Hospitality Business Toolkit Report: Unit 04 - HR and Financial Review

This report examines the hospitality business, focusing on East London Catering. It begins with an introduction to the hospitality sector and then delves into financial performance, including principles for monitoring and managing finances, and the double-entry bookkeeping system with examples of ledgers. The report then explores the HR life cycle, detailing stages like attraction, recruitment, onboarding, enablement, development, retention, and separation, along with strategies for overcoming staff retention issues. Finally, it discusses performance management, outlining stages such as setting objectives, training, and evaluation. The report provides a comprehensive overview of key business functions within the hospitality industry.

Hospitality Business Toolkit (Unit-04)

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 ............................................................................................................................................................3
P2 ............................................................................................................................................................4
P3 ............................................................................................................................................................8
TASK 2..........................................................................................................................................................9
P4 ............................................................................................................................................................9
P5 ..........................................................................................................................................................11
TASK 3........................................................................................................................................................12
P6 ..........................................................................................................................................................12
P7 ..........................................................................................................................................................13
TASK 4........................................................................................................................................................15
P8 ..........................................................................................................................................................15
P9 ..........................................................................................................................................................15
CONCLUSION.............................................................................................................................................18
REFERENCES..............................................................................................................................................19

INTRODUCTION
Hospitality sector is wider category of areas within service sector that involves food
services, theme parks, lodging, transportation and event planning. It is one of leading sector that
contributes towards economy of country. It offers wide range of the series to attract the
customers and make them loyal towards company (Aragon-Correa, Martin-Tapia and de la
Torre-Ruiz, 2015). East London Catering is a catering organization that specialized events like
weddings, family gatherings and birthday parties. In this given report will be discussed about
double entry book keeping system of credits and debits to record the sales as well as purchases
transaction in general ledger. There will be included about the different stages of HR life cycle
and also importance of sustaining talent.
TASK 1
P1
Financial performance is explained as degree to which an organization can effectively use
assets to help generate high revenues (Ariza-Montes and et. al., 2017). There are various
principles that provide guidance for monitoring and financial performance management. To gain
benefit of minimized expenses, financial accounts are created. East London Catering
organization records the source documentation of daily receipts and vouchers received during the
purchase and sale of raw materials. In addition, the company's financial reporting process
requires. Each organization needs to manage as well as control its finances so that its costs are
minimized and cash flows are monitored for these different financial statements. There is various
principles financial performance management mention below:
Maintain proper records of stock
Chan and Hon (2020) stated that principle is based on preserving and establishing
accurate records of raw materials and other important purchases made through an organization.
This offers East London Catering knowledge about waste during the purchase and storage
process of the inventory.

Making key financial statement reports- This principle is based on the development,
with view to an overview of the company's existing financial performance, of key financial
statements like profit & loss and balance sheet. East London Catering would be able to build
awareness of these areas through preparing these reports, which helps the company to increase
its output next year.
Evaluating the overhead cost- This principle aims to gain insight into an entity's
additional expenditure in addition to organizational expenditures. East London Catering will
calculate the costs of these expenses which can be reduced in next year to lower the operating
costs and increase profit margins by keeping all additional expense records.
P2
This is system in which each account entry requires a matching, opposite account entry.
Two equal as well as corresponding sides of the double entry are called debit and credit. The left
is debit and the right is credit. Three principles are established in this system, such as separate
entity in which East London Catering has a legal entity independent from its owner. Other
principle is the accounting equation, which says Assets – Liabilities= Capital The third rule
states that each transaction has a dual effect on dual transaction (Häusler, 2017).
Double entry book keeping

Ledgers:
Cash a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
04/03/20 To capital a/c 30000 05/03/20 By rent a/c 1000
18/03/20 To sales a/c 20000 06/3/20 By purchase a/c 10000
20/03/20 To sales a/c 13000 07/03/20 By Prepaid
insurance policy a/c
1200
11/03/20 By Laundry fees a/c 200
15/03/20 By Telephone and
internet expense a/c
2220
15/03/20 By Water charges
a/c
950
16/03/20 By Wages and
salary a/c
31/03/20 By balance c/d 47430
63000 63000

Capital a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
31/03/20 To balance c/d 30000 04/03/20 By cash a/c 30000
30000 30000
Rent a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
05/03/2
0
To cash a/c 1000 31/03/20 By balance c/d 1000
1000 1000
Purchase/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
06/03/2
0
To cash a/c 10000 31/03/20 By balance c/d 40000
06/03/2
0
To vendor a/c 15000
09/03/2
0
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
07/03/2
0
To cash 1200 31/03/20 By balance c/d 1200
1200 1200
WH Adams Ltd a/c
DR CR

Date Particulars JF Amount Date Particulars JF Amount
31/03/2
0
To balance c/d 15000 09/03/20 By purchase a/c 15000
15000 15000
Laundry fees a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
11/03/2
0
To cash a/c 200 31/03/20 By balance c/d 200
200 200
Telephone and internet expense a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
15/03/2
0
To cash a/c 2220 31/03/20 By balance c/d 2220
2220 2220
Water charges a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/20 To cash a/c 950 31/03/20 By balance c/d 950
950
Wages and salary a/c
DR CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
16/03/20 To cash a/c 1740 31/03/20 By balance c/d 1740
1740 1740

Sales a/c
DR CR
Date Particulars JF Amount Date Particulars JF Amount
31/03/20 To balance c/d 33000 18/3/20 By cash a/c 20000
20/3/20 By cash a/c 13000
33000 33000
P3
All leader accounts in the business heading are listed on a trial balance. The name or
value of the each nominal ledger account is included in this list. Every nominal ledger account
has a debit or credit balance. The trial balance is conducted correctly or not to document the
operation. Where all parties are equal (credit and debit), the reporting process is correct and all
registration procedures of this organization are conducted with an over-the-counter examination
(Hertzman and Zhong, 2016).

Trial balance ( East London Catering)
TASK 2
P4
Human resource function is the backbone of company and its main focus on enhancing
the productivity of business by improving employee performance. This is important that the
human resources are effectively managed by a company to preserve them in future contexts for a
long time. It will even help to inflate existing operational level. In this respect, they undergo
through certain stages of the HR life cycle to allow their efficient development whenever new
candidate is hired and entered in a business. HR life cycle is essentially sequence of stages and of
also role of human resources managers in each of its phases. In context to East London Catering,
an individual is chosen at designation of Accounts Assistant (Kasemsap, 2017). There are
different stages involves in HR life cycle mention below:
Attraction- The appeal ends before the company even searches for a new employee. This
covers the company brand and what shapes the overall perception of a potential employee of an
organization. This stage is linked to attracting qualified and competent staff. East London
Catering will provide Account Assistant with fair pay and job benefits. This attracts the
candidate's attention and draws them into company (Lashley, 2016).

Recruitment- The recruitment of right staff is very necessary for any business' growth
and profitability. In addition to being able to successfully complete the recruitment stage of HR
lifecycle, the Department for Human Resources needs to develop a Strategic staffing plan with
complete knowledge of positions to fill by employee and what will be expected from him or her.
East London Catering will hire the candidate selected to the position of Accounts Assistant in
this context.
On- boarding- It is a process through which company gets new employees. By learning
new roles, forming relationships with colleagues and managers to create a position. East London
Catering will be giving the applicant training to learn about the accounting terminology and
skills in financial management for this purpose (Levand, 2017).
Enablement- This HR-lifecycle stage involves orienting new employees and also
formally presenting them in the culture, mission, values and vision of organization. Orientation
is generally held as conference-style event, where new hires receive information by presentations
and question and reply sessions. Firms also intend to bring in new workers for each of their
members, introduce them and explain their positions within the organization.
Development- Lub and et. al., (2016) stated that this is where the workforce and the
department of human resources work with company to achieve their long-term career objectives.
Human resource managers may now use personality profile assessment to help their employees
identify best career choices. . In order for the recruited employee to execute the work properly
according to position within organization, this stage of the human resource life cycle will be
combined to develop appropriate, skills knowledge and competence. Opportunities to build
careers are necessary to keep a worker employed with company. In context to this, it is extremely
necessary for the organization to promote growth through conduct of training programs for new
applicant named to the position of Accounts Assistant. It enables individuals to improve
knowledge according to East London Catering requirements.
Retention- HR lifecycle process helps to revitalize employees, appreciate them for their
great labor and acknowledge key milestones. HR departments should demonstrate workers
support for their specific benefits like flexible working hours, gift cards and additional time off.
This is crucial steps in the HR life cycle as employee replacement costs are far greater than the

training and employee development. East London Catering would thus offer new candidate a
positive working scenario in order to make them happy at work.
Separation- Mackay, Chipato and Thom (2016) stated that it is last step in the life cycle
of human resources and involves the employee's retirement. In this case, East London Catering
would make sure that Accounts Assistant retires from e existing company without causing
any disruption.
Overcome issues of staff retention
It has been evaluated that organization can face number of issues that can increase staff
retention rate, in this it has been evaluated that issues like lack of recognition can affect entity in
adverse manner so as to overcome this issue respective organization by taking use building
genuine culture of recognition can overcome this problem in efficient manner. In addition to this
lack of mutual trust is also a factor that can adversely affect staff retention rate, thus in order to
overcome this issue entity by taking advantage of embracing transparency can gain significant
advantages.Along with this, as per according to the above mention evaluation it has been
signified that as to increase staff retention rate organization by increasing morale of employees
and offering them recognition can accomplish objectives in best effective manner.
P5
Mejia and Torres, 2018 stated that Performance management is a way to ensure that a
variety of activities effectively and efficiently fulfill the goals of an organization.
Performance management can focus on performance of a department, an organization, an
employee or processes for managing certain tasks. It is regarded as a continuous mechanism
involving the contact of subordinates with the superior at all times. The main aim is to align
employee performance with organizational needs. It includes the continuous supervision and
guidance provided by the employees' supervisors to improve overall performance within
company. In due course, this will influence the reach of organizational targets and objective. In
order to minimize negative behaviors, East London Catering is responsible for performance
improvement and allows the workers to improve their productivity. Different stages of
performance management plan mention below:

Stipulation of performance objective- This is first stage and important to recognize
variance between current and desired performance of East London Catering employees. The
aims of SMART are to meet the criterion of Specific, Measurable, Realizable and Timely.
Training- The next stage is to determine need for training and the improvement areas
(Narangajavana and et. al., 2016). It is necessary for company to provide the training to
employees so that they can work effectively and their skills and abilities can be improved.
Training helps in motivating the employees and from this they can focus on attaining the set
objectives effectively.
Evaluation of employee performances-After training is provided to employees, next
step in performance management process involves assessing performance of employees. In doing
so, East London Catering will assess the efficiency of the Account Assistant. The organization
will help to determine the impact on performance of training session.
Comparison of current performance with the benchmarks- Following a performance
evaluation by the account assistant, the next step is to align it with East London Catering
performance target at the start of process. Entity recognizes the improvements scope by
identifying gap among current as well as desired performance. It paves the way for measures to
address and efficiently fill such a gap (Nayak and Taylor, 2018).
Monitoring and controlling- The final stage is to create improvement plan to fill gap
among actual performance and also desired performance. In this context, East London Catering
plans to improve performance of the Accounts Assistant effectively.
Performance Management Plan for newly appointed Accounts Assistant
Issues
identification
Employees
involvement
Set clear
objectives
Training
programmed
Performance
review
Face issues in
data handling
Proper
instructions and
training to the
Account
Assistant are
given.
Improvement in
skill of data
handling
The worker will
be supervised by
the senior
accountant who
will give the
employee
assistance and
advice for the
proper
management of
financial details.
After 5 months,
performance
review will be
take place.