have in
comparison of liability. Along with this, what ratio of assets they can convert in cash quickly.
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Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
drinks
Lunch purchases
b)
i) Sales – It is the transaction within two parties in which buyer receives goods that can be
tangible or intangible in exchange of money (Anderson and et.al., 2017). In simple term sale is
the agreement between buyers and sellers on the cost of security.
ii) Purchase – It means to take possession of a given assets, property or any item by paying
amount which is decided in advance so that transaction of purchasing will be complete. In simple
term purchasing is the exchange of money for specific goods or services.
iii) Types of Cost - There are several kind of cost which utilise for running an organisation in
effective manner. Explanation of these are as follows :-
 Variable Cost- It is the cost which vary with output and variable cost increase at a
constant rate in relation to labour and capital. This includes wages, raw material for
production, utilities and so on.
 Semi Variable Cost- Expenses come under semi variable cost are partially fixed as well
as variable (Benckendorff and et.al., 2015). This includes facility rent, staffing expenses
and so on.
 Fixed Cost- It is the cost which independent of output and this remain constant.
c)
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
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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
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
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d)
Trial balance is the worksheet of book-keeping in that balance of leaders are complied in
the debit and credit account column whose total are equal (Sriprahastuti, 2018). An organisation
prepare trail balance periodically, generally in the end of every financial year.
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
a)
Box 1 Advertisement will be place on social media as well as also in newspaper. So that
candidates can see the advertisement and apply for the vacant job position.
Box 2 Interview - After screening the application of candidates that he/she is capable to vacant
position. As well suitable for food & beverages manager then interview will be conducted.
Box 3 Good question to be ask in interview is about yourself, working experience of candidate
and related to job role. On the other hand, bad question can be recipe of particular food
Box 4 Induction and on boarding – Induction is important for new employees for giving them
knowledge about the organisation and job role they have to perform.
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Box 5 Performance review – This is the process through which performance of new candidate
will be monitor or review for analysing capabilities required for performing job roles. If
candidates are not meeting predetermined goals and objectives then additional training will be
provided to them. Performance review is necessary to do for filling gap between actual and
standard performance of every staff members.
Box 6 Learning & Development – This is the procedure in which candidates will gain
opportunity for learning and developing their skills as well as knowledge. That will be beneficial
for performing day to day activity. Whereas, benefits of learning and development for staff
member's is that they can work with anything new for which training is given. Along with this,
their skills and knowledge will be enhance.
Box 7 Promotion/Succession planning – It is necessary for motivating staff member's and in
this planning for future opportunities will be done such as promotion.
Box 8 Exit – Reason behind leaving organisation is may be personal as well as any professional.
One of the main reason of leave organisation is dissatisfaction from their work.
Box 9 Exit interview - It is conducted by the HR manager with the motive of determining
reason behind leaving organisation. Below mention are some question which are asked by the
HR manager:
 Reason behind leaving the organisation?
 Is their any issue with other staff member's or management?
b)
HR life cycle is important managing strategic talent as well as also in overcoming issues
related to staff retention. Explanation of these are as follows:-
 By placing advertisement on social media and news paper major benefit is that more and
more candidate will apply for the vacant job position of food & beverages manager.
Along with this, it assist in time as well as cost saving by posting advertisement on social
media and newspaper (Foster and Carver, 2018).
 By conducting interview HR manager will able to know about skills and capabilities of
applying candidate for profile of food and beverages manager. As well as it help in
selecting best employ for vacant profile.
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 Along with this, interviewer will identify more things about the candidates by asking
question as well as their willingness of doing job.
 Induction will help new joined staff members to know about the policies, procedure,
goals, objectives, mission and vision of the company.
 Performance review is the practices which help HR manager to get knowledge about the
capabilities of doing work or gap between actual and standard performance.
 Frequent learning and development session aids in enhancing skills and capabilities of
individual.
 Training and development session is necessary for new staff member's which is designed
by HR manager of company.
 With the assistance of respective cycle Human Resource manager will get to known
reason behind leaving job (Nayak and Taylor, 2018). So they can come out of it and
employees turnover ration will be reduce.
 HR manager have to ask reason behind leaving the job from employees. So they can try
their best to retain the employees for gaining better results (Ervin, 2016). Because hiring
new employees will result in increases cost for organisation as well as need training and
development sessions also.
Employees turnover is the major issues through which ALDI can overcome by enhancing
skills ad knowledge of staff members through training and development session. Along with this,
by motivating, giving rewards, encouragement and so on.
c)
There is requirement of several documents for enhancing effective talent planning with
the assistance of HR life cycle (Gnanapala, 2017). Documents that is required to be evaluated are
hierarchy structure of organisation, job profile, business staffing plan, salary structure and
several other benefits. With the assistance of these documents life cycle can be monitored as
well as staff members who are working in company know about their performance. Entire
practices aids in accomplishing predetermined targets as well as objectives for gaining better
results. Apart from this, by utilising these documents performance of every employees will be
measured and monitor in effective manner. Although, it is essential to form valid and helpful
documents needed for monitoring purpose.
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d)
Performance Improvement Plan is also known as performance action plan this is an tool
given to employees who have to improve their performance so they can find opportunity for
future success. This tool is utilise for addressing failure so they can achieve required job goals
for gaining better outcomes (Schwager, Decker and Kaltenegger, 2016). Below mention is the
role script of employees who behave negatively with their colleagues within The role play script
for an employee who is rude with in Savoury & Dietary Restro are as follows:
Script 1:
Manager: From last few days I am observing that Ms. XYZ is coming late and leaving
without completing their working hours.
Employee: Yes your observation is true she is coming late from last 9 days.
Manager: What is the reason behind her late coming do you know?
Employee: No sir, I don't have knowledge about all this issue but I heard that she is
going through some health issue. I think because of that Ms. XYZ is not able to come on time.
Manager: Okay, you guys have to talk her and tell to come on time and ask actual reason
of not coming office on time?
Employee: Sir, I think because of health problem may be she is not feeling well as well
as she need rest. That's why Ms. XYZ is not able to come on time.
Manager: Okay, then tell her to take medical leave and proper rest.
Employee: She tried this but due to loss of pay she didn't taken leave.
Script 2:
Manager: From last few days I am observing that Ms. XYZ is coming late and leaving
without completing their working hours.
Employee: Yes sir from last 9 days regularly she is coming late office.
Manager: Do you know the reason behind her late office coming?
Employee: No sir, I don't have knowledge about all this issue but I heard that she is
going through some health issue. I think because of that Ms. XYZ is not able to come on time.
Manager: Okay, you guys have to talk her and tell to come on time and ask actual reason
of not coming office on time?
Employee: Sir, I think because of health problem may be she is not feeling well as well
as she need rest. That's why Ms. XYZ is not able to come on time.
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Manager: OK, well good if she is going through this situation but still coming office
daily we should have to appreciate as well praise her for hard work and regularity after having
health issues.
Employee: Yes we can do this sir because such practices will result in motivating as well
as encouraging.
Manager: Of course we should do it and there are some standard procedure for such
cases. Firstly, we will praise her and then will provide medical leaves for taking his treatment.
Employee: Yes sir, this will be great because it help in motivating her and also assist in
getting well soon.
TASK 3
a)
Several laws and legislation given by the government of every nation which have to be
followed by hospitality organisation. Explanation of these are as follows :-
 Health and Safety Work Act, 1974- Health and safety of staff members working in
Savoury & Dietary Restro is responsibility of manager (Kibirango, Munene and
Mutumba, 2018). Thus, they have to provide proper training to employees before they
started working on actual platform. Because if some misshappening happens related to
health and safety of staff member's then legal action regarding this will be taken.
 Minimum Wages Act, 1998- As per this act, employer have to give minimum wages to
staff members according to their age. Regulation of minimum wages act classified
amount to be paid according to age. Thus, personnel having age 25 or over have to be
paid £7.83 per hour, age between 21 to 24 should be given £7.38 per hour as well as
£5.90 having age group 18 to 20. If such practices will not be followed by company then
they will be penalised.
 Equality Act, 2010- main motive behind establishing this act is to protect employees
from discrimination within working area. As per the equality act, personnels should not
be discriminated on the basis of colour, age, sex, culture, religion and so on. If equality
act is not implemented by Savoury & Dietary Restro and employees are treated
discriminately then company will be penalised.
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b)
There are several laws related to company, employment and contract which gives wide
impact on the decision making procedure of company. If these are not followed in proper manner
then result in negative impact on business. Impact of these on personnel and higher authorities
has given below with letter L,A,W where, L reflects persons leading for making sure
compliances, A defines people having responsibility for making sure of compliance and W
represents person who is not directly effected by the laws as well as legislations.
c)
There are name of some companies that has been prosecuted for violation of various
legislation along with the amount of fine are as follows:
Organisations Act or Regulation Result Amount of Fine
Hill Care Limited Health and Safety At
Work Act 1974
Guilty £100000
GMG Car Wash Ltd Employers Liability
Compulsory Insurance
Guilty £650
Kent County Council Control of Asbestos
Regulations 2012
Guilty £200000
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