Posted at 12.31.2018
Recruitment and selection is an activity where organizations identify individuals, catch the attention of them to apply for jobs in the organization, and screen those to find suitable applicants to complete job vacancies. The primary role of SAS's HR is to recruit and choose those prospects who aren't only talented and progressive, but will be the right fit for SAS culture as well. SAS is a strong-culture firm, ethnic fit is important in the hiring and retention process. The organization has a culture of cooperation, teamwork, and mutual respect; which is the duty of HR to choose those applicants who are anticipated to fit into this culture. A great way to market and sustain a culture of a business is through its recruitment and selection process.
As mentioned in the case study "about 50 % of the SAS Institute people had probably not functioned anywhere else or had, for the most part, an added job before joining the business. " This means the organization brings in fresh talent and trains it according to its requirement. Training and individuals source development is another main function of HR. Responsibility of HR in training and HRD further increases when the company gets all training programs done internally.
The organization offers four types of training mainly:
Orientation: New employees after their getting started with are socialized and given basic training through orientation program. Older managers brief new comers on the business history and its perspective. The orientation includes material on the heritage of the business, company structure, its business design, the demographics of the customer base, and the way the SAS system is positioned currently in the market.
Technical Training: SAS has intensive technical training for its employees, and almost all of it is done internally. Extent of that can be imagined by the volumes given in the event study; the company conducted 400 internal technical training training seminars in nine and half weeks with total attendance around 3, 000 people. Group has made up-to-date complex skills within its culture, as The Director of Educational Technology division noted that "managers need specialized skills to own credibility in the organization. "
Training for sales employees: New employees in the sales get two weeks training. They also have five to six week training curriculum pass on over a six month period.
Management Program: The program is three parts and requires eighteen weeks altogether, with there being one-half day of training weekly for six weeks.
HR has performed its role by planning and implementing a different type of payment and advantage system. Basic salaries of SAS employees are very competitive with the industry and are tweaked regularly with merit boosts given one per year. Although the company will not pay commissions and don't have stock options available, but it has wisely connected the rewards with performance through add-ons. By the end of each 1 / 4, each manager offers performance record; these records are merged to compute the entire bonus offer for the employee at the end of year. Basic idea of the settlement system is to deemphasize financial bonuses as a source of motivation.
The company offers a variety of benefits to employees, such as:
On site medical facilities
On site Montessori day care
Elder health care counseling
Undergraduate scholarships for children of employees
Paid holiday, etc.
Performance evaluation and management system of SAS has also distinctive features. It is based on dialog instead of records. David Russo - Vice Leader HR, has a theory of performance management which is easy but effective: give people the tools to do their job and then escape just how. In the machine he integrated in SAS, rather than formal appraisals and performance planning, professionals commit to spend some time talking to their employees and provide them feedback at least 3 x a year. He thinks that it's difficult to control someone's performance, but it is straightforward to see results. HR has carried out a system of Management by Purpose (MBO) where brief and long-term goal are establish and then people are assessed based on the completion of those goals.
Compensation is the remuneration received by a worker in substitution for his/her contribution to the business. It is a practice which involves controlling the work-employee connection by providing advantages to employees (Business Dictionary). Settlement is a part of human reference management which helps in motivating the employees and increasing organizational effectiveness.
Compensation and benefits system of SAS has unique features, and the key reason of this is the school of thought of its leadership, which is demonstrated in the following quotes:
"A raise is merely a increase for thirty days, from then on, it's just somebody's salary" (David Russo)
Jim Goodnight refers commodity to 'Ponzi Schemes'.
"Sales commissions do not encourage an orientation toward taking care of the customer and building long-term romantic relationships" (Goodnight)
"Commission rate culture is too high pressure" (Goodnight)
"We wish the sales company to be customer targeted, to be customer driven, not focused on short term sales results" (Barrett Joyner)
SAS does not offer its employees commodity. Basic salaries of the employees are incredibly competitive with the industry and are revised regularly. Employees get merit rises one per year. These increases derive from the supervisor's evaluation of the person's performance through the year. The company contributes 15% into employees' income sharing retirement ideas. Employees get reward at the end of year predicated on the company's financial performance. Company has an over-all beliefs of deemphasizing financial bonuses as a way to obtain determination. Even in the sales organization, account representative aren't paid based on sales commissions. SAS' management has perspective that commission payment culture is too high pressure, and does not reflect the long term marriage building with customers. The business stimulates team culture and will not post comparative sales data by name and induces more of a collective orientation rather than competition among users.
The company offers an array of benefits to staff; a lot of those are totally at the business cost and the others are subsidized by the business. Benefits include:
(Source: SAS website)
Company-paid getaway. Domestic spouse benefits.
Staff Assistance Program (EAP). Family medical leave and suffering days.
Term life insurance. Paid paternity leave.
Alterations Rub Therapy
Publication Exchange Nail Salon
Campus Slashes Racquet Stringing
Car Detailing Epidermis Care
Dry out Cleaning The Foot Matters - Pedorthic Services
UPS - Personal Shipment Adoption assistance.
HRA Claim Form (Retirees)(PDF).
On-site summer months camp in Cary for school-age children.
Retiree Health Reimbursement Design (HRA)
Financial, retirement living and house planning training seminars offered on-site.
SAS Old age Plan, which includes Profit Sharing, Safe Harbor
Group Vehicle and Homeowners Insurance Program.
Group Long-Term Attention Insurance Program.
Group Term Life Insurance.
HEALTHCARE and Dependent Health care Flexible Spending Accounts.
Supplemental Income Cover for Long-Term Disability.
College scholarship program for children of SAS employees.
Accidental Fatality and Dismemberment coverage
The basis of Maslow's drive theory is the fact humans are determined by unsatisfied needs, and that one lower factors need to be satisfied before higher needs can be satisfied.
SAS satisfies all five needs of its employees in the next ways.
Physiological Needs: The company will pay basic salary to all or any employees irrelevant to their performance, has eating cafes and other facilities for the essential needs of humans.
Safety Needs: The company offers a working environment which is safe, has comparative job security, and freedom from risks.
Social Needs: The company motivates teamwork and cooperation. It offers lake and picnic places where employees gather on weekends. It creates a feeling of acceptance, belonging, and community by reinforcing team dynamics.
Esteem Motivators: The company recognizes achievements, assign important jobs, and provide position to make employees feel appreciated and treasured.
Self-Actualization: The business offers challenging and significant work projects which enable advancement, creativity, and improvement regarding to long-term goals.
Murray discovered needs as you of two types:
Primary Needs: Primary needs are established upon biological requirements, such as the need for oxygen, food, and drinking water.
Secondary Needs: Extra needs are usually psychological, like the need for nurturing, freedom, and achievements.
Achievement: regarding to Henry Murray, one of the needs people have is accomplishment, to do one's best, to perform something important, to do a difficult job. People in SAS receive full opportunities to be creative and innovative. They are given challenging jobs to satisfy their need for achievement.
Autonomy: another need according to Murray is to obtain autonomy, to have the ability to come and go as desired, to say what one's think about things. Performance management system of SAS offers autonomy to employees to complete their tasks and goals, and does not evaluate their performance based on their activities but on results.
Change: to do new and various thing and change in daily routine. People in SAS in any way levels have job rotations, even professionals have job rotations.
As per Frederick Herzberg,
Motivators e. g. challenging work, recognition, and/or responsibility (intrinsic elements of job) give positive satisfaction.
Hygiene Factors e. g. position, job security, salary and fringe benefits (extrinsic elements) do not give positive satisfaction, although dissatisfaction results from their lack. They are extrinsic to the work itself, and include aspects such as company policies, supervisory routines, or wages/salary.
If both sets of characteristics are present, then employees are happy and satisfied. If they are absent, personnel are unhappy and unsatisfied.
SAS has both characteristics present in its system. One of the principal of its people insurance plan is an emphasis on intrinsic drive and trusting people to execute a good job. Management of SAS thinks that motivation is largely intrinsic; and works for the fulfillment of both extrinsic and intrinsic factors. Motivators at SAS are its challenging and creative work, identification of employee's work, process identity, task relevance, and social factors etc. Hygiene factors will be the competitive incomes offer to employees, a range of fringe benefits etc. Employees of SAS are satisfied and determined as both factors of the theory are present in the organization.
Adams' Equity Theory demands a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, passion, etc. ) and an employee's outputs (salary, benefits, intangibles such as acceptance, etc. ). Based on the theory, finding this reasonable balance acts to ensure a solid and productive romantic relationship is achieved with the employee, with the overall effect being contented, encouraged employees. Much like many of the more prevalent ideas of inspiration (theories by Maslow's Hierarchy of Needs, Herzberg's Theory, etc. ), the Adams' Equity Theory acknowledges that refined and variable factors affect an employee's examination and perception with their relationship with the work and their workplace.
SAS employees are motivated because they are rewarded as per their inputs. Each employee has a simple salary, but if he offers more input he is given bonus offer to keep the balance between inputs and outputs. SAS has high collateral; first principle of individuals policy of the organization is to take care of everyone fairly and evenly.
According to Expectancy theory, employees within an firm will be determined when they believe that:
putting in more effort will produce better job performance (expectancy)
better job performance will lead to organizational rewards (instrumentality)
predicted organizational rewards are valued by the staff (valence)
SAS employees have all the three elements of the expectancy theory present in their jobs. The business gives intensive training to its employees to learn the job, which raises their self-efficacy. If a personal has required skills and knowledge, his expectancy will be high. The business compensates its employees predicated on their performance, so they believe performing well effect into rewards, and are motivated. Reimbursement and benefits provided by the organization accomplish both their intrinsic and extrinsic needs. Organization will take cares of everything for the employees using their company children education to property requirements therefore the outcomes of these performance have definitely high valence.
Goal setting is a powerful way of motivating people. Locke's research proved that there was a romance between how difficult and specific an objective was and people's performance of an activity. He found that specific and difficult goals led to better process performance than vague or easy goals.
According to the idea, to stimulate goals must consider the degree to which each one of the following is available:
Performance management system of the organization is based on goal setting techniques and calculating the performance predicated on results. Challenging and sophisticated task is area of the job in SAS due to dynamics of its business. As part of its performance management system, managers commit to hanging out talking to their people and providing opinions at least three times yearly.
Jim Goodnight, CEO and cofounder of SAS Institute, is a true leader of the business. The culture of the organization reflects his beliefs of leadership and management. The SAS Institute work environment was plainly initiated by Jim Goodnight himself. He is the principal drivers, though many of his direct records play key tasks.
To understand the leadership style and management methodology of Jim Goodnight, excerpts from some interviews of Goodnight and his employees are given below:
Dr. Goodnight spends a great deal of his time encoding, which is cool. (SAS staff)
Recently, SAS was considering a considerable investment opportunity. Jim asked a lot of his direct accounts for their suggestions and he listens well. He's not looking for consensus, though. He will take everything in and then makes a decision rapidly. In this case, he decided not to opt for it. (SAS Supervisor)
Jim's procedure is to put some bets on multiple systems in the expectations that a person will establish right. Since he started the business, his eye-sight has been amazingly appropriate. (SAS R&D manager)
I hate meetings. I think almost all of them are a misuse of time. I'm the supervisor that doesn't like to manage much. I love to do start-up stuff and then move on to another thing. (Jim Goodnight)
Following excerpts are extracted from the case study to comprehend various areas of Goodnight's command style and beliefs:
No formal industry vision. Thinks the industry is going too fast.
"I'm not as much of an visionary as Expenses Gates, therefore i can't tell where the industry is going. "
Claims that he does not have any philosophy or grand plan that leads the business's operations
Rather, there are some simple premises and ideas that guide daily decisions and behavior
Everyone has private office buildings from frontline to managers.
No specific financial goals
"Merely to take in additional money than we spend"
No specific expansion goals
However, sales team has ambitious goals
Goodnight believes unless you expand, you die
Once a month, Goodnight sees a one-page record on income and bills.
Believes software development and customer service are difficult to quantify, so don't spend lots of time trying to gauge the unmeasurable.
Limits the bureaucracy.
Goodnight himself has 27 direct reviews from all parts of the business (professionals, directors, and VPs)
Does not believe in stock options.
Refers to them as Ponzi schemes
Approves the overall floor plan of every new building on the SAS Institute campus in Cary, NC (200 acres).
Architectural target is to provide people a feeling of owned by a particular group.
Does not imagine people work well under conditions of exhaustion. Believes in a 35 hour week, 9 to 5 workday with suprisingly low extra time spent.
"I've seen a few of the code that people produce after long nights and it is garbage. "
"I'd rather have sharp focused individuals who write good code that doesn't need the maximum amount of testing. "
"I recently returned from a Microsoft meeting and they said that now Microsoft has three testers for each and every programmer. "
He is also a "working administrator" like all the company's other managers.
Spends a significant ratio of his time coding and leading product development teams
Following theories explain the leadership of James Goodnight:
Trait theories propose that attributes - personality, interpersonal, physical, or intellectual - differentiate leaders from non-leaders.
Goodnight has the following leadership characteristics, at least:
Ability to encourage people
Ability to listen
Aggressiveness in business
Sociability, etc. ,
According to best-known behavioral ideas of authority - Ohio Status School studies, the College or university of Michigan studies, and Blake and Mouton's Management Grid, there are two main sizes by which managers can be characterized. Inside the Ohio Talk about studies, these two sizes are known as initiating framework and thought. Initiating structure refers to the level to which a head is likely to specify and structure his or her role and the jobs of employees in order to achieve goals. Thought is thought as the degree to which a innovator is likely to have job connections characterized by shared trust, admiration for employees' ideas, and respect for their emotions.
James Goodnight is a person of high consideration, which is proven in the task environment and benefits he has offered to his employees. He is a highly employee-oriented innovator who stresses on relations whether it's with employees or with customers. Blake and Mouton command grid represents him as Team Management management and to some extent Country Club management. In team management, work achievement is from devoted people who have common stake in the organization's goal; it contributes to relationship of trust and value. In country membership management, thoughtful attention to the needs of men and women for satisfying interactions leads to an appropriate, friendly business atmosphere and work tempo. Goodnight has generated excellent relationship along with his employees who are committed to the organization, and he has generated an atmosphere and environment to best help the needs of people as well.
In Fiedler's model, management effectiveness is the consequence of interaction between your style of the leader and the characteristics of the environment where the leader works.
According to Fiedler, "the effectiveness of a leader depends upon the degree of match between a dominant trait of the first choice and the favorableness of the problem for the leader. The dominant trait is a personality factor causing the first choice to either relationship-oriented or task-orientated"
The second major element in Fiedler's theory is known as situational favorableness or environmental variable. This essentially is defined as the degree a situation enables a head to exert effect over a group. Fiedler then stretches his evaluation by concentrating on three key situational factors, which can be leader-member relation, job composition and position electric power. Each factor is identified in the following.
1. Leader-member relations: the degree to which the employees accept the first choice.
2. Task structure: the amount to which the subordinates' careers are described at length.
3. Position ability: the quantity of formal authority the leader possesses by virtue of his or her position in the business.
Goodnight adopts relation-oriented and task-oriented approaches in various situations. Sometime he is task-oriented and sometimes he is marriage oriented. He is apparently very much together with everything of the organization, and chooses at times to become involved with issues that you might not typically consider catching the interest of a CEO. Conversely, he seems to give his direct reports a clear path of where SAS Institute is certainly going on the product/technology entry, and then let's them run their own areas. Direct information often go several weeks without connection with Goodnight. In the mean time, the CEO spends almost 50 percent of his time encoding, so he's very involved with the product line on a daily basis. This enthusiasm for the technical side of the business enterprise is clear to employees.
Leadership is important to the culture of SAS. Culture of SAS is its major competitive advantage; Goodnight features his success to planning SAS's culture around serving the needs and purposes of people. He developed sophisticated systems to hear the needs of his 3. 5 million customers, and used what he preached by investing an unprecedented thirty percent of his revenues in research and development to meet their needs. He also invests in his people and in the culture of SAS that facilitates them. SAS was created to nurture and encourage ingenuity, creativity, and quality. SAS also recognized on-site child care, health care, home living, and fitness centers a long time before such benefits were commonplace because Goodnight believes that supporting the life span purposes of the individual creates a world of trust, admiration, and commitment. That is why SAS employees are renowned because of their talent, determination, and loyalty to SAS. He has generated a world-class business that dominates in an extremely competitive industry by developing a work environment based on trust and respect for stakeholders in and outside the business, and his model is currently being emulated by others. Leadership of Goodnight has performed an extremely important role in the success of SAS Institute.
SAS has a very strong culture which is important to its success. It has a culture which is set and has been unchanged since inception. SAS culture gets the following main characteristics:
Employees are treated quite and equally
Excellent work environment
The management of SAS says, "If you treat employees as though they change lives to the business, they will change lives to the business. " Which has been the employee-focused viewpoint behind SAS' corporate and business culture. In the centre of this unique business model is a simple idea: "satisfied employees create satisfied customers". (http://www. sas. com/)
First and foremost is that the company's principles are employee-centered. SAS Institute looks for to send a strong message to all or any employees that the business truly cares about every man and woman on its payroll, as individuals. A few of that is merely manifested in tangible things, from the on-site healthcare service to the piano player in the business cafeteria (or cafe, as it is named in SAS Institute books). One example of employee-centered behavior are available in the fact that each employee has his or her own office. There are no cubicles. While SAS Institute describes this in an effort to maximize efficiency, it also fits in with the operating concept for Jim Goodnight, that he'd like to treat his employees as he needed himself to be treated as a worker.
I could definitely make a lot more money elsewhere, but I wouldn't have nearly the maximum amount of fun. (SAS sales professional)
Another significant feature of the culture is employee interdependence. SAS Institute has set ups in place to encourage, and even demand teamwork. Employees will tell you that it's easy to get help when needed. Seeking out help when needed is crucial to success within the business. The SAS compensation system induces interdependence. For instance, everyone in the sales corporation gets a bonus, depending on performance in accordance with other associates of the sales force but relative to target.
One senior exec describes what it takes to squeeze in at the company.
You need to value a sense of contribution, you need to value humility over specific recognition, and you also must want to work in an environment of total interdependence. If you need a whole lot of ego or tangible reimbursement, this isn't the area for you. (Jeff Chambers, SAS director of HR)
There's really very little competition within sales. We're not fighting with each other, but competing with this own goal. (SAS worker)
SAS Institute encourages a genuine nature of risk-taking. Many employees comment on their ability to take chances, and most everyone agrees that it truly is okay to fail. As one staff in technical support says, "We are able to try anything within reason here. "
That the SAS Institute work place is resource-rich also contributes to the unique culture. Employees receive what they have to do their careers. Everyone you speak to mentions this.
If you will need something here to really get your job done well, you'll get it without a huge hassle. -(SAS worker)
The physical area and facilities make a big difference at SAS Institute. There's a gym, healthcare centre, and childcare focus on site. Every floor in every building has a number of "break rooms" stocked with espresso, tea, cold beverages, cookies, crackers, and other refreshments. Each Wednesday, the break in the action rooms are stocked with large canisters filled with M&M candies - a perk lots of employees speak about, as their favorite thing about working at SAS Institute.
All of the benefits and perks can be found to all or any employees, and everyone on campus is a SAS Institute employee: software engineers, salespeople, childcare workers, groundskeepers, and so forth. Goodnight believes firmly that folks are a lot more committed if they are area of the company. All employees have the same exact reward plan potential (of course, higher-paid people are paid out at a higher rate).
People at SAS are cured fairly and equally, and it is first principal of Goodnight's 'people school of thought'. You will find no designated auto parking spaces no executive dining area. Goodnight and other older executives eat lunchtime regularly in another of both company cafeterias.
Innovation, creativeness, and technology are parts of SAS culture, and are anticipated in a higher technology successful firm. The company spends its 1 / 3 of the earnings into research and development. While commenting on the strategy of SAS products, Good night time noted that the company would not ignore something idea if it seems to be good one, even if didn't tightly fit the existing product line. This gives an opportunity for people at the institute to focus on new ideas and in new domains, which is one of the factors of motivation of SAS employees.
SAS culture is quite different than that of many other high tech firms. Its work environment and the huge benefits offered to its people differentiate it from the other companies. Lots of the other high technology organizations change from SAS in their idea of employee inspiration, settlement system, and performance management. Many of those companies use extrinsic rewards to motivate employees, and use financial bonuses as a way to obtain job desire. However, SAS uses intrinsic rewards to inspire employees, and in reality the general idea is to deemphasize financial incentives as a way to obtain drive. In performance management, a lot of others have written, formal, and structured performance management systems, on the contrary SAS does not have formal performance appraisals and it is just based on the conversations and relationships. Rather than formal appraisal and performance planning, managers time talking to their people and providing responses.
SAS Institute does business differently than most software companies. Instead of sell its software, SAS leases to its customers - a technique of enormous importance in understanding the company's romantic relationship to its users. The fact that leases must be alternative annually creates a tremendous emphasis on client satisfaction and quality.
Most of the other firms used a lot of short-term help and deal programmers, many got a quarter or even more of their workforce comprised of agreement based mostly labour, while SAS do not outsource any job. Within settlement system, the others considered stock option important but SAS never had this thing; every person else thought that they cannot attract and keep talent if the organization did not offered people the chance to get wealthy through stock. Also almost all of the others were creation and sales focused but SAS got its people centered school of thought and culture. Shorter working time and non-commission structured incentives to its sales force were also specific top features of SAS commercial culture.
SAS culture is a definite competitive benefits to the firm; it has an extremely strong culture which is vital to its success.
"Organizational structure can be defined as just how or method through use of a hierarchy that a group, business, corporation, people or objects collaborate to have success on one common goal. " (http://organizationalstructure. net/).
SAS Institute's organizational framework is flat, informal, and non-bureaucratic. There are just three or four levels, with respect to the specific division, in the business. Company is prepared in 27 systems that report directly to James Goodnight. Each individual is in charge of his/her section of the business and it is given responsibility to run that area. For the most part, communication occurs at one level below the CEO. As per the research study, people at SAS commented on the lack of bureaucracy in the business. All managers of the company are 'working professionals' including CEO, they actually their jobs as well as manage others. CEO himself spends a significant percentage of his time programming and leading product development teams.
Organizational composition of SAS can be viewed as as one of the factors that played out a job in SAS's success. The business has flat framework that means that top management is closer to underneath level employees. James Goodnight possessed a more control on its corporation through its composition. If the structure was consisted of many levels, Goodnight might not have that control over his organization. The obvious advantage of the flat framework is the fact that employees do not feel very good removed from the very best of the business, which would appear to help instill the company values. Toned organizational composition increased coordination and timely get spread around of information among different departments. The top management is nearer to the middle management which makes it easier for the top management to converse effectively to the low level management. Smooth organizations are usually more effective in terms of creativity and empowerment. Smooth organizations require increased coordination and use of clubs and work group setting. Because of the organizational composition, it was easy for Goodnight to use his management idea and policies up to the bottom. Another advantage in this structure was less bureaucracy and easier decision making. Each one of these factors played out role in success of the business.