Overcoming Union Challenges in Casino Leadership Strategies

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Capella University *

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5012

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Management

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Jun 12, 2024

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Uploaded by CaptainDragonMaster1134

Critical Thinking in Action Critical Thinking in Action MBA Leadership Assessment 1 Justine Probert Capella University 1

Critical Thinking in Action Abstract 2

Critical Thinking in Action Obstacles and challenges occur in life every day, even for the most ordinary, organized person. This could be for the stay-at-home mother finding it challenging to find selfcare amongst the demands of three children or a business leader finding time to place copious amounts of concertation on a project while his employees demand the same level of attention. These situations are inevitable, and it is not about avoiding them all together, but more about finding the right way to prevail through unforeseen situations. In todays ever changing world “leaders need multiple contingency plans while preserving strong balance sheets to cope with unforeseen events” (George, 2017). The casino industry can be challenging in many ways. One of these challenges can be based purely off the fact that many casino workers are union employee. Each employee comes with a pre- negotiated set of rules, none of which you have set yourself. This can put business leaders in a situation, specifically when it comes to dealing with fair employee wages. Some casino workers run off a tipped wage, others work off a non-tipped wage. Some casino workers are only making the state minimum wage while others are making far more. While it would be ideal to be able to give raises and promotions based purely off good merit, it is not always that easy. There are many rules and regulations set by the company itself as well as the union involved. When the union starts to feel as though the company is not paying fair or livable wages to the casino employees they represent, they will start to negotiate wages that they do find fair. Often the wage negotiation will start very high and unrealistic. When the demands aren’t met, the talk of a strike runs through the building. This can be very stressful for the business leader. The employees that run the business are unhappy and are unhappy enough to refuse to work until they get a raise. This is putting the business in jeopardy as well as the relationships you’ve built with the employees at risk. Now the business leader faces the uncertainty of the situation. What will happen if the union workers chose to strike, as the show must go on in the casino world. Operations are expected to run as normal in the eye of the paying customer. How will the casino operate with 80% less staffing? How long will the strike go on for? The concepts of VUCA can become an essential way for the business leader to evaluate the situation and come up with well thought out solutions. Volatility is one concept of VUCA. Characteristics of volatility would be defined as “The challenge is unexpected or unstable and may be of unknown duration, but it's not necessarily hard to understand; knowledge about it is often available” (Bennett & Lemoine, 2014). This is extremely relevant in the strike situation. This is not the first time it has happened in the history of casinos. The business leader can absolutely reference what has happened in the past with casino industry strikes. They can look up how long they have lasted, what the management staff did previously to maintain the activities in the casino, and even how large of a pay raise satisfied the union to break the strike. This information can even be used to develop a contingency plan prior to the strike happening. Days can become longer for nonunion employees having to fill in where staffing is lacking. This can become draining on employees, and many might seek employment else where if the strike continues for a long duration of time. Overworked employees may not be the best image for the guests engaging in the activities of the casino. Some employees might become overwhelmed easier, some more irritable than others, providing terrible guest service and an undesirable guest experience. Guests could possibly look to bring their business elsewhere. This can set back a casino. Less guests in the 3

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Critical Thinking in Action casino gambling overall means less money coming into the business. One approach to help prevent a total loss for a business leader would be to “Build in slack and devote resources to preparedness -- for instance, stockpile inventory or overbuy talent. These steps are typically expensive; your investment should match the risk” (Bennett & Lemoine, 2014). The casino could set aside money for instances like this, to outsource a company to bring in temporary workers to do the jobs of the striking casino workers. Uncertainty is another concept of VUCA. A characteristic of uncertainty can be described, as “A lack of other information, the event’s basic cause and effect are known Change is possible but not a given” (Bennett & Lemoine, 2014). This can be seen in the situation a business leader can face during the talk of a strike. While most employees strike due to unfair working conditions and unfair wages, not every strike is exactly the same. The economy and workforce is different than previous strikes, ownership of the company is also different. Does the business leader believe that change is possible and that the regional directors of the casino will accommodate the demands of the union representatives? It is possible and eventually one side will settle for a newly negotiated wage. This is where it in important fot the business leader to “into myriad sources covering the full spectrum of viewpoints by engaging directly with their customers and employees to ensure they are attuned to changes in their markets” (George, 2017). The duration and guarantee of not striking is not a given in these situations, thus giving that characteristic of uncertainty a huge part in the business of striking. Complexity is the next characteristic of VUCA that can be seen in this business leaders situation. This can be described as “The situation has many interconnected parts and variables. Some information is available or can be predicted, but the volume or nature of it can be overwhelming to process” (Bennett & Lemoine, 2014). There are many players involved when it comes to the actual strike, both leading up to the situation and during the actual event. There are shop stewards representing the casino workers as well as union personnel. The actual union employees are involved too. Many meetings are held to discuss possible options to get what is best for the employee and casino. This involves business leaders of the casino- directors, general managers, and regional Vice Presidents. Non-union employees get involved, volunteering to work any gaps needed when developing a contingency plan. Security teams and police are involved when the employees’ start picketing outside the casino doors to ensure the strike is safe and peaceful. For the average business leader, the amount of involvement and moving pieces can become overwhelming. Restructuring the workforce and placing the pieces in a contingency plan is key to staying organized and on track when becoming involved with these kinds of situations. The main goal of any business leader is to “create clarity around this True North and refuse to let external events pull them off course or cause them to neglect or abandon their mission, which must be their guiding light” (George, 2017). Lastly, ambiguity can be relevant to the striking situation, often described, as “Causal relationships are completely unclear No precedents exist; you face "unknown unknowns"” (Bennett & Lemoine, 2014). Every part of a strike in the casino industry can be considered an “unknown”. While the business leader can do much research on previous negotiations and reaction of the union representatives, there is no sure fire way to know what choice will develop into the desired outcome. This is when “leaders need the courage to step up to these challenges and make audacious decisions that embody risks and often go against the grain” (George, 2017). If the business leader makes no risky decision, then the strike could be prolonged. The main idea is to either not strike or keep the strike 4

Critical Thinking in Action length to an absolute minimum. The business leader would possibly have to negotiate a higher wage than they are planning on putting on the table to overall avoid the strike. The possibility of curbing the strike all together is high when the raise you negotiate with is not too far off than the union representatives asking price. While these situations can really put the business leader in a stressful position, it is vital that they use this as an on going tool to use and grow their mindset and way of thinking. “It's important to remember that the feelings of insecurity that often flare up when you're up against challenges could easily cause you to lapse back into a fixed mindset. Instead of listening to internal doubts, learn to tune into that inner dialogue and counteract it with statements that help you stay on track with stabilizing your growth mindset” (Craig, 2017). A business leader can feel as thought they are not making the right choice when it comes to keeping a strike at bay. If their price negotiation for the fair wages doesn’t meet the needs of the union representatives, they could possibly feel at fault for the send off of the strike. The goal is to not allow your shortcomings define you as a leader, but learn for them and not make similar mistakes down the road. References Bennett, N., & Lemoine, G. J. (2014). What VUCA really means for you. Harvard Business Review, 92(1/2), 27. Craig, W. (2017, October 3). Growth mindset: What it is and why it makes better leaders. Forbes. https://www.forbes.com/sites/williamcraig/2017/10/03/growth-mindset-what-it-is-and-why-it-makes- better-leaders/#fd60e9733c88 George, B. (2017, February 17). VUCA 2.0: A strategy for steady leadership in an unsteady world. Forbes. https://www.forbes.com/sites/hbsworkingknowledge/2017/02/17/vuca-2-0-a-strategy-for-steady- leadership-in-an-unsteady-world/#5972d07613d8 5

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