Hospitality Managment

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Course Title: BTEC Level 3 Cert. In Hospitality

Study Unit Title: The Hospitality Industry in Context

Test Paper: 40252/01

Student Reg. No: 20901523

Name: Maria Dellaporta

1. What type of hospitality services would you expect to find in:

a) City Centre

b) Holiday Resort

c) Major Sporting Event

In a city centre I would expect to find the wider range of hospitality services such as, hotels, fitness

centres and beauty parlours, restaurants and bars, conference halls and business services as well as

entertainment and attractions. In a holiday resort the range would be slightly smaller as vacationers

don’t need services such as conference centres etc but the attractions and entertainment features

would be more prominent. In a major sporting event, I would expect accommodation, food and

beverage and transport services.

2. Outline three major developments in the 19th

century that have had a major

influence on the demand for the provision of hospitality services.

The development of the railway has given people the ability to travel safer, faster and longer. That

means travel became available to a whole range of customers and created possibilities to travel (i.e.

holidays, conventions etc) that were previously unknown. Of course new reasons to travel and a

larger customer base are translated to a need for more extensive hospitality services.

The second factor that has influenced the hospitality industry is food technology that enabled

people to produce and store more food than they could consume therefore had enough to spare for

visitors at a price. Variety and abundance in course materials as well as higher demand for

restaurant services lead to greater competition and a wider range of products and services available

for consumption.

The third development would be the industrial revolution that had a major impact on the way of life

for the larger population. On one hand it increased the disposable income of the individuals and

through a series of social and economic changes reduced the time each person had to spend on his

or her employment area. On the other hand it provided businesses with the tools to cater their

customers’ needs for example large hotels could use washing machines to provide clean linen for

their guests.

3. Discuss two developments in food technology that have had a major impact on the

provision of food for travellers

One major development is the invention of fridges and other preservation methods that allowed

large quantities of food to be preserved and transferred from the place or production to the place of

consumption. Add to that the wide use of tools such as tractors and fertilisers which have

considerably increased the amount of crops available for consumption in the past century food

production has changed drastically.

When speaking discussing food technology the importance of the railroad although strictly speaking

is not ‘food technology development’ cannot be overstated. Without an efficient and cost effective

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way to move produce from the area of production to the area of consumption, most of the offered

products and services available today would not even exist.

4. Discuss two reasons why there has been growth in the following sectors of

accommodation operations.

a) Budget hotels

b) Cruising

In previous centuries only a small percentage of the population could afford leisure travelling and

most people’s jobs were usually tied up to one place and with the exception of merchants very little

business travel was needed. Lately due to the industrial revolution, a large percentage of the

population has time and income to spare. However their disposable income is not that vast. That

leads to the growth of budget hotels, cheap fast food style restaurants and budget airline tickets.

Although a travel for leisure is now available to a large percentage of the population, their

disposable income is still not extensive enough to allow them ‘luxury hotels’ and ‘first class tickets’.

Also the concept of ‘business travel’ is relatively new. Before the industrial revolution the only

people who travelled for profit were merchants who needed to transfer their goods. In the modern

day and age professionals from any sector could be travelling for any number of reasons such as

education, conferences etc. The cost of that travelling is covered by businesses with specific budgets

and reasons to prefer economy solutions rather than luxury.

The hospitality industry is therefore focusing on the market of ‘economy travellers’ who can afford

travel but not the most expensive sort.

Cruises offer people a variety of options that other holiday arrangements do not. For starters it

allows holiday makers to visit more than one destination. It would be too time consuming and

expensive to visit each place separately and travelling arrangements would be much more difficult.

Another reason is the opportunities for entertainment that cruise ships usually offer. Those might

include dining and catching a show or a movie. Some cruise ships even have casinos on board. That

means people can make the most out of their holidays. Add to that the reduced prices that are

becoming available and you have a winning combination.

5. What do you understand by the terms ‘services’ and ‘non – serviced’

accommodation?

Serviced accommodation is provided by hotels and includes a variety of things such as maid service,

food and beverage, laundry services, transport and some forms of entertainment. Non – serviced

accommodation is provided by lodges, holiday rentals, time - sharing apartments and inns and

involves only accommodation.

6. Explain one wider social trend that may have an influence on food dishes offered

by restaurants.

Awareness of the dangers of reckless eating (imbalanced diet) has lead to a trend of healthy living. In

the past few decades large amount of resources have been spent on research regarding peoples

diets and how they affect their health and quality of their lives. There are a number of diseases and

health problems that are associated with imbalanced diets such as obesity. Awareness of these

health issues have directed people to opt for healthier living such as low calorie dishes or vegetarian

dishes.

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The menus of restaurants had to take that into account and therefore these latest trends are

reflected in their menus by the addition of dishes targeting those people. Salads and vegetarian

dishes are now far more widespread than they were a few years ago.

7. Explain one wider social trend that might have an influence on the management of

a hospitality operation.

One trend that has a major influence is I believe the need for hotels to go green. People’s awareness

in terms of environmental issues has increased and there is pressure from consumers of various

sectors to take that into account. There is an overall demand for businesses to use natural resources

more efficiently and reduce their overall impact on the environment. The hospitality industry is no

different but has one more reason than other industries to follow that trend.

A large section the industry is based on the exploitation of places of great natural beauty because

that’s what attracts visitors. Therefore it is in the businesses best interest to do all they can to

preserve those places as close to their natural state as possible.

Lately there is demand for procedures and practices that would eliminate waste in more effective

ways, use of more eco – friendly equipment and more efficient water usage. In short there is a need

for better management of the natural resources that businesses need.

8. Explain three factors that demonstrate how the hospitality industry contributes to

the economies in the UK and Europe.

The hospitality industry contributes by providing employment for a large number of people. It is

estimated that one out of eight people directly or indirectly involved in the hospitality industry. By

offering employment the hospitality is indirectly responsible for the taxes and expenditure of these

people.

But businesses in the hospitality industry contribute to the also by paying taxes on their profits and

earnings. Considering the size of the sector that is a major portion of the national income.

Last but not least, the hospitality industry is also one of the main ‘customers’ of other more

traditional sectors of the economy such as agriculture. VAT payment is a major source of income for

most European economies.

9. Explain why transferable skills are necessary for a successful career in the

hospitality industry.

Transferable skills are abilities that help you adapt and be useful not just in the hospitality industry

but in every industry. For example an excellent teacher will know how to train employees or an

excellent waiter could become an excellent front office representative in a hotel. Among others

transferable skills are multi – tasking and communication and those are valued not just in the

hospitality but in every industry because they help individuals to carry out different functions and

tasks. Career wise people with good interpersonal abilities are able to change direction and move

through various sectors of the hospitality industry.

10. What do you understand by the term ‘Continuing Professional Development’ and

explain its importance

Continuing development is continually trying to improve your skills and acquire new ones that will

help you achieve your professional goals. For me continuing professional development means

creating a plan with goals and the skills that are essential to achieve them as well as the means and

time frame that is necessary to acquire them.

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11. From the websites of three lead organisations in the hospitality sector, identify and

summarise their publications relating to environmental management.

From the website of British Hospitality Association

(http://www.bha.org.uk/?s=environmental+management&x=13&y=17) I gathered that they

emphasize the importance of training and they promote organisations and other companies whose

purpose is to establish new procedures and policies that will help businesses deal not only with

environmental issues but with all aspects of their functions.

From the website of Hotel Industry Magazine (http://www.hotel-industry.co.uk ) based on the

articles: ‘Green Technology for Hoteliers’, ‘The Green Hotel: A New Culture’ and ‘Green Technology

for Hotels’ I gathered that following more environmental practices is not just a trend. Soon

governments and consumers are going to ‘demand’ more eco – friendly services and hotels will have

to respond accordingly. These green practices will have to be followed not just by hotel chains but

by everyone including smaller scale operations in an effort to improve their occupancy.

The website VisitBritain (http://www.visitbritain.org/insightsandstatistics/topics/sustainability.aspx )

has posted an entire guide about the new turn in hospitality management that emphasizes in

sustainability and the need to incorporate ecological and ethical practices that will not eliminate

profits because as the article states: an ethical but bankrupt company is of no use to anyone. The

authors of this article consider the local communities part of the environment that needs to be

protected. Also it is clearly stated that proper use of this earth’s natural resources is the only option

and measures needs to be taken to further the goals of a sustainable future for tourism.


Study Unit Title: Service and Sales in Hospitality Management




Date: 07 August 2012

1. Briefly describe the five main aspects of hospitality products

The five aspects of hospitality products are:

1) Location. Where is business is situated plays a key role in determining the kind of services

being offered. For example a city hotel must be able to offer business facilities whereas a

hotel located on a busy highway should be able to provide parking for the passing through

travellers.

2) Facilities. The product(s) offered should reflect the type of hospitality operation. A gourmet

restaurant should provide a large variety of dishes whereas a fast – food like McDonalds

focuses on speed instead of variety.

3) Image of the business. The image of a business is a combination of several factors such as

decor, facilities and standards. The ‘image’ of a business is in effect the idea that the

company is trying to convey to the customers.

4) Price. The price is what the guest pays for the product but location and image must be taken

into account when a price is considered. For example a luxury hotel in a very popular

location will have a different price than a motel.

5) Service. Service has many aspects such as availability of the product, maintenance and

presentation of the facility, style and quality etc.

2. How can you measure and manage service excellence within the hospitality

industry?

There are some standards in service that can be used to measure performance:

1. The presentation and visual of the actual product like how well presented is the staff and the

building itself. It is a sign of good service when everything works and is well maintained in

short the tangible aspects of a business tells a lot about the kind of service that will be

provided.

2. It is not enough for a business to offer quality service ‘some times’, the guests must always

know what to expect so reliability is another measure of service.

3. A major part of the ‘quality service’ depends on staff. How responsive and fast they are to

meet the guests’ needs is also a way to measure how good or bad service is offered by the

establishment.

4. If the staff is well trained and reliable they will provide comfort and enjoyment to their

guests. They will inspire confidence in the guests that their needs will be met. Assurance and

trust in the company is also a sign of quality service.

5. Another sign of good service is empathy from the staff which will make the guests feel

special and important. That is always rated very highly on service quality.

3. Explain three factors that can lead to a breakdown in service and how might

complains be handled.

• One factor that can lead to a breakdown is if a customer is not happy with some aspect of

the service and management is not aware that there is a problem.

• Secondly there are foreseen problems deriving from lack of communication with the

customer for example shortages of staff that leads to slow service.

• Thirdly there are unexpected situations such as faulty equipment or a fault with the product

itself. Complains should never be ignored or taken lightly, the member of staff taking the

complain should show genuine interest in the problem, suggest what can be done to resolve

the problem and follow up with the customer that the appropriate action was taken in its

result.

4. What is meant by the five gap model and how can this be used to investigate

complaints?

The customers are the ones who evaluate the service they receive on the basis of their expectations,

perceptions and actual experience. When there complains are received that means there is a

difference between what they thought they were getting and what they actually got. For example

when there is a difference between the manager perceptions and the service specification or the

service delivery that could lead to complains. Or when the product is not advertised properly and

the actual service delivery does not meet the customer’s expectations. Once a complaint is received

then it should be categorised accordingly so as to close the gap and avoid further complaints in the

future.

The company should have trained staff who will be able to exact information about the nature of the

complain. Guests who are not satisfied tend to feel wronged or cheated and might not be able to

express themselves properly unless they are given proper attention. Once the complain is identified

then the company may take steps to solve the problem. For example if there is some misleading

information in the hotel’s site that created exaggerated expectations then that can be rectified. If

there is staff shortage or they are unable to perform due to lack of training that can also be rectified.

5. What are the six factors involved in TQM and how are these applied to the

hospitality industry?

Total Quality Management involves the following areas:

• Recognition and reward,

• Education and training,

• Communication,

• Attitude and commitment,

• Systems and methods and finally

• Aims and objectives.

The aim of TQM is to manage an organisation in a way that leads to customer satisfaction and

benefits all members of its team. In hospitality industry that is achieved through proper training and

education because the more knowledgeable and skilful the members of the team are then the

higher the standard of service. Good communication that should filter to all areas and relate to past

and future events as well as present concerns. Also commitment from all the members of the team

to provide service quality that exceeds customer expectation is essential. In order to achieve that

the hospitality industry and each company individually have systems and procedures to ensure that

the aims and objectives of said business are achieved. Finally for the members of the hospitality

industry that reach their targets there are rewards and recognition that also work as incentives for

other businesses or members of the organisation.

In order to explain how TQM is applied to the hospitality industry I will use an example. Guest A is a

repeat customer, this time however he failed to make a booking. The receptionist is new at her post

but has training and is able to access the guest’s past information that the hotel keeps in order to

offer better services (education and training). She then offers the guest his favourite room if it is

available or an upgrade (recognition and reward). In order to do that there has to be a specific set of

instructions that the hotel implements in cases such as these (systems and methods). That way each

guest feels that he receives ‘preferential treatment’ and will return to the establishment which is

always among the aims and objectives of the hotel.

6. What steps can be taken in accommodation operations to reduce ‘no shows’?

In order to avoid no – shows the hotel can take several steps:

i. Clear communication between guest and hotel. The reservation agents should try to get as

much information as possible about the arrival time of the guests. Also it should be clear

that after a specific time (ex 18:00) the reservation is no longer guaranteed.

ii. Guest should give their credit card details in order to guarantee the booking. Also the guest

should be aware that the hotel can and will charge cancellation fees in case of non arrival.

iii. Non – refundable offer means that the hotel is paid in advance whether the guest shows up

or not. Many hotels us this method to guarantee revenue.

iv. Another step not so common is the method of overbooking. That is the hotel knows the

percentage of non – shows per day and then accepts more reservations than available

rooms to cover the possible non – shows.

v. Finally the hotel should always advertise that it has availability even when fully booked

because the extra last minute bookings can cover possible non – shows.

7. Give two examples of selling that might be seen in a restaurant business?

Once the customers are seated their waiter offers aperitif while they are studying the menus. If they

can’t choose from the menu a knowledgeable waiter can promote the more expensive food options

or the ones that are best accompanied with the expensive wine. Once the meal is over the waiter

might temp the guests to have one last drink or a dessert or coffee.

Restaurants have special offers such as a 3 course meal at a bargain fixed price. The experienced

waiter can promote those menus to customers who otherwise wouldn’t return. Restaurants have

those kind of special offers so as to attract patrons on slow nights.

8. List six incentives that can be used to promote additional sales within the

hospitality industry. Choose two of these and explain how they will work in

practice.

A few of the incentives that can be used within the hospitality industry are:

i. A special monetary prize to the person with the most sales for example the waiter that has

taken the most orders etc. In practice, the restaurant management by the use of a

computerised system can keep track of each waiter’s performance. Then in a monthly

meeting the waiter with the most sales will be awarded a price. That will entice the other

workers to try harder and will also help management identify the ‘weakest members’ of the

team and help them achieve higher performance.

ii. A monetary reward to all the people of a department if a certain target is achieved ex. If a

hotel has 90% occupancy for an entire month all the receptionists receive 100.00 GBP on top

of their salary.

iii. Set rewards in the form of services that staff would appreciate ex. A voucher for a free spa

treatment for the reservation agent with the higher score of bookings.

iv. Set a performance – based incentive. That way the staff’s performance will determine how

much they earn. The higher their sales the more money they will be making. In practice a

reservation agent will receive a percentage of money of the sales he is making instead of a

salary. That way he determines how much he is earning giving him greater flexibility and

potentially higher earnings.

v. Knowledge of the product will ultimately lead to higher sales as the seller will be able to

anticipate and respond to the guests inquiries easier and more effectively. If the

establishment offers a reward to the person with the better knowledge of the product that

will make a difference in the way the staff views training. Ultimately better trained

personnel will perform better and produce more sales.

vi. Another very important incentive is career promotion and advancement opportunities. Staff

will be more effective if their performance could lead to a promotion or other career

advancement. Theoretically that would be the case all the times but in reality businesses

need to be more specific and make the connection between high performance and

promotion more evident.

9. Briefly describe yield management.

Yield management is maximising the revenue that is brought from a set number of units that are not

otherwise transferable. To achieve maximum profits businesses segment their market and set their

prices accordingly. For example a hotel might set different rates for weekends than for weekdays so

as to achieve higher profits. Or they might differentiate between group rates and individual rates.

Yield management is not a method designed to raise occupancy; rather it involves ‘guessing’ how

many rooms should be allocated to each market segment to achieve the desired profits. In short

yield management is a form of price discrimination to maximise revenue per available room and the

formula is (REVENUE RAISED / REVENUE POTENTIAL) * 100

10. What is the purpose of public relations and identify three ways hospitality business

could promote PR?

The definition of public relations is: ‘The deliberate and sustained effort to establish and maintain

mutual understanding between an organisation and its public’.

• In the hospitality industry good PR are promoted by the staff itself firstly. Many front – of –

house staff such as a receptionist managers or even porters will know many of the repeat

customers by name and make them feel ‘special’.

• A second way is when the business itself becomes known by announcing changes (in

management policy etc) exposing itself to the public. Once the potential customers know so

many inside details about the hotel, restaurant etc they will feel as part of the family and will

be inclined positively towards the company.

• A third way is when the business is examining the trends and gets involved with the local

community. For example supporting a local charity or other worthy cause. Many hospitality

businesses offer ‘free rooms’ as prizes at charity balls or low rates for red cross workers etc.

A lot of hotels decided to go green not because the law forced them to but because of

pressure from potential guests and the need for good PR.

11. You have been asked to make a presentation to the General Manager of a brand

new 4 star hotel on how marketing techniques can be used to maximise sales.

Marketing is defined as ‘the process by which companies create customer interest in goods or

services through which companies build strong customer relationships and creates value for their

customers and themselves’.

A marketing plan for this hotel will entail identifying the market segments that must be approached

and set our targets. This is a centrally located hotel that will appeal to businessmen and people who

are sightseeing as it is close to all major attractions. However it is not a resort so it doesn’t attract

many holiday makers who wish to have extended stays. So our targets are maintaining the

customers we already have and expand to attract holiday makers who wish to stay longer.

The hotel needs of course to be advertised and print advertising is an effective marketing technique.

Choosing the appropriate magazine or newspaper will allow us to appeal to specific audience. So an

ad in Business week will attract business people and an ad in Conte Nast will definitely sent some

‘tourists’ our way.

At this stage a radio ad might not be a bad idea. It could be more costly than a printed ad but I am

confident that the results in sales will be worth it. Radio and television make it easier to reach large

segments of the market.

And of course one mustn’t forget direct mail marketing. The hotel at the moment doesn’t have a

large database of former guests but still there are ways of obtaining mailing lists from marketing

companies and promote our services to potential guests.

I believe that with the correct balance of the above mentioned tools the hotel will be able to achieve

it’s goal and establish itself on the market.

12. Describe with examples the four stages involved in market analysis.

A. Identify the market. Once the product is ready it is necessary to promote it to the people

that will find it appealing. But the market is comprised of several target groups that should

be addressed. For example a budget city hotel’s market the corporate people who need

accommodation after their conference / business meetings as well as holiday makers in

transit who need to make a stop before changing to the train / airplane that will take them

to their final destination.

B. Identifying market factors means examining the reasons a hotel could be popular or

unpopular. For example a city hotel could be popular among the young crowd because it is

close to the pubs and nightclubs but not very popular with the older generation who needs a

place to relax. Accommodation demand could be very high in a seaside area during the

summer season but very low during winter. Good connections to the city centre could

attract a great deal of corporate guests as opposed to a hotel located in a more remote city

area.

C. Estimate market potential which means that after having established the market and the

product most suited to cover the potential needs of the guests it is time for forecasting. A

number of sources could be used to provide a close estimate of the earnings a market could

yield. For example the number and nature of athletic meetings held at the local stadium

could specify the expected number of sports fans needing accommodation.

D. The final stage of market analysis is determining how much of the potential market’s

demand will be directed at a specific establishment. A hotel could use past records to

estimate its potential custom. For instance if a conference is held each year at a specific time

and place the hotel should have a rough idea about the number of potential bookings that

are to be expected.

13. Explain two methods of market research.

A. Customer surveys are the most common way that businesses employ to get information

about their product and improvement or additions they could make. The questions however

ought to be very specific and the actual surveys must be conducted in a way that will make

the participants feel comfortable and willing to answer truthfully. Sometimes participants

give answers they think the examiners wants to hear rather than what they think and

therefore the information is tainted.

B. Another way to research the company’s product is by using mystery guests or special

consultants. A mystery guest is someone who ‘tests’ the product the same way a regular

guest would without alerting the staff. Then he offers his insights concerning the standards

and services that the company is offering. The employer then can make the necessary

adjustments and improvements.

14. Explain how relationship marketing can be used within the hospitality industry.

Relationship marketing is about creating a large number of regular customers by cultivating a

relationship with them.

In a hospitality industry the guest can be made to feel ‘special’ in a number of ways. A loyal

customer could be made to feel special in a number of ways. A loyal customer could be rewarded

with ‘special offers’ such as late – check outs or free upgrades for example.

With the use of computers the establishment can keep records of the guest’s preferences and

ensure that he gets what he likes and he is not afraid to ask something special or extra.

The staff itself can play a major part in cultivating the relationship between the guest and the

business. Many major hotels have a rule where guests must be addressed by their name and make

special offers (example a complimentary wine if it the guest’s birthday) without being asked to.

Finally sometimes the simple feeling that a return customer is somehow more valued and has higher

status in comparison to other guests might compel them to become loyal customers of an

establishment.

15. What does SWOT analysis involve?

A SWOT analysis is one of the preparatory stages of market planning. The acronyms means:

S for the strengths of the business. These are the characteristics that make the product desirable

and will ensure that the customers will return and keep the business going.

W stands for the weaknesses of the business. These are the things the company needs to improve or

change in order to attract more custom and surpass the competition.

O stands for the opportunities for the business that may arise from careful market analysis and

taking advantage of situations whenever that is possible.

T stands for potential threats to the business that can be evaluated from the environmental

scanning of the market and they involve a change of circumstances such as the building of a new

competitive establishment in the area, the move of a major source of travellers (ex, a conference

might be held in a city different from the one that was usually held) etc.

16. Explain how the sequence of stages is applied in the planning process within the

hospitality industry.

In order to plan a marketing strategy, a company needs to follow some steps.

First it needs specific targets. In the hospitality industry that could mean deciding the percentage of

profits or the percentage of occupancy they wish to achieve.

Secondly it is necessary to implement policies that will help achieve the company’s targets. To put it

simply strategy is the answer to the question: ‘How do we reach our target?’ For example a strategic

decision is how many rooms should be allocated to agencies and how many should be kept so that

the hotel can sell them directly to the guests.

Thirdly it is necessary to decide on a set of policies that will help the smooth operation of the hotel.

For example if a guest decides to cancel his reservation how long does he have until he is charged

cancellation fees? Instead of deciding about each case separately there should be a list of ‘rules and

regulations’ that will help employees be more efficient.

Fourthly in order for any plan to succeed it is necessary to set up a schedule or a timetable that will

determine which of the company’s resources will be allocated to a specific target. For example for

hotels who work seasonally it is necessary to decide when is it high season and therefore the prices

will be higher and when is the off season and therefore the prices can be lower.

Finally once all has been said and done there has to be procedures that will help the company

understand whether the targets have been reached and if not take the necessary steps to correct

any mistakes that hinder the success of the plan.

17. Once the objectives of the overall marketing strategy have been defined, why is it

necessary to establish policies for each element of the marketing mix?

The marketing mix is comprised by five elements: Product, Place, Price, Promotion and People. Each

element merits special attention so that the business can reach it’s targets.

Management must set standards and set rules and regulations to ensure that the product will always

be of the quality that it was intended. Customers will not trust a service or product if it is unreliable.

The location of the hotel is of vital importance. Management must make the most of it in order to

maximise profits. Opportunities must not be overlooked and if the position is not ideal then it is up

to the marketing people to present the business in the most favourable light.

Pricing is extremely important. If all the costs have not been investigated and taken under

consideration then profits will be lower. If the price is too high then the business will lose customers.

It is therefore essential to monitor cost and market trends to achieve the correct balance that will

ensure the hotel reaches it’s targets.

Promoting a business is extremely important. Once the mediums that will be used are selected, rules

have to be established so that the business will benefit the most. Promotion must be flexible and

there must be set results that will evaluate the effectiveness of the mediums used. The policies

established will help make the necessary adjustments.

People are the most important part of any business. The correct policies when it comes to human

resource management will help bring the most suitable people to the most suitable positions.

18. Which of the following is not a distribution channel? Explain your choice.

a) Local Tourist Information Centre

b) Information Centre at the office of VisitBritain in New York

c) Hotel Rooms of Distinction Ltd

d) Concierge

A distribution channel is any organised and serviced system, created or utilised to provide

convenient points of sale and / or access to consumers away from the location / point of

consumption. Concierge is located in the hotel and their purpose is to provide services to existing

guests and patrons of the establishment. Unlike the other choices they do not attract new customers

but enhance the experience of customers who have already purchased the product or services that

the company is offering. Also all the other channels although they are closely working with the hotel

they are not parts of the hotels’ structure but different businesses or organisations. Concierge is a

department of the hotel and therefore cannot be considered a distribution channel.

19. Which of the following would not be defined as advertising and why?

a) Mail Shot

b) Announcement in the local press of a change in management

c) Leaflets placed in a restaurant dealing with accommodation

d) Item in regional newspaper by ‘Food Correspondent’

Advertising

a) A mail shot is by definition bulk mail advertising through the mail in the United Kingdom to

potential customers to advertise goods or services. The objective of a mail shot for a hospitality

establishment is to make the product known to new customers or inform existing customers of new

offers etc.

c) Leaflets placed in a restaurant dealing with accommodation are definitely a form of advertising.

The objective of the leaflets is to make the product known to potential guest and produce sales.

Non – advertising

d) An item in regional newspaper by the ‘food correspondent’ falls under the category of publicity.

Usually this commercially significant news published about the business is not financed by the

establishment itself but by an objective third party. They could still lead to potential sale but if the

piece is not favourable it could have the opposite effect. So an article by the ‘food correspondent’

cannot be considered advertising.

b) Also announcements in the local press of a change in management and how this will benefit

existing and future customers is a good PR move but not exactly advertising as it does not make the

product itself known; it just informs the local community about changes in the establishment

without promoting directly sales.

20. What does AIDA stand for?

Attention that the product or must attract

Interest that the product must provoke in order to be popular

Desire to cover the target customer’s need

Action that the perspective customer had to take in order to obtain the product or service.

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Study Unit Title: Reception and Accommodation Management




Date: 01 October 2012

1. What roles might you find within the rooms division of a hotel?

Under the umbrella of the room division one might find:

• Housekeeping (maids, housekeepers etc)

• Front office personnel (receptionist, guest service managers, night auditors etc)

• Concierge and porters

• Maintenance

2. What are the main personal and technical qualities required by a hotel

receptionist?

A hotel receptionist must be polite, friendly and efficient. Receptionists are the first point of

reference in a hotel. Their appearance must be smart and well presented. Usually they are provided

with uniforms. The ideal receptionist must have patience when dealing with guests and must be able

to think on her feet so as to provide better customer service. She must also have great

communication skills not only when dealing with guests but also because reception must coordinate

the other departments. For example if a guest needs extra towels reception must convey this to

housekeeping, if a guest discovers a malfunction reception must convey this message to

maintenance. An ideal receptionist must have some experience with reservations because she will

have to deal with walk in guest and people who want to extend their stays or leave early etc. In most

hotels, who use a computerised system, receptionists are also cashiers so they must be honest,

skilled with numbers and have a general grasp on accounting.

3. Describe what is meant in practice by the term ‘good customer care’ skills

Good customer care skills means to have the ability to ‘predict’ the guest’s needs and fulfil them

efficiently and without fuss. Good customer skills are a combination of a helpful and polite

personality along with experience, training and organisation abilities.

For example a guest arrives one day earlier than the date of his reservation. The receptionist greets

him warmly confirm everything (arrival, departure, price, room type) then kindly informs him about

the mistake in his reservation. She then proceeds to amend his booking and check him in early

provided there is available is availability or makes a reservation for one day at a different hotel.

Good customer care means the guest still feels like a valued customer and the whole process doesn’t

take long so that the guest who is tired can rest.

4. Describe the key attributes of good housekeeping staff

Housekeeping is one of the most important divisions of the hotel. Good housekeeping staff must:

• Pay attention to details. Details are what make a difference between a well kept or a badly

maintained hotel.

• Be willing to take responsibility. Even in the most organised establishments problems occur.

The first step in solving them is assuming responsibility.

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• Take pride in their work. Housekeeping is a challenging and difficult job that does not merit

the stigma that has been associated with it.

• Be team players. Maintaining a hotel’s standards cannot be one person’s job. The entire

team will have to participate.

• Have communication skills as they will be working closely with other departments.

Housekeeping must coordinate its efforts with maintenance and reception at all times.

• Be hardworking and efficient.

5. In what way or ways is Reception involved with other operational areas in a large 4

star hotel?

Reception is the ‘heart’ of the hotel and therefore is involved with all the other departments:

Reservations. Receptionist must double check the guests’ details on arrival and handle any

discrepancies that might occur. For example a guest might arrive one day early or one day late, he

might not have a booking etc. Reception must inform the reservation department to make the

appropriate changes in the reservation plan.

Maintenance. The guests’ first point of reference is reception. In many hotels receptionists are the

ones who inform maintenance about problems that the guests have reported. Sometimes even if

there is a way to contact maintenance problem directly they still choose to use reception.

Housekeeping. In large and small hotels alike housekeeping need information about arrivals,

departures and stay overs in order to do their work efficiently. Reception is responsible for providing

these records for housekeeping. Also like maintenance, guests may choose to make requests such as

extra pillows, towels etc with reception.

Restaurants, bars, etc. On the beginning of their shifts they also need information (arrivals –

departures) to avoid charging the wrong guests. Also guests’ may choose to make reservations about

dinner or lunch etc with reception and receptionist need to handle those requests.

Accounts. Due to the computerisation of reservations, receptionists are now responsible for taking

payments and providing invoices etc. That means reception hat to work closely with the accounting

department who need to process and file those payments.

6. Explain how computerisation in the Front Office has developed over the last 20

years.

Computerisation advancement in the hospitality industry has brought many changes. A lot of tasks

that were completed by different departments are now done by the front office.

Thanks to the computerised systems in use all the lists such as arrivals and departures etc that

housekeeping needs in order to be efficient would need many hours to prepare instead of just

minutes.

Also modern technology has made a whole department (cashiers) almost obsolete. Nowadays

computer literate receptionists can prepare the guest’s account with minimum effort. They can also

process payments much easier.

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But the department that was totally transformed by computerisation is reservations. Prices and

availability are much easier to handle because of computers and that means responding to requests

in a much more efficient manner. Also the means of communication between the hotel and the

guests is much easier, instead of letters, emails, telephones and faxes are utilised minimising the

time and effort that is required.

7. Summarise the actions required by the staff of a reception office:

- Before the arrival of the guest

- During their stay

- After their departure

Before the guests arrival receptionists must provide as much information as necessary to promote

the hotel. Also they must answer guests’ and potential guests’ inquiries in a timely manner and

generally fascilitate the reservation process as much as possible.

During their stay. When the guests arrive after they have been properly greeted the receptionists

must make sure they fill the necessary forms as it is required by law. The hotel may use the

information provided later on for marketing purposes. For group reservations the rooms might be

assigned already to save time.

Once the guest settle in front office must inform the other departments to take appropriate actions.

To be more specific, housekeeping must be informed to change the room status from vacant to

occupied and the restaurant must be informed so that they can open the guest’s account to extra

charges.

During the guests stay reception must provide information and extra services such as transport or

theatre reservations etc or at least direct guests to people who can assist them.

After the departure. The day of the guest’s check out his bill must be prepared. That is done either

by reception and the bill office or if the hotel uses a computerised system by the front office alone.

The bill should include all of the guest’s charges including accommodation and extras alike. The

guest’s name and room number is included in lists given to housekeeping and the other departments

so that they know of the guests’ departure and act accordingly. If the guest has not checked out by

12:00 then reception notifies housekeeping and they check physically if the guests are there. Every

once in a while there are guests who do not check out properly and leave without paying. Those

guests are known as walkouts. However the hotel has ways to protect itself. Will the use of

prepayment and authorisation of the guests’ credit card on check in.

8. In reception terminology, what does ‘charting a booking mean’?

When the hotels don’t use computerised systems it is necessary to add the reservations in a chart so

as to determine availability and avoid mistakes and overbooking by accident. When ‘charting a

booking’ one has to add it in a calendar using a pencil so as to be able to move the booking if

necessary. There should be an arrow on the arrival date of the guests that should be obvious.

Provisional booking should be on the system with a dotted arrow and should be used when a guest

wishes to make a booking but hasn’t provided a credit card or deposit to secure his booking.

9. Discuss the procedures involved in the control of room lets.

Control of room lets means that each guest who occupies one of the hotel’s bedrooms has been

charged accurately and on time.

Housekeeping is physically checking the room occupancy every 24 hours. Reception provides

housekeeping with a list of arrivals, departures and stay overs that must correlate with the physical

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check housekeeping is performing. However occasionally there are discrepancies.

Some of the possible discrepancies are:

• Late arrivals that were not on the list

• Unexpected departures due to unforeseeable circumstances

• Unexpected check ins for guests without reservations (walk ins)

• Unreported room transfers (housekeepers will determine that the room was occupied but

there will be no record of it).

• Check in procedures not completed. That might happen in a computerised system when due

to computer malfunction or human error the status does not change from reserved to

occupied.

• Day lets that appear in the systems as late check outs.

All in all coordination and communication between housekeeping and front office is essential to

control or room lets.

10. What records could a typical housekeeper be responsible for?

Housekeeping records include:

• A lost property book

• Every item that is found should be described. Also it should have the date and the place it

was found.

• Room records that would have descriptions of each room, for example if they are double or

twin. Also it would help if the guest has extra requirements like a baby cot or extra chair etc

that should later be removed.

• Stock books for linen and inventory for items that the hotel has in storage like fans, vases or

other equipment necessary. It is also important to keep a record of supplies ordered such as

cleaning material etc.

• An accident book where any injuries occurring during the hotel rotas should be catalogued.

• Also head housekeepers in big hotels should keep a record of the rotas of the staff so as to

know who was working when, who called in sick etc. These records can help human

resources when it’s time for appraisals of staff.

11. With whom and why, should the housekeeper communicate on a daily basis?

House Keepers must communicate with all the other departments of the hotel:

Manager (room division manager or general manager etc) where issues of the day will be discussed.

Reception. It is extremely important that reception and housekeeping are communicating on a daily

bases. Receptionists must know at any given time which rooms are clean and ready to use and

housekeeping must have an accurate picture of which rooms will be vacant and need to be cleaned.

Computerised system made this communication much easier. Nowadays housekeepers can ‘give

rooms to the system’ as clean without actually contact reception.

Maintenance. Room attendants will discover all sorts of things that need attention such as toilets

that are blocked, lamps that need changing etc. Housekeeping will contact maintenance

immediately so that these details are attended to and the rooms are in excellent condition when the

guests need to use them.

Restaurants. Housekeeping is usually responsible for the cleaning of the hotel’s restaurant as well as

the provision of linen, tablecloths etc.

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Uniforms. Housekeeping is usually responsible for cleaning and repairing staff’s uniforms etc. So

communication is essential with all other departments that use them.

12. Present an outline of the roles and duties of housekeeping staff

Housekeeping roles depend on the size of the establishment. A large unit will have a head

housekeeper, a deputy housekeeper, floor supervisors and room attendants. Also laundry staff,

public area cleaners etc might fall under the umbrella of housekeeping.

In a medium sized hotel usually there is a housekeeper and an assistant housekeeper, room

attendants and linen keepers and perhaps a public area cleaner.

In a small establishment one may find a housekeeper and room attendants only.

Naturally their roles vary. Generally speaking housekeeping must be organised, punctual and with a

healthy respect of the house rules, willing to take responsibility and have team spirit.

• Room attendants’ responsibilities are servicing guests’ rooms and preparing dirty rooms

(departures) for new arrivals.

• General area cleaners are responsible for cleaning the public areas of the hotel, such as

reception, restaurants, bars etc.

• Linen keepers are responsible for laundry and the proper maintenance of the linen stocks of

the hotel.

Housekeepers have to supervise everyone and make sure that everything rums smoothly. They are

the link between housekeeping and other departments. It is their responsibility to attend to any

discrepancies between reception and their records, such as extra arrivals or departures. Also they

have to inform maintenance about any minor malfunctions in the rooms (lights that need replacing,

toilets not working etc).

13. What is the difference between a ‘master key’ and a ‘sub master key’

Master Key: Opens all doors of the hotel and is held by the head housekeeper and the manager of

the hotel.

Sub Master Key: It opens some rooms and is held by a room attendant that has to service those

rooms.

14. Draw up a schedule of work for cleaning of a hotel bedroom

1. Clear all trash cans from the room and the toilet.

2. Check drawers and cupboards for extra trash or forgotten items.

3. Remove used sheets and bed linen and used towels.

4. Dust all areas and vacuum the bedroom.

5. Clean all the surfaces of the bathroom, (sink, toilet, shower)

6. Use special detergent for the mirrors and the toilet bowl.

7. Sweep and mop the bathroom floor.

8. Clean the glass areas and mirrors and windows of the room.

9. Place fresh towels in the bathroom and replace amenities (soap, shampoo etc)

10. Set the bed with fresh linen

11. Check the room one last time and inform housekeeper that it is ready for inspection.

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15. Describe the main elements involved in an accommodation contract

The main elements of an accommodation contract are:

An offer. The hotel when asked for accommodation makes a formal offer in the lines of:

‘Establishment A is offering you Mr so – and – so accommodation for 2 people in a twin room from

the 15th of May until the 18th of May at such a price per night that equals to this total amount.

An acceptance. The contract is not valid unless the actual offer is accepted. Usually that also has to

be something ‘formal’ or written and among the terms there should be some form of guarantee

such as a deposit or a credit card to ‘seal the deal’.

A consideration (price). The price has got to be perfectly clear and it should be defined the nature of

the services provided. For example it could be only accommodation or accommodation and

breakfast or even extra meals. Also it is best if both the price for one night and the total are

mentioned to avoid confusion.

16. It was recently reported in the local ‘Evening News’ that the manager of the Stork

Hotel had seized a guest’s pedigree dog in respect of unpaid accommodation. Was

the manager entitled to do this?

It is held that the hotel’s manager right of lien attaches to property as soon as it is brought into the

hotel. The guest’s pedigree dog qualifies – in my opinion as property the same way as jewellery for

example. By selling the dog the hotel could make up for the loss from the unpaid bill.

17. Explain the main Common Law duties of today’s hotelier

Accept all travellers. Basically everyone that asks for accommodation is eligible to receive it,

provided he can cover his bill.

Accept guest’s luggage. Luggage is defined as any personal belongings the guests brings with them

including equipment necessary for his work and clothes etc.

Offer available food. The guest’s expectations however have to be reasonable and take into account

the operating times of the restaurant and the type of hotel they are in.

Offer available accommodation. Once again a person can receive accommodation in any

establishment provided he isn’t in danger to himself or others and that there is availability.

Take reasonable care to ensure guest’s safety. The guest’s privacy and safety are the responsibility

of the hotel, within reason.

Accept responsibility for guest’s property. The guests’ property is also supposed to be safe in the

hotel’s premises except on very special circumstances such as an act of God, the negligence of the

guest or an action of the crown’s enemies.

18. What types of fire extinguishers would you expect to find in a hotel and why?

Water extinguishers – used for wood, cloth, paper, plastics and coal. Not to be used for burning oil

or short circuit fires.

Dry powder extinguishers – used for paint, oil and electric appliances.

Foam extinguishers – used for wood, cloth, paper and plastics but not for oil or electrical fires.

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Carbon dioxide extinguishers – used to put down liquid fires such as grease, fats, oil and petrol.

Some hotels use specially made blankets for kitchen fires to cover flaming pots etc. Also they are

useful in case a person is on fire.

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Study Unit Title: Food and Beverage Management




Date: 18 January 2013

1) Draw a chart to illustrate the stuffing structures and staff of the food and beverage

operations in a large acclaimed restaurant.

Restaurant Manager (maître)

Assistant Manager (souse maître)

Food and beverage manager Chef

Head Barman

Assistant chef

Service Staff Store Clerk

Cooks

2) Explain the key social skills you would look for when considering appointing a new

member of the bar staff

People go to bars not just to drink but to be entertained so a new barman would have to be pleasant,

chatty and outgoing. People in the bar are not just selling drinks they are selling an image so they have

to look the part. They have to be well presented and smart. Even though most establishments are

offering uniforms for their staff it is still up to the person in question to maintain that uniform in

excellent condition. The ideal barman would have to know about drinks and that knowledge comes

from people who are actually drinkers and enjoy a glass from time to time but not too much otherwise

problems might arise. Also bar staff has to be interested in their craft and experiment with drinks to

make new cocktails and present drinks in new and attractive ways. Experience in this job just like in

every other department is essential.

The bar is the place where the establishment can lose a lot of money if the people working there are

dishonest and have a mind to make extra pocket money by misseling the products so the character

check will have to be twice as thorough and references will have to be produced and followed up at all

times.

3) What are the key attributes of staff working within the stores area?

There are two types of activities taking place in the stores area: store keeping and stocks control. Store

keeping is basically the handling and storing of the supplies that the hotel needs and stock control is

keeping records of goods received and goods used. Store keeping involves a lot of manual labor so

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personnel must be fit and have a keen sense of space. Stock control people must have an eye for

details and be very careful. In large units store keeping and stock control are two separate

departments that work together but report to different people. The reasons for that are plenty. For

starters manual workers cannot be expected to be expert record keepers and keeping stock control

and storage staff separate means less chances from either side for pilferage and stealing. People

working within the store areas have to be trustworthy, honest and hard working. Loses from pilferage

in a hotel is a very real problem. Petty theft unfortunately is very common in the hotel industry

because it is so easy to achieve and the temptation is great.

4) Identify the exemptions from the specified holding requirements established by the

Food Hygiene Amendment Regulations. According to the food hygiene amendment regulations, food exempt from specified holding

requirements are:

i. Pastries and pies sold on the same or the very next day of their manufacture

ii. Preserved foods but not the ones that were vacuum packed

iii. Food that doesn't endanger the public' s health

iv. Food that needs room temperature to ripen or mature

v. Food that may not be displayed for more than 4 hours outside a freezer or without being

cooked, otherwise they run the danger or being contaminated and spoiled and have to be

disposed of.

5) What is the minimum temperature for hot food and how long may it be kept at that

temperature during any one period of service?

Minimum temperature that hot food can be held is 63o Celcius. Food is allowed to be kept at ambient

temperature for 2 hours.

6) Why do kitchens use a different colored system and what is it’s use?

Kitchens use different color coded kitchenware to avoid cross contamination that may occur when for

example a piece of meat infected with staphylococcus is used to chop something else as well without

properly cleaning it first. There are no legal guidelines on which foods should be cut on which color

boards but the accepted coding system in the UK is this:

i. Yellow - cooked meats

ii. Red - uncooked meats

iii. White - Bread and dairy products such as cheese

iv. Blue - raw fish

v. Green - salad and fruit

vi. Brown - raw vegetables, definitely those grown within the soil

Some kitchens use knives with the same plastic color coding in the handle to increase safety. While

color coding is a first defense line for good hygiene, it is still good practice for a board to be washed in

hot water and sanitized when a different food product of a similar type is being cut up.

7) Write a detailed account of each of the main types of food poisoning bacteria,

highlighting foods susceptible to contamination by each. Campylobacter: Can be found in poultry red meat, fresh milk and water. The symptoms from this type

of food poisoning include diarrhea and severe abdominal cramps.

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Salmonella: Can be found in mammals and birds and especially in eggs (frozen, fresh or dried)

uncooked meat and poultry and pre - cooked foodstuffs such as sausages, ham etc and dairy products.

It is extremely common especially during hot seasons. However the bacteria cannot stand heat for

extensive periods, (30 minutes in temperatures above 100o should be enough to destroy it. Food that is

likely to develop salmonella should be prepared immediately. Modern methods of refrigeration and

pasteurization have reduced cases of this infection but still it appears from time to time. Symptoms of

this food poisoning are abdominal pain, fever, nausea, diarrhea and vomiting. When there is an

outbreak of salmonella, it is necessary to discover the source (infected animal, poultry, human etc) and

make sure it is treated to avoid repeat appearance of the bacteria.

Clostridium: Can be found in meat (large joints usually) stews and large quantities of gravy. Clostridium

perfringers in a spore found in the intestines of animals and doesn't require air therefore can survive in

sealed containers etc. It is also resistant of high temperatures. Poisoning may be caused by infected

meat and vegetables. Bacteria might contaminate crops and soil when sewage are used as fertilizers.

Symptoms are abdominal pain and diarrhea.

E coli: Can be found in minced beef that hasn' t been cooked properly and fresh milk. Ways to get

infected include direct contact with sick animals and ailing people and by contact with soil

contaminated by animal droppings. Symptoms include bloody diarrhea and abdominal cramps. But the

illness can became serious and occasionally kidney failure and anemia are named as symptoms as well.

Staphylococcus: Can be found in dairy products, milk, meats and cream. The bacteria can resist heat

pretty well. Because of this special caution is necessary to avoid contamination. Food must be cooked

properly and if not consumed immediately placed in a refrigerator. If food is reheated it should be at a

temperature strong enough to destroy any bacteria. Symptoms include nausea, vomiting, abdominal

pain and low body temperature.

Listeria Monocytogenes: Can be found in soft cheeses and all types of pate. Unlike other types of

bacteria this one can multiply in a refrigerator. It can be killed by cooking foods properly. People are

not in immediate danger by this bacteria however it affects pregnant women, newborn children and

elderly people. Other groups of susceptible people are those with cancer of the lymphatic system and

leukemia and those who have reduced resistance to infections and suppress their immune systems.

8) Write an account of the provision, positioning and maintenance of sanitary facilities

foe employees in catering establishments. According to law, management is obliged to provide staff with sanitary facilities for their personal use.

These are usually separate from the ones that the customers of the establishment are using. Water

closets have to be furnished with wash hand basins soap and drying tools (towels or hand drying

machines).

The rooms allocated for sanitary facilities must not be close to the food storage rooms, the linen

storage rooms, or the kitchen. Also they must be separate from the area where cooking utensils and

equipment is cleaned and stored.

Sanitary facilities for personnel must be kept well ventilated, clean and well maintained. Usually

companies who employ both sexes are obliged to have separate facilities for each sex. After all people

who come in contact with food must always be careful so as to avoid spreading diseases.

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9) Discuss the dangers of rodent infestation and the precautions to be taken against it. By the term rodents, we mean rats and mice. These animals thrive in places where there is easy access

to food and kitchens, cellars etc are ideal for their nests, unless properly protected. Rats and mice carry

many diseases such as salmonella and other pathogenic bacteria due to their habit of frequenting in

sewers and other unclean areas. They transmit those diseases through their droppings, hair and urine.

They cause a lot of damage by gnawing human food but they also eat cables, wood, books etc.

In order to avoid infestation by vermin a kitchen must be clean. No food must be left uncovered at

night and wastage must be placed in sealed containers / bins to avoid attracting the animals.

Unfortunately, they multiply quickly and a small infestation can turn into a big one rather easily. The

premises should be searched thoroughly and regularly to make sure there are no tell tale signs of

rodents such as nesting material, droppings and gnawed supplies. Any repairs that the building might

need such as damaged drains, holes in the roof or walls etc must be done as soon as possible.

If however an infestation is manifested than treatment must be imminent. Poison is the best way to

get rid of the animals but caution must be used. Poison must be placed in places where rodents are

sure to get it but it is certain that they will not be exposed to food. Poisons used to destroy vermin are

Zincphosphide, arsenious oxide and warfarin. Vermin and the substances used to kill them are

dangerous and should be handled by professionals and specialists to avoid accidents.

10) Discuss the heating and cooking of frozen foods in the catering industry. Frozen food have many advantages such as the preservation of seasonal food and a wider distribution

of products such as fish or exotic fruits to areas that don’t have them normally. It also avoids waste and

provided that freezing is done properly, frozen food retains a lot of the nutritional value of fresh foods.

However, caution must be used before using any of these products. Bacteria do not die in low

temperatures and once the food is unfrozen, danger by them is still there. Several studies prove that

and as a result most frozen products include in their packaging detailed instruction of cooking to avoid

food poisoning caused by spoiled food. Caution and experience dictates that cooks must use

thermometers and test the food regularly to make sure they are cooked thoroughly.

Food that has thawed out must never be frozen again. Usually items from deep freeze must be

completely unfrozen before cooking. Otherwise the meat is cooked only on the outer surface while the

inside that could still carry potential bacteria might be left uncooked and therefore dangerous. Other

products such as fruit that will not be cooked is best to be left outside the fridge and be allowed to

defrost naturally. However before they are served they must be thoroughly inspected to make sure

they are not damaged in any way.

Some catering facilities rely heavily on frozen food, providing entire meals that only need defrosting

before serving. Fast food industry has been flourishing because of frozen meals! The disadvantages are

that although defrosting food does not require the expertise of a chef, it still needs a level of attention

to make sure the product is not dangerous for the consumers. Also although modern techniques are

keeping many of the nutritional values of food intact, it is not the same as fresh food. Fast food (who is

mainly frozen meals) have often been accused of promoting obesity.

11) What is an ‘Emergency Prohibition Order’?

If an officer believes that a business gives rise to imminent risk to health, he or she may close the

business by issuing a Hygiene Emergency Prohibition Notice. The matter will then be put to the court,

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which if satisfied that the business does pause an imminent risk to public health will impose a Hygiene

Emergency Prohibition Order to close the business.

So in short health officials inspect any catering business at regular intervals and if the laws stated by

the Food Safety Act 1990 and the Food Hygiene (Wales) Regulations 2006 are not observed then they

can and will shut down any catering establishments.

For an emergency prohibition order to be lifted the court must be satisfied that Food Business

Operator has taken suitable measures to ensure that the health risk(s) no longer exists.

12) Explain the following terms:

a. Vegan

b. GM Foods

c. Low Alcohol Drinks

d. Table d’ Hote

a. A vegan will not eat any animal products, for example:

• No meat nor other products that come directly from killing an animal such as animal

fats and gelatin.

• No dairy products such as cow milk, cheese and yogurt, nor goats' s milk

• No eggs nor food containing eggs.

b. GM Foods means genetically modified foods. GM normally involves the insertion of genes

carrying a specific trait from one organism to another.

c. A lower alcohol beverage is defined as a drink containing between 0,5% and 1,2% alcohol.

d. A table d' Hote menu is a menu where multi - course meals with only a few choices are

charged at a fixed total price. Such a menu may also be called prix fixe ('fixed price') The terms

set meal and set menu are also used. Table d' Hote contrast with 'A la Carte' where customers

may order any of the separately priced menu items available if given.

13) Describe the main aims of provision of a menu for customers and the main

constraints that limit choice. The aims of a restaurant menu are to give customers a specific idea of what they can eat and at what

price. But that’s only part of it. Menus are supposed to give options to customers that they normally

wouldn’t have a home, so they have to be creative and interesting. At the same time if the restaurant

wants to keep its clientele the meals must be nutritious and cover the customers’ needs in calories and

vitamins. That is essential in every meal and is the goal of every catering facility whether it’s a

MacDonald’s or a five star restaurant. Also it is important to satisfy a wide range of preferences such as

offering children’s meal or vegetarian meals. Health issues dictates that the customers are aware of

the ingredients of the recipes because of various allergies (allergy to nuts, lactose intolerance etc.) that

could make food dangerous for certain individuals. Finally the menu must balance between quality

ingredients and profit and a compromise must be reached that won’t jeopardize the restaurant’s

future. Extremely low quality ingredients might lead to less customers choosing the restaurant for their

meals but undercharging dishes also has negative effects in the restaurants profits.

One of the main constrain that limit choice is the type of establishment the menu is created for. This

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must be reflected on everything from pricing to service provided. The capabilities and talent of kitchen

and service staff must also be taken into account when setting limits to the potential menu. The actual

space and equipment that cooks have to work with is also one of the factors that affect the menu of

restaurant. The type of supplies that are readily available are extremely important when designing a

menu and last but not least the dishes featured must be appealing to the patrons the restaurant is

targeting otherwise they will not choose that establishment.

14) What are the four major factors when designing your menu card / folder to give the

best possible impression?

The four major factors of designing the actual card / folder are:

Format. The customer should be able to handle the menu with ease. Especially if the table is already

set or overcrowded

Font. The menu should be easy to read but at the same time interesting. If the restaurant has

something special to offer it can use bold lettering or promote a set menu etc.

Paper. It must be durable to stand up to frequent use. It is a good idea to have the menu paper coated

so that it cannot be soiled.

Covers. They should be well thought of and well designed. The impression that the cover gives is very

important. If it is not well maintained it gives the wrong idea about the whole establishment.

Overall the menu is the caterer' s major sales tool. It can set the tone and the spirit of the restaurant.

The menu should reflect the personality of the restaurant and also appeal to the mood of the patrons.

15) What is the most suitable style of food service system to operate in the following

situations:

i. The staff of a large manufacturing company based on one site

ii. A wedding reception for 200 guests in the grounds of a Golf Club

iii. A dinner for the members of a fine dining society at a local college

i. The staff of a large manufacturing company would best be served by a counter or cafeteria service.

Usually people will want to have their meal on their breaks that don' t last very long, so speed is

essential. Also this kind of service is cost effective and saves space - all each customer can eat will be

contained in a tray - which is always the company' s objectives

ii. A wedding reception would best be served by plate silver service. On one hand all 200 guests will

need to be served at the same time - a difficult feat even for a group of experienced waiters. On the

other hand a wedding is a very important moment in the new couple' s life and by extension to the

lives of their friends and family and must not be spoiled by sloppy service, so a plate silver service is a

good combination. The waiters present the food already served by the kitchen but can still add

personal touches when serving the wine and fruits.

iii. For a fine dining society only the best will do so it is either a gueridon or a full silver service. People

of a fine dining society have time and inclination to enjoy a meal not just for the food but for the

overall service and ambience. The waiters have to be experienced and able so as to showcase

everything that the restaurant has to offer and make the customers feel special and appreciated.

7

16) Describe the main service routines involved in the operations of a restaurant of a

major hotel commencing with breakfast through to 19:00 hours. The most difficult meal of the day is breakfast because usually there is a big turnover at roughly the

same time so the restaurant must be prepared. Waiters and kitchen have to be present to arrange for

everything half an hour before the arrival of the guests. The tables must be set, there has to be plenty

of silverware, plates and glasses available. Let' s assume that this particular hotel has a buffet menu - it

is a very common practice these days. The hotplates must be on and all the tables must be fully

stocked with the essentials salt, pepper, sugar and milk. If there are lower arrangements they should

be fresh and neat. The tablecloths and other linen should be clean and well arranged. During breakfast

waiting staff must be aware of the guests and be ready to replemish anything that is missing or running

low - toast or orange juice for example. After breakfast the tables should be cleared maybe some

tablecloths must be changed. All the breakfast menu must be set aside and left overs handed back to

the kitchen for storage.

Then once everything is clean the restaurant must be prepared for lunch. The head waiter must inform

the waiting staff about any bookings and any special requirements (ex. birthdays etc) and then inform

the kitchen as well. The arrangement of plates and silverware depends on the type of menu the hotel

serves. Table d' Hote and a la carte menus are different. If the hotel offers buffet lunch new hotplates

must be prepared. Once the last guest leaves the waiting staff must once again clear everything and

start arranging things for the evening tea.

Most hotels do not serve the traditional evening tea meal because it is no longer profitable, however

most of them still have a tea and biscuits service that although not very elaborate still needs some

preparation. Clean silverware is in order as well as a small stock of jugs of milk and sugar and maybe an

arrangement of biscuits somewhere.

After this service is over the restaurant, staff must prepare for the breakfast next morning. The waiters

must make sure they have all the socks they need for next day and maybe set the tables to save time in

the morning.

17) What range of measures may be used in the service of spirits?

The capacity measures used for drought beer or cider are one - third of a pint, one - half of a pint or

multiples of one - half of a pint. If the beer or cider is dispensed through a stamped measuring device

provided that the guest can observe it being dispensed, the before mentioned measure does not apply.

Gin, whisky, rum or vodka must be dispensed in quantities of 25 milliliters or 35 milliliters or multiples.

Guests should know which measure is used by a sign that displays exactly. These rules don't apply in

mixed drinks such as cocktails.

Wine is also sold in metric measure of either 125 mls or 175 mls or multiples of those two. Wine can

also be sold by the carafe in qualities of 250 mls, 500 mls, 750 mls or one litre.

Close container of liqor must have a clear indication of the quality of their contents.

18) Identify four examples of malpractice that might take place behind a bar. How could

you seek to counteract the practices you have identified?

8

i. Drinks might not be uniform. Staff due to negligence or inexperience might not mix the drinks

properly or not follow the recipes. That is bad because the size of a drink and alcohol it contains might

change and it makes a really bad impression to the customers who expect a cocktail to be just 'so' and

end up being served something else. The bar manager must keep an eye on the staff and regularly test

new appointed people to check that they know what they are doing. Occasionally the business might

employ outsiders as 'secret customers' to check the performance of the bar staff.

ii. Sometimes staff might be 'carried away' and offer a well - known customer a free drink or two.

That is a very bad practice as it sets precedence with the customers and occasionally it is not even a

gesture of good will. The barman intentionally 'sells' the drinks without giving the bar it' s due. This sort

of thing is very close to pilferage and even closer to theft. People who practice that sort of thing should

be reprimanded once and if they persist, should be let go.

iii. Another way bar staff can increase their income at the expense of the company is by bringing and

selling their own supplies. It is very difficult to catch people who deliberately try to swindle the

business like that. The managerial staff must be very trustworthy and vigilant to catch these people red

- handed. Once again the only solution to be certain this practice is stopped is to let the people who

are caught on the act go.

iv. A malpractice that sometimes occurs when the bar is very busy or the staff is not properly trained

is that service becomes sloppy. Cold drinks are not served ice cold or garnishes are not fresh and clean

and glassware is not sparkling. That can be rectified by making sure that there is enough serving staff

when the bar gets busy and that everyone knows what they are doing. Proper training will make things

run smoother on any occasion.

19) Draw a sketch of a large kitchen layout from a hotel or restaurant that you are

familiar with and (i) describe the main features (ii) comment on its weaknesses,

making reference to the style of service.

9

(i) The L shaped kitchen layout allows more equipment to be placed in a small area. Although not very

extensive this kitchen layout allows two or more people work comfortably. The furthest to the left side

is the roast oven. Next to it is the broiler and the fryers followed by a collection of smaller ovens.

Opposite those is the steam table along with the sink and the cook' s table. On the right side we have a

selection of kettles and a steamer and opposite of the steamer is the bain marie.

(ii) The main problem is that the storage room and the fridges cannot be placed in the same area as the

actual cooking. When work is slow or medium fast the time it takes the kitchen staff to move from one

area to the other is negligible. But when the restaurant is busy and time is of the essence then it is a

problem. Also the washing of dirty plates and silverware has to be done elsewhere. However the

separate entrance and exit from the kitchen ensures that people coming in and out don't bump into

each other.

20) What procedures would you expect to find for the purchase and storage of food

commodities?

When purchasing food for the hotel the buyer must be very careful. It is always advisable to use

reputable shops that are supplied by known sources. The buyer when purchasing meat must make sure

to check all the seals of approval that the animal is required to have. There are telltale signs and smells

that identify freshness and staleness in meat. Also the vegetables must be fresh and crisp. To make

sure that they are fresh the buyer must either buy from the source - the growers or when that is not

possible from sellers whose turnover of stock is daily. Frozen goods when purchases must be of a

certain temperature and properly stored and the instructions on the label and the sell by date must be

carefully considered.

The correct procedures for purchasing food are:

• Identify the needs of the restaurant. Check the records to decide what the kitchen is short of

10

and what the consumption of said item is to determine quantity that needs to be purchased.

• Check the vendors. Pricing and quality might differ from provider to provider. The purchaser

must find the correct balance between quality and price. Also there is legislation to consider.

• Build relationships with producers. Usually hotels have specific vendors that they use to

purchase the products they need. That helps them when purchasing large quantities and

paying for said products.

• The buyer must take into account delivery options and times. Sometimes delivery adds

considerably to the cost.

• The purchaser must consider new trends and guests preferences when placing orders.

These are the general rules when ordering supplies. Different items however require different

approach. There are specific rules that must be followed when buying meat, poultry or fish to ensure

their freshness and suitability.

Storage of the purchased goods must be close to the area of use so as to avoid unnecessary

movements. A central location for all the stores has a lot of advantages. It is easier to secure against

theft and pilferage. And it is easier to stop overstocking or under stocking. The actual room itself

should be dry and clean. Its size varies according to the needs of the kitchen and the daily usage. If the

hotel has extensive stores then a storekeeper should be appointed to make sure that all necessary

documentation upon receiving goods is ok and all appropriate forms filled. Also authorized personnel

should do inventory checks on regular intervals.

Storage procedures:

• Received goods must be inspected to make sure that food is clean, wholesome free from

spoilage, misbranding, and safe for human consumption. The food must have been prepared,

processed, handled, packaged and stored in a sanitary manner.

• Correct records must be kept to avoid financial disputes and pilfering later.

• Bulk products such as sugar and flour, can be emptied into tightly covered, properly labeled

approved containers to prevent outside contamination. Storage containers must have

openings large enough to allow easy cleaning between uses.

• All food must be labeled and dated. Arrange containers apart from one another in a

refrigerator to ensure proper cooling. This allows air to circulate around containers. Cover all

food while in storage. Covering keeps food from drying out and minimizes the possibility of

contamination.

• Use foods on a first in, first out basis (fifo). Refrigerated, ready-to-eat, potentially hazardous

food prepared and held for more than 24 hours in a facility must be marked with the date of

preparation. It must be discarded if not sold or served within ten calendar days.

21) What is meant by stock control? Illustrate your answer outlining one method of

record keeping. Stock control is used to evaluate how much stock is used. It is also used to know what is needed to be

ordered. A way to keep track of stock.

A way of controlling the stocks is trough a stock ledger.

List all the items in storage. A proper stock ledger whether it’s a form or a card or a computer file, is

actually a list of all the items in stock.

Provide ample information. They should include information such as cost of each individual item, name

11

and description if possible, the name of the supplier and the usual way of ordering from him (for

example his fax or email) and the minimum quantity that is necessary before restocking is needed.

Check regularly and compare. The store keeper must know at a glance what is running low. Also by

booking at a previous ledgers and checking the profits it is easy to see if there is any wastage or

whether the resources are badly handled. For example if there are 3 chickens in the fridge today but

yesterday there were 5 that means 2 have been sold. Assuming that each chicken is a portion and is

sold for 10.00 GBP then the gross profits should be 20.00 GBP. If it is less the discrepancy must be

noted.

22) Draw up a flow diagram to show the passage of a fillet of beef from when it is

ordered from the supplier to being served to the customer, showing the critical

control points.

SupplierChecked for

freshness by the purchaser

Moved from the supplier to the

hotel

Checked again before being

accepted by the store keeper

Catalogued and entered at the

stock ledger

Taken by the kitchen for cooking

Pre preparation CCP Thaw in refrigerator

Preparation CCP Cook to

minimum temperature 155oF

Holding CCP Cover and maintain above

140°F

Service CCP Maintain above 140°F


Study Unit Title: Business and Finance




Date: 03 September 2013

1. Explain and describe the books and business forms needed when starting a small

hotel. The main books needed when operating a small hospitality business are:

� A ledger

� A cash book

� A journal

� A petty cash book

Additional books the business might use are:

� A wage book

� A stock book

The ledger is a book containing all the accounts of the company. All the assets and liabilities of the

business except for the bank and cash in hand transactions are there. Retailers may have one ‘official

ledger’ but keep separate accounts in separate ledgers for convenience. For example a small or big

retailer may keep books for customer accounts, creditors’ accounts and impersonal accounts. The

entries from the extra ledger and the cash book are very carefully transferred to a single ledger. The

ledger should contain both personal and impersonal accounts. As impersonal accounts should be

considered the fixed asset accounts (ex vehicles, equipment etc), the revenue accounts, the expense

accounts (purchases, wages, heating etc) and miscellaneous accounts (capital or drawings etc).

The cash book has entries of all cash transactions taking place whether it is money in or out of the

account. The cash book usually is kept in accordance to the company’s bank statements and need to

be balanced regularly for example once a week but can be done more regularly if need be.

A journal is what we call a book of original entry, which means that it is used to capture transactions

as they happen, be it a check written, a sale collected or a purchase made. Whatever happens, there

is an accounting journal for it. It is possible for small businesses to operate without one and simply

post entries to the ledger by transferring them from ledger accounts but it is risky as it has a large

margin of error. A journal entry must have a date, details explaining what this entry is about , journal

voucher number and a credit and debit columns.

A petty cash book is one in which all small payments made through petty cash fund are recorded

systematically. The book is very important for small businesses as it supplies information regarding

petty payments made on different people more easily and quickly. It also saves time as each

payment under a particular person is not posted into the ledger separately and helps to make the

main cash book more informative, clean and clear by including only major transactions.

Finally there are a few other books a business might decide to keep but a small business will have a

wages and salary book and a stock book. As a wave we mean payment for labor or services to a

worker, especially remuneration on an hourly, daily or weekly basis or by the piece. A stock book is a

list of all the assets the company has including a variety of things from bed linen and kitchen utensils

to buildings and vehicles. It is good to keep track of that so as to know how often you need to

replenish your stocks and how much it would cost.

2. Explain the purpose of the cash book in accounting. Rule up a cash book for the

Miranda Hotel and enter the following transactions for the first two weeks in May.

After you have completed this, post the entries to the appropriate accounts.

MIRANDA HOTEL

May

1 Balance of cash brought forward from April – £2.000

2 Paid Business Rate – £100

3 Made cash sales of £500

Bought new table linen - £150

4 Received £400 from I Adams for use of conference facilities

5 Paid electricity bill - £500

6 Made cash sales - £450

7 Paid Airy Dairy £150 for milk deliveries in April

8 Purchased goods for cash valued - £250

9 Received £300 from Jones ltd for use of banqueting room

10 Made cash sales of - £80

11 Bought petrol for hotel minibus - £25

12 Paid Poultry Supplies Ltd £280 for goods purchased in April

13 Paid salaries - £500 A cash book is a journal in which all cash receipts and payments (including bank deposits and

withdrawals) are recorded first in chronological order for posting to general ledger. A cash book is

regularly reconciled with the bank statements as an interval auditing measure. It needs to have cash

disbursement entries for all cash payments (such as accounts payable etc) and cash receipts entries

in which all cash receipts such as cash, sales etc are recorded.

Miranda Hotel

Cash Book Journal

Date Particulars Dr Cr Balance

01-May (b/d) Balance 2,000.00

02-May Business Rate 100.00 1,900.00

03-May Cash Sales 500.00 2,400.00

new table linen 150.00 2,250.00

04-May I Adams 400.00 2,650.00

05-May electricity bill 500.00 2,150.00

06-May Cash Sales 450.00 2,600.00

07-May Airy Dairy 150.00 2,450.00

08-May Purchased goods 250.00 2,200.00

09-May Jones ltd 300.00 2,500.00

10-May Cash Sales 80.00 2,580.00

11-May petrol for hotel minibus 25.00 2,555.00

12-May Poultry Supplies Ltd 280.00 2,275.00

13-May salaries 500.00 1,775.00

1,730.00 1,955.00

Balance 1,775.00

3. From the figures given, draw up the Petty Cash Book, enter the items and balance

showing the brought forward.

Opening float - £30.00 (as 1st April)

Paid out bus fare - £4.00

Paid out postage - £1.70

Paid out cash - £10.00 (owner for himself)

Paid out light bulbs - £1.40

Paid out envelopes - £2.50

Paid out flowers - £6.50

Miranda Hotel

Petty Cash Book Journal

Date Particulars Float Payments Transportation Postage Expenses Misc

04/01/2013 Float £30.00

Bus fare £4.00 £4.00

Postage £1.70 £1.70

Cash £10.00 £10.00

Light bulbs £1.40 £1.40

Envelopes £2.50 £2.50

Flowers £6.50 £6.50

Total Spent £26.10 £4.00 £4.20 £1.40 £16.50

Cash left £3.90

£30.00

05/01/2013 Balance £3.90

Reimburses £26.10

Float £30.00

4. What is a Bank Reconciliation Statement and use an example to illustrate its

purpose. A book reconciliation statement is a calculation comparing the cash book balance with the bank

statement balance.

Sometimes the bank statement and the cash book don’t agree. That is not unusual because the bank

does not action the entries at the time the businessman enters to his cash book but at the time that

they actually happen. So a check might exist as an entry at the cash book but it will appear at the

statement when it is presented to the bank for payment.

Supposing Mr. Williams has received two checks as payment for services rendered at the amount of

£150.00 by Jones and £200.00 by Smith and he has also signed a check to settle the account that he

has with ‘Super Cleaners’ ltd at the amount of £100.00. In order to make his book agree he has to

reconcile them.

DR CR

Balance per bank statement £500.00

Checks not yet presented ‘Super Cleaners’ ltd £100.00

£100.00

£400.00

Checks not yet cashed

Smith £200.00

Jones £150.00

Balance per cash book £750.00

Debit Credit

Balance in hand as per bank £500.00 Payment not in the bank £100.00

Additional amount £350.00 Balance in hand per cash book £750.00

£850.00 £850.00

5. Draw up a trial balance for the Master Hotel from the figures given:

Capital - £11,950 Creditors - £100

Cash at Bank - £175 Plant & Equipment - £2,500

Cash in hand - £25 Rates - £120

Premises - £10,000 Debtors - £50

Stationery - £20 Telephone - £80

Sales - £5,500 Purchases - £2,035

Wages - £1,500 Equipment Repairs - £195

Drawing - £850

Debits Credits

Capital 11,950.00

Cash at bank 175.00

Cash in hand 25.00

Premises 10,000.00

Stationery 20.00

Sales 5,500.00

Wages 1,500.00

Drawing 850.00

Creditors 100.00

Plant & Equipment 2,500.00

Rates 120.00

Debtors 50.00

Telephone 80.00

Purchases 2,035.00

Equipment Repairs 195.00

17,550.00 17,550.00

6. Using the balances from question 5, prepare a Profit and Loss account and a

Balance Sheet.

Miranda Hotel

Statement of Profit and Loss

For the year ended XXX

Sales 5,500.00

Purchases 2,035.00

Gross Profit 3,465.00

Wages 1,500.00

Rates 120.00

Telephone 80.00

Equipment Repairs 195.00 1,895.00

Net Profit 1,570.00

Miranda Hotel

Balance Sheet

As of XXX

Assets

Cash at bank 175.00

Cash in hand 25.00

Premises 10,000.00

Debtors 50.00

Stationery 20.00

Plant & Equipment 2,500.00

Total Assets 12,770.00

Liabilities and Equity

Creditors 100.00

Capital 11,950.00

Drawing (850.00)

Retained Earnings 1,570.00

Total Liabilities and Equity 12,770.00

7. Describe the uses of the following ratios within final accounts, using examples:

a. Acid Test

b. Return on Capital Employed

c. Net profit margin

d. Debtor collection days a. Acid test is an indicator that determines whether a firm has enough short term assets to cover its

immediate liabilities without selling inventory. It is calculated by using this formula:

Cash + Accounts receivable + Short term investments

Current liabilities

Supposing a small business has £150.00 cash and £450.00 accounts receivable but no short term

investments as liabilities could be considered money owed let’ s assume it’s £300.00. The acid test

would be:

Net Profit Ma = 2

£300.00

That means The business is viable and in the worst case scenario where the liabilities have to be

covered in a hurry, the company will be able to respond.

b. Return on capital employed (ROCE) is a ratio that indicates the efficiency and profitability of a

company’s investments.

Return On Capital Employed = Operating profit X 100

Capital employed

So suppose Miranda hotel has profits of £150.00 from sales, it’s total assets (including buildings etc)

is £300.00 and its total liabilities or expenses are £90.00 the ROCE would be:

150.00 X 100 = 71.43

300.00 - 90.00

c. Net profit margin is a measure of profitability and it is a measure of profitability and it is a ration

comparing net profit after taxes to revenue.

Net Profit Margin = Net Income X 100

Revenue

Example suppose a company has revenue of £150.00 and its cost is £80.00 then using the above

formula:

Net Profit Margin = (150.00 – 80.00) X 100 = 46.67

150.00

d. Debtor collection days are a measure of the average time payment takes. The formula is

Trade Debtors X 365

Sales

The lower the debtor collection days the better. Example: Suppose business A has sold on credit to

A. King £300.00 and to J. Jones £200.00 and its revenue is £1600.00 then

£500 X 365 = 114.06

£1600.00

8. Explain briefly the following accounting terms, giving examples

a. Profit

b. Assets

c. Capital

d. Liabilities Profit is the positive gain remaining for a business after all costs and expenses have been deducted

from total sales. Profit is also referred to as the bottom line, net profit or net earnings. Example:

Merchant X has made £350.00 in Sales and he has spent is £200.00. The formula for calculating

profit is: Sales – Expenses so 350 – 200 = 150. His profit is £150.00

An asset is an economic resource that a) can be owned, and b) is expected to provide future

economic benefits. Assets create or preserve wealth, making them of utmost importance to both

individuals and companies. Example: A company lists its assets on its balance sheet. Common asset

categories include cash and cash equivalents; accounts receivable; inventory; prepaid expenses; and

property and equipment. Although physical assets commonly come to mind when one thinks of

assets, not all assets are tangible. Trademarks and patents are examples of intangible assets.

Capital is money available to a company for day-to-day operations. Capital is a common measure of

a company's liquidity, efficiency, and overall health. Positive working capital generally indicates that

a company is able to pay off its short-term liabilities almost immediately. The formula for this is

Current Assets - Current Liabilities. Example: Suppose company Z has

Assets Liabilities

Cash £600.00 Brown £200.00

Inventory £350.00 Purchases £100.00

Jones £50.00

£1000.00 £300.00

So for company Z Capital = £1000.00 - £300.00 = £700.00

Liability is a company's legal debts or obligations that arise during the course of business operations.

Liabilities are settled over time through the transfer of economic benefits including money, goods or

services. Liabilities include loans, accounts payable, mortgages, deferred revenues and accrued

expenses. Liabilities are a vital aspect of a company's operations because they are used to finance

operations and pay for large expansions. Example: Let's assume that Hotel Miranda sold £1000.00

of gift certificates during the holidays. The gift certificates entitle the holders to £1000.00 worth of

stays, and Hotel Miranda must therefore record a liability for these stays. As the gift certificates are

redeemed, the company reduces the liability.

9. What are the main methods of calculating depreciation? Give suitable examples to

illustrate your answer.

One method of depreciation is the straight line where a specific set percentage is calculated from

the original cost price and then reduced yearly from the assets value.

The second method of depreciation is the reducing balance where a percentage is set but it is

applied on the remaining balance of the cost price each year.

Example

Trader B buys a restaurant business. The building costs £100.00 and the fittings another £50.00. The

depreciation method used for the building is the straight line and the reduced balance is used for the

fittings.

The annual depreciation for the building is 10% and for the fittings is 30%.

Building

Year 1 £100,000.00 10% £10,000.00 New book value £90,000.00

Year 2 £100,000.00 10% £10,000.00 £80,000.00

Year 3 £100,000.00 10% £10,000.00 £70,000.00

Year 4 £100,000.00 10% £10,000.00 £60,000.00

Fittings

Year 1 £50,000.00 30% £15,000.00 New book value £35,000.00

Year 2 £50,000.00 30% £10,500.00 £24,500.00

Year 3 £50,000.00 30% £7,350.00 £17,150.00

Year 4 £50,000.00 30% £5,145.00 £12,005.00

In the books the previous would be added as:

Building

Year 1

Jan 1 Balance £100,00.00 Dec 31 Depreciation £10,000.00

Balance £90,000.00

£100,00.00 £100,00.00

Year 2


Balance £80,000.00

£90,000.00 £90,000.00

Year 3


Balance £70,000.00

£80,000.00 £80,000.00

Year 4


Balance £60,000.00

£70,000.00 £70,000.00

Fittings

Year 1


Balance £35,000.00

£50,000.00 £50,000.00

Year 2


Balance £24,500.00

£35,000.00 £35,000.00

Year 3


Balance £17,500.00

£24,500.00 £24,500.00

Year 4


Balance £12,005.00

£17,150.00 £17,150.00

10. How does the Front Office staff balance the Visitors Ledger? The Tab is a record of all sales. Compiling it is the responsibility of people who work in the front

office. Every time a sale of goods or services is completed whether it’s on credit or debit must be

transferred to the tabular ledger. For example if a guest pays for his accommodation or if he has a

meal on the hotel’s restaurant and wishes to pay on check out, both of these transactions must be

transferred to the appropriate point in the tabular ledger. Each transaction has its own column on

the ledger. There should be some columns for identification purposes first (for example room

number and name) and then accommodation and separate column for the restaurant etc.

Every hotel has a specific time each day when the tab is closed. Then all charges of the day are done

and accommodation charges for the night are posted. Every sale that happens from that day forward

will belong to the next day to balance the tab.

11. Describe how guests’ charges are incurred and posted to their account. Hotel guests incur charges every time they purchase anything or use the hotel’s services. The

charges could be meals bought in the hotel’s restaurants, accommodation, phone and internet

charges, shopping done in the hotel’s shops and use of the hotel’s services such as the gym or trips

booked via the hotel etc.

Once the charge is incurred they will be passed to the hotel bookkeeping department (if a manual

account system is in place) and added to the guest bill or will be automatically added to the guests'

bill direct from the till or terminal used to enter the charge.

12. Describe a Tab Summary Book. In order to explain the Tab Summary book first a description of the visitor’s tabular ledger is

necessary. There are two types of ledgers – one Horizontal Tabular Ledger and the other, Vertical

Tabular Ledger. On one side of this ledger, one column is provided to each registered guest and one

column is provided to each registered guest and column is provided for each item of sale of food,

beverages, services etc.

The Tabular sheet contains debit and credit sides. Thus Visitors Tabular Ledger records all aspects of

both debit and credit transaction either on upper and lower sections or on the left and right section.

Such Visitors Tabular Ledger dose not confines itself only to sales but it also includes all transactions

that concern sales. This implies that amount paid by customer against outstanding debits;

allowances and transfer to other ledgers are also recorded. Thus both debit and credit transactions

relating to customers are recorded in their respective columns. In such Tabular ledger if one column

is provided for cash sales, then it can give the picture of total sales of the hotel of the day.

The completed Visitors Tabular Ledger gives the following information:

a) The sale of each department, total sale of the hotel of a particular day of each type of meal,

beverages and services etc.

b) The total debit balance of a departed guest transferred to ledger account or transferred to other

guests account.

c) Cash paid by guests during the day and allowances given to them.

d) The details of individual customers account and the total owing by resident guests at the close of

the day.

Once the Visitor's tabular ledger has been completed it is presented to accounts. Then the total

(summary) of each business day is added to the Tab Summary book that looks like the tab but also

has additional information about previous year’s figures for statistics and comparison. The Tab

Summary Book is reconciled weekly and monthly.

This book provides the accountants with the information necessary to create the company's trading

accounts (weekly, monthly, quarterly, half - yearly and yearly), as well as the final accounts and

various statistical figures.


Study Unit Title: Human Resources Management





1. What factors influence labor turnover in the hospitality industry?

One common cause of high employee turnover rates is low pay and benefits packages. When a

worker is employed in a low-wage position with limited benefits, there is little incentive to stay if a

similar employer offers even a slightly higher rate of pay. Low entry positions are hardly ever

adequately rewarded and may push employees to seek companies and or positions that will pay

them what they're worth. The hospitality industry is a 24/7 business requiring long hours, open

availability, and low pay.

Seasonality is another reason. Many hospitality positions are seasonal in nature. While lay-offs are a

necessity for business survival, they are hard for workers who will receive minimal unemployment

benefits. Many people might choose another industry to avoid long periods of unemployment during

off - peak times.

Poor job matching is another common cause of high employee turnover rates. Workers who are

employed in jobs for which they are over- or under-qualified, may feel frustrated and be inclined to

look for other work. For many people postings in positions like reception or housekeeping is nothing

more than a stepping stone, a temporary position, until they finish school/university so they can

move on to their 'real jobs'

Hospitality industry workers experience jobs that are tightly controlled, routine and monotonous.

Their role as service providers however demands that they present an appropriate emotional

response regardless of the circumstance. Often their shifts include uneven hours, such as early

followed by late shifts, working on Christmas and Easter etc creating a general emotional fatigue

that most workers are unable to cope with and lead to general dissatisfaction about their roles.

Finally the problem is so vast that most companies prefer to focus on the results rather than the

actual problem. Many hotels find replacing employees easier than forming retention strategies,

therefore creating a vicious circle of employees leaving because they are easily replaced and

positions being vacant because employees are leaving.

2. What steps could you, as a manager, take to improve the stability of

employment?

• The first step would be to clarify what the hotel is about. For example is this a family friendly

hotel or not, is the target group holiday makers or corporate customers? That will give

employees a better idea about how they should approach their guests or patrons.

• The next step would be figuring out exactly what employees need and want. Most

hospitality industries hire people from all sorts of background and experience. It is

unreasonable to assume that each and every one of the employees has all the tools,

training, and support from supervisors they need to excel. It is necessary to check.

• Another step would be open lines of communication. Training sessions, memos, newsletters,

FAQs, and regular meetings can all be used to provide information necessary for the best

possible customer satisfaction. I would make sure to ask questions, and if people are

confused, redesign the way the information reaches them.

• I would figure out a way to get all of the employees engaged in planning and decision-

making. That hotel's success becomes theirs: something they’re willing to fight for. To do

this, whenever possible, ask for input and use their ideas. That way, they feel appreciated

and important. This can not only empower and motivate employees, it can also lead to new

and more productive ways of working that normally would be overlooked during more

stable times.

• Feedback is another great motivator. Positive feedback should be given right away, to

encourage more of the same performance. Negative feedback should also be given a.s.a.p.,

so that workers have the opportunity to self-correct. Also saying “Thank you!” for a job well

done. It’s a powerful motivator, and should be done often.

• I would use my judgment, wisdom, and experience to create a supportive environment.

When problems arise, examine the circumstances, understand the context, and only then

pass judgment. A manager should when problems arise, examine the circumstances,

understand the context, and only then pass judgment. Respect and trust your team and you

will get the same in return. If I make a mistake, I will apologize and admit I wrong.

• I believe that making work fun really pays off, since people often get a lot more done when

they enjoy themselves. It is important not to lose touch with the day to day activities (you

cannot offer advice simply quoting books) and it builds trust among employees to see

people with sunny disposition in charge.

• People need to feel appreciated and useful. They need to feel that management sees them

as valuable members of a team. So as a manager I would try to earn my teams trust that I

am doing anything in my power to retain them and not treat them like tools that can easily

be discarded.

• Finally incentives such as monetary rewards when targets are achieved always help people

to enhance people's performance and lead to higher levels of job satisfaction.

3. Identify and as appropriate, explain the main areas involved in the

management of Human Resources.

A human resources department is responsible for:

Selecting, assessing and terminating staff. One of the main functions of every human resource

department is going through the process of finding personnel when it is necessary. Also assessing

the individual workers’ performance and maybe handling their termination is the responsibility of

HR.

Training on the job and educating personnel. Another very important function of the HR department

is training and generally educating personnel for the company. In any industry new trends are

emerging all the times and staff must be constantly updated to keep up. That is especially true in

hospitality as new markets are constantly emerging and competition is fierce.

Health and safety of employees. HR must ensure that the environment is safe and that health

hazards are as limited as possible. Like in every industry hospitality has its dangers that is why there

are specific regulations in place to keep both employees and the public safe. Human resources must

make sure that the standards are kept.

Wages, bonuses etc. Another responsibility of the human resources has to do with the staff’s wages

and compensations. A lot of companies have schemes that reward full attendance or bonuses when

the hotel reaches an occupancy target etc. Human resources gather information and statistics about

staff performance and disperse funds according to the company’s policy.

4. Where might a manager most effectively target recruitment campaigns?

Hospitality today requires a very wide range of skilled professionals and therefore not everyone can

be found in the same place. Supposing we are dealing with a large hospitality unit I can see the

following choices:

Low entry personnel such as waiters and room attendants usually comes through agencies. Usually

there is a very large turnover in these positions as a lot of people don’t consider them ‘real’ jobs and

carry a heavy stigma. The company cannot waste resources and time trying to make the best

possible selection so an agency can perform the preliminary interviews and background checks and

then offer acceptable candidates to the HR department. Smaller scale companies might advertise

vacancies through job centers.

Medium entry personnel and middle management such as duty managers, head receptionists etc are

a different matter. Usually vacancies are advertised within the company itself just in case there are

interested parties who can fill the position (example people might move from reception to the

reservations department). In the same spirit colleagues might have possible candidates to suggest.

Also trade journals and websites is a good way to attract candidates.

Finally there is the higher managerial personnel to consider. The process here is a little different

especially for big hotels as the SEO usually has very little to do with the day to day operations of the

hotel and more to do with major financial decisions and strategy. So sometimes it might not even

have academic diplomas (Nassetta Christopher SEO of Hilton industries has a degree in finance) but

must have plenty of experience in the field. Once again the company must look to its own for people

before attracting outside talent.

5. What is job analysis and how might it be used in an organization?

A job analysis is comprised of three things: the tasks that make up a job, the conditions under which

they are performed, and what are the job requirements in terms of potential for achievement,

attitude, knowledge, skills, and the physical condition of the employee.

The reasons companies use job analysis are to determine the most efficient methods of doing a job,

to enhance the employee's job satisfaction, to improve training methods and to match the right

people in the right position. The outcome of a job analysis would be an accurate job description.

Employee job descriptions are written statements that describe the duties, responsibilities, required

qualifications, and reporting relationships of a particular job. Poorly written employee job

descriptions add to workplace confusion, hurt communication, and make people feel as if they don't

know what is expected from them.

6. Prepare a memorandum to the new manager outlining the procedures you

would recommend to prepare for the arrival of a candidate for a recruitment

interview.

Good morning Dian,

In view of the arrival of a potential new recruit I would like to make a few suggestions:

• Spend time reviewing the job description and specific skills that are required to perform the

job. That will help you focus on the information you need to obtain.

• Put the candidate at ease. Interviewing can be stressful, so do your best to help candidates

relax. Make sure he is greeted and escorted, if necessary, to the interview location.

• Study the candidate’s application and resume so you can ask specific questions about work

history and job skills.

• Tell the candidate a little about the job, a brief summary of the position, including the prime

responsibilities, reporting structure, key challenges and performance criteria. This will help

the candidate provide relevant examples and responses.

• Take notes. Write down important points, key accomplishments, good examples and other

information that will help you remember and fairly evaluate the candidate.

• Invite candidates to ask questions. That will help you understand what the candidate expects

and wants from this company.

I hope I was helpful.

Kind Regards

Maria Dellaporta

7. Discuss the main points that management should consider when organizing

internal training for their employees.

Internal training offers employers and employees advantages that are not found when you send an

employee to an external training program or seminar. Training transfer occurs more naturally and

employees cement learning through training other employees. On-the-job training that enhances an

employee's skills and ensures her readiness for the next promotion, is generally far superior to a

public seminar.

Employees appreciate the chance to develop knowledge and skills without ever leaving work. And,

you can customize the on-the-job training employees receive to your workplace needs, norms, and

culture. Internal job training and employee development bring a special plus. Unlike external job

training, examples, terminology, and opportunities can reflect the culture, environment, and needs

of your workplace.

The company has a few options when it comes to training methods and should consider what would

suit their needs best.

• Hire a professional. The company might decide to hire a qualified trainer that will visit the

office or place of employment and share his experience and knowledge with the staff

• Require Employees Who Attend External Training to Do Job Training. If a member of staff

has external training (example attends a seminar or has a university degree etc) then that

member can train other employees.

• Lateral Move. The employee moves to an equivalent role in an organization for job training

and career development. Though the new role usually provides a similar salary range it is

very important for the personal development of the individual and long term for the

company.

• Job Shadowing can provide job training as well. Job shadowing is also an excellent approach

to the job training of employees who provide back up for jobs such as payroll.

• Provide Internet, Intranet, and Webinar Training Classes and Resources.

8. What do you understand by the expression the morale of the worker? What

are the indicators of low morale? Describe how morale may be improved.

Employee morale is the emotions, attitude, satisfaction, and overall outlook of employees during

their time in a workplace environment. Employees that are happy and positive at work are said to

have positive or high employee morale. Companies that maintain employees who are dissatisfied

and negative about their work environment are said to have negative or low employee morale.

Some of the signs of low morale include uncooperative attitudes and lack of enthusiasm. Simply put

people are bored. Then there is fault-finding. People can find fault in anything, but when they do

work they believe in with co-workers they trust, it doesn’t happen. Fault - finding leads to increasing

complaints that are always an indicator of something wrong. Growing tardiness and absenteeism as

well as breakdown in discipline are grounds for disciplinary action, but they also trigger an alarm for

the astute manager. Also deterioration in the appearance of the work area. Some people are

naturally neat or messy, but when morale is low it gets worse. Another warning sign is chronic long

faces. You know your people enough to know when individual situations are different from unhappy

looks on everyone every day. The real serious problems start when low morale becomes a rallying

point. If people form a consensus about how lousy their employer is and discuss it openly, you’ve got

serious trouble.

There are many simple ways and tricks to boost morale: (1) treating employees with respect, (2)

providing regular employee recognition, (3) empowering employees, (4) offering open and regular

communication about factors important to employees, (5) providing feedback and coaching, (6)

offering above industry-average benefits and compensation, (7) providing employee perks and

company activities, and (8) positively managing employees within a success framework of goals,

measurements, and clear expectations.

9. Why would a HR manager promote group working practices?

Group work enables people accomplish tasks faster and more efficiently. Cooperating together on

various tasks reduces workloads for all employees by sharing responsibilities or ideas. Group work

also reduces the work pressure on every worker, which allows him to be thorough in the completion

of the assigned roles.

Working as a group is important in an organization because it provides employees with an

opportunity to bond with one another, which improves relations among them. A situation in which

all of them find a chance to contribute towards the tasks improves relations within the group and

enhances their respect and trust for each other.

Group increases the accountability of every member of the group, especially when working under

people who command a lot of respect within the business. Group members do not want to let each

other down and hence do their best to contribute to the successes of their groups. In contrast to

working solo, peer pressure is usually high within groups such that cases of low morale are less likely

to impact individuals.

Cooperating is an opportunity for new workers to learn from more experienced employees. Groups

often consist of members who differ from one another in terms of skills or talents. Working together

is a great opportunity to acquire skills that an employee never had beforehand. Group work affords

people the opportunity to challenge the ideas of each other and come up with more creative and

effective solutions.

10. The health and safety at work act 1974 applies to:

a. All employers with more than 5 employees

b. Only employers in the Office, Shops and Factories

c. All employers

d. Only employers with employees over the age of 18

The health and safety at work act 1974 applies to (a) all employers with more than 5 employees.

Section 2 states that "It shall be the duty of every employer to ensure, so far as is reasonably

practicable, the health, safety and welfare at work of all his/her employees" and in particular that

such a duty extends to:

• Maintenance of equipment so as to be safe to use

• Arrangements for ensuring, safety and absence of risks to health when using, handling,

storing and transporting articles and substances

• Training of employees to ensure their health and safety at work

• Maintenance of any place of work as well as any means of access to it (within reason) in such

a condition that it is safe and without risks to health

• It is the employer’s duty to provide a working environment for his employees that is

reasonably safe and without risks to their welfare.

11. As a manager responsible for health and safety, what steps could you take to

prevent or reduce the occurrence of accidents?

• Identify any potential hazards in the workplace. A hazard is anything with the potential to

cause harm. Common hazards for hotels include wet floors, gas leaks in the restaurant areas,

faulty or dangerous plugs, dangerous substances (i.e. chlorine) used for cleaning, ergonomic

issues and heavy items that can strain employees' backs.

• Clearly mark all potential hazard areas and substances with proper signage. In many

industries, proper signage is required by law and can be a valuable tool in protecting

employees.

• Create a Safety Manual. Include procedures for handling all potentially dangerous situations

in the workplace. Add a disaster management plan for events like fires or natural disasters.

Give each employee a copy of the safety manual.

• Develop a specific safety training program for the hotel. A safety training program should

cover basics like ergonomics, use of machines in the office, evacuation plans, sanitation

procedures and basic first aid. Safety training should be mandatory for all employees.

• Monitor the workplace for potential dangers. Usually hotels are not as dangerous to as a

nuclear plant and don't require a safety manager but still there should be one qualified

person that will act as a safety coordinator. Employees should be monitored to make sure

that safety rules are followed.

12. Identify and explain the stages involved in the recruitment process that are

directly affected by legislation.

Stages that are involved in the recruitment process are:

• Job analysis and developing a person specification. The responsibilities and authority of the

position must be clear followed by a description of the person that would best fulfil the role.

• The sourcing of candidates by networking, advertising, or other search methods. The

company usually looks among its employees to see if anyone is qualified and interested in

the position. If not then depending on the job it must be advertised through the available

venues.

• Matching candidates to job requirements and screening individuals using testing (skills or

personality assessment). Usually for every ad there are hundreds of replies that must be

sorted and checked out until only the potential job matches are left.

• Assessment of candidates' motivations and their fit with organisational requirements by

interviewing and other assessment techniques. That means actually interviewing the

potential candidates that have passed the screening process.

• The making and finalising of job offers and the induction and on boarding of new employees

Legislation regarding recruiting are:

• The Equality Act 2010. This applies throughout the whole process of selecting staff and

ensures that no applicant is treated unfairly due to race, religion, gender, age etc.

• Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002. Applies

to people who works temporarily at a position to make sure their rights are safeguarded.

• Rehabilitation of Offenders Act 1974. An individual who has had a conviction for an offence

may, with some exceptions, be rehabilitated and allowed to treat the conviction as if it had

never occurred. A conviction will become 'spent' where the person has not, after a period of

time, committed another serious offence. Employers may not, under the Act, ask

prospective employees if they have 'spent' convictions during the recruitment process.

There are of course exception.

• The Safeguarding Vulnerable Groups Act 2006. The Act establishes a central database of

offenders in respect of people working, or applying to work, with children or vulnerable

adults. Any person named on the list will be barred from working with children and/or

vulnerable adults, or subject to monitoring.

• Immigration, Asylum and Nationality Act 2006. This applies at the selection stage and

determines which people have the right to work in the UK.

• The Data Protection Act 1998. Protects the privacy of applicants and safeguards the personal

date that people are entrusting the company with.

13. Which of the following could legally appear in a newspaper advert:

a) Food service staff required for restaurant

b) Barman required for public house

c) Drummer for steel band must be Jamaican

d) Female assistant for ladies shoe shop

Explain your decision and why other adverts fail.

a) Food service staff required for restaurant. This is a perfectly acceptable advertisement. It

doesn’t discriminate against gender, age or nationality. It is clear from the wording that

anyone could apply.

b) Barman required for public house. This statement is illegal. Bartending is a job that can be

performed equally by men and women. It sometimes require heavy lifting but nothing so

stressing as to exclude female workers who have served as barwomen for a long time. The

proper phrasing should be ‘Serving staff for bar’ or ‘Barman or barwoman required for public

house’.

c) Drummer for steel band must be Jamaican. Steel bands originated from The Republic of

Trinidad and Tobago which is very close to Jamaica. I can understand why for reasons of

authenticity the musician must look the part but the requirements are too specific and also

wrong. Jamaicans are for the most part of African descent but surely there are people with

Nordic features among them, are they excluded? And what about people of African descent

that are actually British citizens or from Africa? They can look the part as well so I would say

that this advertisement is wrong too.

d) Female assistant for ladies shoe shop. A shoe shop assistant is required due to the nature of

their job to come to physical contact with the customers. Some of the clientele might not

feel comfortable if a man is touching their feet, so I believe that this business does not

violate the discrimination law.

14. Which Act relates to unfair dismissal? In such circumstances, does an employee

have to prove dismissal was unfair if that is the case?

The Employment Protection Act deals with dismissal. The process goes like this:

The employee who is dismissed can make a claim to a tribunal within three months of his dismissal.

Then it is the tribunal’s responsibility to find out the circumstances of the dismissal namely (1) the

reason and if it was a valid one for being let go, (2) whether it was reasonable to be dismissed for

that reason, and (3) the way the dismissal took place.

If the dismissal was fair then the matter goes no further but if it wasn’t then further actions are

taken. This is to safeguard the employee so that he cannot be dismissed on a whim by his employers.

More information can be found here: https://www.gov.uk/dismissal/what-to-do-if-youre-dismissed

15. It was recently reported in the local news that an employee for over 15 years at

the ‘Dog and Gun’ Inn was given just one weeks’ notice. Was she entitled to a

longer period of notice? Explain your answer.

According to the Employment Protection (Consolidation) Act 1978 there are specific periods of

notice when dismissing someone: Less than 2 years’ continuous service is one week and for over two

years of continuous service is two weeks plus one week for each year’s service. However these rules

don’t apply if different periods are stated in the contract of employment.

So if the employee of the Inn did not sign a personal contract that stated she could be dismissed

with only one weeks’ notice then the employer was in the wrong. Also in the local news the

sentence says ‘for over 15 years’ but that does not automatically mean continuous service. The

employee could have long absences or gaps in the employment at the establishment but then

always returned. So that must be clarified in order to pass an informed judgment.


Study Unit Title: Hospitality Operations





1. What is the purpose of management? The definition of management is the process of dealing with or controlling things or people. In terms of a hotel

management is to serve guests or patrons of the establishment. The true purpose of management can be

understood better by examining the functions that constitute management.

Planning: Deciding what the goals and objectives are for a specific period. (For example increasing the hotel's

occupancy by 10% for the months of January, February and March) Then it is necessary to set a course of actions

that need to take place to achieve that end, like advertising or special offers etc.

Organizing: Plans made on paper are the 'general idea' of what needs to be done especially if the organization is

massive. After the plans responsibilities for the various tasks must be assigned so that the project can move forward.

For example if the goal is to renovate the hotel's restaurant so as to increase profits, then it is necessary to find

builders, electricians decorators etc and then assign which employee/manager is responsible for overseeing them

etc.

Leading & Controlling: Once everything is in place then management must 'lead' i.e. actually start realizing the above

objectives. That is not as simple as it sounds. People of all levels must be encouraged corrected or influenced so that

the standards and objectives of the company are followed.

To summarize the true purpose of management is to plan, organize, lead and control a company so as its goals and

objectives are realized.

2. Draw an organization chart of 150 bed hotel showing the various levels of management

General Manager

Front Office Maintenance Housekeeping Food & Beverage Back Office

Reception

Manager

Concierge

Manager Electrician

Head

Housekeepers

Restaurant

Manager

Bar

Manager Sales Manager Accountant

Head

Receptionist Concierge Engineer

Room

attendants Chef

Head

barman Reservationists

Financial

Controller

Receptionist Porters Sous Chef Bar staff

Waiting

staff

3. In what way or ways does the management of a hospitality operation have a social

responsibility? The management of any company must monitor and ensure the company's active compliance with the spirit of the

law, ethical standards, and international norms. The law already has some rules and regulations in place to protect

consumers and employees but management feels that it is necessary to do more.

One of the ethical rules that management follows is to offer good value for the money the guests are spending. That

is good practice not only because there are laws against profiteering but because competition among hotels is great

and management cannot afford not to.

Many hotel offer their employees welfare facilities (such as child care) and pension schemes to provide some sort

of satisfaction for its employees. It is also a usual practice to increase safety standards beyond what the law

prescribes for the benefit of the employees.

Finally the responsibilities towards the community might involve taking measures to minimise noise that might

annoy the neighbours. Also the hospitality industry is very wasteful because by its nature requires a lot more

resources such as water and electricity to operate. Lately a lot of steps have been taken to turn the industry a little

more green.

4. According to Henri Fayol, what are considered to be essential functions of management? Briefly

explain each of the functions you identify.

According to Fayol the essential functions of management are:

• Forecast and Plan. To set objectives and then evaluate and choice actions to reach objectives.

• Organize. Divide the work to tasks and projects and appoint subordinates to each. Ensure the staff has the

skills and tools they need.

• Command or direct. Give instructions to subordinates to carry out tasks. Delegate authority to subordinates

so they can direct others.

• Coordinate. Ensure all members of staff are working towards common goals.

• Control. Set targets and then measure the outcome compared to these targets. If the results are not

favorable, take action to rectify the situation.

5. What are the advantages to management of having a formal policy? List all the areas of a

business in which policies are established. Outline some of the policies which could be

formulated in any two of these areas. Formal policies help consistency and predictability within the company. That is particularly important in human

resources (employment policies) so that workers understand and can predict outcomes in certain situations, like

pregnancy, illness, parenting, etc. If managements responses are unpredictable it lowers moral among the work

force who feel that important decisions are made on a whim depending upon how the manager feels that day.

Policies are established in every department of a hotel and are implemented in every transaction the hotel has,

whether it is with suppliers, customers or employees. There are:

• Policies about staff

• Policies about customers

• Policies about suppliers.

A hotel policy with regards to health and safety is whether the hotel accepts or not pets. Usually most hotels do not

accept animals unless they are assistance animals. Also again on the grounds of health and safety the hotel might

have smoking or non-smoking rooms. Guests are aware of the difference and are expected to act accordingly.

Hotels have policies regarding cancellation and cancellation fees that vary from establishment to establishment. For

example the hotel states when it accepts a booking that if the reservation is cancelled 48 hours prior to the arrival

date then the hotel will not charge anything but if the cancellation happens 24 hours before arrival the hotel will

charge for one night cancellation fees and in the case of non-show then the hotel will charge the full amount.

Customers/guests are aware of these terms before committing so there are no misunderstandings.

Other policies might involve employees. For example the hotel might have a policy where employees may use guest

gym but only on certain hours and at certain days. Apart from what the law dictates the hotel might have special

policies regarding pregnant members of staff and preferential treatment might be established to ensure their health

and safety.

6. Explain what you understand by communication in an organization, and discuss what means

are available for overcoming poor communications. Communication in an organization is the process by which activities of a society are collected and coordinated to

reach the goals of both individuals and the collective group. It is a subfield of general communications studies and

is often a component to effective management in a workplace environment.

The best way to improve communications is to identify and remove the barriers that block it:

Perceptual Barriers: The most common problem faced these days is that of the difference in opinion between two

people. A proper induction and clear understanding of the hotel's rules and policies should clarify the situation.

Language Barriers: Language that describes what we would want to express and communicate to others, may at

times, serve as a barrier to them. Especially in the hospitality industry, the greatest compliment we can pay to

another person is by speaking and effectively communicating to them in their local language. We need to understand

that the native language of employees can be different from anyone else’s.

Cultural Barriers: The world is made up of diverse cultures. Hotels cater to a large and diverse number of people and

therefore staff must be diverse to interact with them however cultural barrier arises when two individuals in an

organization belong to different religions, states or countries.

7. Discuss the meaning of motivation making reference to at least two known theories.

Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the

individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the

psychological factors stimulating the people’s behavior can be (1) desire for money, (2) success, (3) recognition, (4)

job-satisfaction (5) team work, etc

There are lots of theories about motivation apart from the well-known Maslow's hierarchy of needs theory and

Herzberg's Motivation - Hygiene Theory we have:

Alderfer’s ERG Theory. The three components identified by Alderfer (1972) drew upon Maslow’s theory, but also

suggested that individuals were motivated to move forward and backward through the levels in terms of motivators.

He reduced Maslow’s levels from five to the following three: (1) Existence which related to Maslow’s first two needs,

thus combining the physiological and safety needs into one level; (2) Relatedness—which addressed the belonging

needs, and (3) Growth which pertains to the last two needs, thereby combining esteem and self-actualization.

McClelland’s Acquired Needs Theory. The idea here is that needs are acquired throughout life. That is, needs are

not innate, but are learned or developed as a result of one’s life experiences (McClelland, 1985). This theory focuses

on three types of needs: (1) Need for achievement—which emphasizes the desires for success, for mastering tasks,

and for attaining goals; (2) Need for affiliation which focuses on the desire for relationships and associations with

others; and, (3) Need for power which relates to the desires for responsibility for, control of, and authority over

others.

To recap motivation is an employee's intrinsic enthusiasm about and drive to accomplish activities related to work.

Motivation is that internal drive that causes an individual to decide to take action.

An individual's motivation is influenced by biological, intellectual, social and emotional factors. As such, motivation

is a complex, not easily defined, intrinsic driving force that can also be influenced by external factors.

8. Explain the primary purpose of the control function and the process that can be applied for

effective control. In simple terms hotel control includes the preparation of tax returns, financial statements, forecasts, budgets, profit

and loss statements and compliance reports for the business. The purpose of hotel control through an administrative

process is to ensure that the investors of the company receive their fair returns.

A hotel controller could expect to perform tasks such as:

• Assist the accounting department with financial information and forms for tax compliance needs

• Review and approve annual budgets and projections

• Closely scrutinize funds transfer and cash disbursement protocols within the organization

• Set or revise organizational policy when necessary

• Monitor performance of financial employees and recommend action to human resources department when

necessary

• Maintain external relationships with banking and insurance executives outside of the organization

• Approve procurement

To ensure effective control the hotel sets standards that must be held. These standards vary depending on the size

of the establishment and the quality of services (three star services are different from four star etc). Such standards

could include: quantity of sales, cost of raw materials, schedule of tasks to be followed after certain activities and

finally quality of services.

Hotel management performs regular controls at various points of business activity and then compares the actual

results with the standards originally set. If the variation is too great corrective measures must be taken. If there are

loses then the hotel changes sales strategy and operations. Sometimes the standards must be adjusted as well.

9. Explain what it means by the term ‘Common Law Duty’ and show how this applies to the

hospitality industry. In English law, an individual may owe a duty of care to another, to ensure that they do not suffer any unreasonable

harm or loss. If such a duty is found to be breached, a legal liability is imposed upon the perpetrator to compensate

the victim for any losses they incur. The idea of individuals owing strangers a duty of care – where beforehand such

duties were only found from contractual arrangements – developed at common law, throughout the 20th century.

A duty of care arises where one individual or group undertakes an activity which could reasonably harm another,

either physically, mentally, or economically. This includes common activities such as driving (where physical injury

may occur), as well as specialised activities such as offering food and beverage (where health issues may occur).

Lodging operators have a duty of care to their guests. This duty does not insure the guests’ safety, but does require

the operator to “act prudently and use reasonable care.” This means, among other things, that an operator can be

held liable if he or she is found negligent. An operator also must ensure that all of the guests’ personal information

is retained and destroyed according to proper and recommended procedure.

An innkeeper’s duties at common law: (1) to deal safely with a guest’s property, (2) to provide refreshment, (3) to

provide accommodation, (4) to take reasonable care of a guest’s safety, (5) to look after a guest’s transportation

The hotel as an employer have a legal duty of care to the employees. In essence this means that the company should

take all steps which are reasonably possible to ensure their health, safety and wellbeing. This duty arises under

health and safety and employment legislation, and also under the common law.

10. Briefly describe the responsibilities of the owner/manager of a small Inn under the Occupiers

Liability Acts. Illustrate your description with examples. The owner’s main responsibility is a duty of care to people other than the inn’s guests. When there is a dangerous

area on site, (ex a hole or slippery surfaces etc) the owner would take steps to protect his guests from the danger.

Under the liability act he is expected to protect unknown trespassers as well. The rule applies to movable structures

as well such as boats or airplanes.

Examples

If the hotel has a swimming pool that is closed down for repairs and is therefore half full he owner is expected to

bar the entrance and place warning signs so that people don’t try to use it and hurt themselves. It is not enough to

put up notices in places that only guests will see because if a trespasser injures himself while trying to use the

facilities the owner will be liable.

The hotel has toilets in a public area (i.e. in reception close to the entrance) for the use of its patrons. However due

to their location a lot of other people use it too. That is acceptable because the hotel doesn’t have the resources to

police the entrance or move them to a different location. If they are closed for renovations and the site is dangerous

(materials are lying around, electricity cables are nude etc) then it is the responsibility of the occupier to ensure that

everyone, guests and trespassers, are aware of that by setting up appropriate signs to protect them from injury.

Hospitality Managment

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