Hospitality Business Toolkit Report: Hilton Hotel Business Operations

This report delves into the hospitality business toolkit, analyzing various operational and functional aspects crucial for success. It begins by examining financial management principles, including budgeting, cost analysis, and the importance of comparing actual results with budgets. The report also explores the double-entry system, demonstrating its application in recording sales and purchase transactions, and presents a basic trial balance. Furthermore, it investigates the human resource life cycle, highlighting the significance of each stage, from recruitment to termination, in managing employees within the hospitality sector. A performance management plan is then proposed, outlining techniques to address negative behaviors and improve staff retention, along with an analysis of relevant legislation. Finally, the report explores the interrelation of different functional roles within the hospitality sector and methods of communication to strengthen the value chain, providing a comprehensive overview of the key elements contributing to a successful hospitality business, using Hilton Hotel as a case study.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Investigate principles of managing and monitoring financial performances.........................1
P2 Double entry system of debit anf credit records of sales and purchase transaction in general
ledger...........................................................................................................................................3
P3 Basic trial balance that applying use of balance off rule to complete ledger.........................4
LO 2.................................................................................................................................................5
P4 Different stages of HR life cycle which applied in specific hospitality job role and their
importance...................................................................................................................................5
P5 Performance management plan for specific hospitality job role that applying techniques to
resolve negative behaviour and overcome issues of staff retention............................................6
LO 3.................................................................................................................................................8
P6 Specific legislation that hospitality organisation need to comply and adhere to ..................8
P7 Specific example of company that how employment and contract law has potential impact
on business decision in hospitality industry................................................................................9
LO 4.................................................................................................................................................9
P8 Explore how different functional role in the hospitality sector interrelate............................9
P9 Explain different methods of communication and monitoring applied in specific
department of hospitality organisation to strengthen value chain.............................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality business contain several operations and functions that assists to use marketing
strategy to build successful brand. In this regard, goals and objectives of the enterprise has been
accomplished to create more employment and increase productivity as well. With this regard,
more income also generate in which individual take steps for future growth (Bowie, Buttle and
Mariussen, 2016).
Present study based on Hilton hotel which is one of the largest business and provide
different types of products and services in different areas of the world. With this regard, it can be
stated that they are trying to gather several customers to maintain relationship with them.
For gaining insight information of the present study, it covers principles of managing and
monitoring financial performances. Furthermore, it includes basic trial balance which can be
successfully apply to complete ledger. Moreover, it considers performance management plan for
specific hospitality job role and its importance. At last, different functional role in the hospitality
sector interrelate to attain overall goals and objectives.
LO 1
P1 Investigate principles of managing and monitoring financial performances
Financial and performance management consider management, process and behavioural
aspects with strategy execution (Kandampully, Zhang and Jaakkola, 2018). In this way, Hilton
hotel can easily manage and monitoring performances which is important to focus and helping
organisation delivery objectives and goals. Following are different principles of financial
management can be implemented in Hilton hotel:
 Principle 1: According to first principle of financial management, the chosen
organisation need to prepare budget. Therefore, manager must analysing requirement of
several functional units which develop for flexible budget and manage changes easily.
Furthermore, it is important to detect substantial changes in circumstances or business
conditions (Uysal, Schwartz and Sirakaya-Turk, 2017).
 Principle 2: As per second principle of financial management, budget of Hilton hotel
must be realistic, reasonable and attainable.
 Principle 3: Budget of the chosen business must based on analysis which include
identification of purpose to accomplish mission, goals and objectives. In this aspect,
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comprehensive assessment of unit's financial needs implement to fulfil goals. Plan must
increase resources and modify goals when current resources of Hilton hotel meeting with
needs (Pereira-Moliner, Font and Pertusa-Ortega, 2015).
 Principle 4: Actual financial results must compared to the budget at regular basis so that
it helps to detect changes in circumstances or business environment. It also assists to
discover transaction errors, measure financial performance, ensure unnecessary cost
involved to accomplish goals. Transactions are adequately supported in Hilton hotel to
manage functions (Kandampully, Zhang and Jaakkola, 2018).
 Principle 5: As per this principle, when actual financial results vary significantly from
budget so that manager must determine cause, evaluate activity and take corrective
actions. Consequently, in selected business appropriate outcomes ascertained in
systematic consideration (Kovaltchuk, Dedusenko and Miloradov, 2016).
 Principle 6: Hilton hotel need to operate with their accurate budget amount. As per this
principle, it is essential to justification of such excess when expenditure incurred more.
Hence, unit must develop formal plan to eliminate deficit generated.
 Principle 7: Within the chosen business, all expenditure must comply with several
policies, regulations and rules so that it helps to concentrate on effectiveness
(Kandampully, Zhang and Jaakkola, 2018).
 Principle 8: In the selected business, 8th principle stated that each unit must evaluate
financial consequences with new activity which is started with current activity that is
changed or eliminated (PRINCIPLES OF FINANCIAL MANAGEMENT, 2019).
 Principle 9: Each unit must ensure that benefits are anticipated are greater than the costs
with planned or ongoing activities.
 Principle 10: In the business, 10th principle is that each unit must provide adequate
safeguards to protect against loss and unauthorised used of university assets.
A) Income and expenditure
Income and outgoings of Month February 2019
Income Amount Outgoings Amount
Gifts £200.00 Food shopping £300.00
Benefits and £150.00 Clothes £200.00
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allowances
Wages £220.00 Gifts £150.00
Household utility bill £180.00
Drinks £260.00
Lunch purchase £250.00
B) Explain following terms Sales: Sales can be defined as the exchange of a commodity for money to take action of
selling something. Purchase: Purchase refers as acquire something through paying for it.
 Types of cost: In Hilton hotel, there are different types of cost associated with the
organisation to ascertained desired level of results. In this consideration, fixed and
variable cost, direct and indirect costs, product and period cost, other types of cost, etc.
included in Hilton hotel.
P2 Double entry system of debit anf credit records of sales and purchase transaction in general
ledger
Double entry system of accounting can be defined that for the enterprise transaction,
amount must be recorded in minimum two accounts. Therefore, it is the system which require
considering all kinds of transactions in which amount entered in debit must be equal to amount
entered in credits (Pereira-Moliner, Font and Pertusa-Ortega, 2015). Therefore, it contains
following formula:
Assets = liabilities + owner's equity
In Hilton hotel, following are different aspects in which double entry system consider to
match debit and credit both sides.
Purchasing of kitchen equipments
Debit Credit
Increase in kitchen equipments £6,540.00
Decrease in kitchen £6,540.00
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Food purchase
Debit Credit
Increase in food £7,900.00
Decrease in cash £7,900.00
Beverage purchase
Debit Credit
Increase in beverages £12,970.00
Decrease in cash £12,970 .00
Purchase return
Debit Credit
Increase in cash £200.00
Decrease in goods return £200.00
Cash sales
Debit Credit
Increase in cash £3,350.00
Decrease in goods £3,350.00
Credit card sales
Debit Credit
Increase in cash £14,795.00
Decrease in Credit cards £14,795.00
P3 Basic trial balance that applying use of balance off rule to complete ledger
Trail balance system is a bookkeeping method which consider balance between all
ledgers that are compiled into credit and debit column. Hilton hotel prepare their trail balance
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periodically so that they can make effectiveness to maintain their financial transactions. It
considers list of all general ledger accounts so that on each nominal ledger balance identify to
hold either debit or credit balance (Kovaltchuk, Dedusenko and Miloradov, 2016). As a result, it
can be stated that it is made at the end of every reporting period.
Name Debit Credit
Cash £11,700.00
Bank loans £12,000.0
0
Trade creditors £11,200.0
0
Purchase £12,400.00
Sales £14,000.0
0
Sundry creditors £1,620.00
Debtors £12,000.00
Bank loan interest £1,400.00
Other expenses £11,020.00
Vehicles £2,020.00
Suspense account 11720
Total 50540 50540
LO 2
P4 Different stages of HR life cycle which applied in specific hospitality job role and their
importance
Human resource management consider life cycle with detail phases in which workers
undergoes at time of employment. It also assists to determine successful role of manager. In
Hilton hotel, human resource manager deal with different issues. As a result, it plays very
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important role to develop effective team and highly competent workforce to drive success in
business (Ivanova, Ivanov and Magnini, 2016). Within the chosen business, human resource play
very essential role in the firm to accomplish desired objectives. Following are different staged of
human resource life cycle are as follows: Recruitment and selection: Recruitment is the process of hiring new employees in the
business. In this regard, in human resource department it includes placing jobs ads,
selecting candidates that resumes to look on conducting employment interviews and
administering assessment which is the best applicant for the position. In context of Hilton
hotel, human resource manager play role to judge skills of candidates and follow
consistent procedure for hiring and selecting candidates. Along with this, formulating
staff plan also consider competencies, knowledge and experience to perform specific job
role (Zaitseva, Larionova and Povorina, 2016). Orientation and career planning: At this stage, human resource manager focus on
making new employees familiar with environment, policies, procedures, etc. It is the
main duty of manager to support their new staff to adjust them in particular environment
(Moutinho and Vargas-Sanchez, 2018). In this way, long-term career goals with
company make additional use of personality profile testing and help to make several
career options. Career development: Career development opportunities are essential to keep staff
engaged with the business over time. After establishment of company, must determined
for long tern career objectives. Hence, human resources helps to meet with goals when it
is realistic (Kovaltchuk, Dedusenko and Miloradov, 2016). It assists to increase
professional growth and training that prepare for more responsible position. Company
also assess to determine successful hire. In Hilton hotel, it helps to attain overall goals
and objectives.
 Termination or transition: When some employees leave company through retirement
after long and successful career. Others have opportunities to laid off so that they can
choose to move on to (Zaitseva, Larionova and Povorina, 2016). Therefore, role of HR in
this process manage transition by ensuring that policies and procedure are followed
through carrying exit interview. All of these stages of HR cycle handle internally with the
help of provide service to manage employees in business.
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P5 Performance management plan for specific hospitality job role that applying techniques to
resolve negative behaviour and overcome issues of staff retention
Performance management plan consider document in which detail tactics involve to help
an individual and company to improve their performances. As a result, it is important for Hilton
hotel to increase their understanding which create direct effect on outcomes. Human resource
manager in the business need to address elements that influence on employees' behaviour. On the
basis of strategic plan for managing performance and behaviour, develop in the present study.
With the help of internal analysis, human resource manager identifying business area which need
to improve successfully (Ivanova, Ivanov and Magnini, 2016).
Area to
improve
performanc
e
Issue
related
with
performanc
e
Expected
outcomes
Action
taken to
bring
improveme
nts
Support Review of
date
Achieving
performanc
e standards
Managemen
t of Hilton
hotel
Lack of
management
in the
business
because of
no proper
distribution
of roles and
responsibilit
ies
Appropriate
management
of
systematic
process
Operational
rules that set
by board of
directors in
Hilton hotel
Manager of
Hilton hotel
Once in
every month
In 2 months
Operational
and
production
department
Lack of
productivity
Increasing
in
productivity
to deal with
delivery of
products
Training to
employees
also
provided so
that
technology
Leaders of
the chosen
business
Once in
every month
In every 3
months
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and services
on time
also
implemente
d with other
essential
resources.
Bring
improvemen
t in financial
management
system
Continuous
increasing
of
transaction
errors
Appropriate
and
complete
financial
report
Consider
principles of
financial
management
that applied
in routine
practice
Top level
management
One time in
every 4
months
In every 4
months
Techniques to resolve negative behaviour
In order to solve negative behaviour in Hilton hotel, there are different techniques utilised
by human resource manager. In this way, high turnover of employees create major issue on the
results. As a result, there is lack of proper management. In this regard, it is essential to
implement appropriate communication which would be helpful to solve disputes between
manager and their staff members (Xu and Gursoy, 2015). Moreover, there is lack of effective
decision making so that it create negative impact on the chosen business. To increase significant
advantages, it is essential to maintain clear and transparent policies to deal with this issue.
LO 3
P6 Specific legislation that hospitality organisation need to comply and adhere to
There are several laws that must be followed by Hilton hotel and play very important role
in it. They are as follows: Food and safety act 1990: According to this act, it is essential to Hilton hotel to look
upon food safety and its quality. In this regard, it is essential to take several measures that
assists to preventing contamination by pests (Bowie, Buttle and Mariussen, 2016). It
assists to promote principle of food hygiene which develop sustainable process for the
enterprise.
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 Human right act 1998: According to this legislation, it is essential to Hilton hotel to
provide people with right to get respected and treated fairly. According to this norm,
employer required to treat all staff members fairly and respected workers. It significantly
influences on HR policies and practices. Hence, it also creates impact on culture of the
business (Uysal, Schwartz and Sirakaya-Turk, 2017). License act 2001: This norm consider formulation and implement by members in UK
parliament. Hence, in this consideration Hilton hotel need license for distribution of
alcohol. Equality act 2002: As per this legislation, it is essential to diminish discrimination among
several employees on the basis of caste, colour, religion, gender, etc. Main aim of this
legislation prevent individual from being discriminated (Kandampully, Zhang and
Jaakkola, 2018). As a result, it is essential to assess significant effect of provision on
Hilton hotel.
 National minimum wage 2015: According to this act, HR manager of the chosen
business need to provide appropriate amount of wages to each member of their business
to maintain their effectiveness and attain overall goals and objectives. As a result, it helps
to adhere with roles and responsibilities effectively.
P7 Specific example of company that how employment and contract law has potential impact on
business decision in hospitality industry
In the UK, employment law which is designed to protect rights of staff members. It
includes different aspects to maintain relationship between employer and employee. It is crucial
for manager to comply with legislations. Due to failure in it, different employment claims. In the
UK, employment law covers contract which pay for working hours, etc. This legislation create
effect on problems such as age, discrimination, redundancy, dismissal, etc. For example,
manager of the chosen business dismissed people without proper notice and reason. Therefore,
employee of the business sue him under employment law (Pereira-Moliner, Font and Pertusa-
Ortega, 2015). As a result, employer need to face legal obligation. Specific incidents create
negative effect on business and its operations. It creates adverse impact on other employees
working in business.
Furthermore, contract law create significant effect on business and relationship which
formalised with contract. For instance, in Marriott hotel partnership must develop relationship to
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do business together so that both parties shown complete agreement with terms and conditions
(Kandampully, Zhang and Jaakkola, 2018). Without any prior notice, no one can breach contract
so that each party need to fulfil legal obligation to increase business relationship.
LO 4
P8 Explore how different functional role in the hospitality sector interrelate
In the business, different functional units play very important role that are related with
each other departments. They are as follows: Relationship between front office and house keeping: In Hilton hotel, it is essential to
build two units together to work with quality and implement services in time. In this
regard, different departments share their related information to fulfil guest needs.
Furthermore, according to customer needs effectively (Uysal, Schwartz and Sirakaya-
Turk, 2017). In order to maintain proper requirements, front office need to share their
house keeping activities in the business.
 Lodging accommodations and marketing: Furthermore, marketing play very important
role in the business to share information which is related with customer preference and
demand to the department. Function of operational department must ensure goods and
services according to instruction in team (Bowie, Buttle and Mariussen, 2016). Role of
marketing is to assess appropriate supply with lodging accommodations.
P9 Explain different methods of communication and monitoring applied in specific department
of hospitality organisation to strengthen value chain
In the business, there re several methods of communication and monitoring to applied in
specific department of hospitality organisation. Different types of communication are as follows: Face to face: With the help of effective technology, it can be stated that face to face
communication is the method that helps to communicate in business environment (Xu
and Gursoy, 2015). It helps to improve understanding and solidify team to build trust
among co-workers of Hilton hotel. It requires making team efforts to work in a team with
several efforts. Email conversations: Email remain very popular to communicate in the several business
and used to deliver positive outcomes. This method is beneficial because it used to
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