The Hospitality Business Toolkit

Managing finance and recording transaction to minimise cost responsibility

Finance is important in business organisation which is used to operate business activities and run business effectively. For instance Healthy Qila is a restaurant which is recently opened to provide the healthy drink to individuals which helps to increase the trade of organisation.  In context to Healthy Qila, providing healthy salads, juices and smoothies which attracts customers and increasing sale of organisation (Boshnakova and Goldblatt,2017). The finance manager of such organisation are managing finance and control activities by using such information:

Financial transaction: This consider as agreement and communication which is carried out between buyer and seller to exchanging assets for payment. This is the monetary transaction which arises between buyer and seller to exchange their assets. Such as in Healthy Qila the financial transaction for buyer is food and staying facility for which it make payment. And for seller is selling its quality food and services that attracts customers. For this the important source document is bookkeeping and accounting process that provide evidence of financial transaction. In this document manager can record day to day transaction and them make a statement. Get Assignment Examples.Talk to our Experts!

Principle and managing and monitoring financial performance: The management of Healthy Qila is using such principles to manage and monitor financial performance such as:

Principle of risk and return: This principle assist Healthy Qila management and its investor to make the decision of investment after analysing risk and return of business project that help to manage finance and returns (Canavor, 2018).

Diversity principle: This principle is used by management of Healthy Qila in order to minimize the risk through maintaining portfolio. In this financial manager analyse risky situation that can arise in future and make plans to address them effectively.

Application of double entry bookkeeping system and credit and debit card for operations

Principle of double entry bookkeeping system: This is a system which is used by accountant in organisation to record the transactions and shows double effect of such transaction. The base of this principle is two way entry such as debit and credit which helps to maintain all information. The formula is Assets = Liabilities + Equity

Trial balance and its steps

Trial balance – This is list of all general ledger accounts which are involves in ledger of business. This involves name of each nominal ledger account and value of ledger balance that gives good results and maintain the financial information. The purpose of trial balance is to ensure that all business activities are made in company's ledger and are properly balanced. This is used to create the financial statement by using all entries (Cetindamar, Phaal and Probert,  2016).

Steps to be followed while preparing trial balance

• To prepare a worksheet with three columns one is for titles, one is for credit and other is for debit.
• To sill in all account titles and recording their balances properly.
• To get the total of debit and credit columns.
• And last compare the column totals.

Importance of accurate recording of transactions

Accurate recording of transaction is important as it make habit of recording their business transaction every day. This assist management to informed, efficient and take precise decision at any time. Moreover, accurate recording transactions are used to remind the credits and expenses which arises in organisation (Cunningham, 2019). According to accepted accounting principles (AAP) there are many principle such as cost principle, double entry system, full discloser, going concern, matching concept, revenue recognition etc. that is used to record the transaction appropriately.

Conclusion: It has critically evaluated financial manager is playing important role in organisation as it records all transaction, monitor perfromancer and take corrective action as per accounting principles whuich helps to prepare income statement and develop profits. In context to  Healthy Qila the financial management is playing key role as recording transaction, preparing trial balance under accepted accounting principle, and make income statement which monitor the finance in organisation and increases business growth. Order assignment help from our experts!

How to manage the Human resource life cycle within the context of HR strategy?

Human resources management is the important part of business organisation who is playing different role and managing all functions effectively (HR life cycle stages, 2019). In context to Hotel Ritz, there are different stages of HR life cycle which supports food and beverage managers to talent acquisition and retention with the organisation. The stages of HR life cycle is defined as:

Stage 1 Attraction – This is first step of HR life cycle where HR manager identify the vacant position and place the advertisement at different places such as portals, websites, newspaper etc. that helps to select the best candidates. As Hotel Ritz is looking for food and beverage manager which provide food to customers so managers uses different sources to provide the information about vacant post in such organisation. This organisation is facing a issue to recruit the right candidate for such responsible position so it is using different sources to attract people and encourage them to apply for job (Dixit, ed., 2019).

Stage 2 Recruitment – To hire the right people is crucial for business organisation that may limits growth and productivity of business. In context to Hotel Ritz, managers are recruiting the food and beverage manager by taking interviews and technical round which can help to improve the business performance (Elshaer, 2019). Herein, organisation faces issue such as some time they recruit wrong person for vacant position as lack of skills and talent which can affect the business production and profitability negatively.

Stage 3  On boarding – This process is related to employees where they introduced themselves within the organisation. Employees after recruitment become member of company and learn new job duties and responsibilities which can develop and increase participation (Ford and Sturman,  2018). In this stage, the food and beverage manager who is recruited by manager in food and beverage department get involves in business activities with company's workforce and learns new duties and responsibilities which can help to make good performance. Company is facing issue relation to training and skills of employees as they are not recognised from culture and activities of business so they do not get ready to work easily.

Stage 4 Enablement – The HR life cycle included this stages to entail the new recruiters and introducing them in organisation with its culture, vision, mission and values. This is done by management in conference style where it provide information to new hires by using presentation, programme and question & answer sessions. Such as the management of Hotel Ritz are using presentation and event programme in which it greet food and beverage managers and explain their roles and responsibilities to complete the vision on organisation. Some time employees get confuse and irritate from their jobs because of unclear roles and responsibility resulting they make decision to leave the organisation that may be issue for business. Therefore, selected company is providing proper training and good culture which make feel them more connected and support transitions (Hanrahan, ed., 2017).

Stage 5 Development – This box of HR life cycle states that HRM resource department should workout for its long term goals and objectives of company. As employees wants their own development and career opportunities which helps to engaged the employees more with organisation overtime and increase professional development. Such as the HR manager of Hotel Ritz uses this stage to determine the better career options of food and beverage manager by engaging them in business activities and accomplishment of visions that develop their professional skills and improve learnings. In this, food and beverage manager seek to professional growth and training to get ready for greater responsibility. In absent of this stage organisation faces issue to employee turn over and not retaining them due to not providing growth opportunities and career development opportunities which may influence performance negatively. Therefore organisation should provide career opportunities and promotions which can help to acquire and retain them effectively.

Stage 6 Retention – This stage is used by business organisation for giving the opportunity to re energize their staff , recognize as important assets and give thank for their hard work. This is important for business organisation to retain their employees by appraisals, extra paid time and gift cards which make happy. The HR manager uses this strategy to re energize and retain its recruited food and beverage manager within organisation. So it monitor their performance and give them appreciations through various benefits such as gift cards, flexible works schedules and extra pay for overtime which helps to retain and groom them efficaciously. The issue which are facing by company that is employees switch the organisation if they are not feeling appreciation for their work then they make decision to discontinue this work which creates problem for organisation. Therefore, organisation should appraise their employees for their good performance which helps to retain them for long period (McGuire, 2016).

Stage 7 Separation – This is consider as ending stage which includes retirement and leaving the organisation for more pay, benefits, family responsibilities and strategic reasons. This step is used to manage the transition and separation of employees by making strategic plans effectively. The HR manager of Ritz hotel is using this step to manage the employees and their separation. This helps to use new technology and run business smoothly and effectively. Moreover HR manager conduct the exit interview that can help to know the reason behind the exit decision that is beneficial for retaining them.

Recommendations: From the all above stages it has been recommended that the management of Hotel Ritz should follow HR life cycle that help to recruit right employees, increase their learning, provide them career opportunities, appraise them and find out reason behind separation for the purpose of acquiring and retaining them in organisation for long period (Nour, 2017).           

 Importance of HR life cycle

HR life cycle is useful for organisation as it helps to identify the right employees for right position and give information to retain them with organisation. With the helps of this HR manager identify the issues which are facing by companies in their business activities and make efforts to overcome the problems (Olsen and Karanja,  2018). Such as HR life cycle is important for Hotel Ritz where it identify the vacancy of food and beverage manager, recruits, provide training and, give appraisal for their hard work and retain them for long term that gives high productivity and profitability. This is also important for developing their skills and adding value to their organisation effectively.

The importance of HR for supporting, growing and retaining talent is defined as:

• This is important who formulate policies and implement within organisation in order to attract employees, recruiting them and getting things dome in certain period of time (Smilansky, 2017).
• HR uses recruitment process to identify food and beverage manager vacancy which helps to save time and cost of HR by posting advertisement and other sources.
• The HR manager provide run training and development programme for food and beverage manager which supports them to work effectively by understand their role and responsibilities (Smith, 2017).
• HR manager of hotel Ritz assign the work to food and beverage manager and evaluate their performance which helps to appraise and growing them.
• Moreover, development and retention stage is used by HR manager in which it promote and provide benefits which leads to supporting, growing and retaining the employees effectively. Ask for Finance Assignment Help from our Qaulified experts!

Performance management Plan

This is a plan which is prepared by management to managing the organisational as well as employees performance. In context to Hotel Ritz, HR manager is preparing performance management plan in order to managing the performance of food and beverage manager such as:

Potential impacts of legal and ethical considerations on hospitality business

This is important for business organisation to follow the legislations and regulatory framework which can help to promote the employee engagement, retention and professional development. In context to Hotel Ritz, food and beverage server role is required under food and beverage department for promoting employee relation and retention by applying legal and ethical consideration such as:

Minimum Wages Act, 1998 – This legislation is related with minimum wages which states organisation should provided minimum wages to its employees that increases effectiveness. In Hotel Ritz, all Food and beverages server are getting minimum wages which is decided by government that promotes employees engagement. By providing minimum wages employees feel good and they make decision to retain for the long period. Moreover, this helps to increase the professional development as employees works together by coordination and communication that impacts positively on decision making (Sniukas, Lee and Morasky, 2016).

Health and Safety Work Act, 1974 – This consider as ethical consideration which is required to provide by employer to its employees for the purpose of providing them safety.if employees feels good health and safety then only they works good and retain in organisation. In Hotel Ritz, employees are getting different facility and protection standards that protects them harm and injuries. By following this act employees take decision to work at same organisation and develop their skills (Van der Wagen and White, 2018).

Data protection act: This is also important and ethical legislation where employer belives employees that their data and personal information is secure. This activities limits the leaking of personal information of employees and getting things done effectively. In context to Hotel Ritz, Food and beverage server are enjoying this right as employer protect their data which leads professional development, employee engagement and retention for long term (Wiltshier and Griffiths, 2019).

From the above it has reflected that organisation should focus on employees legislation and ethical consideration where it engage employees in business activities, retain them and increase the professional development. If organisation does not follow such legislation then employees cannot maintain coordination which may increases conflicts between them and cannot work effectively. In the absence of health and safety, equality and data protection act employees contracts might become ineffective and reduces organisation performance. Therefore, it has recommended to Hotel Ritz to follow legal and ethical consideration that helps to promote employee engagement, professional development and retention.

Conclusion

From the above it can be concluded that hospitality business is related with different activities in organisation that covers various activities to increase the organisation productivity. This is important for organisation to use HR life cycle in order to recruit right person for right job effectively and then should be provide training to them which helps to retain for long period. Financial transaction are related to organisation which helps to know the organisational profitability by involving all income and expenses. There are different HR legislation which are important  to follow and this increases effectiveness.

Also Read- Evolution of Management Theory & Practice

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