BTEC HND Hospitality Business Toolkit Report: HR, Finance, and Legal

This report provides a comprehensive overview of key aspects within the hospitality industry, focusing on East London Catering LTD. It begins with an introduction to hospitality, emphasizing its importance in service and sales. Task A delves into financial management, outlining five principles for managing financial transactions, including consistency, timeliness, justification, documentation, and certification, supported by example journal entries and ledger accounts. Task B explores the HR lifecycle, detailing stages such as attraction, recruitment, selection, induction, orientation, onboarding, career planning, development, retention, and separation/termination, and develops a performance management plan for a front desk manager to address negative behavior and staff retention. The report also identifies specific legislation that hospitality organizations must comply with, examines the impact of employment and contract law on decision-making, explores the interrelation of functional roles, and discusses communication, coordination, and monitoring methods. The report concludes with a summary of key findings and references cited.

Hospitality

TABLE OF CONTENTS
Contents
INTRODUCTION...........................................................................................................................1
TASK-A...........................................................................................................................................1
TASK-B...........................................................................................................................................7
Different stages of HR life cycle.................................................................................................7
Develop performance management plan for front desk manager that apply techniques to
resolve negative behaviour and overcome issues and staff retention..........................................9
Identify specific legislation that hospitality organisation has to comply..................................10
Specific impact on company by employment and contract law upon decision making............11
Explore different functional roles of hospitality sector interrelated..........................................12
Different methods of communication, coordination and monitoring........................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality is an effective relationship between guest and host where host receives to the
guest by building some goodwill. Hospitality is a way by which people treat to other people by
providing service by welcoming to the guest one of the example for hospitality is hotels.
Hospitality plays a very important role in increase or decrease in volume of sales in the
organisation. Hospitality includes Hotels, tourism agencies, bars etc. Hospitality industry is
broad category of field in service industry that includes food, event and planning etc. Hospitality
is a generous and effective friendly treatment with the guest and visitors that came to offer
services in hospitality industry (What Is Hospitality?, 2017). East London Catering limited is a
private company that is incorporated in 2019. Company is expanding in medium size catering
organisation and serves its services in London, Essex, Hertfordshire, Kent and Surrey. In this
report discussed about ways to manage finance and record transaction to minimise cost that are
responsible in hospitality sector, analyse way to manage human resource life cycle and potential
impact of legal and ethical consideration in hospitality business and importance of coordinating
and different functions of department with the hospitality sector.
TASK-A
There are 5 principles for managing the financial transaction of East London Catering
LTD. These Principles are:
Consistency
All the transaction of company is to be maintained and handled in a consistent manner.
Policies and procedures are established in company to ensure similar type of transaction in a
regular routine of company. This will lead to actual management of financial performance along
with monitoring because a slight change in strategies will assist the company to determine
deviations.
Timeliness
Transaction of company are to be handled within a consistent time period by outline the
federal agencies, sponsors etc. This will lead to the entire financial system to be in sequence and
efficient. Through this determination of fluctuation are also easy to determine.
Justification
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For every transaction of company there should be reason that supports to the organization
goals (Shapiro, and Hanouna, 2019). This principle will lead to monitoring the financial
performance because every transaction will be justified with its explanation.
Documentation
Sufficient documentation has in organization that supports to the transactions of
company. Documentation retained and organized in company so that have enough during the
audit. With this principle measurement of performance would be possible because every
information is documented.
Certification
Financial transactions are to be approved and have authorized signature. This will lead to
raise their authenticity and validity.
Journal entries:
Date Particular Debit Credit
01/01/21 Cash a/c Dr
To Owner's equity
£30,000 £30,000
05/01/21 Rent a/c Dr
To Cash a/c
£1000 £1000
06/01/21 Washers and Dryers
a/c Dr
To Cash
To Bank
£25000 £10000
£15000
07/01/21 Insurance policy a/c
Dr
To Cash a/c
£1200 £1200
09/01/21 Food supplies a/c Dr
Beverages a/c Dr
To Bank a/c
£8000
£7000
£15000
11/01/21 Laundry fee a/c
To Cash a/c
£200 £200
2

15/01/21 Telephone and internet
a/c Dr
To Cash a/c
£2220 £2220
15/01/21 Rate, water charges
and refuse a/c Dr
To Cash a/c
£950 £950
16/01/21 Wages and salaries a/c
Dr
To Cash a/c
£1740 £1740
18/01/21 Cash a/c Dr
To Sales a/c
£20000 £20000
20/01/21 Cash a/c Dr
To Sales a/c
£13000 £13000
Ledger accounts:
Cash account
Date Particular Amount Date Particular Amount
01/01/21 owner equity £30,000 05/01/21 Rent a/c £1000
18/01/21 Sales a/c £20000 06/01/21 Washers and
Dryers a/c
£10000
20/01/21 Sales a/c £13000 07/01/21 Insurance
policy a/c
£1200
11/01/21 Laundry fee
a/c
£200
15/01/21 Telephone and
internet a/c
£2220
15/01/21 Rate, water
charges and
£950
3

refuse a/c
16/01/21 Wages and
salaries a/c
£1740
30/01/21 Balance c/f £45690
Total £63000 Total £63000
Capital account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £30000 01/01/21 Cash a/c £30000
£30000 Total £30000
Sales account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £33000 18/01/21 Cash a/c £20000
20/01/21 Cash a/c £13000
£33000 Total £33000
Bank account
Date Particular Amount Date Particular Amount
31/01/21 To bal c/d £30000 06/01/21 Washers and
Dryers a/c
£15000
09/01/21 Food supplies
a/c
£8000
09/01/21 Beverages a/c £7000
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£30000 Total £30000
Rent account
Date Particular Amount Date Particular Amount
05/01/21 Cash a/c £1000 31/01/21 By bal c/d £1000
Total £1000 £1000
Washers and Dryers account
Date Particular Amount Date Particular Amount
06/01/21 Cash £10000 31/01/21 By bal c/d £25000
06/01/21 Bank £15000
Total £25000 £25000
Insurance policy account
Date Particular Amount Date Particular Amount
07/01/21 Cash £1200 31/01/21 By bal c/d £1200
Total £1200 £1200
Food supplies account
Date Particular Amount Date Particular Amount
09/01/21 Bank £8000 31/01/21 By bal c/d £8000
Total £8000 £8000
Beverages account
Date Particular Amount Date Particular Amount
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09/01/21 Bank £7000 31/01/21 By bal c/d £7000
Total £7000 £7000
Laundry fee account
Date Particular Amount Date Particular Amount
11/01/21 Cash £200 31/01/21 By bal c/d £200
Total £200 £200
Telephone and internet fee account
Date Particular Amount Date Particular Amount
15/01/21 Cash £2220 31/01/21 By bal c/d £2220
Total £2220 £2220
Rate, water charges and refuse fee account
Date Particular Amount Date Particular Amount
15/01/21 Cash £950 31/01/21 By bal c/d £950
Total £950 £950
Wages and salaries fee account
Date Particular Amount Date Particular Amount
16/01/21 Cash £1740 31/01/21 By bal c/d £1740
Total £1740 £1740
Trail Balance
Particular Amount (Dr) Amount (Cr)
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Cash £45690
Capital £30000
Sales £33000
Bank £30000
Rent £1000
Washers and Dryers £25000
Insurance policy £1200
Food supplies £8000
Beverages £7000
Laundry fee £200
Telephone and internet fee £2220
Rate, water charges and
refuse fee
£950
Wages and salaries fee £1740
Total £93000 £93000
TASK-B
Different stages of HR life cycle
Human resource:
These are counted as those personnel’s that plays an important role with respect to any
company including hospitality sector too. Right from recruiting adequate workforce till making
their retention they play their role. Analysing the organization need, making recruitment
accordingly, enabling career opportunities, organizing training sessions are all included in the
part of the HR personnel.
HR life cycle:
It includes the various phases of HR cycle that will include and covers every single
aspect with respect to workforce and human personnel. Its stages may include:
Attraction, recruitment, selection:
This is the first phase of HR cycle in which after making analysation of the industry need
thy make attraction, recruitment and selection. Under this stage they post advertisement, make
contact with adequate candidate, attract them towards the industry. After attracting they engage
them by within the organization by recruiting them. This is further followed up by selection
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process. This means HR in Hilton Hotels and resorts plays their role in terms of attracting and
recruiting selecting appropriate candidate for Hilton Hotels and resorts so that it can direct the
organization towards the direction of its goal accomplishment. With respect to Front desk
manager, HR plays their role in terms of engaging and recruiting those personnels which will
have well adequate knowledge, patience, self-awareness and motivation so that better guest
handing can be taken. This is an important step because it will lead to enable the company with
the better workforce and filling of vacancy. However, along with this maintenance of motivation
level of employees after selection is also important so that they will retain in the company.
Induction, orientation, onboarding:
This is also an important stage with regard to HR life cycle. This is because through this
stage the selected candidate will be made familiar with the organization and lead to
comfortableness. Under this stage HR make induction means making familiar and aware of new
candidate with the exiting one. Under some organization orientation programmes are also
introduced in which HR make orientation of new employees. In case of Hilton Hotels and resorts
also HR perform this stage. However, in case of front office manager this step is most important
because if the manager will not having knowledge of others then it will lead to have an adverse
impact over the Hilton Hotels and resorts. With the performance of this step employees will be
able to know the company in a better way. This will lead to better functioning and fast decision-
making.
Career planning and development :
This is also a major stage because it will lead to have better retention of employees within
the organization. As when employees will get good opportunities with respect to company then
this will lead to have reduction in turnover. In case of ABC too, enabling better career
opportunities in terms of growth and development will lead to have better retention of
employees. In case of front office manager too enabling career advancement opportunities enable
better retention. This will also lead to have success and growth of organization. With the
performance of this step employees will retain more in organization. This will further assist the
company in directing its efforts towards the direction of its goals.
Retention:
This is also a major stage with regard to Hr and its working. This stage enable the better more
consistency in the organization and ensure that the employees will remain associated with the
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organization. This will lead to have talent retention. In case of Hilton Hotels and resorts this
stage is most focussed stage because it ensures better workforce retention along with talent
management. Enabling good opportunities, ensuring motivation, maintaining level of satisfaction
is highly focussed in case of front manager retention of the Hilton Hotels and resorts. This step
has a major role in delivering and meeting the company's goal. This is because with the retention
of talented staff company can easily grab objectives along with achievement of success.
Separation and termination
It is a last stage for HR life cycle where employee separation stage. In this stage where
employee’s lifecycle will reach to its conclusion stage from retirement, new job or for personal
issues employee leave the Hilton Hotels and resorts LTD. Treating to process of separation is an
equally importance same as on boarding process of company (Kavanagh, and Johnson, 2020).
HR ensures that separation and termination of one employee doesn’t affect to other members of
department in Hilton Hotels and resorts LTD.
Develop performance management plan for front desk manager that apply techniques to resolve
negative behaviour and overcome issues and staff retention.
Performance of the staffs are to be monitored on the regular basis so that their performance is
evaluated and understand the areas to be improved and roadblocks or hurdles coming on the way
are to be improved in an effective way.
The performance management plan for the front desk manager is:
Plan
Planning is the base for performance management. Under planning various steps and
determination of standards are to be done against which the actual performance of the employees
will be measured. Plan the things to apply the effective techniques that improve to condition in
Hilton Hotels and resortsand reduce negative behaviour of employees that affected to working
culture in organisation and also plan the things that affected to working of front desk manager in
Hilton Hotels and resorts (Perrone, Sorenson, and Johnson, 2018). Analyse the ways to solve
those issues so that negative behaviour of front desk manager with other staffs are to be
minimised and plan the effective techniques and build friendly and suitable environment for
employees to retain in organisation in long run and work with company to achieve organisation
as well as their personal goals.
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Act
Performance of staff is evaluated with the techniques and measures their performance and
on this basis they are appraised, get benefits and rewards and promoted. It is that step under
which the concerned employees will performs their role and the function. To increase staff
retention and create the friendly environment in Hilton Hotels and resorts and minimize negative
behaviour of front desk manager, company has to give incentives, benefits to the employees
within a certain time period. Employees have to give appraisals and rewards by achieving targets
and completing of complex work on time and with effectiveness so that food culture is prevail in
company and staff can work with more productivity and effectiveness. Promotion of front desk
manager is also done with the certain time period so that they feel motivated and working with
company run and with effectiveness. Performance of front desk manager is evaluated on regular
basis and gives them appraisals and benefits by reviewing their performance.
Track
Tracking the performance of front desk manager and training and knowledge is given as per
their performance so that they can work effectively and achieve the targets. Regular feedbacks
with 360 feedback process understand the problems and obstacles facing by staffs so that
company can solve it effectively and improve the working and solve obstacles that staffs are
facing during training (POE, and MEASURE, 2018). Tracking of performance will enable the
managers to determine the deviations and loopholes in the employees performance. This will
further assist in taking adequate and corrective actions. Proper training and knowledge helps staff
to retain in organisation in long run by increasing their knowledge and implement that
knowledge on working effectively and learn more things that helps to achieve their personal
goals as well.
Review
Review about the feedbacks that came from staffs and analyze their feedbacks and
understand the ways to improve their problems and modify in techniques and review to their
performance as per their feedbacks that helps to maintain the good working culture in
organization and minimize negative behavior of front desk manager and staff retained with
company. Discuss the feedbacks with front desk manage about training they got and company
ask manager to apply the learning and knowledge from training they got to improve their
performance in organization.
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Recommendations:
 An application of this plan is highly recommended in Hilton hotel with regard to front
office role so that the performance of the front desk manager will be evaluated easily.
 This is also recommended because it will enable the hotel management to evaluate the
performance of the front desk manager along with enabling them to take corrective
actions.
 This plan is also recommended because it will lead to minimize the negative behavior and
fair treatment along with overcoming the issue of staff retention. Because on the basis of
performance management an equal treatment and distribution of benefits would be
possible under which efficient employees will be treated in better way.
Identify specific legislation that hospitality organisation has to comply.
Legislation is termed as law that is bounded by governing body to maintain the working in
industries without harming and affecting in organisation. Legislation has many purposes to grant,
regulate, authorize, and restrict etc. that help industry to work fairly and effectively (Pepito, and
Acibar, 2019). Legislation is important so that organisation can work within the law and fair
working without getting harm or damage to people, resources materials used in company. Every
industry has their own legislation that is set by government and as per the law company has to
run their business without neglecting to the legislation. Legislation for Hospitality industry are-
Licensing
Those hospitality companies that sells the Intoxicating liquor in retail needs the license
that is granted by government under the Licensing Act 1964, so that intoxicating liquor can sell
by company (Mészáros, 2018). If this license is not having with company and sell it in their
company strict action and penalty is charged by government in going against the government
legislation.
Minimum wages
Minimum wages is to be set to given to employees in certain employments. This is set by
government so that unequal wages are not paid to staffs that are working in organisation and
employees not feel any partiality in their wages (Hotels Laws UK, 2021). Company has to pay
minimum wage to their employees that are set by government so that no unethical practices are
done by Hospitality Company.
Trade
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Marketing, advertising, Pamphlets Company have to ensures that not misleading
information is given to potential guest with pricing by advertising with one price that is already
quoted by the company. No other prices or rise in price is charged by company to the guests as it
is an offence under The Trade Descriptions Act 1968 and company have to provide proper
descriptions of facilities that is provided in hostels by true and fair information without misleads
to guests in any way.
Health and Safety
Health and safety at workplace and of guests is an important factor. Hospitality industries
have to ensure to notice those substances that cause injury and illness to staffs of the company
(Potter and et.al., 2017). Staffs have to give protection materials to use harmful substance or
things that affected to them. Employees have avoided to use the hazardous materials and
handling that affect to their health and create bad impact and lead to ill. Employees have to work
on time and with protection with substances or material that affect to their health and get them
ill. It’s a duty of Hospitality Company to ensure safety and health of their staff under the Act of
The Health and Safety at Work Act 1974.
Specific impact on company by employment and contract law upon decision making.
Company Acct 2006 is passed by the parliament of United Kingdom as a primary source of
law that aim to assign that every organisation have their rules, regulations and duties that is to be
follow in their operations and if this is not follow than legal actions and penalties are charged
that affected to decision making of Hilton Hotels and resorts (Goncharenko, and
Mandroschenko, 2018). This act signifies to modernise and simplifying to law of company by
assigning the duties of director of Hilton Hotels and resorts and by granting some rights to
stakeholders and simplifying burden that is carried out by administrative of Hilton Hotels and
resortsCatering that is operating in UK. If this rules and regulations of Hospitality Company is
not follow it affected to their decision making and their working is affected as the strict actions
and penalties are charged against the Hilton Hotels and resorts. This can also be understood with
an example of scenario that with the implication of Companies Act within Hilton will lead to
better decision-making. This is because companies act assign various powers among different
departments which will further lead to taking of decision at departmental level and ultimately
raise the efficiency and performance of company's operation.
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Employment law in UK adhere to govern relationship between employers and employees
and outline to protect rights of workers and employee rights. Build the good relations between
employee and employers so that effective decisions are to be made in performing the task in
Hilton Hotels and resorts and there is no discrimination among employees and employers against
age, colour, sex, caste etc (Chapple, and et.al., 2020). Employer law is made to prevent
employees from harassment and bullying so that effective decisions are made by satisfied staff
and company can achieve their goals. Employers can understand the needs of employees and
give them proper leaves like parental leave, sick leave etc. With the employment act 1996 make
some changes in provisions regarding the minimum wages and their working hours so that
employee have knowledge regarding their work and they will perform their work more
effectively and make decisions for Hilton Hotels and resorts more effectively so that every work
is to be done more effectively in company. Employees have to pay extra to work on holiday as
well, as it helps to increase employee productivity and maintain relationship in company and
make an effective decision for Hilton Hotels and resortsLTD. This is also clear from the scenario
of Hilton hotel under which equal chance and opportunity is being given to its employees to
show their talent towards the work. Likewise, with the compliance of employment act, better
maintenance of relation between employer and employees is also possible. Thus, on a broader
scale the taken decision will be able to implement with employees engagement and
participation..
Contract law is a law made by government that related by making and enforce to the
agreements. Contract law is an agreement between parties to carry out the process of contract of
work that is to be performed (Gerhart, 2021). To conduct the business contract law is used. In
hospitality industry that is Hilton Hotels and resortsdid a contract with their guest to deliver best
catering to them and if they got vain in this it affected to their decision making that they plan to
provide services to their clients and perform against to the contract law legal obligations can be
done. This is also understood with an example that with the imposition of contract law Hilton is
able to deliver its best services in terms of meeting and implying conditions with its customers
like delivering and making arrangement as per client requirement. This will lead to build strong
relationship among customer and company.
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Explore different functional roles of hospitality sector interrelated.
All the department in hospitality sector are interrelates with each other and coordinate and work
effectively so that corking in organisation will flow smoothly and helps to get success of
company and achieve the goals. Different functional roles in Hospitality sector that are
interrelated with each other are:
Food and Beverages department
To be in a hospitality sector, foods and beverages is a most important department and
also the biggest department where industry has to serve the different cuisines of food and drinks
like alcohol and other beverages that are to be managed (Collins, 2017). The restaurants and
careering have to offer to their customers food and beverages and the manages different food
items in their menu cards and for entertaining to their customers live performance services is to
be managed. For that this department work closely and have direct connection with management
department of organisation.
Sales and Marketing department
Sales and marketing department of hospitality play an important role to survey the
market. Sales department of Hilton Hotels and resorts deals with the unit of sales that are coming
on regular basis and marketing department focuses on promoting, advertising activities of Hilton
Hotels and resorts. Sales and Marketing department work closely with finance department as
sales department gives information about the sales and form promotion and advertising proper
allocation of budget is ensure by marketing department.
Maintenance department
In hospitality sector maintenance of each material and property is important to serve best
services to customers and also for the owners. In this department, maintenance in property and
different materials on their regular basis so that it created value to their customers and they get
satisfied with their services. Maintenance department also interrelate with finance department for
finance to make hospitality property more productive and presentable to the customers that
create good impact and sales and revenue increased in Hilton Hotels and resorts.
Housekeeping department
It is an important department of hospitality sector where they directly impact with the
experience of guests (Bavendiek, and et.al., 2018). They have to ensure to clean and always
ready to use lobbies, guest rooms, restrooms etc. housekeeper ensures to carry out clean the
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rooms and maintain rooms for new guests and maintain high standards of company by ensuring
to keep the property clean. Housekeeping department work closely with Front office department
to get information of new guest that are coming in company’s property and get information about
their rooms so that rooms are to be clean on time and maintain standards of company.
Different methods of communication, coordination and monitoring.
There are different methods used in Hilton Hotels and resorts for effective communication,
coordination and monitoring for strengthen their value chain effectively.
Communication methods used in company are:
Team communication technology
For effective communication between the staffs of Hilton Hotels and resorts innovate
technology for communication that is an efficient method to enhance the team communication
(Williams, and et.al., 2018). Smartphone’s application, keypads etc are some of the technology
that are widely use communication tool between staffs from anywhere within the hospitality
sector at anytime by just touch to a button. This used for urgent work to get information quickly
so that working can be done effectively.
Organise social events
Efficient way to leverage the communication by organise social event after the working
hours for employees. Organise events for staff to communicate with other employees and build a
relations having from different departments and extend the bond of business and get everyone
involved in the events. This is an effective way to communicate and build relations with different
employees working in different department and strength the value chain in Hilton Hotels and
resortsCatering.
Anonymous feedback
Some employees don’t feel comfortable to communicate issue directly and via mail, for
that company have to line the process to communication between management and employees
and solve their issues that they are facing and feel them comfortable so that they can perform
more effectively and organising (Stock, and et.al., 2018). With the effective communication by
solving the problems of employee, they get satisfied and work more productively towards their
work and strengthen value chain of Hilton Hotels and resorts. This can be done by offline and
online form processing where employee write about their issues and management solve them.
Coordinating methods
15

Common platform
Coordinating method used in company by developing one common platform that have
information of each employee and their work role that they have to perform and by reviewing to
those platform employee can coordinate their work and regular updates on their work they
perform on regular basis is updated so that their work is analysed by management and effective
coordination between different department work is done that strengthen value chain of company.
Meetings
Regular Meetings are held for coordinating the work of employees with each other and
work should distributed in meetings so that everyone will understand their work and coordinate
with each other in team to work effectively that helps to achieve goals of company and
strengthen the value chain of company (Malone, and et.al., 2020).
Team development
The team is developed according to the work, similar work perform by those employees
develop the team of them and coordinate their work with each other and achieve the success
easily and effectively. By developing team having same work is coordinated in company
effectively and can achieve the targets easily.
Monitoring methods
Performance management
Performance of employee is evaluated by setting the parameters and monitored to their
work to understand the work that is performed by employee is effective or not that helps
company to achieve their goals. By setting the parameters company can monitored their
performance and make improvements so that value chain is strengthen.
Feedback
Feedback of performance is taken from colleagues and manager to monitor the
performance of employees and that affected to working in company by not performing task
effectively. Feedback helps to monitor work of staff, as colleagues are working closely with the
individual and have knowledge regarding the work so it is also an effective way to understand
and monitor the work of employee.
CONCLUSION
From this report it inferred that hospitality is to build friendly and generous relations with
guests coming to the hospitality organisation and provide them best services according to their
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needs and wants. Hilton Hotels and resorts is an effective organisation that serves best catering
services in different countries. There are different principles helps to manage and monitor the
financial performance of Hilton Hotels and resorts and with double entry bookkeeping system
sales and purchase transaction of company is maintained in ledge. There are different stages of
life cycle of HR in front desk manager of Hilton Hotels and resorts. To manage the performance
of employee in company process is used that is plan; act, track and review to the performance
that help company to overcome from the issues and solve issues faced by employees effectively
and company can overcome from issues of staff retention. To be in a hospitality industry
different legislations are set so that company can run with the law set by parliament of UK.
Company law, employment and contract law has potential impact on company to make effective
decisions that helps in Hilton Hotels and resorts. Every department of organisation are interrelate
functions and work with each other to increase the company productivity and achieve goals
effectively. There are various methods for communication; coordinating and monitoring that
strengthen the value chain of company.
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