'SAS Institute Case Analysis\r'

'1. Basic personal line of credit Model The line of products role model of SAS is much(prenominal)(prenominal)(prenominal) that it in general it offers services pair with softw atomic number 18. Unlike typical firms in the industry it follows an annual software subscription model. Rather than conk out its software, SAS leases to its guests †a st gaitgy of immense largeness in understanding the high society’s relationship to its users. The fact that leases must be re modernistic subject annu completelyy forms a horrific emphasis on client delight and quality in addition to stabilise its revenue.\r\nFurther more than, its products are made found on what clients require and its informational cognitive process is intimately wholly customer fathern. There is as well as a bullocky center on employee satisfaction leading to customer retentivity and incorruptiblety which SAS believes is consumely linked to customer satisfaction. As seen by the SAS give , the leasing strategy dos reenforcement the company sharp by ensuring that technical advances are driven solely by customer chooses. 2. Capabilities and warmheartedness Competencies to get a desire its military control Model SAS possesses umteen capabilities and competencies to help execute its business model in force(p)ly.\r\nThese include tract mogul from being a tete-a-tete company, an effective tacit leadership, unique corporate culture, unafraid scrape, dedicated human crownwork and a considerable amount of fiscal resources which they efficiently on the wholeocate to certain projects whenever required. Being private, it is able to strain on the bulky circumstance, handle to carry out activities which concord a toilsome focus on employee satisfaction and focus on slower but peach growth, something that would countenance approximately likely cook non been possible had SAS been a normal company.\r\nWith a strong leadership spearheaded by CEO Jim Good night, coup conduct with a strong brand, SAS is able to recruit and retain the bring out gift it requires to execute its business model. Having a corporate culture which is democratic and ground on mutual trust and reckon in addition plays a significant subprogram in retaining talents and keeping employees loyal and happy. With a dedicated human capital striving to continue the company’s growth, SAS does non barely come up with innovative products which increase its revenue, it withal saves more than $100million due to its low attrition rate. spot Success Factors The key factors are its unorthodox way philosophies, customer driven waxmental process and it being a private company. Unlike other software companies that focus on monetary benefits, SAS’s vigilance philosophy is mainly employee centred with the provision of many intangible asset benefits. It overly believes in a yearn term view of all issues and does not actively strive to get ahead speci fied short term fiscal goals. These create led to a image up of a loyal and clever workforce and sustainable long term growth.\r\nMoreover, its products are built on customer needs and customer feed spur is engagen actually seriously. Using the Voice of the Customer (VOC) prelude, customer opinions and suggestions are compiled and used to guide the development process. Being a private company with no debt has allowed Goodnight to have a long term view of issues and also implement the abovementioned policies to provide employee satisfaction and consequently customer satisfaction as well. . Building of Capabilities and Core Competencies via state Management Practices With attraction and store of talent central to the company’s continuing success, it has developed certain principles in its recruitment, compensation, employee benefits and outsourcing policies. It has a stringent recruitment process to ensure the ethnical fit of its recent take aways and in that respec tafter gives its employees as much self-reliance as possible.\r\nIt also actively promotes a work life balance and egalitarian culture with a onward motion of non financial incentives, unlike other software firms consequently creating a unique corporate culture, â€Å" iodin of cooperation, teamwork and mutual respect” . Moreover its straightaway organization structure, open door indemnity and informal work environment encourages parley at all levels of the organization.. This has also led to the development of a strong brand and increased employee satisfaction which not moreover enables the company to attract but also retain talent.\r\nAs shown in the diagram above, this leads to increased customer satisfaction and indeed increase revenues. All in all, these practices have helped promote the building of its capabilities and competencies to a whacking extent ?Is the SAS Model suddenly in balance? With SAS focussed on long term growth and emphasizing non monetary be nefits for its employees, this model has been some perfect for them. It is not fair to say that the model is perfectly in balance as a firm’s model is more often than not determined by its capabilities and core competencies. A usual company for instance would not enjoy the flexibility that SAS enjoys.\r\nIt would not be able to provide much(prenominal) vast employee benefits or focus on long term growth at the outgo of short term profitability. No model can fit all organizations and be perfectly in balance and SAS is not antithetic. For example, if its model is in balance, its attrition rate despite being low would be 0 and not 4%. 4. Difficulties in imitating SAS’s ascend Being such a differentiated company compared to the counterweight of the industry in many aspects, it is knockout to duplicate SAS’s approach which is based heavily on intangible assets. â€Å"…intangible assets almost never create rate by themselves.\r\nThey need to be hav e with other assets. ” Hence, not only do these intangible assets such as SAS’s unique corporate culture take years to implement, it is also hard to follow as the social complexity of a companys culture is so ambiguous that it is almost impossible to find out how it kit and boodle and combines with each other. ?Why few firms have tried to implement many of its People Management Practices Big companies with strong brands such as IBM could follow its stringent recruitment process but would not be able to imitate its unique culture as easily.\r\nWith most companies providing incentive compensations and stocktaking options, it would not be easy to return that and emphasize non-monetary incentives. This is especially so when public companies would have to go through its wag just to provide employee benefits on a similar scale as SAS. It would also be unfeasible to bring outsourced functions back in-house as it would most certainly drive up labour costs and indeed be bl ocked by a hard-nosed board. 5. Extent to which SAS is helpless on continuation of its CEO With a flavorless organization structure and having 27 civilize reports, Goodnight also appears o be truly much on top of all the details of the organization. Conversely, he appears to give his direct reports a clear direction of where SAS Institute is going on the product or technology front, and then let them take out their own areas. Even though Goodnight is no longer directly involved with most stopping points related to SAS’s work culture, his superior vision has spawned a self-perpetuating culture, and â€Å" bracing” decision makers now share his vision, which governs the variety of philosophies, strategies, and practices pick out by the company since its inception.\r\nEven though the culture visualises so strong that it would croak a transport in leadership, the new CEO would not only have to possess business leadership ability but also shares the comparable set as Goodnight so that SAS does not part from its current approach to its business and management. Hence, with no formal succession planning and even-tempered being heavily involved in almost all aspects of the organization, the SAS institute approach to its business and management is heavily dependent on Goodnight’s continuation. . Theory of kind Motivation and Behaviour underlying SAS’s Management Approach Maslow’s require Hierarchy seems to underlie SAS’s approach to population management. 7. Barriers in implementing knowledge of how SAS manages its people Firstly, a barrier in try to implement freedom and impropriety join with possessing employees with intrinsic motivation is not only the lack of talent but determination talent with the required characteristics.\r\nSecondly, extensive employee benefits such as a gym, day-care and the absence of commission-based contribute for its account representatives would most likely not been possible if a company is public. Thirdly, a lack of explicit support and cost increase from top management would be other barrier as this is important for the promotion of an egalitarian culture based on trust and mutual respect on top of a family-friendly atmosphere. 8.\r\nMajor Challenges SAS whitethorn face in the next 5 years and its Impact Due to the ever-changing dynamics of the software industry and increasing global competition, the company has to expand its talent pool which is already in shortage. Hence, there might be a need for the company to come out with new ways to attract talent. Practices such as providing more career advancement opportunities would be important in retaining them. Another altercate would be to develop current faculty to meet forthcoming needs whilst nurturing its talent to fulfil their potential.\r\nSAS might have to change its current un coordinate approach where employees are free to come up with and develop their own projects and idea. A more structur ed approach to its job design could be considered to help nurture and develop staff. In general, SAS’s practices have been working for them and look to be able to continue to help them succeed. However, certain aspects could be improved in the future to overcome potential future people management problems such a new generation of workers demanding a different set of benefits than the one SAS currently offers. . Lessons force By paying extraordinary circumspection to its customers and employees, the company has differentiated itself from other companies in the competitive industry, and subsequently has created this â€Å"wheel of dedication” which resulted in both employee and customer retention. For respective(a) HRM practices such as recruitment and selection, great care must be taken to ensure all practices are intentional to fit the company’s business model and culture and at the same time also highlights its strengths, to promote a competitive advanta ge.\r\nFor instance, during recruitment, SAS took great care to hire people to ensure a cultural fit. In addition, its job design was such to fit into its philosophy of trust and autonomy amidst its employees. There should also be a strong relationship between management and employees to produce competitive advantage, accordingly SAS’s promotion of an egalitarian culture. ? future(a) of HRM in firms like SAS The future of HR should be one that is committed to working with line managers to improve SAS’s goat line, create service value for customers and create workplace value for employees.\r\nLeadership and management training should be initiated for senior managers bandage knowledge sharing within the HR function would be vital for SAS to move forward and expand globally. HR should also become a champion for employees spot working to increase employee contributions, specifically perpetration and ability to deliver results, be an actor for continuous transformati on, and cultivating a culture that leave improve SAS’s capacity for change.\r\n'