Hospitality Business Toolkit Report: Financial, HR, and Communication

This report examines various aspects of the hospitality business, using case studies of Mr. Happy Restaurant and Hilton Hotels & Resorts. It begins with an analysis of financial performance management, including principles, budgeting, and the double-entry bookkeeping system. The report then delves into the HR life cycle, focusing on recruitment, career development, and employee termination, along with a performance management plan. The report also explores relevant governmental legislation and ethical principles within the hospitality sector. Finally, it discusses different functional roles, communication methods, and coordination strategies within hospitality organizations. The report covers topics such as financial statements, trial balances, HR strategies, and communication techniques. The report includes practical examples and scenarios, such as managing employee performance and addressing issues like tardiness and incomplete work hours.

Hospitality business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Principles of managing and monitoring financial performance with the help of table.........1
P2. Double entry book keeping system and basic trial balance to record purchase and sales
transactions in general ledger......................................................................................................2
P3. Formation of basic trial balance by applying balance off rule: ...........................................4
TASK 2............................................................................................................................................5
P4. Different stages of HR life cycle for retaining and developing talent..................................5
P5. A performance management plan.........................................................................................6
TASK 3............................................................................................................................................7
P6. Specific legislation adhere within hospitality organisations.................................................7
P7. Reflection on potential impact of regulations, legislations and ethical principles on
decision-making process.............................................................................................................8
TASK 4............................................................................................................................................9
P8. Different functional roles within hospitality sectors.............................................................9
P9. Different method of communication...................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Hospitality sector is that which offering primarily food services as well as
accommodation also within several places like resorts, hotels, conference centres, amusement
parks and so on (Deale, 2017). Along with this, hospitality is an service in which several
activities are done such as entertaining guest, receiving them, welcoming etc.. Within respective
sector there is requirement of good relation within organisation and their guest. This assignment
is classified within four task out of which first is based on Mr. Happy restaurant which is located
on Diana Road, England. They have speciality in offering delicious salads and splendid
smoothies. Whereas, rest of the task are based on Hilton Hotels & Resorts which is serving at
worldwide level. This report is going to discuss management plan, governmental legislations and
formative interconnections between different roles and functions in hospitality sector. Moreover,
same assignment is going to include various ways of communication as well as coordination in
organisation departments.
TASK 1
P1. Principles of managing and monitoring financial performance with the help of table
There are several principles of managing and monitoring financial performance of Mr.
Happy Restaurant. Explanation of these are as follows :- Principle 1: Rectification is required when financial budget exceed limit of
predetermined budget – It is the responsibility of Mr. Happy Restaurant manager to find
the reason behind variation in actual and standard budget. After finding causes it is
necessary to design strategy in proper manner and fill the gap of actual and estimated.
 Principle 2: Budget is required to be established in proper way – it is necessary for
respective restaurant to manage their financial resources in better manner for running
their business operations in effective manner (Esparza-Aguilar, García-Pérez-de-Lema
and Duréndez, 2016). Thus, manager have to formulate effectual strategies as well as
policies for designing budget in appropriate manner and result in controlling wastage as
well as utilise funds in better manner.
Within accounting period several expenditure and income occur within an organisation
these are as follows :-

Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
Allowances Household utility bills
Manager of Mr. Happy Restaurant have to prepare balance sheet and other important
financial statements in correct manner. So that, financial performance of company can be
monitor in appropriate manner (Griffin, 2017). Apart from this, it is also necessary to make
related statements such as financial ratio, inventory account, working capital requirement,
debtors trail balance and so on. Because all these will give advantage in identifying position of
actual cash flow for effectual financial performance level. Apart from this explanation of some
key financial terms are as follows :- Purchase – For obtaining actual cost of good purchase, calculation of current available
stock and purchase of inventory is done. For instance, openining balance of Mr. Happy
restaurant is 60,000 Euro and inventory purchased is of 90,000Euro so cost of good sold
are 12,000 per month. So, Opening inventory(60,000)+ Purchase (90,000)-Closing
inventory(12,000)= Cost of good sold (3,000,00 Euro) Sales – It is important for manager of respective restaurant to maintain proper record of
their quantity sales.
 Type of cost – This is crucial element within expenditures that need to be calculated as
well as properly monitored for measuring performance in formative manner. Cost within
the organisation are divided in two part one is fixed and another is variable (Hudson and
Hudson, 2017). Thus, fixed cost never get change with the level of output but variable
cost get changed with the changes in output.
P2. Double entry book keeping system and basic trial balance to record purchase and sales
transactions in general ledger
Dual entry book keeping system means that every transaction of organisation must be
record in minimum two accounts. Along with this, it also needed for each and every transaction

that debited amount should be equal to the credited amount. Below mention is the account
balance of double entry book keeping of Mr. Happy Restaurant are as follows :-
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 575
Cash sales 14795
Credit card sales 3350
Free issues 750
New kitchen equipments 6540
Food purchase 12970
Beverage purchases 7900
Purchase return 2300
Discount received 200
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Detailed analysis of sales and purchase transaction to compile a trial balance suing
double entry system:

Particulars Debit Credit Transaction amount
Wages 16489 24000
Gifts 24000 16489
Benefits 25000 15900
Allowances 15900 25000
Weekly food shopping 17809 17809
Clothes 26415 26415
Gifts 3678 3678
Household utility bills 15000 15000
Drinks 8455 8455
Lunch purchases 10032 10032
Total 81389 81389 162778
P3. Formation of basic trial balance by applying balance off rule:
Balance off rule is an accounts that is prepared in the ending of accounting year. It is
necessary for Mr. Happy Restaurant manager's to examine actual balance of every ledger A/C for
extracting a trial balance that is part of accounting cycle (Jurigová, 2016). Thus, it is necessary
for manager of respective restaurant to check their trail balance on regular basis for creating
financial statement in effective manner.
TRIAL BALANCE
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200

Purchases 12000
Sales 14600
Sundry creditors 1620
Debtors 12400
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
From the above mention trail balance it has been analysed that each and every transaction
are recorded in correct as well as systematic manner. Trail balance is the combination of several
expenses and income in the appropriate framework of accounting principles. Moreover, equal
balance on the both side of trail balance reflect that principles of accounting are mentioned in
appropriate way.
TASK 2
P4. Different stages of HR life cycle for retaining and developing talent
Human Resource department play important role within the organisation in recruiting
skilled as well as potential candidates (Kim and Im, 2018). This division help in providing
training to staff member's which result in developing their skills and knowledge as well as assist
in growth of company. There are several type of functions involved in HR cycle which is
important for Hilton Hotel & Resorts for performing day to day activities in effective manner.
Along with this, HR life cycle result in employees retention for long duration. Explanation of
these are as follows :- Recruiting and On-boarding – It is the most important as well as vital stage of HR life
cycle. In recruiting procedure it is duty of Hilton HR manager to design effective
strategies for hiring candidates. Recruiting can be internal or external both but for hiring
fresh talent it is necessary to do recruitment from external source. Recruitment is proper
procedure which require placing the job ads, selecting candidates whose resume look
promising or suitable for vacant position, conducting employment interviews and

administering assessments like personality profiles to choose the suitable candidate for
the position. Career development – it is an opportunity that are important in keeping employees
engagement with organisation over time (Kozlov, 2017). After establishing within
company and employee identify their long term career objectives in which HR
department of Hilton have to try for meeting their goals if they are realistic. Career
development involve professional growth and training for preparing staff members to get
responsible position within organisation.
 Termination or transition – In organisation staff members leaves because of several
reasons such as through retirement after long success career, move to other opportunity or
laid off. Whatever, may be the reason employees will eventually leave association. Thus,
in this situation role of Hilton Hotels and Resort Human Resource manager is to manage
transition by making sure that all these policies and procedure will be followed. Such as
carrying out exit interview if its is an policy as well as remove personnel from system
process. All these are the internal part of respective firm and must be handle internally.
P5. A performance management plan
Performance management plan is called as performance action plan also this is an tool
that has been given to staff member's who have to improve their performance so they can get
opportunities for future success (Kumar, Kaul and Sood, 2019). Mainly performance
management plan is utilise within Hilton Hotel for addressing failure so they can accomplishing
needed job goals and satisfy own self. There is an role script mention below related to the
negative behaviour of employ with other colleagues :-
Script 1:
Manager: From past few days I am continuously observing that Mr. GPR is daily
coming late to office and leave without finishing their working hours.
Staff member: Yes sir, your observation is correct he is coming late office from last 8 yo
9 days.
Manager: do you known why he is coming late?

Staff member: No sir, I don't have any idea about his late coming but I heard from some
of my collogue that he is suffering from some health issue. I think, this may be the reason of Mr.
GPR late coming.
Manager: Okay, I think you guys have to talk him and ask the actual reason if there is no
such major issue then tell him to come on time.
Staff member: Sir, I think due to health issues may be he is well because of health issues
and there is requirement of taking rest . This may be the reason behind daily late coming and we
will talk him about all this.
Manager: Okay, but in this situation he have to take leave and then proper rest. So that
he will get fine soon and come office on time after that.
Staff member: Sir, he already tried for it but due to loss of pay he is not taking leaves.
Script 2:
Manager: From some previous days I am observing that Mr. GPR is not coming on time
but still he is leaving office by not completing their working hours.
Staff member: Yes sir, I was also notice by me and other staff members that he is
coming late from 8 to 9 days last.
Manager: what is cause behind his late coming do you know that?
Staff member: No sir, I am not having any idea about is but from other people I heard
that he is suffering from any health issue. Because of that Mr. GPR is not coming on time and
leaving without completing working hours.
Manager: Okay, I think you people have to talk him and identify the reason behind his
daily late coming because it is major issue which can disturb other employees.
Staff member: Sir, may be due to health issue he is not feeling well and need rest that's
why not able to come on time.
Manager: Ohh... his efforts must be appreciated because he is not well and still coming
office daily is not easy task. This regularity after health problem need to be appreciated.
Staff member: Yes sir, this will motive him and other people also. We have to do such
practices which will encourage.
Manager: Of course we have to do it as well as there is proper procedure which must be
followed within this situation. Firstly, we will appreciate him and after that provide some
medical leave as per requirement so he can take proper treatment.

Staff member: Yes sir, this will be great because all these will result in motivating him
as well as also in getting well soon.
TASK 3
P6. Specific legislation adhere within hospitality organisations
As to conduct business activities in smooth as well as effectual manner and within
governmental rules and regulations it is essential for Hilton Hotel & resort's manager to have
proper knowledge related to laws and regulation given by government for hospitality
organisation. Some of the laws are as follows :-
 Food Act 1997: According to the Food act 1997, it is necessary for every company
performing within hospitality industry to perform their functions as per the governmental
code of conduct and offer healthy and hygienic food items to consumers. Therefore, it is
essential for Hilton Hotel & Resort manager manager to serve food in their restaurant as
per the prescribed procedures.
 Health and Safety Work Act, 1974- Health & safety of personnel working within the
Hilton Hotel and Resort is responsibility of their manager (Lervik and Sutherland, 2017).
So to get safe working environment it is necessary to provide proper training program to
staff members before getting them enrolled on the working station. Because if some
misshappening take place related to health and safety of employee's then legal action
related to the same will taken.
 Minimum Wages Act, 1998- According to the respective act, it is important to give
minimum wages to staff members as per their age and work (Mita, 2016). Policies as well
as regulation related to the minimum wages act divided amount of wages which must be
paid as per the age. So, staff members who are having age of 25 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 - This is an act which established with the motive of protecting staff
member of Hilton Hotel from any type of discrimination within their working
environment. According to the equality act individual should not be discriminated on the
basis of colour, age, sex, culture, religion and many more (Wiltshier, 2017). If equality

act is not implemented by Hilton Hotel & Resort as well as staff members are treated
unequally then major action can be taken and company will be penalised.
P7. Reflection on potential impact of regulations, legislations and ethical principles on decision-
making process
After getting knowledge about government rules and regulation from the above
discussion, I have identified that it is necessary for organisation to adhere some legislation in
their working for reducing illegal activities (Nelson, 2018). As a manger of Hilton Hotel I will
implement minimum wages act 1998, health & Safety act 1974, Food Act 1997 and so on. 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
Western Isles Council
Health and Safety At
Work Act 1974
Guilty £12,000.00
Woodbay Limited Health and Safety At
Work Act 1974
Guilty £50000
TASK 4
P8. Different functional roles within hospitality sectors
For performing organisational activities in easy as well as effectual manner it is necessary
for organisation to perform their roles and responsibilities in impressive manner (Newman,
2016). In this there is an organisational chart and theme which will assist in defining duty of each
and every division which have numbers of units such as, Human Resource, Front office,

Finance, research department and so on. In relation to this, mentioned below there are some
certain role of hospitality industry:
Theme park:
Hospitality Sector:

Hotel:

P9. Different method of communication
For accomplishing predetermined goals and objectives of company it is necessary for
Hilton Hotels and Resorts to implement proper communication pathway (Shore, 2016). Because
if there is no proper communication then important information will not going to be transfer to
every staff member and it will create difficulty within working. Thus, it is duty or responsibility
of respective hotel manager to adopt proper communication pathway :-
Hospitality sector is fast growing as well as leading chain in business environment but it
require several measures of communication like group meetings, telephonic calls, Skype and so
on. These all assist Hilton Hotels & Resorts effectively conducting their day to day activities in
effective manner by transferring necessary information (Tuma and Sisson, 2018). Their is
requirement of proper fund for implementing these communication channel so it is responsibility
of respective hotel manager to generate funds.
CONCLUSION
From the above discussion it has been concluded that hospitality is the wide sector and
help in development of economy at large scale. For growth within respective sector there is
requirement of satisfying customers as well as have to maintain good relation with them. Along
with this, HR division play important role within respective sector for satisfying both customers
and other staff members. Moreover, it is important for business to have proper knowledge about
governmental rules and regulation so they can perform their functions in effectual manner.

REFRENCES
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