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HUMAN RESOURCE GROUP CASE ANALYSIS 1

Harrah's aligned HR with strategy by shifting focus from attraction to differentiation, improving employee training, introducing gainsharing, and reducing turnover—boosting morale and enhancing the customer experience across its locations.

Mason Bennett
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Aligning HR With StrategyBefore 1997, Harrah's Entertainment Inc. location in Las Vegas affected a strategybased on attraction focus. Like most other casinos in Las Vegas at that time, it was thoughtthat the most important factor in gauging revenue was new developments to the location.Over time, it was discovered that better restaurants, new gaming machines, and greaterspectacles were not a long-term growth solution if Harrah's was to continue operation on thestrip. In addition, employee satisfaction was low with yearly turnover reaching as high as70%1.By implementing an overall strategy based instead on differentiating itself from allother casinos, Harrah's Entertainment, Inc. was able to align its HR practices with its newoperations strategy by defining itself as unique, offering its employees rigorous and effectivetraining programs, realistic job previews, measures of success, and performance bonuses toits departments exhibiting most improvement. These HR practices mirrored Harrah's newoverall strategy by offering a unique customer service experience to its guests in both theirLas Vegas, Nevada and St. Louis, Missouri locations.Finally, leadership and management at Harrah's were remodeled to reflect the newstrategy based on differentiation. Rather than focusing all management energy on maintainingrigid traditions, Harrah's encouraged managers to focus instead on developing workingrelationships and communicating with their employees as well as forming meaningfulconnections with valuable casino guests. The result of this new leadership strategy inspiredemployees to emulate the practices of their managers which ultimately servedto offer guestsa comprehensive gaming experience based on ideas of familiarity with the staff and servicesthroughout Harrah's locations.Harrah's Entertainment Inc. & Gainsharing ProgramThe gainsharing program is a system of management in which a company seeks higher levelsof performance to meet their goals through the participation and full involvement of itsemployees.Harrah should continue gainsharing as this is a good strategy for the company'sgrowth through the help of its employees, this would motivate employees through therewards given to them to work harder and make them happy and by doing so they will meettheexpectations of the business. "Performance payouts at Harrah's St Louis were, as in LasVegas, an opportunity for symbolic confirmation of the company's goals".Ward Shawrecalled that he saw turnover go down from 70% to under 50% in one year, and that was good

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for Harrah. Harrah should continue the gainsharing program as it will help the business toachieve sustained improvement in key performance measures and also enhance employeefocus and awareness. And most importantly increase employee loyalty which is vital for thebusiness's growth. As seen in the case "In the third quarter of 2001, employees at Harrah'sLas Vegas achieved the levels needed for a bonus payout for the first time".This shows thehard work and consistency put in by the employees. In addition, incentive pay helped VicePresident David Honeyeyer at Harrah's Las Vegas motivate the food and beverage employees.He emphasized that the company paid out half a million dollars last quarter to their peoplebecause they care about rewarding their employees. This was a good way to keep theemployeesmotivated and active.Harrah's Entertainment Inc.'s Actions With EmployeesHarrah Entertainment Inc. should not fire employees as constantly firing employees createsan unstable workforce and environment. When turnover rates are high it calls for lots oftraining, overworked employees, and employees having to fill roles that do not interest them,performance. Employees need to clarify customer satisfaction goals and standards so thatemployees can be more directly and efficiently engaged in their work. Bonuses should beintegrated with the company's earnings. If the company spends more than it earns, it will notsurvive. Companies need to find a balance between revenues and return on investment. Inaddition, to make employees feel valued, managers should strengthen communication withemployees, listen to their opinions, understand the problems and challenges they encounter atwork, and provide timely guidance. The company should hold a regular weekly meeting toanalyze the employees' customer satisfaction, retention rate, productivity, and income, discussthe need for improvement and retention of theexisting plan, and further improve theprogram's feasibility
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Subject
Human Resource Management

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