Sas Institute: a Different Approach to Incentives and People Management Practices in the Software Industry

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This case study sees SAS, a successful software company, questioning whether or not they can continue to attract the best employees. Having analyzed the case I have to say that for the most part this will likely not be a problem. John Bowling describes one of the most important aspects of the work environment as being “freedom.” Employees are given the tools to do their job effectively and let loose to do so. One characteristic that Dr. James Goodnight, SAS’s CEO, that exemplifies as a bad employee is “someone in need of a lot of direction.” Employees are encouraged to take steps to innovate and create on their own. I think the quote that sums up the company’s outlook on their employees is, “if you take care of your people, they will take care of your company.” The company believes in mentoring rather than monitoring and are based around trust and respect. SAS headquarters in Cary, NC seem more like a community rather than a company, with on-site health care facilities, daycare, a private high school, 200 acres of land, and resources to help with almost every aspect of their employees’ lives from adoption to senior care to home buying. To me, working for this company would create a sense of belonging to something greater. Not only are employees expected to work a 35 hour work week when other companies might see that as unproductive, but measures are taken to ensure that they don’t experience burnout, which is not only bad for the employee, but bad for the company. I appreciate that Dr. Goodnight can realize that working 18 hours can actually set the company’s progress back rather than forward. Several characteristics about the Institute make it unique in the marketplace in terms of its business model, its products, and the way it treats its people. Dr. James Goodnight and his founding partners started the company in 1971 with no venture capital, no debt

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