Harrah's Casino Case
During class, while talking about the Harrah's Casino case study, many people were talking about gain sharing rewards based on reaching a certain level of quality customer growth. Members of a team, the valet team, the cashiers, the dealers, are grouped together and are rewarded based upon survey results. Without going into detail about the program, which we covered extensively in class, I wonder if this is the best way to measure performance by employees, which is to be rewarded. Possible problems include getting no reward for falling just short of the goal and even having a more difficult upcoming year when a percentage gain is more difficult after the improved performance of the current year. Next year, you may just miss it again, with performance that is just short of what is necessary.
I think there should be a different way of measuring performance and assigning rewards. In my plan, the total reward base would be allocated in a tiered, pro rata fashion. The tiers should be based upon different levels at the casino. There should be the performance of the casino, performance of the team, and performance of the individual employee, upon given metrics. The total available rewards should be divided upon these three tiers. If the company expects a four percent growth, the rewards should be dealt proportionally to meeting that goal. If there was only a 2% growth, only 50% of the casino tier rewards should be paid. Each team can be assigned a certain metric of success and a potential portion of the team tier rewards and the teams members are compensated based upon the performance of the team. Finally, maybe by a manager, individual performance is measured and compensated.
I think this method more accurately reflects an individual's accomplishments toward the team and casino. It factors in the performance of others into what is a reflection on an employee. In real life, customers deal with more than one employee, so this makes sense. It seems like management often likes to take short cuts in providing benefits: "It is something a little extra for the employees, how could they reasonably complain about rewards?" Maybe management should be a little considerate of fair practices for awarding employees; they would probably get a better response.
Comments
Posted by: Nicholas Psulkowski
Posted on: November 9, 2006 05:09 PM
Matt, I agree with you about the Harrah's Casino case. I think that the current plan as it stands is rather limited in its scope and is thus rather ineffective. Your proposal to deal with the plan's shortcomings seems well thought out.
Posted by: qsnx bsmz
Posted on: February 11, 2007 05:49 AM
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