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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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Human Resource Management

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