Upload
ariefakbar
View
869
Download
3
Tags:
Embed Size (px)
Citation preview
:: itca (319) :: heber (322) :: lea (342) :: arief (367) :: pitra (380) ::
Harrah’s Entertainment,
Inc :
Incentive pay plan to reward employees at Harrah’s.
To improve customer service metrics at each of the Harrah’s properties.
To tell employees that they were at the heart of Harrah’s strategy.
Background
Revenues were dropping off because of broader economic condition.
Company ProfileHarrah's Entertainment, Inc. is a
private gaming corporation that owns and operates casinos, hotels, and six golf courses under several brands.
The company, based in Paradise, Nevada, is the largest
gaming company in the world.
http://en.wikipedia.org/wiki/Harrah's_Entertainment
was founded by William F. Harrah at 1937
A “must-see property” Product-based company Marketing-based
company
Create Total Reward Program
Operating Strategy
1999 Hired Gary Loveman as Chief Operating Officer
1984 Phil Satre as CEO of Harrah’s
Management exhibited pride & ownership
Harrah was very particular about the condition of the property
The culture was not competitiveWant head of HR who understood
operations & business strategy
1999 Satre offered Winn as head of HR
History of Harrah’s Culture
Marilyn Winn• Was running Harrah’s operation in
Shreveport, Louisiana• Had worked HR from 1988-1995• Loved being in operation• Plan for re-creating the HR strategy
– Compensation & Benefit– Property Product & Service– Executive Search & Leadership
Development • Loveman reminded about Turnover
Developing People
• The Right People – Hiring Standard
• Hiring & Socializing Process – Quick Quits
• New Reward System to Motivate Employee to Achieve
Customer Service
Lowering Turnover
Customer Service
Good customer service can make customers feel like even if they don’t win, they got an experience they were willing to pay for, they had good time. That’s what we want our customers to experience.
-Loveman-
• Gain-sharing Program – Rewarded for improving customer service.– There was no absolute level to reach, but
employees were rewarded for percentage of improvement in customer service scores.
– The Targeted Player Satisfaction Survey (TPSS)
“If you improve service, irrespective of financial performance, you will still get rewarded”. Loveman
New Reward System
Gain-Sharing Program
The last year’s incentive pay plan cost was..
US$16 Million
Competition
http://www.lasvegassun.com/news/2009/nov/06/following-harrahs-lead-marketing/
Two most direct competitors is
MGM Mirage & Park Place.
MGM Mirage was a product of merger between MGM Grand Inc. and Mirage Resorts, Inc. at 2000
Case Problem
The profit numbers were not where they should be, the economy was
dragging, and Harrah’s employees were thankful to just have job, let alone a
bonus payout.
But customer service was more important, so how keep employees
motivated?
Was the bonus payout program an effective motivator?
Strength Effectively helps Harrah’s to
promote their strategy to be a
marketing-based & customer-
obsessed company (customer
service excellence).
Effectively compensates
employees according to their
customer service performance
(measured by the customer
satisfaction).
Weakness Considered as an
expensive program.
May caused a wrong
paradigm among
employees related with
the loyalty concept and
made them a money-
oriented employee.
Gain-Sharing Program
Problem Solving
Considering condition of Harrah, we recommend to stop the gain-sharing
Long-Term Flexibility Benefit Plan
Short-Term Reward Program
Good CommunicationKeep The Promise!!
Reward ProgramReward
Financial
Direct
Base Pay
Shift Worker
Indirect
Holiday
Medical Policy
Non Financial
Job
Challenge
Medical Reimbursement Program
Environment
Open & Frequent
Communication
Career Security
Problem Solving
Theory of Needs & MotivationMaslow’s Hierarchy of Needs Maslow's is often portrayed in the shape of a pyramid, with the largest and lowest levels of needs at the bottom, and the need for self-actualization at the top, also the needs for people
http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
Problem Solving
Maslow’s Hierarchy of Needs
•Work ChallengesSelf Actualization
•Shift worker•Open and frequent communicationsEsteem•Medical reimbursement program•Holiday
Love/Belongingness
•Career security•Medical policySafety•Base payPhysiological
Theory of Needs & MotivationHerzberg proposed the Motivation-Hygiene Theory, also known as the Two factor theory (1959) of job satisfaction. According to his theory, people are influenced by two sets of factors:
Motivator Factors Hygiene Factors
• Achievement• Recognition• Work Itself• Responsibility• Promotion• Growth
• Pay and Benefits• Company Policy and Administration• Relationships with co-workers• Supervision• Status• Job Security• Working Conditions• Personal life
http://en.wikipedia.org/wiki/Frederick_Herzberg
Hygiene Factors Reward Program
Pay and Benefits Base pay
Company Policy and Administration
Medical reimbursement program
Medical policy
Relationships with co-workers Open and frequent communications
Supervision Work challenges
Status Shift worker
Job Security Career security
Working Conditions -
Personal life Holiday
Theory of Needs & Motivation
Problem Solving
How are market-based net profits derived?
Problem Solving
Conclusion
Considering Harrah’s economic conditions, we recommend to stop the
gain-sharing programs, even if the program proved effective in motivating employees. To keep motivated, so we
recommend a short-time plan and long term plan.
Thank You
References
http://en.wikipedia.org/wiki/Harrah's_Entertainment
http://www.lasvegassun.com/news/2009/nov/06/following-harrahs-lead-marketing/
http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
http://en.wikipedia.org/wiki/Frederick_Herzberg