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

This report provides a comprehensive analysis of the hospitality business, using "The Green Hill" organization as a case study. It begins by exploring financial performance management, including the preparation of aged debtors trial balances, working capital statements, and financial ratios, along with explanations of key financial terms like sales, purchases, and various cost types. The report then delves into the application of the double-entry bookkeeping system, demonstrating the creation of a trial balance and the balance-off rule. Furthermore, it examines the HR life cycle within the organization, focusing on talent acquisition and performance management plans. Finally, the report addresses legal compliance, identifying relevant legislation and the impact of company, employment, and contract law on the business, along with an overview of communication methods.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION..........................................................................................................................1
TASK 1............................................................................................................................................1
1. Principles of managing and monitoring financial performance...............................................1
2. Application of double entry book keeping system of debits and credits and Analysis of sales
and purchase transactions to compile trial balance......................................................................3
3. Trial balance based on Balance-off rule..................................................................................4
TASK 2............................................................................................................................................6
1. Reviewing the different stages of the HR life cycle applied to The Green Hill organisation. 6
2. Performance Management Plan of The Green Hill organisation.............................................7
TASK 3............................................................................................................................................7
1. Identification of specific legislations that The Green Hill has to comply and adhere to.........7
2. Impact of company, employment and contract law on business.............................................9
TASK 4...........................................................................................................................................9
1. Interrelation of functional roles within the hospitality industry..............................................9
2. Different methods of communication, coordination and monitoring applied within specific
department of the organisation...................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The hospitality industry depends on the availability of leisure time and disposable
income. This is categorised in broad way within service industry that includes multi-pal services
such as theme parks, transportations, cruise line, travelling, event planning and lodging.
Hospitality provides essential services and it is very important for organisations operating in this
segment to understand the business not only their part but all different parts. Understanding
various aspects of business enhance the quality of service provided in hospitality industry. To
demonstrate understanding on hospitality business “The Green Hill” organisation is considered
in this report (Barron, Leask and Fyall, 2014). This organisation provides healthy salads served
with the range of juices and smoothies. This is established on Bishope gate, London. This
assessment report provides information regarding financial aspects in hospitality and role of
human resource in this industry. Together with this various legislations and the laws in the
industry and role of effective communication in business will be demonstrated.
TASK 1
1. Principles of managing and monitoring financial performance
In the current business environment all the organisations are facing huge competition.
The Green Hill is a new business which is turning into a thriving enterprise. Availability of
finances in the business is considered as positive sign to take more productive and quick
decisions. Financial informations are required to be managed and monitor financial performance
of the organisation. There are number of ways for this as follows-
Preparation of Aged Debtors Trial Balance: The Green Hill is a new business
enterprise and every month, a aged debtors trial balance should be prepared. This helps to keep
the track of the customers who owe money to organisation. Regular monitoring on debtors keeps
reduces chances of default and funds are received on time (Monitor Financial Performance,
2018).
Preparation of working capital statements and financial ratios: Working capital is
very important for business as day to day operations are conducted by this. A statement of
working capital needs to be prepared to calculate various ratios such as current and quick ratio.
That helps to compare liabilities and assets and their effective management in business.
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Analysis of HR: When employee turnover ratio is high the it will leads to more spending
on new recruitments. As The Green Hill is a new business entity needs to have effective analysis
of human resource that will help to retain skilled and qualified workforce and cost of employing
new employees will be reduced.
A. Income and Expenditure of Business over one calender year
Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
Drinks
Lunch purchases
B. Explanation of some specific terms used in hospitality industry:
Sales: When goods and services that are prepared by the business organisations to be
served to large number of consumers are transferred to them in some consideration then it is
termed as sales. This is one of the important revenue generating activity that organisations
conduct. Sales of juices and smoothies brings inflow of funds and generate finances for The
Green Hill (Ford and Sturman, 2018).
Purchase: When Goods that are required for consumption are acquired by paying some
monitory consideration then it leads to purchases. For The Green Hill organisation raw material
that is required to prepare smoothies, juices and salads will be purchased from the trader. Smart
purchase in the organisation make it cost effective.
Types of cost: cost is the value of money that has been used up to produce some goods or
to deliver some services. Amount of funds invested in business is termed as cost of establishing a
business. There are multi-pal cost that are incurred while running a business. These cost are
segregated as direct cost and indirect cost, fixed and variable. The Green Hill organisation is
incurring various cost that are as-
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 Direct cost: Cost that is directly related to production of goods and service is termed as
direct cost. Cost of raw material, workers involved in food preparation and cost of
machinery will be termed as direct cost for The Green Hill.
 Indirect cost: Cost that is not directly linked with the production but needs to be incurred
to manufacture a product. Rent, lights, employees to maintain premises are all will be
termed as indirect cost for The Green Hill (Harrison, 2013).
 Fixed cost: Cost that does not change with number of units produced. For example- land
and building
 Variable cost: Cost that differs with number of goods and services produced. For
example- Material.
2. Application of double entry book keeping system of debits and credits and Analysis of sales
and purchase transactions to compile trial balance
Double entry book keeping system is a fundamental concept underlying present day
bookkeeping and accounting. As per this concept every financial transaction has equal and
opposite effects in at least two different accounts. This concept requires that for all transactions
the amounts entered as debit must be equal to the amounts entered as credits. This accounting
system works on debit and credit rule. Effect of each transactions are recorded in most
appropriate manner and financial statements shows true position of business. Trial balance of
The Green Hill is prepared by following this accounting concept as follows-
Particulars Debit Credit Total
Cash in Hand
(Overdraft)
10700 10700
Petty Cash Expenses 750 700
Cash sales 3350 3350
Credit Card Sales 14795 14795
Free Issues 575 575
New kitchen
Equipments
6540 6540
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Food Purchase 7900 7900
Beverage Purchases 12970 12970
Purchase Return 200 200
Discount Received 2300 2300
Credit Notes 190 190
Rent 2850 2850
Utilities 475 475
Functions and events
(Revenue)
5967 5967
Wages 4590 4590
Debtors 700 700
Till shortages 152 152
Total 37502 37502 37502
Note: Assumption is taken for cash in hand as it shown a overdraft balance and for
function and events it is termed as income from operations of business (Hopkins and Turner,
2012).
A trial balance is of The Green Hill organisation will be prepared by following this
bookkeeping concept and incomes and expenses are segregated in prescribed manner. Trial
balance is as follows-
Particulars Debit Credit Transaction amount
Wages 40000 40000
Gifts 7500 7500
Benefits 12500 12500
Allowances 20000 20000
Weekly food shopping 27250 27250
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Clothes 2750 2750
Gifts 5000 5000
Household utility bills 10000 10000
Drinks 4000 4000
Lunch purchases 6000 6000
Total 90000 90000 180000
Note: Amounts that are reflected in the trial balance are all imaginary figures.
3. Trial balance based on Balance-off rule
Balance-off rule is applied on various accounts present in ledger books of a business. As
per this rule each business at the end of financial to know about financial position of business
needs to balance the amount available in the accounts by debiting or crediting the required
amount. This method helps to analyse that information that is recorded in journal and ledger
accounts are correct or not.
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
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Vehicles 2020
Total 52420 52420
To know that trial balance of the organisation is prepared on correct information or not a
test can be done. As debit side of trial balance matches with credit side then it reflects true and
fair position of the organisation (Kozlov, 2017).
Formation of trial balance requires following steps:
While preparing trial balance of The Green Hill it will be considered that all the ledger
accounts are closed and available balance must be shown to appropriate side as per their nature.
Steps involves are as follows-
 A three column worksheet for particulars, debit and credit amounts will be prepared.
 After this closing balance of each ledger account will be mentioned in this worksheet.
 In last total of both debit and credit balance will be done and both will reflect same
balance to show that financial information recorded by organisation is correct.
TASK 2
1. Reviewing the different stages of the HR life cycle applied to The Green Hill organisation
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Importance of HR life cycle:
HR life cycle involves the stages employees go through and role of HR during those
stages. Stages that are involved in this life cycle has its own challenges, opportunities and
benefits. This proves as a tool that helps in strategic talent management and reducing issues
related to staff retention. This gives a hike to skill and knowledge that is possessed by employees
by challenging at each stage (Mallery, 2013).
Recommendation: Documents of employees performances are kept with the
management and The Green Hill organisation in order to evaluate performance prepares several
documents. Daily performance report, individual interest and achievements, work sheet of whole
month etc. All these documents will provide information about actual performance of the
employees and helps in retaining qualified workforce.
Talent acquisition: It is a holistic, ongoing process that involves three steps which are
recruit, select and Onboard. The goal of the strategic talent acquisition is beyond acquiring
skilled employees in the organisation as it also focuses on retaining these talented employees in
the organisation and making them asset for The Green Hill organisation. Through talent
acquisition a skilled and qualified worker is attracted towards organisation for making an
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application to gain a position in the company and work their efficiently. The Green Hill business
entity is facing various issues related to talent acquisition some of them are as follows-
Ignoring the introverted candidate: In today's business scenario candidates that possess
extrovert behaviour are favoured by recruiters in the organisation. As extroverted candidates
attracts large number of people towards them and get preference over introvert candidates. This
hinders organisation by losing an opportunity of appointing to hire a candidate who is highly
skilled but introvert.
A lengthy to-do list: Recruiters of the organisation for job profile on the basis of
applicant tracking system management, job listing updates and mounting pressure from hiring
managers and executives. These activities steal time from meaningful engagement that could be
happening with active and potential candidates. Through this method of selecting an candidate
The Green Hill organisation is loosing skill and experienced chefs working for the business
entity.
2. Performance Management Plan of The Green Hill organisation
Performance management plans gives its focus on development of skills and learnings of
various employees working in The Green Hill on regular basis. For this a script is designed to
employee giving an employee a pay rise which is linked with a new bonus scheme: :
The process which should not be undertaken:
Manager came and said.
Manager: Hi, everyone I am glad to announce that pay of everyone has been raised as
per new scheme launched by the organisation.
Employees: Thank you, we are so happy with this news. Is this official?
Manager: Yes, I am quite sure about this.
Employees: Cheating among themselves and with managers happily discussing amount
of increment.
The process which should be undertaken:
Employee: Good morning, sir.
Manager: Good morning, I am happy to inform you that there is a rise in your pay as per
new bonus scheme.
Employee: I am so great full sir.
Manager: Keep going and work hard and success will be all yours.
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Employee: Sure sir.
Manager: Best of Luck.
Employees: Thank you sir.
TASK 3
1. Identification of specific legislations that The Green Hill has to comply and adhere to
Covered in PPT
2. Impact of company, employment and contract law on business
Covered in PPT
TASK 4
1. Interrelation of functional roles within the hospitality industry
Organisational structure of The Green Hills organisation is as follows:
Various other organisational structure are as follows:
Hotel:
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Hospital:
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Theme Park:
There are number of business segments that are operating in hospitality industry. Each
business entity differers in their organisational structure. There is no set rule for having a
particular structure of an organisation. This structure is formed with various departments and all
the departments work together to achieve organisational objective. Decision of one department
affects performance of the other department and all are termed as interrelated (Shore, 2016).
2. Different methods of communication, coordination and monitoring applied within specific
department of the organisation
Communication is a method of transferring thoughts and views of one person to the
other. Various ways of communication followed in The Green Hill organisation are as-
E-Mail: It is a formal manner of communication through which information is
transferred in written form. This is generally use to inform large number of persons in the
organisation about some decision.
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Verbal: This is one of the highly used method of communication in informal manner.
This is very easy and leads to spread any information very quickly.
Telephone Call: This method of communication requires presence of telephone to have
conversation. Communication is done with the specific person to whom information needs to be
provided (Wiltshier, 2017).
Methods of coordination that helps to achieve organisational objectives and
strengthen the value-
Coordination is the unification, integration, synchronization of the efforts of the group
members so as to provide unity of action to achieve common objective. All the departments of
Then green Hills organisation must be well coordinated that will help in performing various
activities in effective manner. This will be termed as asset for the organisation that will help to
achieve set business objectives and to set future goals quickly. A proper coordination will reduce
duplicity of work and make sure that each business activity is performed as per plan.
Critical analysis of different methods of communication, coordination and
monitoring:
Issues in different departments of the organisation reduces efficiency of overall
performance of the company. Issues such as remote working in housekeeping make it difficult to
perform any work efficiently. Lack of desk space in the kitchen hinders efficiency of employees
working in the kitchen by more waiting time to perform their activity. Language issues in various
department of employees makes communication and coordination poor. Various issues of
departments are resolved by having a proper plan that will be designed after discussing with
employees regarding their views and considering favourable one (Vitikka, 2018).
Recommendation: It is suggested for The Green Hill organisation to mix formal and
informal system of communication in the organisation. This will enhance the efficiency of the
organisation as a whole.
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CONCLUSION
From the above project report it has been concluded that each department of the
organisation contribute towards success of the business. Businesses needs to know about various
factors that affects performance of the organisation. Importance of financial aspects in hospitality
business and requirement of human resource to attain organisational objective is critically
analysed. There are various laws and legislations that each business entity operating in
hospitality industry required to follow to avoid legal compliances. Together with this a effective
communication needs to develop in the organisation to make internal system effective.
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