documents mx harrahs entertainment inc

Harrah’s Entertainment, Inc.:
Rewarding Our People

Harrah’s Entertainment, Inc.:
Rewarding Our People


Harrah’s Entertainment, Inc.:
Rewarding Our People
Agenda
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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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Harrah’s Entertainment, Inc.:
Rewarding Our People
Background
• Harrah’s History
– 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)
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(Source: Wikipedia, 2013)


Harrah’s Entertainment, Inc.:
Rewarding Our People
Front Burner Issue

How to motivate employees with current incentive plan
or newly designed programs to improve customer
service metrics at each of Harrah’s 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, Harrah’s Entertainment, Inc. (Source: Delong & Vijayaraghavan, 2003)
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Harrah’s Entertainment, Inc.:
Rewarding Our People
External Environment: Key Success Factors
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Service Differentiation Customer Service
Brand Recognition
Customer Loyalty
Attractions
Marketing
Number & Type of Game Offerings
Physical Environment & Atmosphere
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Harrah’s Entertainment, Inc.:
Rewarding Our People
External Environment: PEST Analysis
Political & Legal
Economic

Social/Cultural
Technological

• State regulations influence who can
gamble, where, and what types
• Fluctuations can impact business
• Labor market demographics
• September 11
• Information Management Systems
• Player equipment
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Harrah’s Entertainment, Inc.:
Rewarding Our People
External Environment: Porter’s 5 Forces
Substitutes

Suppliers

Buyers

New Entrants Rivalry

Moderate
•Internet
gambling/
gaming
•Resort
vacations

•Cruises

Weak
•Low switching
costs
•Harrah’s buys in
high volumes

Moderate
•Consumers
•Price sensitivity
•Economic
conditions

Weak-Moderate
•High barriers to
entry
•Economic
conditions
• Regulations
•Highly profitable
industry

Strong
•MGM Mirage
•Park Place
•Strong brand
recognition

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Harrah’s Entertainment, Inc.:
Rewarding Our People
Internal Environment
Strengths
Competitive Mindset
Rewarding Hard Work
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Lowering Turnover
Increased Customer Satisfaction

Opportunities
Re-evaluate Incentive Program
Create Ties to Operating Income
Set targets for Customer Satisfaction
Solicit Feedback From Employees

Weakness

S
W
O
T

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

Threats
Maintaining a Competitive Advantage
Intense Competition
Legal and Regulatory Environment
Online Gaming
(Source: Delong & Vijayaraghavan, 2003)
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(Source: Datamonitor , 2007)


Harrah’s Entertainment, Inc.:
Rewarding Our People
HR Gap Analysis
• Harrah’s HR Gap Analysis
– Is a tool used to compare actual employee satisfaction with potential
employee satisfaction.
– Is Harrah’s HR strategy bringing the company to the next level?

• How effective is Harrah’s HR Strategy?
• Where does Harrah’s HR strategy want to be in the future?“

"My job is to make money for Harrah's Entertainment by creating a
great climate for customers and employees.“
By Marilyn Winn, VP of HR, Harrah’s Entertainment, Inc. (Source: Abowitz, 2010)
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Harrah’s Entertainment, Inc.:
Rewarding Our People
HR Gap Analysis

• How effective is Harrah’s HR Strategy?
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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 customer’s positive experiences

• Where does Harrah’s HR strategy want to be in the future?
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Needs to motivate, encourage, solicit buy-in from all employees
Remove blinders from decision-making by self-analyzing the strategy
Must develop a feedback loop mechanism
Implement a reward system that would recognize employees’ contribution

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(Source: Young, 2011)


Harrah’s Entertainment, Inc.:

Rewarding Our People
Strategic Issues Facing The Firm

• How to implement Harrah’s 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 Harrah’s decrease its volatility by predominantly
being in the in the U.S. market?
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Harrah’s Entertainment, Inc.:
Rewarding Our People
Action Research Model - Step 1: Gathering Data
Type of Information Needed
• 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
cultures

How to get the Info
• Employee and management
surveys

• Observation
• Interviews
• Company document reviews
• Anonymous employee
comment drop boxes

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Harrah’s Entertainment, Inc.:
Rewarding Our People
Action Research Model - Step 2: Feedback
The “What” of Feedback
• Important findings from data gathering such as:
– Management’s view of themselves vs. Employee’s view
– Potential causes of problems
– Correlations between customer service and financials

The “How” of Feedback
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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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Harrah’s 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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Harrah’s 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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Harrah’s 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
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Personal Mastery
Building a Shared Vision
Mental Models
Team Learning
Systems Thinking

(Source: Senge, 1990)

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Harrah’s 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 one’s own performance to establish
performance maintenance and improved goals
– Upward feedback: providing employees with data on the frequency with
which they displayed desired behaviors
(Source: Saks & Haccoun, 2010)
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Harrah’s 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)
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Interpersonal Skill Assessment
Interpersonal Skill Learning
Interpersonal Skill Practice
Interpersonal Skill Transfer

(Source: Saks & Haccoun, 2010)
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Harrah’s 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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Harrah’s Entertainment, Inc.:
Rewarding Our People
Action Research Model - Step 6: Evaluation
Monitor and Evaluate

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Productivity
Revenues
Employee Turnover/Retention Rates
Customer Satisfaction- Surveys
Employee Satisfaction- Surveys
Compare employee comment box items
Change where needed
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Harrah’s Entertainment, Inc.:
Rewarding Our People
Conclusion
• At the heart of any company’s 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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Harrah’s Entertainment, Inc.:
Rewarding Our People

Questions?
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Harrah’s 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: />Business Week. (2006). Top 10 Casino Racetracks in the U.S. Retrieved March 19, 2013, from
/>Datamonitor . (2007, January). Harrah’s Entertainment, Inc.: Company Profile. Retrieved March 21, 2013, from
Datamonitor : />Delong, T., & Vijayaraghavan, V. (2003). Harrah’s 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
/>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.
Wikipedia. (2013, March 18). Caesars Entertainment Corporation. Retrieved March 20, 2013, from Wikipedia, The Free
Encyclopedia: />Young, M.-L. (2011, April 27). Harrah’s Entertainment, Inc.: Rewarding our People. Retrieved March 21, 2013, from Word
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Press: />