Winn’s customer service achievement plan included a bonus payout program in which management paid employees a bonus of up to $200 if the employees fulfilled the quarterly customer satisfaction goal, regardless of operating income results. Harrah’s measured customer satisfaction through monthly customer surveys, in which patrons graded by a letter system, A through F. Winn discussed the strategy behind the program “If a department could convert 4% of non-A’s to A’s, it would qualify for a bonus,” this plan results in “more than $16 million in bonuses to non-management employees.”
To provide the best solution to Loveman, Winn had to weigh the costs and benefits of either keeping, revising, or replacing the current bonus payout program. If Winn were to decide to replace the program, she would face more costs than benefits. Although the program’s emphasis on reaching goals and competition could be exhausting to some employees, any plan of this nature would have the same effect. While replacing the program may appease some employees, a new yet similar one would soon yield the same negative feedback. Not only would another program have the same limitations as the original one, but its formulation would also cost Harrah’s corporation time, money, and resources. Winn’s second option would be to revise the current plan, which although less costly than replacing it, would still greatly …show more content…
Harrah’s corporation had still suffered from lowered revenues due to external circumstances, however a program that emphasizes the importance of employees and customer satisfaction has the power to drive Harrah’s out of its economic decline and into future success. Harrah’s employees, executives, and competitors initially opposed Winn’s bonus payout program, however the program proved to quickly motivate employees and ensure that Harrah’s corporation remains a service and customer-driven
To provide the best solution to Loveman, Winn had to weigh the costs and benefits of either keeping, revising, or replacing the current bonus payout program. If Winn were to decide to replace the program, she would face more costs than benefits. Although the program’s emphasis on reaching goals and competition could be exhausting to some employees, any plan of this nature would have the same effect. While replacing the program may appease some employees, a new yet similar one would soon yield the same negative feedback. Not only would another program have the same limitations as the original one, but its formulation would also cost Harrah’s corporation time, money, and resources. Winn’s second option would be to revise the current plan, which although less costly than replacing it, would still greatly …show more content…
Harrah’s corporation had still suffered from lowered revenues due to external circumstances, however a program that emphasizes the importance of employees and customer satisfaction has the power to drive Harrah’s out of its economic decline and into future success. Harrah’s employees, executives, and competitors initially opposed Winn’s bonus payout program, however the program proved to quickly motivate employees and ensure that Harrah’s corporation remains a service and customer-driven