Pearson BTEC Hospitality Management Assignment: Business Review

This report delves into key aspects of hospitality sector management, focusing on financial planning, HR lifecycle stages, and performance management strategies. It investigates methods to minimize costs responsibly, including preparing budgets, managing cash flow, and analyzing financial statements. The report also explores the stages of the HR lifecycle, such as recruiting, orientation, career planning, career development, and recognition, emphasizing their roles in employee retention and development. Furthermore, it presents a performance management plan, detailing how to determine measures and indicators, set targets, take management action, and implement improvement strategies to enhance overall operational efficiency within the hospitality industry. The report also includes a trial balance, financial planning, and accounting practices specific to the hotel business.

Running Head: HOSPITALITY SECTOR 0
MANAGEMENT

HOSPITALITY SECTOR 1
Contents
LO1............................................................................................................................................2
P1................................................................................................................................................2
Financial planning...............................................................................................................2
Fiscal control.......................................................................................................................3
P2................................................................................................................................................4
Recording of the transactions.............................................................................................4
P3................................................................................................................................................4
Lo2.............................................................................................................................................6
P4 Stages of HR lifecycle..........................................................................................................6
P5................................................................................................................................................7
Lo3.............................................................................................................................................9
P6 Legislations that hospitality business need to comply with..................................................9
P7 Hotel, employment and contract law that has potential to impact upon business decision
making......................................................................................................................................11
L04...........................................................................................................................................12
P8 Interrelation between different functional role within hospitality industry........................12
P9 Different methods of communication, coordination and monitoring.................................13
REFERENCES.........................................................................................................................15

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LO1
P1
Investigate how to manage finance and record transactions to minimise costs responsibly
within the hospitality sector
Hotel accounting is the part of the accounting is the hospitality industry and this is necessary
to implement to have the clear directions in the operation of the business. Hospitality sector is
one of the most expanding sectors. Therefore a proper accounting system needs to be
followed and there is no exceptional rule to this. There are some steps and the initiative the
hotel Lake District might have a look at while expanding he business to manage the finances
in such a manner that the overall cost can be minimised (Shkurkin, Sogacheva, Logvencheva,
and Khramova, 2016).
 The first step is to prepare a precise collection of the months and the accounts
 Thereafter the preparation of the budget is necessary for the allocation of funds
 Business planning is again the third feature
 Preparation if the trials balance income statement and balance sheet
 Payroll register
 Aged debtors summary
 Inventory records of food, wine, drinks
 Working capital statements (Albattat, Som and Kassim, 2016).
 Analysis of the marketing as well overhead expenses
Keeping in mind all these steps the financial management practices are applied in the hotel
industry.
Financial planning
Financial planning or the arranging begins with the sales of the business and the cash to
gauge it. The business figure is utilized to set up the income for the financial limit. The
account supervisor goes about as a reality agent to guarantee the estimation of the sales are
reasonable and feasible. In the event that the figure isn't right, the establishment for the
monetary allowance is defective. Money additionally works with divisions to make working
spending plans. These financial limits incorporate anticipated income, worker headcount,

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inhabitancy costs and different costs such as food and the beverage management, the costs of
the room, the equipment, stores, cost of electricity and a lot more have been produced in the
sample trial balance below (Lomova, et al 2016).
Most organizations use earlier year income and costs as a guide for the present year. Be that
as it may, adaptable and zero-based spending plans are picking up ubiquity. Adaptable
spending plans enable the business to modify income and costs dependent on income drivers.
Zero-based spending plans begin without any costs and require division pioneers to legitimize
each cost dependent on a movement driver. With budgets in hand, brothers need to assemble
a system to effortlessly catch and track costs just as income. A nifty gritty budgetary
following model can incorporate worksheets covering finance, property upkeep, vitality and
income.
Fiscal control
Finance managers must be hired to consider both the divisions properly as the core focus of
the top level pioneers is for accomplishing income targets and controlling costs. Every
month, the fund administrator merges bookkeeping data and updates the spending limit. At
the point when a detail change in income or cost surpasses the worthy resilience, the fund
director connects with the mind full office head to pick up a superior comprehension on the
reason for the fluctuation. By and large, the chief of the fund administration will require
activity intends to determine the change for future periods (Nair, 2018).
One of the more troublesome choices is to decide on the accommodation business pricing an
valuation of the room. This step will help to analyse how much pricing shall be set so that the
entire costs are covered along with some cash remaining in hand to deal with the small and
the day to day activities. The demand, occupancy and the expenses all are included in the
model. A proper model is required to identify the strategies and the correct pricing that not
only gives the competitor a competitive zone but at the same time meets the needs of the
customers. In the event that room rates are expanded, the interest for the room is probably
going to diminish. On the other hand, if the rate is brought down, the interest is probably
going to increment. On the off chance that the expansion sought after or increment in rate
isn't adequate to expand generally income, the change will diminish benefits. A decent
comprehension of free market activity is useful to limit this hazard (Zhang and Weatherford,
2016).

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P2
Recording of the transactions
The transactions shall be recorded in the purchase as well as the sales book. The transactions
are further bifurcated into the debit and well as the credit side of the trial balance. For
example the transactions relating to Wines and minerals, groceries and provisions, cutlery
glass and plates, bedding as well as the linens, establishments or the furniture and the fixtures
all are recorded on the debit side of the trial balance. Whereas the transactions involving in
the sales are sell of the rooms, food and the beverages. The major sales are due to the selling
of the room (Chen, Lin, Chi and Wu, 2016).
The cash book must be prepared for recording the day to day transactions with the bifurcation
of the different columns such as breakfast, lunch, dinner, and buffet. The cost of the alcohol,
bar and cigarettes shall also be recorded (Mandelbaum, 2018).
While ascertaining the rate of the room the following key points shall be kept in mind
 Occupancy of rooms in the hotel;
 future rate of return of investments;
 Expenditure (Both Capital and Revenue);
 Place and the locality of the hotel
 Location of the particular room
 Availability of various facilities (Zervas, Proserpio and Byers, 2017).
 Sales tax and the housing expenses
P3
Hotel Lake District
Account No Account Name Debit Credit
1 Cash at Bank 265584.00
2 Accounts Receivable 142650.00
3 Supplies 86356.00
4 Prepaid Insurance 24000.00
5 Hotel Furniture 148500.00
6 Hotel Equipment 230000.00
7 Store Equipment 198400.00

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8 Vehicles 162800.00
9 Accounts Payable 74560.00
10 Interest Payable
11 Unearned revenue
12 Loan Payable 452100.00
13 Mortgage Payable 110000.00
14 Michael 120000.00
15 Rebel 100000.00
16 Revenue
17 Double bed rooms (1250*30*30) 1125000.00
18 Single bed rooms (1500*10*30) 450000.00
19 Cost of revenue 128700.00
20 Payroll 438000.00
21 Sales and Marketing and Other Expenses 100000.00
22 Insurance 48000.00
23 Food expenses
Breakfast 75000.00
24 Utilities 52000.00
25 telephone [phone]
26 electricity 62570.00
27 Advertising 15600.00
28 Wages 140000.00
29 Rates and taxes 65000.00
2431660.00 2431660.00
Lo2
P4 Stages of HR lifecycle
There are five stages of HR life cycle which hospitality must look carefully before designing
the HR policies for the hotel. The life cycle stages that are practised at the hotel are

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 Recruiting: the Hotel must hire people from the different parts of the world. This will
help them in providing services to the customers from all across the globe. Skills must
be given the first priority in this process and use of digital technologies will be helpful
for the hotel in this regards. This must be done according to the strategic staffing plan
(Martin, 2017). This plays an important role in retaining and developing employees.
This is because if the employees do not get a job role for which his talents and skills
are appropriate then employee retention and development can be difficult (Salazar,
2018).
 Orientation: Here the employees are welcomed in the organisation. Communicate the
values and culture of the firm so that they can provide better services. In the
hospitality Industry Hotel’s value matters the most as it increases the tourism and
enhances the growth. This works as a motivator for the employees as they understand
what things are necessary for their job role and work according to it hence playing a
greater role in retaining and developing staffs.
 Career planning: In this hotel works for long term career objectives with the firm. In
this stage both employees and hotel works together to determine the best career option
within the hotel (Hoque, 2013). This stage helps the hotel to make employees a
member of the firm’s workforce. If the employee gets satisfied with their planning
then they are going to do stay in the hotel or otherwise they might leave.
 Career development: Proper training based on the international standards must be
given to the employees. It must be ensured that the skill development is from both the
sides i.e. both individuals and organisation should adopt learning culture so as to
improve this process. In this also the role of technology becomes very much
significant. With the use of the significant technologies the hotel management is sure
that they can cater the services to their customers. This has greater role in hospitality
since when employee sees that they have a future in the organisation or if the job is
adding value to his professional career then only they stay (Bowie, et al. 2016).
 Recognition: It is the stage where employee is being recognised on the basis of the
basis of his or her performance. It is crucial that hotel designs an appropriate
recognition plan where the hotel must be able to recognise all the people according to
their performance. This plays a most important part in the employee retention (Boella
and Goss-Turner, 2013). This is because if the employee feels that they have been
properly recognised for their efforts then only they stay.

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P5
Performance Management plan
Steps Explanation
Determine Measures and indicators The first step in the performance management
plan is to determine the key indicators that are
affecting the position of the hotel. The key
indicators could be the services to the
customers, the, the client’ satisfaction, the
number of the rooms sold and the how much
are still unoccupied. The hotel can measure by
the annual; reports or the ledgers prepared
(Manning, et al 2018).
Set targets The next step of the hotel is to define the
targets for the hotel industry against the
competitors. For example the sales shall be
increased by 10%, the operating expenses
shall be reduced by the 5% so that the Hotel
lake district can achieve the balance. The cash
in hand shall not be too much underlying. The
proper allocation of the funds shall be done
for each department so that they work to the
best of they can. The accounts receivable and
the accounts payable shall be realized to their
earliest. The employee turnover ratio shall be
reduce to 0.5 (Hess, 2019).
Take management action The action taken by the management can be
defined by evaluating the variation in terms of
the percentage. For the purpose of the action
the management can make use of the
techniques such as vertical analysis,
horizontal analysis, and the ratio analysis
techniques. These will help the management
of the hotel to find out the potential as well as

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the sick areas (Fernández, Martín, Alaminos,
and Casado, 2018).
Take improvement action In order to improve the action the major
responsibility of the management is to take
care of the employees. Any change or the
technique if implied hall be first
communicated to the employees. This way,
with the consent and the opinion of the
employees the hotel can improve the
individual as well as the collective
performance. The employees shall be given
proper environment to work. For the
improvement in the performance of the
employees, the hotel must conduct the
meetings and the queries must be solved
independently. The one on one session can
also be conducted so that the employees feel
proper attention are given to them and their
voice is being heard (Gémar, Moniche and
Morales, 2016).
Compare actual and targeted performance The actual and the targeted performance can
be measured with the help of the budgets for
the overall industry and for the employees the
performance shall be measured on the
monthly basis so that the difference can be
figured out. Moreover the monthly
supervision will create the opportunities for
the employees to know their strengths and the
weaknesses and how to cope up with them is
also one of the factor that will be considered
in measuring the performance (Domínguez-
Falcón, Martín-Santana and De Saá-Pérez,
2016).
Measure actual performance The actual performance is what has been

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achieved by the employees of the hotel. This
performance is used to evaluate the reward
and the recognition criteria. Further these
results are set as the benchmarks, beyond
which the employees are encouraged to work.
Hence the actual performance when measured
will be a reflection of the work done by the
employees and this can also be measured on
an overall basis through the customer
satisfaction (Nieves and Segarra-Ciprés,
2015).
Lo3
P6 Legislations that hospitality business need to comply with
It is crucial for any organisation to check all the legislations that might have impact on the
business of the hotel. There are different legislations that an organisation working in the
hospitality industry has to comply with. Some of these are:
 For alcohol licensing: For this the Licensing Act, 2003 is highly essential. This is
crucial for any hotel that aims to provide accommodation and provide alcoholic
beverages to the employees (Hughes, et al. 2014).
 Guest with handicap: Since the laws for the security of the privileges of impair
individuals is exceptionally solid in UK consequently it is likewise utilized in
accommodation industry for the workers that are handicapped. In this respects lodging
needs to conform to the Equity Act, 2010 (Wilson, Williams and Kemp, 2011). This
law recommends organizations to make sensible changes for the general population
that are confronting any handicaps.
 Guest registry: In this Immigration (Hotel Records) Order 1972 becomes important.
This makes it compulsory for the hotel to maintain the records of all person above the
age of 16 years.
 Data protection: This is very crucial in the hospitality industry as lot of people shares
the personal data at the time of booking. In this Data Protection Act, 1998 comes into

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existence. It is the responsibility of the hotel to ensure that they maintain the privacy
of all the employees coming to the restaurants.
 Guest with disability: Since the laws for the protection of the rights of disable people
is very strong in UK hence it is also used in hospitality industry for the employees that
are disabled. In this regards hotel needs to comply with the Equity Act, 2010 (Wilson,
Williams and Kemp, 2011). This law suggests companies to make reasonable
adjustments for the people that are facing any disabilities.
 Discrimination: It is also essential that organisations in the hospitality industry do not
discriminate with people on the basis of colour, religion, sex, disability, race, sexual
orientation, religion or believe cultural background, maternity and pregnancy, age or
anything. In this regards the Equity Act, 2010 becomes very much crucial.
 Marketing: Privacy and Electronic Communications (EC Directive) Regulations,
2003. Is the law that every organisation must comply with so as to check that
marketing does not violates any legal compliances (Ineson, Yap and Whiting, 2013).
 Distance Selling: Consumer Contracts (Information, Cancellation and Additional
Charges) Regulations, 2013 is the legislation that must be maintained by an
hospitality organisation that aims to sell their products via direct selling.
 Occupier’s liability act: This is again a law that is producing challenges for the person
who is owner of the hotel. This suggests that owner has the responsibility and liability
of the physical safety of everyone.
P7 Hotel, employment and contract law that has potential to impact upon business
decision making
Hotel law binds a hotel in all the legal regulations that a firm needs to follow so as to ensure
that generate wealth while ensuring that no legal compliances gets generated while managing
their business operations. The hotel law changes the decisions of the hotel in terms of the way
in which they manage their decisions. Corporate law can be broken into two parts namely
corporate governance and corporate finance. This has the potential to change the rules and
regulations of the hotel so that ethics and sustainability related decisions can be managed in a
proper manner (Kay, 2012). Hotel law also tends to support shareholders hence protecting
their rights hence has an impact on each and every decision made by the firm. For example
they need to make annual report and conduct meetings with shareholders.

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Employment law has a very major role to play in the employee’s management of their human
resources. Firm needs to ensure that they have followed each and every laws related to the
hotel (Schaltegger and Burritt, 2017). This is necessary for avoiding any legal challenges that
organisations are facing. From recruitment to termination in every phase of the human
resource cycle, this law gets implemented. At the same time, the decisions such as salaries
and giving compensation and benefits on the basis of the work of the individuals are
necessary. In the recruitment and termination these laws have to be properly taken care so
that they may not face challenges in the business operations. Employment law binds a hotel
to provide equal opportunity to everyone irrespective of their differences. At the same time
all the guidelines that are provided in the law must be followed at the workplace also in order
to avoid legal compliances. For example, at the time of recruitment Equality law needs to be
followed.
Contract law also has impact on the decisions. Since it is an written and oral form of
agreement hence it provides a framework based on which this hotel will have to make
decisions especially in the areas such as money, property and goods and service related
decisions. For each transaction made by the organisation, contract law plays a major role and
hence hotel will have to look at the sales and purchase. If this hotel misses this anytime then
customers can file a law suit against the hotel (Parker and Nielsen, 2011). Whenever the hotel
makes any contract with their stakeholders, they need to follow the major elements of the
contract law which includes, acceptance, intent to create legal relations, offer and
consideration. For example when a hotel makes agreement with their suppliers then they need
to follow contract law.
L04
P8 Interrelation between different functional role within hospitality industry
In any organisation there are many departments having people with different functional role.
Some of the functional roles are:
 Marketing: It is essential that hotel uses different methodologies for doing marketing.
They have role in managing the marketing appropriately. Marketing team works with
sales and production to bring products as per the demand of the market.