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 Strategy
Before 1997, Harrah's Entertainment Inc. location in Las Vegas affected a strategy
based on attraction focus. Like most other casinos in Las Vegas at that time, it was thought
that 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 greater
spectacles were not a long-term growth solution if Harrah's was to continue operation on the
strip. In addition, employee satisfaction was low with yearly turnover reaching as high as
70%1.
By implementing an overall strategy based instead on differentiating itself from all
other casinos, Harrah's Entertainment, Inc. was able to align its HR practices with its new
operations strategy by defining itself as unique, offering its employees rigorous and effective
training programs, realistic job previews, measures of success, and performance bonuses to
its departments exhibiting most improvement. These HR practices mirrored Harrah's new
overall strategy by offering a unique customer service experience to its guests in both their
Las Vegas, Nevada and St. Louis, Missouri locations.
Finally, leadership and management at Harrah's were remodeled to reflect the new
strategy based on differentiation. Rather than focusing all management energy on maintaining
rigid traditions, Harrah's encouraged managers to focus instead on developing working
relationships and communicating with their employees as well as forming meaningful
connections with valuable casino guests. The result of this new leadership strategy inspired
employees to emulate the practices of their managers which ultimately served to offer guests
a comprehensive gaming experience based on ideas of familiarity with the staff and services
throughout Harrah's locations.
Harrah's Entertainment Inc. & Gainsharing Program
The gainsharing program is a system of management in which a company seeks higher levels
of performance to meet their goals through the participation and full involvement of its
employees.
Harrah should continue gainsharing as this is a good strategy for the company's
growth through the help of its employees, this would motivate employees through the
rewards given to them to work harder and make them happy and by doing so they will meet
the expectations of the business. "Performance payouts at Harrah's St Louis were, as in Las
Vegas, an opportunity for symbolic confirmation of the company's goals". Ward Shaw
recalled that he saw turnover go down from 70% to under 50% in one year, and that was good
Before 1997, Harrah's Entertainment Inc. location in Las Vegas affected a strategy
based on attraction focus. Like most other casinos in Las Vegas at that time, it was thought
that 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 greater
spectacles were not a long-term growth solution if Harrah's was to continue operation on the
strip. In addition, employee satisfaction was low with yearly turnover reaching as high as
70%1.
By implementing an overall strategy based instead on differentiating itself from all
other casinos, Harrah's Entertainment, Inc. was able to align its HR practices with its new
operations strategy by defining itself as unique, offering its employees rigorous and effective
training programs, realistic job previews, measures of success, and performance bonuses to
its departments exhibiting most improvement. These HR practices mirrored Harrah's new
overall strategy by offering a unique customer service experience to its guests in both their
Las Vegas, Nevada and St. Louis, Missouri locations.
Finally, leadership and management at Harrah's were remodeled to reflect the new
strategy based on differentiation. Rather than focusing all management energy on maintaining
rigid traditions, Harrah's encouraged managers to focus instead on developing working
relationships and communicating with their employees as well as forming meaningful
connections with valuable casino guests. The result of this new leadership strategy inspired
employees to emulate the practices of their managers which ultimately served to offer guests
a comprehensive gaming experience based on ideas of familiarity with the staff and services
throughout Harrah's locations.
Harrah's Entertainment Inc. & Gainsharing Program
The gainsharing program is a system of management in which a company seeks higher levels
of performance to meet their goals through the participation and full involvement of its
employees.
Harrah should continue gainsharing as this is a good strategy for the company's
growth through the help of its employees, this would motivate employees through the
rewards given to them to work harder and make them happy and by doing so they will meet
the expectations of the business. "Performance payouts at Harrah's St Louis were, as in Las
Vegas, an opportunity for symbolic confirmation of the company's goals". Ward Shaw
recalled that he saw turnover go down from 70% to under 50% in one year, and that was good
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Subject
Human Resource Management