Hospitality Business Toolkit: Managing Finance, HR, Law, & Roles

This report provides a comprehensive overview of key aspects within the hospitality industry, focusing on the fictional 'East London Catering' company. It begins by outlining the principles of managing and monitoring financial performance, including budget creation, expenditure tracking, and ethical considerations. The report includes a detailed journal and ledger for 'East London Catering,' culminating in a trial balance. It then reviews the stages of the HR life cycle and develops a performance management plan for a specific hospitality job role, addressing negative behavior and staff retention. Furthermore, the report identifies specific legislation impacting hospitality organizations and illustrates the impact of employment and contract law on business decisions. Finally, it explores the interrelation of functional roles and explains communication and monitoring methods within a hospitality department. Desklib offers a variety of study tools and solved assignments for students.

Hospitality Business
Toolkit

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Principles of managing and monitoring financial performance............................................3
P2. Journal and ledger of 'East London Catering'.......................................................................4
P3. Trial balance of 'East London Catering'..............................................................................10
TASK 2..........................................................................................................................................10
P4. Review the different stages of the HR life cycle applied to a specific hospitality job role,
and their importance for retaining and developing talent.........................................................10
P5 Develop a performance management plan for a specific hospitality job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention................11
TASK 3..........................................................................................................................................12
P6 Identify specific legislation that that a hospitality organisation has to comply and adhere to
...................................................................................................................................................12
P7 By the help of specific examples, illustrate how company employment and contract law
has a potential impact on business decision-making in the hospitality industry.......................13
TASK 4..........................................................................................................................................14
P8 Explore how different functional roles within the hospitality sector interrelate.................14
P9 Explain the different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organisation to strengthen the value chain.........14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

Introduction
Hospitality management refers to the activity of managing day to day operations related to the
hospitality industry (Adeyinka-Ojo, 2018). This is a big industry which accounts to a significant
percentage in the economy of UK so management of this sector's companies is essential for both
the entrepreneur and the government. Hospitality management is a vast field which consists of
activities such as travel, accommodation, food, event management and different services for
tourists (Álvarez-Risco, Estrada-Merino and Pérez-Luyo, 2020). In this report a catering
company named East London Catering is considered whose financials are made along with the
discussion of various factors associated with hospitality industry.
TASK 1
P1. Principles of managing and monitoring financial performance
Finance is considered the most essential aspect of any business, without proper
management of finance the organisation won't be able to sustain (Bellizzi, 2018). The
management of these finance is done by a dedicated team which evaluates every part of the
company that is associated with numbers. Finance team is also responsible for estimating
budgets and financials projections of the organisation. East London Catering have a good finance
team who works ethically in order to provide support to different departments of the business.
There are certain principles that needs to be taken in account while managing and monitoring
these financials, few of them are discussed below:
 Budget made by the finance team must be realistic so that it can act as a tool of
comparison when the company generates actual result. A budget helps in assessing the
conditions that the company may face in the near future (Connatser, 2021). Preparation of
a budget is essential for a company such as East London Catering because it helps the
managerial team in taking important decisions.
 All the expenditures occurred during the course of business must be backed by proper
accounts so that the organization would be able to calculate their exact amount of profit.
Creation of various financials expenditure accounts such as advertising, rents and taxes,
wages and salaries helps the managers to know the source of expense. East London

Catering makes prepares all the expense accounts for the clear understanding of the
expenses.
 The financial team must avoid window dressing, this refers to fabrication of data for
personal or organizational gain. This is considered as a severe offence as this effects the
shareholders and investors of the company (Rodríguez-Antón and Alonso-Almeida,
2019). In context of East London Catering, they follow ethical approach while recording
the amounts in the books of the company.
 They are responsible for maintaining an adequate cash flow for the organisation, so that
the organisation can meet the obligations that are entitled for short term (Thommandru
and et. al., 2021). Finance team of East London Catering manges the operating, financing
and investing activities of the company to increase the profitability and reliability of the
company.
P2. Journal and ledger of 'East London Catering'.

Date Particulars Debit Credit
2021
January
January
January
January
January
January
January
January
January
Cash a/c
To capital a/c
(Started business with cash)
Store rent a/c
To cash a/c
(Store rent being paid in cash)
Washer and dryer
To Cash a/c
To creditor a/c(Supplier of washer and dryer)
(washer and dryer being purchased for 10000 cash and
15000 credit)
Insurance policy a/c
To cash a/c
(Insurance premium paid in cash)
Food supplies a/c
Beverages a/c
To Creditors(WH Adams)
(Food supplies and beverages being purchased on credit)
Laundry fee a/c
To cash a/c
(Being laundry fee paid for cash)
Telephone and internet a/c
To Cash a/c
(Being telephone and internet bill paid in cash)
Rates, water charges and refuse a/c
To cash a/c
(Being rates, water charges and refuse paid in cash)
Wages and Salaries a/c
30000
1000
25000
1200
8000
7000
200
2220
950
1740
30000
1000
10000
15000
1200
15000
200
2220
950
5

January
January
To cash a/c
(Being wages and salaries paid in cash)
Cash a/c
To sales(food) a/c
(Being food sold for cash)
Cash a/c
To sales(beverages)
(Being beverages sold or cash)
20000
13000
1740
20000
13000
Total 110310 110310
Ledger accounts:
Cash account
Date Particulars Amount Date Particulars Amount
To Capital a/c
To Sales(food)
To Sales(bev.)
30000
20000
13000
30/01/18
By Store rent
By washers
By Insurance
By laundry fee
By telephone
By rent
By wages
By balance c/d
1000
10000
1200
200
2220
950
1740
45690
63000 63000
01/02/18 To balance b/d 45690
Capital account
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 30000
01/06/16 By cash a/c 30000
6

30000 30000
01/02/18 01/07/16 By balance b/d 30000
Expense(Insurance) a/c
Date Particulars Amount Date Particulars Amount
To cash a/c 1200
30/01/18 To balance c/d 1200
1200 1200
01/02/18 To balance b/d 1200
Expense(food supplies) a/c
Date Particulars Amount Date Particulars Amount
To creditors a/c 8000
30/01/18 To balance c/d 8000
8000 8000
01/02/18 To balance b/d 8000
Expense(Beverages) a/c
Date Particulars Amount Date Particulars Amount
To creditors a/c 7000
30/01/18 To balance c/d 7000
7000 7000
01/02/18 To balance b/d 7000
Expense(laundry fee) a/c
Date Particulars Amount Date Particulars Amount
7

To cash a/c 200
30/01/18 To balance c/d 200
200 200
01/02/18 To balance b/d 200
Expense(Telephone and internet)
Date Particulars Amount Date Particulars Amount
To cash a/c 2220
30/01/18 To balance c/d 2220
2220 2220
01/02/18 To balance b/d 2220
Expense(Rent, water and refuse)
Date Particulars Amount Date Particulars Amount
To cash a/c 950
30/01/18 To balance c/d 950
950 950
01/02/18 To balance b/d 950
Expense(Store rent)
Date Particulars Amount Date Particulars Amount
To cash a/c 1000
30/01/18 To balance c/d 1000
8

1000 1000
01/02/18 To balance b/d 1000
9

Creditors account(Supplier of washer and dryer)
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 15000
By washer 15000
15000 15000
01/02/18 By balance b/d 15000
Creditors account(WH Adams)
Date Particulars Amount Date Particulars Amount
30/01/18 To balance c/d 15000
By food supplies
By beverages
8000
7000
15000 15000
01/02/18 By balance b/d 15000
Sales account
Date Particulars Amount Date Particulars Amount
30/06/16 To balance c/d 33000
07/06/16
15/06/16
21/06/16
By cash a/c(food)
By cash a/c(bev.)
20000
13000
33000 33000
01/07/16 By balance b/d 33000
10

P3. Trial balance of 'East London Catering'.
Trial balance
Particulars Debit Credit
Capital
Cash
Expense(store rent)
Expense(Supplier)
Expense(beverages)
Expense(insurance)
Expense(laundry fee)
Expense(Telephone and internet)
Expense(Rent. Water and refuse)
Expense(Wages and salaries)
Asset(Washer and dryer)
Creditors(Washer and dryer)
Creditors(W.H Adams)
Sales(food)
Sales(beverages)
45690
1000
8000
7000
1200
200
2220
950
1740
25000
30000
15000
15000
20000
13000
Total 93000 93000
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TASK 2
P4. Review the different stages of the HR life cycle applied to a specific hospitality job role, and
their importance for retaining and developing talent
HR life cycle is a well executed chain of activities which ensure that the people hired in the
business are serving the right role in the organisation (Feniser, Dusa and Sadeh, 2018). This
helps in establishing a good relationship between the employees and the human resource
manager of the company. In context of East London Catering they follow a vicious a HR life
cycle to ensure efficient working in the organization. The HR life cycle is major divided into five
parts:
 Attraction, recruitment and selection- This is the foremost step of a human resource
manager, every basic role of HR is fulfilled in this stage. It is all about attracting the
people to fill for the job role, conducting tests and interviews and selecting the
appropriate person to fill the job role (Kalotra, 2017). In context of East London
Catering, their HR manager hires people by interviewing candidates whose resume fit
the job role and it helps in extracting the best people out of the applied one's.
 Induction, orientation and onboarding- After the recruitment, HR managers explains
the job role briefly along with the information about the organisation. In this stage the
employees are informed about the resources and facilities provided by the company. In
context of East London Catering, they conduct special sessions to inform the exact job
role and territory of the employee. This helps in avoiding the assumption and confusion
part from both the sides.
 Career Planning and development- The HR manager is responsible for providing
ample of opportunities to the employee working in the organisation (O’Connor, 2019).
This motivates the employee to work harder so that they can grow more and more. In
context of East London Catering, they have a huge growth structure for the employees
working in the organisation.
 Retention- Retaining employees for a long time is one of the major tasks of HR as there
is a lot of resource and time invested in hiring people. To avoid the same hectic process
they offer numerous amounts of benefits to the employees. In context of East London
Catering, they make their employees feel respected in the company. They offer various
kinds of perks to the employees which interests them in working for the organisation.
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