BELLAGIO CASINO RESORT

Management Control Systems

Submitted to: Prof. Nidal Al-Salehi
Prepared by: Hanan Abaza
Student ID#:201610460
2017/2018
Summary:
Bellagio is one of the MGM properties, which is one of the leading hotel and
gaming companies. Providing 24 hours a day, every day of the year gaming,
hotel, dining and entertainment services to customers.

The company operated in highly competitive environment, but was competing

successfully because of the dynamic location of the resort, maintaining high
quality of facilities, recruiting qualified employees as well as providing sufficient
training, in addition to developing distinctive marketing programs.

Bellagio operated 24/7 basis three shifts per day, around 1000 employees in the
casino operations. The casino provided (Slot machines, blackjack tables, keno
and poker area). Large size of the finance staff because it had the responsibility
for cash control and recordkeeping, which two were separated strictly.

Finance department:

1. Credit personnel
2. Casino change personnel
3. Clerk
4. Financial analysts

The industry was highly regulated with extensive laws and rules, each casino had
to pay taxes to maintain its licenses,

Result control: (Loose)

1. Dealers compensation system was high, which create a low turnover
less than 3%:
- Basic wage of 6.15$ per hour (100,000$ per year)
- Tokes (tips) shared equally
2. Top management received annual bonuses of 30% based on the
casino performance.
3. No bonuses were provided to the other employees; they were
depending on the salary and tips.
4. Non-monetary rewards were applied (Employee of the month,
employee of the year invited to gala dinner.)

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Action Control: (Tight)
1. Strong Physical constraints were distributed in the casino: (Locked cash
boxes, secured transfer of cash using security guards and computer
monitoring system for slot machines)
2. Supervision (monitoring) system included, floor supervisors (3 to 6 BJ
tables), Pit managers, shift managers and assistant shift managers. Which
earned less than dealers (85,000$ per year).
3. Held employees individually accountable for the cash stocks amount
they were responsible for.
4. The 24-hour drop of tables procedures for transferring cash at the end of
every shift, Administrative constraints the separation of tasks, first pit
managers count the coins, inventory sheet created , a copy were sent to
the cage supervisor which entered it into the system.
5. Action accountability was highly applied and well communicated with
employees through training, and what performance is expected from them.
6. A redundancy of the dealing task, every hour a relief dealer will take the
table from the dealer .

People Control:
1. Selection and recruiting of experienced Dealers at the blackjack tables.
2. Providing training for dealers which required speed and good humor
sense when dealing with customers to maintain customer satisfaction.
3. The Job Design of each task was well implemented and designed,
through step by step clear standards, supervisors to help employees and
guide them, well designed compensation system to motivate employees.

Culture Control:
1. The standardization of actions, through controlled step by step
procedures (transferring cash to and from tables).
2. Highly secured and controlled system of results, and frequent auditing of
procedures.
3. The industry of gambling is highly regulated by the GBC.

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Main problem:
A combination of action, people and result control was applied; however
the management did not design a tight result control.

Sub-problems:
 Poor tables tracking, checking the data at the end of the day not at
the end of each shift, this created a difficulty to root any deviation.
 Tips distributed equally on
 all dealers, this might cause de-motivation because not all dealers
perform the same.
 Bonuses were only paid to executives and dealers, all other
employees were depending on the basic salary and tips.

Developing alternatives solutions:

1. Increase the tracking of coins and cash transfer for each table, by using
new technologies like RFID techs in the coins and money scanner in the
drop box.
2. Redesign the rewards /punishment system and provide clearer
measurements

Evaluating Alternative solutions:

1. Increase the tracking of coins and cash transfer for each table, by
using new technologies like RFID techs in the coins and money
scanner in the drop box.

BENEFITS COSTS
Increase tracking and monitoring of Highly expensive
coins and cash transfers
Gives accurate indicators for the bonus Resistant to change from employees or
system customers
needs extra training programs for
employees

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 2. Redesign the rewards /punishment system and provide clearer
measurements.

BENEFITS COSTS
Increase the understandability level for Difficult to be implemented on all jobs
employees.
Employees will have idea what actions Needs much time to asses each task
are expected from them and create step by step procedures
Bonuses will be distributed on the
individual performance
All employees will have the same
rewards system

The best alternative solution:

As we mentioned previously during this subject, the best control system is
the hybrid control system, which includes a combination of each control
system (result, Action and people).

To have an efficient control system the casino needs to increase the

tightness of its result control by using both of the alternative solutions.

This will help create a strong culture to prevent any theft/cheating

problems, or any looseness of the desired actions of employees.