Pearson BTEC Hospitality Business and Process Review Assignment

This assignment is a comprehensive review of hospitality business operations, encompassing financial performance analysis, human resources life cycle stages, and performance management strategies. The report delves into key performance indicators (KPIs) like Return on Investment (ROI) to ass...Read More

HOSPITALITY BUSINESS AND PROCESS REVIEW

Table of contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
Investigating the principles of monitoring and managing financial performance (P1)...............3
Application of double entry bookkeeping system of debits and credits to record sales and
purchases (P2)..............................................................................................................................4
Preparing trial balance applying the use of the balance off rule to complete the ledger (P3). . .13
LO2................................................................................................................................................15
Reviewing different stages of HR life cycle which is applied to a specific hospitality job role
their importance for retaining and developing talent (P4).........................................................15
Developing a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention (P5).....18
LO 3...............................................................................................................................................19
Identification of specific legislation that a hospitality organisation has to comply and adhere
(P6).............................................................................................................................................19
Illustrating how company, employment and contract law has a potential impact upon business
decision making in the hospitality industry by using examples (P7).........................................21
LO4................................................................................................................................................23
Exploring how different functional roles within the hospitality sector interrelate (P8)............23
Explanation of different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organization to strengthen the value chain (P9). 25
Conclusion.....................................................................................................................................26
References......................................................................................................................................28
Page 2 of 24

Introduction
In any industry or business operations there are various process which interrelate to each other
and have an importance to the company's overall operation. It is important to understand all of
those individual services and activities, that help an organization to effectively operate as an unit.
Hospitality industry relies majorly on different individual and departmental activities for the
purpose of conducting their operations in a successful manner. Under the hospitality industry
there are various types of business operation which are conducted such as lodging operations,
food and beverage services, event planning, theme parks, transportations, cruise lining, travelling
and other assistance. All of these stated activities within the hospitality sector require high
amount of individual expertise which combine and form an operational unit for the firm's
operational activities. Through the use of effective combination or coordination of each process a
company can deliver quality product and service to the customer within this industry. Hence in
this assessment, there will be discussion over such aspects which will include financial, human
resources and operational procedures within a successful business of a Hospitality firm.
LO1
Investigating the principles of monitoring and managing financial performance (P1)
Use of financial indicators such as Key Performance Indicators is very important in order to
monitor financial performance of the company. Return On investment is one of the effective
financial indicators which shows the profitability of operational activities, which has been
conducted within the organization. In the current expansionary process of the hotel the return on
investment will be measured by using the revenue which will be and is incurred by the company
in annual basis. The Current KPI which has been set for the ROI for the investment of 500000 is
9 to 10% of the investment, which will mean revenue of 45000 to 50000 is projected. Meeting to
this criteria, it will mean that the company has met the financial requirement if expansion
process.
Page 3 of 24

Application of double entry bookkeeping system of debits and credits to record sales and
purchases (P2)
Journal Entries
Date Particulars Debit Credit
01-02-
2018
Purchases A/c ...Dr £
34,553.00
To new food supplier £
5,001.00
To long-running drinks supplier £
29,552.00
(Being food and drink purchased from food and drink
supplier on credit)
03-02-
2018
Cash A/c....Dr £
13,027.00
To sales of beverages £
11,203.00
To sales of Food £
1,824.00
(Being food and drink sold at end of week one)
10-02- Cash A/c....Dr £
Page 4 of 24

2018 10,653.00
To sales of beverages £
8,966.00
To sales of Food £
1,687.00
(Being food and drink sold at end of week two)
14-02-
2018
Bank A/c....Dr £
2,008.00
To private room hire and catering service £
2,008.00
(Being private room hire and catering service paid in full
by debit card)
17-02-
2018
Cash A/c....Dr £
13,321.00
To sales of beverages £
11,710.00
To sales of Food £
1,611.00
(Being food and drink sold at end of week three)
24-02-
2019
Cash A/c....Dr £
12,329.00
Page 5 of 24

To sales of beverages £
10,614.00
To sales of Food £
1,715.00
(Being food and drink sold at end of week four)
Dr Cash A/c Cr
Date Particulars Amou
nt
Date Particular Amou
nt
03-
02-
2018
Sales In week one £
13,02
7.00
28-02-
2018
Balance C/d £
49,33
0.00
10-
02-
2018
Sales in week two £
10,65
3.00
17-
20-
2018
Sales in week three £
13,32
1.00
24-
02-
Sales in week four £
12,32
Page 6 of 24

2018 9.00
Total £
49,33
0.00
Total £
49,33
0.00
Dr Sales A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
28-
02-
2018
Balance Cd £
49,33
0.00
03-02-
2018
Cash A/c £
13,02
7.00
10-02-
2018
Cash A/c £
10,65
3.00
17-20-
2018
Cash A/c £
13,32
1.00
Page 7 of 24

24-02-
2018
Cash A/c £
12,32
9.00
Total £
49,33
0.00
Total £
49,33
0.00
Dr Purchase A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
01-
02-
2018
New food supplier £
5,001.
00
28-02-
2018
Balance C/d £
34,55
3.00
01-
02-
2018
Long-running drinks supplier £
29,55
2.00
Page 8 of 24

Total £
34,55
3.00
Total £
34,55
3.00
Dr New food supplier A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
28-
02-
2018
Balance C/d £
5,001.
00
01-02-
2018
Purchase A/c £
5,001.
00
Total £
5,001.
00
Total £
5,001.
00
Dr Long-running drinks supplier A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
Page 9 of 24

28-
02-
2018
Balance C/d £
29,55
2.00
01-02-
2018
Purchase A/c £
29,55
2.00
Total £
29,55
2.00
Total £
29,55
2.00
Dr Bank A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
14-
02-
2018
To private room hire and catering
service
£
2,008.
00
28-02-
2019
Balance C/d £
2,008.
00
Dr private room hire and catering service A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
Page 10 of 24

14-
02-
2018
To balance c/d £
2,008.
00
28-02-
2019
Bank A/c £
2,008.
00
Preparing trial balance applying the use of the balance off rule to complete the ledger (P3)
Trial Balance
Particular Debit Credit
Cash A/C £
49,330.00
Bank A/c £
2,008.00
Sales A/c £
49,330.00
Purchases A/c £
Page 11 of 24

34,553.00
New food supplier A/c £
5,001.00
Long-running drinks supplier A/c £
29,552.00
Private room hire and catering service
A/c
£
2,008.00
Grand Total £
85,891.00
£
85,891.00
The trial balance above shows the sale or revenue of the company which amounts to 49330, lies
between the required ROI percentages. Adhering to the values, we can say the financial plan for
expansion is viable.
Page 12 of 24

LO2
Reviewing different stages of HR life cycle which is applied to a specific hospitality job role
their importance for retaining and developing talent (P4)
There are various stages within the HR life Cycle and its application to a specific job like Front
desk manager of a hotel is important for retaining and developing talent. Hence, the following
will be discussed in this section.
The HR life cycle is as follows:
Figure 1: HR life cycle
(Source: Robinson, Solnet, and Breakey, 2014)
Attract: In this phase, the Human resources, plays a critical role of attracting new candidates for
the vacant places within the organisation. Mainly the process is ignited with the brand value of
the organisation, which is again a result of the ever active Human Resource Managers (HRM). In
current scenario the organization can attract employees on fulfilment of their posted criteria in
advertisements and other job routes. Proper communication, effective promotion and skills
Page 13 of 24

through effective branding of the organization, a HRM attracts reliable and eligible candidates
(Robinson, Solnet, and Breakey, 2014).
New Hire: Under this process, recruitment of new employees are done in which new employees
are recruited on the basis of the skills and knowledge regarding their respective job roles. In
accordance to the current organization it can acquire employees to their expansionary
convenience. They can hire Front Desk managers in accordance to their skills and knowledge
which will be required for providing high quality service and information to the customers.
Onboard: Under this phase the employees will be inducted within the workforce of firm. This
will be done by explanation of rules and regulations as well as the operational procedure used by
the firm. In this phase the organization will ensure that the new recruits for front desk manager
are able to understand their respective roles and responsibility with the rules and regulations of
the firm.
Evaluate: After the induction process, the employees will start working with the firm, giving
green signal to the organisation to evaluate the performance of the new workers in their
respective jobs and operations. In this way the company will be able to monitor activities of new
recruits for development in a prominent way.
Develop: After the phase of evaluation the result generated will be used as key information,
using which the company will develop the skills of the Front desk manager. This may include
development of communication, development of operation and development of presentation.
Therefore, in this way the development of the employee will be done to increase their skills and
knowledge for their current job role in a continuous manner.
Encourage: Motivation and encouragement is very important for every employee to perform
effectively at workplace. Through the use of motivation and encouragement, the organization
will be able to make sure that employees are operating to their best levels, ensuring high end
operations (Ortega, 2015).
Recognition: Recognition is one of the most important aspect within HR lifecycle as it helps the
organization to recognize good performance and the contribution made by different individual
based on their respective role. Through the help of effective recognition, which is also a
rewarding system, the company will be able to retain its employees.
Farewell: At the end of the employment period of certain employee, proper respect and farewell
activities should be conducted by the company to make sure that employee is happy and spreads
Page 14 of 24

positive word of mouth. This sense of act motivates and encourages others to treat their peers in
the same way. This creates a sense of comfort within the workforce for operating in the ever
changing work environment (Pereira-Moliner et al. 2015).
Hence from the above evaluation, it can be said that through using the HR lifecycle the company
will be able to evaluate and develop the employees. The company will also be able motivate and
retain employees, which will be beneficial for the company's expansion in operational activities.
Developing a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention (P5)
In the current scenario where the company is looking to expand in a new project, they must make
clear of the changes those are to be made for the establishment of prominent performance
management plan (Chan and Hsu, 2016). A prominent plan would serve as a guideline to the
Front Desk manager of the hotel to ensure effective performance upgrade.
With the performance management plan, the management will be looking forward to fulfill
objectives, such as resolving negative behaviour and overcoming issues of staff retention. As
these two are major issues, which a company may face during their expansionary process, the
importance of a prominent plan rises. Front desk manager is the most needed individual within
the process of hotel operation, when expansion works out. It is their sole responsibility to make
and maintain a cordial relation with every peers and colleagues creating a peer performance
management plan (Denizci Guillet and Mohammed, 2015).
Now in order to evaluate or monitor the performance of the front desk manager, customer
feedback will be held as major source of information, about the Front desk managers behaviours
and quality of service. After this, Feedback of other employees in relation to behaviour and mode
of operations for front desk manager will be taken into consideration. In this way both internal
and external participant will give out information in relation to the performance of the front desk
manager, based on which the performance of the manger will be decided (Ruetzler et al. 2014).
Key performance indicator will be used as a performance management tool through which
positive or negative performance of the company will be known based on which mitigation of
weakness will be done (Molina-Azorín et al.2015). The shortcoming in performance will be
highlighted by the company’s human resources department based on which the development of
Front desk manager will be done to ensure that there is effective skills and knowledge
Page 15 of 24

development of the manager to render better service to the customers. For example if the
manager is weak in communication skills, steps will be taken for development by the company
using key techniques and strategies (Bruns-Smith et al. 2015).
In this way motivation will be provided so that the employee is retained within the company
benefiting the company’s workforce operations (Harrington et al. 2014).
LO 3
Identification of specific legislation that a hospitality organisation has to comply and
adhere (P6)
There are various legislations for operations of hospitality organization, which the firm has to
adhere to be considered in the expansionary process of Lakeside Hotel. The legislations are as
follows are as follows:
1. Work health and safety is one of the most important elements which is needed by a
company at the time of their operations as it helps the firm in making sure that there is
safe operation going on within the firm (Rauch et al. 2016). There are various types of
threat which are there within the operations of the firm. For this purpose the governance
of the country has set up some safe work legislations which are to be followed by every
company, which also includes companies from hospitality industry, They are to comply
with safe work framework in order to decrease the chances of accidents causing damage
to any employee or employer (Davis et al. 2018). Legislation in relation work health and
safety is very prominent when it comes to hotel business as there is use of fire, knives and
other substance which can cause damage to the employee’s health and safety.
2. Gas Safety Regulations of 1994 is directed towards the use of gas oven for cooking. As
well as Fire State regulation of 1994 which is directed towards the safe use of fire and
other flammables at time of operations which is to be complied by an any hotel in the
Hospitality industry such as the new project of Lakeside Hotel within UK.
3. Health and Safety Work act 1974 also provide guidance of work health and safety laws
which is to be followed by the companies at the time of their operations (Ryan, 2015).
4. Data protection is also a legislation, which companies within the hospitality sector have
to abide. This is because, the management gets in touch with the personal info like name,
Page 16 of 24

age and other details of the customer making the data recorded confidential in nature. In
the modern day context data protection and information preservation is one of most
needed rule within any sector of operations. Hence there are some strict legislations and
laws created within the judiciary of the country concerning data protection which
companies within the country have to comply (Perez and del Bosque, 2014). Now, in the
current expansion process the company is building lakeside hotel which will have online
booking which means the extent of data protection legislation on the company's booking
process is more important and the company will have to ensure that it meets all the data
protection legislation in order to operate ethically. Data Protection Act 1998 and Credit
Card Act 1990 are two substantive legislations which remark the needs of data protection
frameworks within hoteliers as there are payment are done through blinds modes.
Therefore, data protection through the websites as well as the data unit of the firm is very
important for the firm while expanding on the online booking scene (Xu and Gursoy,
2015).
5. The employment process is guided by employment laws which are to be followed by the
company in order to make sure that there is no significant problems which occur within
the organization due to their employment activities. Wages, work hours and work safety
have been considered under these legislations which procure the rights of Employees
within a particular organization. Legislations like Employers Liability Act 1969 states the
liability which the employer has to bear in the process of employment. It gives a good
description of the roles and responsibility of employers in the employment process
(Brown, Arendt and Bosselman, 2014).
Illustrating how company, employment and contract law has a potential impact upon
business decision making in the hospitality industry by using examples (P7)
Laws are created for the purpose of setting proper framework following which companies will be
able to conduct their operation successfully. Hence it can be said that, decision making process
of management within the company is based on some lawful framework which are to be
followed for the purpose of ensuring effective operational and ethical activities within the film
(Law, Buhalis and Cobanoglu, 2014). For example taking the company’s safety standard, the
company has to consider the work safety law which shows that, company law will affect the
Page 17 of 24

decision making process of the management. The ways in which different laws will affect the
decision making process of management when implemented in for the projects of Lake Side
Hotel are as follows:
1. Company law: Company laws are related to the organizational structure laws, registration
laws and operations laws. In the hospitality industry laws in relation to Data protection
act and Customer protection act is widely followed. This entails a framework which is to
be used in order to render and protect customer rights of being secured by the contractual
agreements. These legislations are very effective in decision making process for example
companies within the hospitality industry have to maintain high amount of data security,
leakage of which can bring upon legal actions on the firm (Bowie et al. 2016). Therefore,
the company has to make decision strictly, which shows that these laws affect the
decision making process of the firm.
2. Employment laws: Employment laws are in regards to the company Human resources
management as they deal with the employment processes. The employment laws such as
Employer Liability Act, Work health and Safety, Equality act and Pension Act all
indicates to the employment benefit. All of these acts and laws have to be considered by
the human resources management before making decision for the employment process of
the firm. In the current scenario the hotel needs to consider these employment laws
before employing new recruits. For example in order to create a safe work environment
the company has to make decision in accordance to Work Safety Acts which shows that
these laws have an significant impact on the company’s decision making operations
(Benavides-Velasco, Quintana-García and Marchante-Lara, 2014).
3. Contract law: Contractual laws affect the decision making process in a wide manner, this
is because the terms and conditions adhering to which a company have come into
operation provides every pathways of success. For example, if hotel accepts pre booking
of rooms, they are liable to provide accessibility to the customers, booking rooms for a
certain date. This falls under the category of online contract and is needed to be followed
in every circumstances (Styles, Schoenberger and Galvez-Martos, 2015).
Page 18 of 24

LO4
Exploring how different functional roles within the hospitality sector interrelate (P8)
In order to establish a prominent hotel at Lakeside it is very important to consider that their
various departments within the hotel are aware of the roles and responsibility. The various
departments which will need to operate within the new project hotel operations are as follows:
1. Housekeeping department: Housekeeping department carries out the functional role of
rendering services of lodging to the customer who visit the hotel. They are to interrelate
with the front office department for better understanding of the requirement of the
customers.
2. Front Office Department: Front Office Department carry out the functional role of
documenting and assisting the customer to their respective services (Deery and Jago,
2015). They need to communicate and coordinate with the housekeeping department in
order to establish a swift fulfilment of the demands.
3. Accounting department: Accounting department of the company has a functional role
of recording every financial transaction and financial event which occur in the period of
the company’s operation. This includes customer payments, payment to supplier,
employee remuneration and bookkeeping activities. They are to communicate with the
management for better evaluation of the financial changes.
4. Human resources department: Human resources department of the firm will deal with
management of work force which is operating within the firm and carrying out activities
like recruitment, training, development, remuneration and management. They act as a
central department communicating with every sector of an industry.
5. Security Department: The security department of the company will secure the Hotel as
well as will operate as a mitigation team to nullify threats like theft and other criminal
incidents. They are sort of independent agency only answerable to the management.
6. Food and beverage department: Food and beverage department of the company will
look into the food production operation of the firm which will be served to the customers
in accordance to their respective desires (Singal, 2014). They are to communicate with
the front desk, housekeeping and management for better evaluation of situation.
Page 19 of 24

7. IT department: The IT department within the company will look at the digital operation
of the firm such as online booking, online payment services and data security within the
firm's operations.
As stated above there are different department which will be there within the hotel operation and
will carry out their respective functional roles. It is important to consider that all of functional
role are interrelated with each other, as it is significant that through the use of these functional
roles the company get enough opportunity to ensure smooth work. The Front Office department
confirms the customers booking and types of service as well as type of fooding required. Based
on this the lodging and food beverage department carry out their services, the data is also given
to IT department which stores the data in the data storage system. After this cost required for
rendering services and payment received by the customer is recorded by the accounting
department. The human resources on the other hand monitor and evaluate employee performance
based on which development of service is done. The security department keep the property
secure and away from any kind of threats. Hence it can be said that all of function happen at the
same time and are dependent and abswerable to each other in carrying out a successful operation
(Nieves and Segarra-Ciprés, 2015).
Explanation of different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organization to strengthen the value chain (P9)
Now there is various method of communication, coordination and monitoring which can be
applied for the current project but the most suitable method will be taken. It can be said that
using a specific method of communication and coordination which suits the company’s
requirement will help the firm in strengthening its value chain through effective flow of
information from one department to another (Pirani and Arafat, 2014).
The most suitable mode of communication will be chosen for the current communication and
coordination process which is interpersonal communication in which all the department heads
will communicate and coordinate with each other. In this communication system the manager
will delegate the information to the subordinates. This will ensure a proper flow of information
which will established with different department of the firm and in the workforce as well. An
effective electronic communication system will be established using the IT department which
will help in easy and evident communication and coordination of different departments within
Page 20 of 24

the organization. This system will be made considering the requirement of the effective flow of
information.
Monitoring process is an important aspect of company's management it is important as the
management monitors operations within the firm which will include monitoring of operations,
work safety and customer feedback on the service. The company will have risk register which
will be suitable for reporting of risks which has happened within operations. Attendance register
will be used to monitor employee attendance at work and waste management register to see the
amount of waste disposed in proper manner. The petty cash book to look at small expense in
daily operations of the firm. All of these will be recorded in the data storage system using which
the firm’s operation. For security purpose, CCTV will be installed so that there is effective
surveillance of security within the hotel (Moutinho and Vargas-Sanchez, 2018).
All of these modes of communication, coordination and monitoring will be used to amplify the
services of the firm and increasing its operational efficiency. It can be said that, it will help the
company to create value for customer by rendering better quality of service and product,
ultimately strengthening the value chain of the firm (Riley, 2014).
Conclusion
Concluding in the light of above context it can be said that in order to create an effective hotel at
Lakeside it is important that Two brothers look at this systematic plan which will ensure
successful business operation and high quality service to their customers. The financial aspects
which resemble to return of investment will grow once the firm has established within the
market. The human resources operation within the firm should also be effective in creating an
effective workforce of the company as it will create an effective workforce which will increase
the operational effectiveness of the firm. Creation of effecient workforce environment will help
the company in rendering high quality service to their customers. It can be said that through the
use of effective communication, coordination and monitoring process, the company will be able
to increase operational efficiency which will help the firm in creating effective as well as value
services to their customers.
Page 21 of 24

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