Harrah’s Casino Case
Recently, I completed my analysis of the Harrah’s Casino case study prepared by the Harvard Business School. Harrah’s main problem was figuring out how to make its incentive plan more motivating for employees. The current incentive plan involved receiving a fixed cash bonus for meeting customer satisfaction goals. While this gain sharing program was effective at its inception, it was clearly not going to succeed in continuing to motivate employees in the long run. I recommended that Harrah’s implement a profit sharing program because profit is something that can continue grow over time and the firm will always be working towards making a profit.
Comments
Posted by: William Moses
Posted on: November 10, 2006 09:13 PM
I do agree that the gain sharing program had a limited life. The gain sharing program managed to improve Harrah's, but its limits have been reached. However, the focus of the company is customer satisfaction. Profit sharing will motivate the employees to increase the companies profits, but at what cost to the customer service. There needs to be an incentive program in place, but the companies focus has to be kept in mind when implementing it.