Harrah's Entertainment

In: Business and Management

Submitted By joannerousseau
Words 1174
Pages 5
Case Study -
Harrah’s Entertainment, Inc.: Rewarding Our People Section I - Case Overview
Harrah’s Entertainment, a fortune 500 and one of the largest casino entertainment companies had decided to move away from being a product based to more of a strategic marketingoriented company whereby tailoring its products and services based on customer data and creating a customer focused reward program. At the heart of Harrah’s reward program are its employees who would ultimately carry it out in the field. Therefore, to motivate and get employees energized, Harrah’s had instituted an incentive pay plan in order to rewardemployees in all its properties for improving overall customer service metrics. Harrah’s goals behind the said incentive plan were to implant a competitive mindset in its employees as well as to show that the employees are at the core of the company’s strategic customer focus plan. Through Harrah’s strategic customer reward program, the company gained the market share; however, it is not quite at the expected level. As such, employees in many properties did notget the incentive payout regardless of their tireless effort. This resulted in employees feelinglike their hard work was not recognized and that the management kept raising the bar on customer service goals. Harrah’s head of Human Resources was concerned that employeescould ultimately become discouraged which would result in a failure of the company’s new strategic plan on improving customer service.
Section II a - Strengths and weaknesses of Harrah’s gain
-sharing program
Harrah’s gain
-sharing program had successfully instituted a competitive mindset in itsemployees and increased customer service level. Through the program employees had statedto understand that they had a stake in improving the overall customer service. The gain-sharingprogram also gave a sense to employees…...

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Phil Johnston | June 2016 | Season 3 Episode 3 Magenta