Harrah’s Entertainment, Inc : Rewarding Our People Essay

1. Threat from buyer – NA 2. Threat from supplier – NA 3. Threat from substitutes – High 4. Threat from competitors – High New Facilities , Imitating Harrah’s strategy through technological advancement, New attractions 5. Threat from new entrants – High Over all : Though the threat from competitors and substitutes was high Harrah was the biggest casino chain company in the market and had set hold on major market share Job roles for casino : 1. Gaming dealer: Dealers’ job duties can include operating games by dispensing the correct numbers of cards or blocks, comparing the house’s hand against players’ hands, and paying off or collecting money or chips from players 2. Surveillance Officer: Using audio and video equipment, they monitor the casino floor from an observation room, looking for cheating or theft and making sure the casino is in compliance with laws and regulations 3. Gaming Supervisors: These floor employees, also referred to as pit bosses, supervise gaming tables and casino staff in an assigned area of the floor. They also specialize in customer service on the floor, hearing and resolving patron complaints, explaining house rules, and possibly planning and organizing activities on the floor. 4. Cage Cashier : Responsible for controlling and accounting the transactions of the main bank, chip bank, check bank, and cage windows. 5. Slot Technicians: Slot technicians are responsible for testing, repairing, and maintaining the machines. 6. Gaming Managers: Dealers’ job duties can include operating games by dispensing the correct numbers of cards or blocks, comparing the house’s hand against  players’ hands, and paying off or collecting money or chips from players Controllability: Incentive bonus depended largely on customer feedback to judge performance improvement there might be errors on rating from customer side and subjectivity issues. Alignment: Since bonus was linked to performance the alignment issue was low Interdependency: Interdependency is low among roles Current Challenge : To replace the institutional priorities of long-term tenure and employee happiness with ideals of excellence and customer satisfaction along with employee satisfaction and retention Issues: Lack of support from higher management High Turnover Remedies: 1. Introducing Standardized test to find the best people for the role and not just fitting the minimum requirement 2.Increased interaction with employees 3. Specialized trainings 4. Gain Sharing for increased customer satisfaction 5. Increasing accountability of managers by implementing multiple pay components Gain Sharing Incentive Plan Objective: To instil competitive spirit in the employees and competing against rival casinos as well as their own past records Harrah introduced Gain Sharing for its employees. ADVANTAGES DISADVANTAGES Increased employee retention & motivation by bringing them closer to the company through ownership Employees feeling the pressure of stretched goals Company focus was on increased customer satisfaction and service and gain sharing on performance basis ensured high productivity from employees in terms of customer satisfaction Creates an impression that profits through customer satisfaction is sole concern of the company with little importance  to employee Plan was independent of operating income hence reduced interdependency Low profits burdened the company as payouts may still exist A sense of collective achievement Focus on profits may lead to reduced relationship management by managers Gives a sense of job security Not always high performance may meet minimum bonus payout requirements and hardworking employees may be denied of gains by marginal values Since it is on monthly basis it may push teams for better performance if goals not achieved and hence lead to continuous improvement