Harrahs Entertainment, Inc.

: Rewarding Our People

Harrahs Entertainment, Inc.: Rewarding Our People

Harrahs Entertainment, Inc.: Rewarding Our People Agenda

Background Front Burner Issue External Environment Internal Environment HR Gap Analysis Strategic Issues Facing The Firm Action Research Model Conclusion References
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Harrahs Entertainment, Inc.: Rewarding Our People Harrahs History Background

Fortune 500 public gaming corporation Headquarters based in Paradise, Nevada Annual revenues of $8.9 billion

New operating strategy in 1997

From service driven to customer focus

Key Personnel:
Phil Satre becomes President / COO in 1991 & CEO in 1994 Gary Loveman was hired COO / CMO in 1999 & current CEO since 2004 Marylin Winn, offered VP of HR in 1999
(Source: Delong & Vijayaraghavan, 2003) 3 (Source: Wikipedia, 2013)

How to motivate employees with current incentive plan or newly designed programs to improve customer service metrics at each of Harrahs establishments?
How do you change the working premise of our people from being controlled by the limitations to realizing their possibilities
By Gary Loveman, Chief Operating Officer, Harrahs Entertainment, Inc. (Source:
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Harrahs Entertainment, Inc.: Rewarding Our People Front Burner Issue

Harrahs Entertainment, Inc.: Rewarding Our People External Environment: Key Success Factors

Service Differentiation Customer Service Brand Recognition Customer Loyalty Attractions Marketing Number & Type of Game Offerings Physical Environment & Atmosphere
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Harrahs Entertainment, Inc.: Rewarding Our People External Environment: PEST Analysis
State regulations influence Political & Legal who can gamble, where, and what types Fluctuations can impact Economic business Labor market demographics September 11

Social/Cultural Technological

Information Management Systems Player equipment

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Harrahs Entertainment, Inc.: Rewarding Our People External Environment: Porters 5 Forces
Substitut Supplier es s
Moderate
Internet gambling/ gaming Resort vacations Cruises

Buyers
Moderate

New Entrants

Rivalry
Strong
MGM Mirage Park Place Strong brand recognition
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Weak

WeakModerate Low Consumers High switching Price barriers to costs sensitivity entry Harrahs Economic Economic buys in high conditions conditions volumes Regulations Highly profitable

Harrahs Entertainment, Inc.: Rewarding Our People Internal Environment

Strengths
Competitive Mindset Rewarding Hard Work Bbmbnmm,m,mjkj Lowering Turnover Increased Customer Satisfaction

Weakness
High Expectations Impacted Psychological Contract No Ties to Operating Income Competitors Copying Strategy

S W Opportunities O Re-evaluate Incentive Program Create Ties to Operating Income T

Set targets for Customer Satisfaction Solicit Feedback From Employees

Threats

Maintaining a Competitive Advantage Intense Competition Legal and Regulatory Environment (Source: Delong & Online Gaming 8

Vijayaraghavan, 2003)

Harrahs Entertainment, Inc.: Rewarding Our People HR Gap Analysis

Harrahs HR Gap Analysis

Is a tool used to compare actual employee satisfaction with potential employee satisfaction. Is Harrahs HR strategy bringing the company to the next level?

How effective is Harrahs HR Strategy? Where does Harrahs HR strategy want to be in the future? "My job is to make money for Harrah's Entertainment by creating a great climate for
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Harrahs Entertainment, Inc.: Rewarding Our People HR Gap Analysis

How effective is Harrahs HR Strategy?

Reduce the turnover rate Implemented job application and interview processes A new reward system was instituted The entire property had to increase its scores to benefit To maximize customers positive experiences

Where does Harrahs HR strategy want to be in the future?

Needs to motivate, encourage, solicit buy-in from all employees Remove blinders from decision-making by selfanalyzing the strategy

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Harrahs Entertainment, Inc.: Rewarding Our People Strategic Issues Facing The Firm

How to implement Harrahs customer relationship strategy? How to maintain a competitive advantage by utilising key performance indicators in the gaming industry? How to implement a gain-sharing program that would recognize employees contribution based on the achieved target? How does Harrahs decrease its volatility
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 1: Gathering Type of Information Data
Needed How to get the Info
How employees view management What motivates employees Who wants to learn what Why headquarters and operations do not get along how to integrate the two Employee and management surveys Observation Interviews Company document reviews Anonymous employee comment drop boxes
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 2: Feedback The What of Feedback
Important findings from data gathering such as:
Managements view of themselves vs. Employees view Potential causes of problems Correlations between customer service and financials

The How of Feedback

Comparison charts Compilation of best and worst sample surveys and interview notes Sandwich Critiquing Comments and ideas always welcome (open communication)

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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 3: Diagnosis

Management acts strictly like management leadership? Employees feel demotivated by compensation system difficulty reaching incentives Employees want intrinsic as well as extrinsic rewards; i.e. Pride in company and monetary rewards Headquarters and management are decreasing productivity due to lack of communication and collaboration
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 4: Action Planning Communicate to everyone why, how, and when changes are going to occur Hire new employees that fit learning culture Implement job rotation and job shadowing to encourage leadership potential Succession planning Create realistic performance objectives Provide leadership training to management Educate operations personnel and headquarters personnel

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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions
Organizational Learning Interventions
Encourage learning as part of culture Job rotation & job shadowing

5 Disciplines to Becoming a Learning Organization

1. 2. 3. 4. 5. Personal Mastery Building a Shared Vision Mental Models Team Learning Systems Thinking
(Source: Senge, 1990)
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions
Structural Interventions Geared Towards Becoming a Learning Organization Define performance objectives
Goal setting interventions: instructs employees about the goal setting process and how to set specific goals
(Source: Saks & Haccoun, 2010)

Have employees help create these objectives

Self-coaching: reflection of ones own performance to establish performance maintenance and improved goals Upward feedback: providing employees with data on the frequency with which they displayed desired 17

Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions Management Development Interventions Educate managers on their functions:
1. 2. 3. 4.

Controlling (less) Organizing Planning Leading (Emphasis)

Interpersonal Skill Assessment Interpersonal Skill Learning Interpersonal Skill Practice Interpersonal Skill Transfer
(Source: Saks & Haccoun, 2010)
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 6: Evaluation

Follow up with all managers and employees Communicate : (open communication)

Outcomes on a daily basis debriefing at end of shifts/ workdays Debriefing at end of week, month, year Areas still in need of improvement Take any suggestions on how to improve Outline where improvements have been made
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Harrahs Entertainment, Inc.: Rewarding Our People Action Research Model - Step 6: Evaluation

Monitor and Evaluate

Productivity Revenues Employee Turnover/Retention Rates Customer Satisfaction- Surveys Employee Satisfaction- Surveys Compare employee comment box items Change where needed
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Harrahs Entertainment, Inc.: Rewarding Our People Conclusion At the heart of any companys successful strategies, employees are always the key. Employees are the ones who carry out the plans crafted by upper management. Not enough to incentivize employees to partake in organizational strategies. Corporate strategic plans must have a set target.
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Harrahs Entertainment, Inc.: Rewarding Our People

Questions?
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Harrahs Entertainment, Inc.: Rewarding Our People References

Abowitz, R. (2010, May 25). The Movable Buffet: Rallying with Marilyn Winn. Retrieved March 21, 2013, from Los Angeles Times: http://articles.latimes.com/2010/may/25/entertainment/la-ca-vegas-20100523 Business Week. (2006). Top 10 Casino Racetracks in the U.S. Retrieved March 19, 2013, from http://images.businessweek.com/ss/07/06/0604_racetracks/source/8.htm Datamonitor . (2007, January). Harrahs Entertainment, Inc.: Company Profile. Retrieved March 21, 2013, from Datamonitor : https://wiki.umn.edu/pub/Carter/WebHome/Harrahs.pdf Delong, T., & Vijayaraghavan, V. (2003). Harrahs Entertainment, Inc.: Rewarding Our People . Boston: Harvard Business School Publishing. Kim, R. ( 2012, July 31). Info 563 Reflection: Harrah's . Retrieved March 19, 2013, from http://kimdongoug.blogspot.ca/2012/07/info-563-reflection-harrahs.html Saks, A., & Haccoun, R. (2010). Managing performance through training and development. 5th Edition. Toronto: Nelson Education. Seeklogo. (2008). Harrah's - Logo Vector Download . Retrieved March 19, 2013 Senge, P. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday. 23 Wikipedia. (2013, March 18). Caesars Entertainment Corporation. Retrieved March