Harrah's Case Study

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When looking at the situation at Harrah’s there are five main factors to consider when evaluating the current incentive plan and making a recommendation. The first factor to consider is culture. Harrah has been known to have a strong culture, and old employees like to stick to traditions instead of being open to change. This creates an issue especially when Harrah looks at the next factor of turnover rates. Turnover at Harrah’s is unusually high, and Harrah looks to change that as high turnover is costly to an organization. They look to do this through a variety of options, one of which is the new incentive plan, which is the final factor. All of these factors combined give enough information to create an informed evaluation and recommendation.

Culture The culture of Harrah’s Entertainment Inc. in the 1970’s when Bill Harrah was in charge of the company was much different then in the 1980’s. In the 70’s “Harrah’s managers exhibited pride and ownership and considered themselves to be working for the ‘the best in the business’” (Cespedes and Abelli, 2013, p.2). This pride was most likely caused by how particular Harrah was of his establishments in keeping them in top condition. He
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This theory is defined as “employees are primarily motivated by growth and esteem needs, not by lower-level needs” (McShane, et al., 2015, p.149). These means that for people to be really motivated they need to have higher needs met such as self-actualization instead of basic needs such as safety. So while at the beginning the incentive plan seems to be a motivator because when it’s present people are motivated to work harder, it becomes more of a hygiene factor because once a casino reaches a certain level of satisfaction it’s difficult to reach a higher level. In turn employees may feel like there efforts aren’t worth the pay off since they aren’t receiving any so they’ll do

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