Hospitality Business Toolkit Report - Financial, HR, and Legal Aspects

This report delves into the multifaceted aspects of the hospitality business, using Bejos Foods as a case study. It begins by examining financial management principles, including risk assessment, taxation, and expense organization, along with an explanation of cost types and the application of double-entry bookkeeping. The report then analyzes sales and purchase transactions to compile a trial balance and applies the balance-off rule. Furthermore, it explores the HR lifecycle, addressing talent acquisition and retention issues, emphasizing the role of HR in supporting, growing, and retaining talent, and discussing the importance of the HR lifecycle in strategic talent management. The report also includes a performance management plan for a specific hospitality job role, addressing negative behavior and staff retention. Finally, it covers the legal aspects of the hospitality business, including compliance with specific legislation and the impact of employment and contract law on business decision-making, and discusses the interrelation of different functional roles and methods of communication, coordination, and monitoring to strengthen the value chain.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Investigating the different principles of managing and monitoring financial performance. 3
TASK 2............................................................................................................................................4
P5. Different stages of HR life cycle applied to a specific hospitality job role and their
importance for retaining and developing talent......................................................................4
M2. Importance of HR life cycle in relation to strategic talent management in overcoming the
issues of staff retention...........................................................................................................5
D2. Valid judgements and recommendations on the way through which HR processes and
documents can be improved for effective talent planning throughout the HR life cycle.......6
P5. Performance management plan for a specific hospitality job role applying techniques to
resolve both negative behaviour and overcoming the issues of staff retention......................7
TASK 3............................................................................................................................................7
P6. Specific legislation that a hospitality organization has to comply and adhere to ...........7
P7: Impact of employment and contract law on business decision making...........................8
TASK 4............................................................................................................................................9
P8: Interrelation of different functional roles.........................................................................9
P9: Methods of communication, coordination and monitoring to strengthen the value chain.11
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality business mainly concerns with providing services to the customers. This is a
business which mainly deals in satisfaction of the customers. The organizations in hospitality
business needs to adopt the new trends and technologies in order to gain the competitive
advantage. In this way, the organizations should develop the financial strategies also so as to
increase profitability. This report is based on Bejos foods which is a London based firm
specializes in serving, salads, blended juice and smoothies. In this report, principle of financial
management and double entry bookkeeping on transaction in a ledger is explained. Stages of HR
life cycle for a job role in hospitality sector with development of performance management plan
is discussed. Apart from that, legislations followed by hospitality organizations and interrelation
of different function in hospitality business is also explained. In the end, various methods for
coordination, communication and monitoring are discussed in this report.
TASK 1
P1: Investigating the different principles of managing and monitoring financial performance.
Financial statements are the incomes and outputs of the transactions of finance within a
company. In order to manage these transactions, different principles of financial management are
used. In case of Bejos foods, the principles of financial management are discussed below:
Understanding of risk:
In the financial department, the chances of risk are more. Since every company's capital
is managed by the financial department therefore it has become necessary for the management to
check the risk before investing in any field. Stock and bond have more chances of return while
investing in other fields have risk of return. Therefore the management of Bejos food should
understand the risk before investing in any direction.
Pay Attention to taxes:
The hospitality organization should keep in mind the capital investment of taxes. A part
of capital should be given in the taxation which help the company in working with the legislation
of country. Apart from, a financial software should be used by the company which can help them
in calculating the part of taxation system. This will help the company in managing the taxation in
an effective manner.
Organizing the finances

The hospitality organization should keep in mind all the expenses and incomes before
transacting in any filed. They should look upon credit cards, bank accounts, personal loans,
brokerage accounts, mortgages, car loans and retirement accounts. With the help of which they
can easily manage the financial account and organization will not survive financially.
Incomes and expenditures of business in one calendar year
Incomings Outgoings
Benefits Drinks
Allowances Lunch purchases
Wages Household utility bills
Gifts Weekly food shopping
Clothes
Gifts
Explanation of specific terms
Types of cost: There are different types of cost through which the organization operates
its business functions and activities. Following are the cost of Bejos foods:
 Variable cost: The cost which is dynamic in nature is known as variable cost. These costs
fluctuates as per the market conditions. This includes, beverages, sales commission,
utility costs etc.
 Fixed cost: These are the costs which does not fluctuate according to the market
conditions. These are static in nature such as advertising cost etc.
 Semi variable cost: These costs are fixed for a level and fluctuate for a specific condition.
Sales: Sales is the total revenue gathered by the organization by selling products and
services. In case of Bejos foods, the selling of beverages and food products to the customers
provides revenue to the company and that is known as sales.
Purchase: It is the known as the purchasing of raw materials for the company through
which it can operates its business functions smoothly. In case of Bejos, the purchasing of foods,
fruits, and other products can leads to smooth running of business.

P2. 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
In this system, the accounting transaction which are recorded can affect two accounts
simultaneously. This will help Bejos foods to record their transaction for better reporting. The
trail balance based on double entry book keeping system is stated as below:
Particulars Debit Credit
Cash in hand (Negative Figure) 10700
Petty cash expenses 750
Cash sales 3350
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
Total 37502 37502

Sales and Purchase transactions to compile a Trial balance using Double entry system:
Sales: It bis known as the selling of products and services to the customers through which Bejos
will receive revenue.
Purchase: It is denied as the expenditure of money over resources and other aspects of business
in Bejos foods.
The trail balance based on above table and double entry book keeping system is stated as
below:
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
Total 81389 81389 162778
P3. Formulation of basic trial balance by applying balance off rule.
Balance off rule: the amount remain in ledgers forwarded to next year to find the
balance is known as balance off rule. In case of Bejos foods, at the year end, this is used to find
any misappropriation and preparation of financial statement.
Trial Balance
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
Total 52420 52420
The above table shows that the account balance are recorded properly in trial balance and tallied.
It consists of total of various expense and income account ledgers which are distributed as per
matching principles. Apart from that, trail balance matching exhibits generally accepted
accounts.
Following are the steps involved in trail balance:
 A three column formate is prepared in which first column consists of titles, second is
debit balance and third is for credit balance.
 Al the details are filled with proper entries.
 Calculate all the entries with debit and credit columns.
 If there is any mismatch, it should be evaluated.

TASK 2
P4. Different stages of HR life cycle applied to a specific hospitality job role and their
importance for retaining and developing talent.
Overview of issues in talent acquisition and retention
In acquiring and retention there are a number of issues which can be faced by the HR
manager at workplace. Following are those issues discussed.
Discrimination at the workplace
It is one of the important issue in acquiring and retention of employees at Bejos food.
Since all the employees wants to work in a healthy and equally biased environment where their
skills being priced. Discrimination at the workplace in promotion, salary etc. can leads to create a
huge issue in acquiring and retention of employees.
Workplace diversity
The diversity in workplace can create dissatisfaction among the employees. In today's
working environment there are a lot of employees who are servicing from different countries.
Diversity can leads to employee turnover within Bejos foods. Therefore it can leads to increase
issues in acquiring and retention of workforce.

Importance of HR plays in supporting, growing and retaining talent
HR plays an important role in the supporting, growing and retaining talent. The role of
HR are explained below:
Make visibility a priority:
Every employee within an organization wants to see a room for its development. In order
to do that, the HR manager of Bejos foods should support the employee so that they will work
harder for their development in the company. This will help them in growing their career
smoothly and satisfying their needs and requirement. Thus employees can be retained within an
organization.
Rewarding the employees:
By rewarding the employees within Bejos foods can motivate them to work harder for the
company. The HR manager should support the employees with the incentives and salaries so that
their performance cab be increased. Thus their career will grow and hence they will also retained
within the organization. Thus role of HR is important in supporting, growing and retaining the
employees.
Importance of HR life cycle in relation to strategic talent management in overcoming the
issues of staff retention.
HR life cycle is important aspect in overcoming the issue of employee retention.
Following are the aspects of importance:
Selecting talented candidates:
The HR manager has the responsibility of selecting talented and suitable candidates
which is accurate to fulfil the desire of post. The life cycle HR plays within the company is
necessary to select the talented candidates. HR should conduct interview, tests and other
activities through which it can attract the required candidate. Suitable candidate help the
company in performing better. Thus interest of employee will also increase in the desired post.
According to the HR life cycle, the employee will get the promotion and incentives so as to gain
the advantage of its performance and hence the issue of employee retention can be resolved.
Strategic management:
This is also an important concept of HR life cycle in order to attain talented candidate for
the desired post. With the help of HR life cycle, Bejos foods can recruit the desired candidate for
the post. This will help the company in implementing the strategies and utilization of the

resources as much as possible. Therefore their strategies have been implemented successfully.
This will give the organization in a huge profit and thus incentive of the employee also motivate
it to work harder. Thus the issue of employee retention can be overcome.
P5. Performance management plan for a specific hospitality job role applying techniques to
resolve both negative behaviour and overcoming the issues of staff retention.
A role played on the script: “An employee is always late for work.”
In the above issue the performance management plan is prepared. An effective
communication without improper words will increase the quality of plan. Following is a script
which could be helpful in understanding the way of communication.
Script One
Discussion should not be undertaken:
Manager: Your are doing your work very late.
Employee: Sir, due to excessive pressure and adverse environment the time taken to
complete the project has increased.
Manager: You are not sincere regarding your work.
Employee: Sir, I am sincere but the work requires to complete a little more time.
Script Two
Discussion should not be undertaken:
Manager: Your last three reports have been counted a number of errors.

Employee: The mistake I have done, I am asking sorry to you sir.
Manager: You are doing well but what are the reason behind fall of performance?
Employee: Sir, the allotted task is new and that is why I am working on it to improve my
performance.
TASK 3
P6. Specific legislation that a hospitality organization has to comply and adhere to
To run a business smoothly, the Bejos foods should keep in mind different legislations.
This will help them in increasing knowledge in specific rules and regulations. Following are the
regulations:
Liquor Control Act 1987:
This act is helpful for the hospitality industry because it is usable in controlling and
monitoring the use, consumption, sell and purchase of such product. Bejos food is ready to serve
beverages, soft drinks and other health freak items therefore this act is helpful for it to ask the
permission of selling alcoholic products.
Food act 1997
This act is helpful for the hospitality industry in order to check the hygienic of food,
associated concerns of food etc. All these aspects are necessary for Bejos foods because of
following the guidelines of this act. This act is also helpful in manufacturing, preparing, storing
and serving food and beverages to the customers.

P7: Impact of employment and contract law on business decision making.
Every company is affected through the changes in rules and regulations of that country or
a particular law. In case of Bejos foods, the change in employment and contract law can affect
the decision making of the company. In that case, the company should prepare new guidelines
and procedures through which they can run their business smoothly. Following are the examples
of impact of employment and contract law on business decision making.
 In case of Aldi stores, the company was penalised with £1 million in order to compensate
the injury of an employee while operating the electric pallet truck in organization.
 Due to interruption in the investigation, The fashion giant JD sports is been penalised
with £60,000 in Dudley.