Unit 4: Financial, HR, and Legal Aspects of Hospitality Business

This report provides a comprehensive analysis of the hospitality business, focusing on financial performance, human resource management, and legal compliance. It begins with an examination of key principles for managing and determining financial performance, including the development of financial statements and inventory management. The report then delves into the application of the double-entry bookkeeping system and the creation of a trial balance. Furthermore, it explores the various phases of the HR life cycle, emphasizing their significance for talent development and retention, and develops a performance management plan. The report also examines relevant legislation that hospitality businesses must adhere to, as well as the influence of employment and contract law on decision-making. Finally, it discusses the interrelated functional roles within the hospitality industry and explores ways to enhance the value chain through effective communication, monitoring, and coordination.

Unit 4 The Hospitality
Business Toolkit
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INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
P1. Examine the key principles for managing & determining financial performance................5
P2 Application of double entry book-keeping system of both credit and debits to record
purchase as well as sales transactions into a general ledger........................................................6
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger...........................................................................................................................................7
TASK 2............................................................................................................................................8
P4. Analyse various phases of HR life cycle which is applied to a particular hospitality job
role along with their significance for developing as well as retaining talent..............................8
P5. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention..............9
TASK 3..........................................................................................................................................10
P6 Examine particular legislation which a hospitality business entity has to comply..............10
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process............................................................................................................10
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TASK 4..........................................................................................................................................12
P8 Various functional roles which are interrelated within hospitality industry........................12
P9. Discuss various ways of communication, monitoring & coordination application within in
hospitality sector in order to strengthen the value chain...........................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
Books & Journals.......................................................................................................................16
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INTRODUCTION
Hospitality industry in today’s world is one of the leading and largest industrial sectors.
Organisational those who offer their services in this sector offer high quality products and
services to their customers as to attract their loyalty (Anderson and et. al., 2017). Different types
of units are involved in hospitality industry such as lodging, restaurants food and beverages and
accommodation. By operating different types of activity hospitality industry serve large base of
customers from different locations industry. It is one of the most diverse diversified industrial
sectors as they receive customers from all locations around the world. Present report has been
conducted a new store named “Healthy life”. They are serving their customers with providing
new salads and drinking options as to encourage healthy life standards. In this report formative
discussions has been made own key principles in order to manage and determine financial
performance. Along with this, report includes double entry bookkeeping system along with this
trial balance. In addition to this HR life cycle is also involved in that report. Further performance
management plan is being specified along with particular legislations that are implied on
hospitality business sector. Lastly organisational employment in contract law and various
functional roles are being discussed in this project.
TASK 1
P1. Examine the key principles for managing & determining financial performance
In order to ensure smooth functioning of all departments in hospitality industrial sector it is
essential to properly manage and determine financial performance. As this will benefit
organization to effectively ensure their success in a competitive marketplace in order to manage
and determine financial performance organisations involved within hospitality sector can take
advantage of different measures. By monitoring financial performance entities can effectively
able to accomplish their objectives. Mentioned below there are some methods define:
Developing key financial statements:
It is the first stage in which organisation is required to develop financial statement such
as P&L account, balance sheet, etc. With the help of evaluating past financial performance
organization can predict many financial terms through which company can determine their
financial performance. This will allow them to effectively develop financial statements and
ensure more competitive advancements.
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Creating inventory records:
Inventory is one of the most important aspects in any industrial sector despite of their size
and scope (Pirani and Arafat, 2016). Thus, it is essential for an organisation to invest strategies
and effective policies in procurement of raw material, use of tools and machineries etc. In this
manager of company is required to maintain proper records of inventory and make sure that
resources are being effectively utilised.
Business transaction
P2 Application of double entry book-keeping system of both credit and debits to record purchase
as well as sales transactions into a general ledger
Double entry book system is one of the most essential systems of accounting. It define that
each and every organisational monetary transaction is to be in the written format and in two
accounts. This signifies that every transaction have two effects on business namely debit and
credit. This is one of the commonly used systems through which organisation record business
transactions. There are certain principles of bookkeeping system which is being further define
below:
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 Book keeping prepare in a way that involve all the types of accounting transactions. In
this main accounts are trial balance, journal, financial account of business and ledger.
Each and every transact ions are recorded in the financial statements in accurate manner.
 The trial balance is being prepared in order to close all the accounts. Main purpose of
trial balance is to effectively evaluate errors that may possibly been done in the recording
of transaction on other accounts.
P3. Create a trial balance implementing the use of balance off rule in order to complete the
ledger
Trial balance is defined as a list of ledger that involves journal accounts. It include ledger
of a company. Name along with the values of every nominal journal account and balance is
being recorded in this account. This has further being defined that every nominal journal account
has a balance of credit and debit.
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TASK 2
P4. Analyse various phases of HR life cycle which is applied to a particular hospitality job role
along with their significance for developing as well as retaining talent
It has been identified that HR is one of the most important aspect in every organisation as
this department is mainly linked with employees which is one of the most important resources of
an organisation. This unit provide different type of employment opportunities to individual and
aid them to perform operations within entity in best effective manner. This has been identified in
relation with healthy drinks HR manager of entity ensure that there is a proper implementation of
strategies and policies in order to manage employees in a best effective manner:
Recruitment and Selection:
It is a first stage in which HR manager involved in the process of recruiting and selecting
right individual for the right place in an organisation. Both of these methods benefit HR to select
right individual for company through which they increase workplace efficiency of entity. In
context with healthy drinks it has been identified that, HR manager effectively evaluate job
profile or vacant position and then recruit effective candidates.
On boarding and orientation :
In this stage HR manager of an entity inform employees about every decision, roles,
procedures and policies of company. In this every newly hired candidate gets to know about the
main mission and vision of entity. In context with healthy drinks this has been identified that HR
manager effectively explain each and every regulation as well as roles that are associated with
organisational objectives to employees. Along with this number of benefits and perks is being
inform to employees in order to ensure the long-term sustainability within an organisation.
Exit and transition:
This is defined as a situation in which employee exit from entity main involved different
type of reasons such as unsuitable work environment, conflicts, grievances and more. In relation
with healthy drinks it is essential for a manager to regularly engage in the process of taking
feedback from their employees. With the help of this they can able to resolve issue at right time.
This will allow them to retain their employees for long period of time and make reduction in
labour turnover rate. In addition to this, HR manager is required to provide regular training to
their employees in order to increase their knowledge and skills with the help of this they allow
employees to increase their workplace performance.
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As per the above mentioned discussion it has been analysed that by performing all the
measures HR manager of company can effectively able to increase loyalty among employees. As
if employees considered themselves to be treated in the right manner then they automatically
contribute their higher contribution in organisational goals. This will not only aid HR manager to
increase organisational profitability but also developed their positive brand image in
marketplace.
P5. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.
Performance management plan is defined as a process which is being developed by an
organisation in order to effectively accomplish organisational goals as well as objective. In this
entity take support of different strategies as well as measure by evaluating factors in business
environment that are prevailing in business environment. In relation with health drinks it has
been analysed that company is mainly suffering from high labour turnover, internal factors that
affect their regular functioning. Thus, in order to overcome the situation HR manager of
company device performance management plan in which different types of strategies have been
undertaken as to make significant reduction in turnover of employees:
Plan
At the first stage formulation of plan is being done in order to fulfil goals as well as
objectives of company in order to ensure effective growth. This plan is being used to retain
employees for long term in organisation. In order to make reduction in labour turnover HR
department ensure that there is less conflicts and high motivation in organisational working
structure. Along with this, plan constitutes different type of benefits through which employees
can be retained for long time. This has been identified that HR manager ensure that they must be
coordinated environment that positively increase motivation among employees. This will
automatically towards increasing employee’s performance as well as satisfaction level towards
entity.
Monitor:
In this process the formulated plan is required to be monitored on a regular basis as to
make sure that all the activities are being undertaken as per according to the predefined plan. HR
department of organisation ensure that all the functions that are being devised in plan are being
undertaken in every department. In this manager also monitor employees by undertaking their
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regular feedbacks. With the help of this they lead towards reducing their dissatisfaction from
company. In addition to this that has been identified that manager also ensure that there is
positive and motivating work environment as it is one of the most important aspect through
which employee turnover can be reduced.
Review:
This is the last stage in which proper review of plan is required to be done. It involve top
level management company with the help of t which HR manager can effectively able to make
sure that all the stages of the plan implemented in a best effective manner. With the help of this,
HR manager of healthy drinks can significantly able to reduce the labour turnover and can fulfill
main objective of organisation.
TASK 3
P6 Examine particular legislation which a hospitality business entity has to comply
Health and safety act 1974-
Health is most important to people and public. This law states that there should be a
proper rules and regulations and which should be used when dealing with heath sector. In
context to healthy drinks, adoption of this act will increase their goodwill of a firm as well as
product. So, company's health drinks will get a boost in their production if entity applies this act
in their product and resources.
Liquor Control Act 2003- This law states that alcohol should be absorbed and
consumed with in a limit. It is a myth of people that liquor and alcohol is a drug and bad for
health. But this is not complete true because there are many liquor which have a positive impact
on body if consumed properly. In relation with Healthy drinks , many subordinates as well as
workers are there who consume alcohol and disrupts the work environment. So, there should be
strict rule that alcohol that no one will consume liquor and alcohol while working in the
organisation.
P7 Analyse how organisations employment & contract law has potential influence on the
decision making process.
In order to conduct business in a best effective manner it is essential for an organisation to
evaluate that all organisational employment and contract law that are employed, as this affect
decision making process of company. With the help of abiding all the regulations healthy drink
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and effectively able to conduct the business performance while ensuring high profitability.
Mentioned below there are some certain legal laws and contract law that are being applied on
hospitality industry”
Employment law :
Employment law mainly include all the relevant laws of employees. In addition to this it
also covers measures that are required to be undertaken by an organisation while undertaking
their decision. In this it is essential for healthy drink HR manager to make sure that all the
relevant laws are being applied in organisational structure as this will significantly affect
performance of employees (Nayak and Taylor, 2018). In this company is required to make sure
that employees get treatment as per according to the law in order to save themselves from facing
legal issues.
Company law :
Company Law involves different types of measures, rules and regulations that impact
upon day-to-day functioning of an entity. It is essential for an organisation to conduct their
functioning as per according to company law as this will affect their internal as well as external
decision making. Healthy drinks are mainly associated with the health of customers. It is
important for company to follow every rule and regulations in order to provide qualitative
products to customer this will help in building trust of customers towards organisation.
Contract law:
Contract law significantly impact upon decision making of a firm in this company is
required to make sure that they engage in the process of making contract according to the laws
that are being define in contract law. It is essential for healthy drinks to take advantage of
contract law in the decision making process as to increase overall work efficiency of
organisation.
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TASK 4
P8 Various functional roles which are interrelated within hospitality industry.
There are different types of functional roles that are mainly linked with hospitality industry
and are required to be undertaken by organisation performing their operation in respective
industrial sector (Levand, 2017). In relation with healthy drinks this has been identified that
different types of functions that are involved in organisational structure. In order to perform them
in best effective manner company is required to implement appropriate provide satisfaction to
customers in a well defined manner. Mentioned below some of the certain functional roles are
being defined:
Finance and Marketing:
Funds are termed as a life blood of any organisation irrespective of their size and scope.
It is essential for an organisation to effectively manage their budgets as well as financial
resources in a best effective manner as to conduct all the operations in a smooth manner. Along
with this manager of company is required to take advantage of different types of financial tool as
well as techniques in order to conduct their financial activities. Along with their marketing is
also one of the most important aspects within an organisation as attract customers towards
organisational offerings. This has been identified that in order to manage marketing activities
Finance Department provide funds to marketing department. This increase profitability and
productivity of entity.
Customer service and Food department:
Customer service is one of the most important functional roles in any organisation as they
aim to satisfy customers. It is essential for company to provide Customer services in best
effective manner. In relation with healthy drinks supervisor of company make sure that product
and services are being provided to customers with high quality. It helps in developing good
relationship among company and customers. It has been identified that food department is
interconnected with customer service as food department why providing qualitative product to
customers can effectively able to build positive customer service. Along with this by taking
regular feedback customer service can aid food department to develop product as per according
to customer taste this effectively helps in increasing profitability of organisation.
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