LO1 Investigate how to manage finance and record transactions to minimize costs responsibly within the hospitality sector
|Washers and Dryers||25000|
|Accidental Insurance Policy||1100|
|WH Adams Ltd||15000|
Trading and P&L Account
|To Supplies||8000||By Sales||330000|
|To Gross Profit c/d||18000|
|To Rent||1000||By Gross Profit b/d||18000|
|To Accidental Insurance Policy||100|
|To Telephone and Internet Charges||2220|
|To Rent, water charges and rates||950|
|To Salary and Wages||1740|
|To Net Profit||11790|
|Capital||30000||Washers and Dryers||25000|
|Creditors||15000||Accidental insurance policy||1100|
|WH Adams Ltd||15000||Cash in hand||45690|
Principles of managing and monitoring the financial performance of your entity
Monitoring and managing the financial performance of the entity is necessary for the evaluation of the overall success of the business. To know whether the business is failing or performing better, managing and monitoring of the financial statements of the entity is very necessary.
- Preparation of key financial statements: the key financial statements of any entity are the profit and loss statement and the balance sheet. These are statutorily mandatory statements to be prepared by any business organization.
- Maintaining inventory records: preparation of inventory records helps us knowing how much of the inventory is left in the stock. It will also help in estimating the requirement to order new stock of inventory.
- Preparing working capital statement and calculation of financial ratios: the preparation of working capital statement and the calculation of the financial ratios of the entity helps in estimating the working capital requirement of the entity. It also helps in evaluating the liquidity position of the company.
- Preparation of cash flow and fund flow statement: the cash flow and fund flow statements are prepared to estimate the liquidity position of the company. It gives the information about the actual and accurate cash position of the company.
- Analyzing the overheads: the firm or the entity is required to analyze the overheads expenses of the organization. It is necessary to check them so that to gain the knowledge if the overhead expenses like rent, rates, salary and wages etc. are under control or not.
P4 HR employee life cycle for – Assistant general manager
In order to run effective business in hospitality industry, it is very much important that the company must be aware about the various stages of HR life cycle in the industry so far. The higher it will be helpful to make the company hire effective employees, although at the same time, it makes it easy to develop an effective working team so far. The following will be the life cycle of assistant general manager in context of various phases.
Recruitment – This is the first stage of the HR life cycle, for assistant manager, it is very important that at this stage, the qualification, background and experiences would have been effectively evaluated and finalizes the candidate if applicable.
Onboarding – It includes the first phase of the employee in the company, it is proven by science that first 90 days helps the employee to help to take decisions about staying for long or not. From an assistant general manager, it is important that the employee would understand the responsibilities along with working pattern (Buil, et. al., 2019).
Career development – It is very essential that the employee must be able to find effective career development policies to make the growth such as promotions and further monitory benefits as well as bonus incentives.
Employee Recognition – While working in organizations, it is expected from employees to get awarded for their efforts in rewards, benefits and other thing as well. Assistant manager can only stay longer if the employee recognize for its awards.
Offboarding – It is last stage of HR life cycle, where the employee leaves the organization for any personal and professional development.
P5 Performance management plan
In the organization, employee turnover is a big challenge and since the company decided to expand their business so company is unable to access the talent pool which has been creating challenges for the company to run the operations effectively. The following will be the performance management plan for the company which will be helpful to analyses the employee performances and overcome staff retention so far.
|Planning||At this stage, company must need to plan some performance management plan for the growth of the assistant manager at the Organisations. It includes various measurements for reviewing their planning.|
|monitoring||At second stage, effective monitoring of the assistant manager performance must be analyzed.|
|Developing||After monitoring, effective development of the person being an employee must be evaluated.|
|Rating||After evaluation, appropriate ranking would be given to the employees.|
|Rewarding||Higher ranks deserver the effective rewards for their exceptional performances within the timeframe in the company (Reb, et. al., 2019).|
In hospitality industry, customers and employee satisfaction plays the most important role in running the business with higher growth. The company has been struggling with high employee turnover rate which reduce the possibilities for effective operations. Company must need to run some monitory benefits to the employees such as bonus, incentives and promotions along with deals, discounts or other benefits so far. These techniques will be helpful to not only encourage the employee to increase the productivity but along with that, it helps to attract the access the talent pool for the company so far.
P6 Legislation for hospitality industry
Since the company has been running the catering business quite well but at that the same time, employee management is the real struggle for the company and now the company decided to expand the business to different areas of the country, it makes it highly necessary that not only the company would be able to attract the talent pool of the company but also the company would be able to follow the related rules and regulations as per the state government so far (Hewagama, et. al., 2019). Apart from that, the company must need to shift their focus to the legislations in expansion areas for hospitality industry as every industry has their specific set of rules and company has to follow those rules and regulations as per the government so that the growth rate can be easily achieved as planned in the expansion of the company services there. The following will be the list of the regulations which would be considered as the most appropriate legislations for the hospitality industry so far which company has to follow.
- Employment law
- Contract law
- Workforce health and safety law
P7 Impact of company, contract and employment law on the decision making power
It is one of the most essential factors for the company to able to make effective decisions for the growth, opportunities or any spot decisions as well. While running the business, there are various situations when it is considered as very important for the company to not just able to run the business but apart from that make strong effective decisions as per the requirement of the situation so far. It is very important that the management of the company would follow effective and relatable legislations so that the company can easily run the operations in easy or difficult situation so far. In hospitality industry, there are various rules and legislations’ which company has to follow but among all those laws, company, contract and employment laws make the strong impact on the decision making process as well.
Contract law must be helpful to the company in order to hire the employee as well as to make their best use as per the requirement of the company so far. The more the contract law would be simple yet effective, the more it will be helpful to the company to run the business with effective workforce for longer period of time so far. With the help of employment law and company law, employees can easily stay with the organizations for longer run as these include various welfare of employment welfare which would be helpful to make effective decisions for business if the company would run with effective workforces so far (Shen, et. al., 2019).
LO4 Explain the importance of coordinating and integrating various functions of departments within the hospitality Sector
P8 Interrelations between different functional areas in hospitality industry
In hospitality industry, the companies have been operating with various functional areas in it which will be considered as very helpful in running the operations more effectively. The following will be the different functional areas of the companies in hospitality industry.
Housekeeping department – This department has been directly linked with marketing and purchase as if the housekeeping fails to maintain the standards, marketing won’t be effective to increase satisfaction.
Kitchen department – Kitchen and food/ beverage department are linked with each other as both are responsible for effective food/ drinks services as well.
Food and beverage department – It is linked with kitchen department effectively so it is considered as the semi associated department from kitchen department.
Marketing department – Marketing is linked with the entire departments because if the services are not as per the customers expectations, marketing can’t be effectively run so far (Shang, et. al., 2020).
P9 different methods of communication, coordination and monitoring for front office department
When it comes to run the business effectively for hospitality industry, it is very much clear that the company would be able to separate the roles and responsibilities among the employees as per their associated departments as well.
Front office department is one of the most important and impactful departments of the hospitality industry as in this industry the customers first interact and the front desk employees are considered as the face of the organization as well. However each department requires communicate, co-ordinate and monitor so far.
Advance techniques for monitoring will be needed to adopted by the companies as some effective tracking app and cloud monitoring for the employees so that they can monitoring their work schedules. Open discussion forums makes it easy to communicate effectively about the issues or feedbacks form the employees of front desk which will be considered as helpful to run the operations more effectively so far. Fun & learn activities for increasing co-ordination among the employees from the employees of front desk. It will bring connectivity to the team members which improve services (Bazaza, 2019).
In this report, the role of effective employee or HR management has been discussed in the context of the hospitality industry so far. It has been analyzed that the higher the employees’ satisfaction would be, the higher it increased their productivity for the company and at the same time, it reduce the employee turnover in the company so far. HR life cycle, a performance management, different legislations, interrelations between the various functional departments of companies has been evaluated in this report.
Bazaza, O., 2019. Impact of Labor Law Implementation in the Lebanese Pharmaceutical Sector. Management Studies and Economic Systems, 4(4), pp.287-294.
Buil, I., Martínez, E. and Matute, J., 2019. Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International Journal of Hospitality Management, 77, pp.64-75.
Hewagama, G., Boxall, P., Cheung, G. and Hutchison, A., 2019. Service recovery through empowerment? HRM, employee performance and job satisfaction in hotels. International journal of hospitality management, 81, pp.73-82.
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Shang, R., Abernethy, M.A. and Hung, C.Y., 2020. Group identity, performance transparency, and employee performance. The Accounting Review.
Shen, Y., Chou, W.J. and Schaubroeck, J.M., 2019. The roles of relational identification and workgroup cultural values in linking authoritarian leadership to employee performance. European Journal of Work and Organizational Psychology, 28(4), pp.498-509.