ICON College Unit 4: Hospitality Business Toolkit Report

This report provides an in-depth analysis of the hospitality business toolkit, focusing on key areas such as financial management, human resource strategies, and the impact of legislation and ethics. The report begins with an examination of financial management practices within the hospitality industry, specifically referencing Hilton Hotels, and explores methods for minimizing costs through effective transaction recording and the application of the double-entry bookkeeping system. It then delves into the management of the HR life cycle, outlining a comprehensive human resource strategy. The report also addresses the importance of legal and ethical considerations in the hospitality sector, emphasizing their influence on business operations. Finally, it highlights the significance of coordination and integration across various hospitality functions and departments, using the housekeeping department of Hilton Hotels as a practical example. The report aims to provide a holistic understanding of the essential components of a successful hospitality business, offering insights into financial performance, human resource management, and operational efficiency.

Unit 4: The Hospitality
Business Toolkit

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Management of finance and record of transactions to minimise costs responsibly within
hospitality industry UK...............................................................................................................3
The double entry system of book keeping..................................................................................3
Part 2................................................................................................................................................6
Managing HR Life Cycle, a Human Resource Strategy.............................................................6
Part 3................................................................................................................................................9
Legislation and Ethics in Hospitality Industry............................................................................9
Part 4..............................................................................................................................................11
Hospitality Functions and Departments....................................................................................11
Methods of communication, coordination and monitoring in House keeping department of
Hilton Hotels.............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In this report an analysis of the Hilton hotel's UK financial management with insight of
how to reduce costs is made. Along with the assessment of the HR life cycle within HR strategy
is made. Further the impact of legal and ethical consideration on the hospitality business is
defined. At the end importance of coordination and integration of the functions in the hospitality
sector are described.
MAIN BODY
Part 1.
Management of finance and record of transactions to minimise costs responsibly within
hospitality industry UK
Any industry or the organisation i.e. Hilton Hotels to survive for long the management of
the funds are to be made in a proper and efficient manner. For the purpose of managing finance
within the Hilton Hotels, standards for recording transactions of the businesses has been set.
These standards help in the record of the transactions, analysing the records and interpretation of
those transactions are made to analyse the performance of the Hilton Hotels. To check for the
performance various key indicators are derived viz. Ratio analysis, cash-flow. The financial
resources and requirements are monitored and managed through using management accounting
principals. Management accounting is a part of financial accounting for the businesses used to
calculate costs of the business activities and strategic decisions are taken on the basis of the
results derived to reduce costs and improve financial performance (Brigham and Houston, 2021).
Management accounting uses various tools and systems to control and management of cost
drivers. These systems are cost accounting, inventory management system, job costing system
and price optimisation. Along with preparation of budgets and calculation of variances and key
performance indicators the management and performance of Hilton Hotels are evaluated.
The double entry system of book keeping
This system of recording transactions for to maintain books of accounts is known as
double entry system of accounting. In this system every transaction of the business has double
effect that is debit or credit transactions. The amount of credit is same as the amount of debit
because of the dual effect of any business transaction. Example: If the owner of the business

invested capital in the business (Fellingham, 2018). So, this transaction has dual effect that cash
is recorded at the debit side which is asset to the business and capital is recorded at the credit
side which is liability to the business. The concept of double-entry book keeping is illustrated by
treatment of Purchase and sales transactions of Hilton Hotels below:
Journal Book of Hilton Hotels UK
Date
Particulars Ref
Amount
2021 Debit Credit
Mar 3 Purchase of Groceries and Provisions £80000
Cash £80000
Mar 8 Purchase of Bedsheets £10000
Purchase of Furnitures £120000
Bank £130000
Mar 15 Cash £39000
Sales through Room charges £39000
Mar 25 Bank £6000
Sales of food and beverages £6000
Total £255000 £255000
Ledger Book of Hilton Hotels UK
Cash Account
Date Particulars R
e
f
Amount Date Particulars R
e
f
Amount
Mar-15 Sales through Room
charges
£39000 Mar-3 Purchase of Groceries
and Provisions
£80000
Mar-31 Balance c/d £41000
Total £80000 Total £80000
Apr-1 Balance b/d £41000
Purchase Account

Date Particulars R
e
f
Amount Date Particulars R
e
f
Amount
Mar-3 Cash £80000 Mar-31 Balance c/d £210000
Mar-8 Bank £130000
Total £210000 Total £210000
Apr-1 Balance b/d £210000
Bank Account
Date Particulars R
e
f
Amount Date Particulars R
e
f
Amount
Mar-15 Sales of food and
beverages
£6000 Mar-8 Purchase of Bedsheets £10000
Mar-31 Balance c/d £124000 Mar-8 Purchase of Furnitures £120000
Total £130000 Total £130000
Apr-1 Balance b/d £124000
Sales Account
Date Particulars R
e
f
Amount Date Particulars R
e
f
Amount
Mar-
31
Balance c/d £45000 Mar-15 Cash £39000
Mar-25 Bank £6000
Total £45000 Total £45000
Apr-1 Balance b/d £45000
The dual aspect concept of accounting states that the transactions of the business has dual
aspects both debit and credit. It means every transaction made should be entered into two

accounts which balances the transaction. It is done through double-entry system of accounting.
The sorting of debit and credit is made in a way that each debit balance has a corresponding
credit balance. The trial balance is prepared to examine the ledger balances and to check errors in
recording the transactions.
Trial Balance of Hilton Hotels UK
Trial Balance
as at March 2021
Number Transactions Ref. Amount
Debit Credit
1 Cash £41000
2 Purchase £210000
3 Bank £124000
4 Sales £45000
Total £210000 £210000
Through the recording of the transactions in the books of accounts. The Hilton Hotels is
able to analyse each and every transactions occurs during the business operations. The recording
of transactions in journal helps in maintaining records and ledger books helps in the
classification of these transactions into individual accounts. The trial balance helps to examine
and rectification of errors by balance the transactions of both debit and credit. At the end these
transactions helps the Hilton Hotels in the preparation of the financial statements, ratio analysis
and application of management accounting principles that will helps to understand the financial
performance of the Hilton Hotels.
Part 2.
Managing HR Life Cycle, a Human Resource Strategy
Management of the Human Resources life cycle within the context of an HR strategy
Human resource life cycle is an integrated process of stages of employee management in
an organisation with the help of strategies develop by human resource department. The human
resource strategies and activities are integrated within business strategies to improve the

performance of the human resources (Berliana and et.al, 2018). Human resource strategies are
the plans that are used for the management of the human resource life cycle. For this purpose the
HR strategies are developed which intake the analysis of the internal and external environment of
Hilton Hotels. These strategies provide direction on to manage HR life cycle.
The stages of life cycle are as follows:
Business Strategy: business plans are developed by identifying the key factors of the Hilton
Hotels business. Strategy formulation frameworks and models are applied to the business to sort-
out processes and factors that affects the business of Hilton Hotels. These factors will help to
formulate strategic plans for human resource management.
Human resource strategy: in this stage the human resource department develops plans set
priorities on the basis of these strategies. The business objectives are aligned with the HR plans
that will help the Hilton Hotels to effectively manage business activities.
Organisation design: On the basis of the business and HR strategies, organisation design of
Hilton Hotels is prepared. Every aspect i.e. environment, culture, technologies, etc. of the Hilton
Hotel is been accounted for the development of design.
Analysing and designing of job: in this stage analysis of competencies required, vacant
positions and action plan to fill in the job is made. One of the job role in Hilton Hotels is of
Accommodation Manager, whose job is to keeping the rooms and places of the Hilton Hotels
clean and well maintained and ensure that the staffs that are working under him/her are well-
trained to perform the tasks.
Human resource planning: in this stage the HR department of the Hilton Hotels will research
on the demand of the employees for the accommodation manager role and the availability of
candidate. The employee demand is generated on the basis of Hilton Hotels environment,
organisational design, culture and requirement of the position to be fulfilled in the future.
Culture and vision of the organisation: Development of culture is the next stage in which the
HR department devised an operational plan to create a culture that is align with the vision of the
Hilton Hotels. The culture helps the employees to provide a working environment that will
enhance their morale and performance.
Recruitment and selection: at this stage the selection of the candidate for the post of
accommodation manager is started by the HR department of Hilton Hotels. The HR department

started attracting candidate to fill in the job vacancy and for this purpose they initiate screening
and selection process of the candidates.
Induction and On-boarding: After the selection of the candidate the HR department make
employee aware about the roles and responsibilities that the employee has to perform. The
candidate selected will provided all the relevant details regarding the role of accommodation
manager.
Assessment and Appraisal: The employees of the Hilton Hotels are assessed over the period
and on the basis of their performance appraisal to the employees are given.
Training and Development: The job role of accommodation manager is a challenging as the
manager has to keep an eye on every staffs performance and have to deal with customers as well
other employees which require specialised skills and abilities. HR department of the Hilton
Hotels will analyse the need for the development of these skills and accordingly training is been
provided.
Employee engagement and Reward: HR creates and develops strategies that will helps in
employees engagement. This will help to develop a healthy working environment for the
employees to work in which help to increase the morale and performance. With the performance
analysis rewards are given to the employees.
Career Management: HR department will examine the employees skill and abilities.
Opportunities are provided to the employees to boost up their career through development
programs that help the employee to grow further.
Separation: At this stage the employees started to leave the Hilton Hotels. The HR department
will conduct an exit interview to find out the reason for the employee to exit the Hilton Hotels
and try to retain the employees.
Performance Management Plan
It is a strategic planning for the evaluation of the performance and behaviours of the
employees at different level and positions within the organisation. The plan prepared have
various stages that will analyse the employees and helps in increasing the morale of the
employees. A performance management plan is prepared to monitor and evaluate the position of
accommodation manager in Hilton Hotels.
Planning: strategies and methods are developed for analysis of the performance of
accommodation manager by HR department of Hilton Hotels.

Monitoring: at this stage the HR department will continuously review the working and
behaviour of the accommodation manager.
Developing: it is the stage where the accommodation manager is providing opportunities to
develop his/her skills and abilities. If any behavioural change is been observed the HR team tries
to resolve it through coaching.
Assessment: Performance of the accommodation manager throughout the period is been
analysed.
Rewarding: According to the analysis, accommodation manager are provided appraisal that will
help in increasing the morale.
Importance of HR life cycle
The role of the human resource department of the Hilton Hotels is to device strategies that
will results in the generation a sense of satisfaction among the organisation they are working in.
The human resource department by the analysis of the HR life cycle create an environment that
will help the employees to train and develop its skills within the organisation that will
strategically help in managing and improving the talent of the employees (Kavanagh and
Johnson, 2020). The employees’ engagement with the Hilton Hotels will increase which increase
coordination among the employees and management. Human resource department by structuring
policies will able to cope with the issues of the workforce and be able to retain the employees.
Recommendation
Human resource Life cycle is a process through which the HR department gain insights
about the workforce. With the emergence of technologies, types of programs are develop that
helps in the management of the Human resources within the organisations. With the
implementation of these enterprise HR management systems Hilton Hotels is able to monitor and
track performance of the employees. These systems also helps in keeping records up-to date
within the system that will ease in management and smooth functioning.
Part 3.
Legislation and Ethics in Hospitality Industry
Hospitality industry is a gamut of services that are provided to the customers by the
personnel that forms the hospitality industry. The organisations that are the part of hospitality
industry have to follow regulations and legal compliances that are necessary to run business in

the hospitality industry. As a part of UK hospitality industry, Hilton Hotels have to follow
various legal compliances that influences the business environment of the Hilton Hotels. To
name any of the new subsidiary of the Hilton Hotels, it has to compliance with the business name
act 1985 where the new hotel's name should not match with the owner's name and any materials,
invoices, receipts, letter-heads, etc., will have to compulsorily mentioned owner's name with the
hotel name (Okumus and et.al, 2019). Under the Trade Descriptions Act 1968, if the Hilton
Hotels make its marketing and promotional activities they must ensure that the advertising will
not mislead the customers and should reflect fair and true information. Hilton Hotels have to
compliant with the Credit Cards (Price Discrimination) Order 1990 and data protection act 1998
when they accept bookings for the hotels with the customers. To protect the health and safety of
the customers, Hilton Hotels have to ensure that there is proper fire safety and prevention
equipments available at the premises. Also, the management of the hotels have to ensure the
condition and maintenance of the heavy equipments that can cause damage or threat will be up-
to the standards for this purpose, Hilton Hotels have to follow Health and Safety at Work etc.
Act 1974. To ensure employees wellness, working hours, rest breaks and claims of leave Hilton
Hotels will have to Working Time Regulations 1998 compliant. Employer’s Liability
(Compulsory Insurance) Act 1969 is also to be followed by the Hilton Hotels to take adequate
insurance policies for the employees and have to display the insurance certificates inside the
hotels. Hilton Hotels also has to ensure that the food serve in the hotel is prepared in hygienic
way and a sufficient food safety guidelines has to be followed by the chefs. With the spread of
the COVID-19 pandemic the UK government is more stringent to the hygiene and food safety.
The environment health officer is appointed to perform inspection of hotels in UK. Hilton Hotels
needs to maintain the hygiene environment of the hotel premises up to the standards that are set
by the legislation. Practices that are to be followed are proper refrigeration of the food that is
served to the customers, properly cooked food, safety of the food that is stored for later usage
and so on. Cleanliness and hygiene training is the mandatory practice that the Hilton Hotels
should provide. Hilton Hotels also serve alcohol to their guests along with food. Licence for the
purpose to serve alcohol beverages in Hilton Hotels are required under licensing Act 1964. Also,
to serve alcohol along with the meals the Hilton Hotels have to adhere to residential or restaurant
licencing. Organisations in the hospitality industry also have to follow business ethics that
generate the need for improvement in the business practices. Ethics of the business are the rules

by which the Hilton Hotels chose to perform the business practices. The moral standards that
Hilton Hotels follows are the influencing factor that effect the behaviour of the employees and
decision-making of the managers. Ethical issues are common in the businesses that arise in the
everyday business cycle i.e. conflicts between the employees, issues between the creditors and
suppliers, accounting practices, compliance and safety, etc. Awareness of the ethical practices is
needed to be spread within the personnel of the Hilton Hotels. IT will help in to improve better
coordination among the employees, fewer conflicts are arises and also management of the
challenges can be made effectively. Unethical practices can ruin the reputation and profitability
of the business of the Hilton Hotels with decreasing of the trust among the Hilton Hotels and its
stakeholders. Employees observe and follow the direction of the leader. Managers as a leader in
Hilton Hotels if neglect the unethical practices followed in the Hilton Hotels it will lead in the
change in the behaviour of the employees and weakens a sense of accountability by the
employees. Hilton Hotels is a well establish and reputed organisation in the hospitality industry
the legal regulations and ethics plays an important role in building goodwill of the business.
Follow of the unethical business practices will lead to the creation of the bad image in the market
which in turn decrease the productivity and generation of the revenue.
Part 4.
Hospitality Functions and Departments
Hilton Hotels have premises in the down-town areas also and these hotels managers have to
perform daily business operations. These operations consist of various departments and its
function that are performed daily by the personnel of that departments. These departments
include:
 General administration: perform reservation, booking, assignments of rooms and assist
the customers that comes to the Hilton Hotels.
 House keeping: performs functions of cleanliness and maintenance and preparation of
the rooms. The personnel of the housekeeping find out the issues and co-ordinate with the
maintenance department.
 Food and beverages services: this department manages the food and beverages of the
hotels. The personnel of the department ensures the availability of food and beverages in
the hotel premises.

 Kitchen: this department prepares food for the customers and for the employees of the
Hilton Hotels. Personnel of kitchen department ensures that the quality food is served in
the hotels.
 Human resource: this department ensures that the vacancy in the hotels is fulfilled and
acquisition of the required resources are made. This department is responsible for the
training and development of the human resources.
 Maintenance: this department checks for repairs and maintain all equipments, assets and
installations within the hotel premises. The personnel of this department ensures that all
things are in good shape and activities in the Hilton Hotels are performed effectively.
 Accounts: all the tasks related to finance and credit is handled by the accounts
department. This department provide funds to other departments of the Hilton Hotels.
 Security: The personnel of this department ensures that the safety measures are working
properly and is responsible for the overall security of the Hilton Hotels premises.
 Marketing: the responsibilities of this department is to carry out marketing campaigns
for the Hilton Hotels. These campaigns help in the generation of the sales for Hilton
Hotels.
 Information Technology: this department is responsible for the networking of the soft-
wares and maintenance of the security of the intangible resources like programs used by
human resources, accounts or by other departments of Hilton Hotels.
Methods of communication, coordination and monitoring in House keeping department of Hilton
Hotels
Communication within the human resources of Hilton Hotels can be made through the
use of various methods and means i.e. through verbal means that consists of exchange of ideas
and thoughts by speaking with others, non-verbal means that consists of communication made
with the use of facial expression, movements of hands, gestures, postures and so on, written
communication through instructions in writing, emails or any form of written materials used for
communication and visual communication which includes visual medium like images, videos,
signs or symbols, etc. These methods greatly helps in communication and coordination within
the employees of the housekeeping department of Hilton Hotels. To develop effective
coordination the manager of the housekeeping department will use communication as well as
various different methods' viz. group meetings, planning, standardisation of the techniques and

methods, behavioural control, implementation of the effective chain of command. While
monitoring the work and performance of the employees the manager of the housekeeping
department will improve the quality of the work. The practice of coordination, communication
and controlling will help the manager to provide housekeeping department's employees a suitable
environment that will help to generate and strengthen value chain within the Hilton Hotels.
CONCLUSION
From the study it has been concluded that human resource life cycle provide information
and direction to the human resource of the Hilton Hotels to plan strategies to understand
employees behaviour (Hotels Laws UK Regulations, Laws & Industry Practice, 2021). Also, the
legislation and ethics play vital role for the existence of the Hilton Hotels business and proper
coordination, communication and monitoring help Hilton Hotels management to improve
performance of the employees and the departments.

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