The SAS Institute seems like the perfect company. The reason for their ultimate success comes from the core values and ideas that were generate right when the company began. The continuous investment in research and development was the key difference when compared to other companies. Especially in the software technology business, continuous improvement and research for new products is an important aspect for company growth. With technology evolving each year, SAS Institute put themselves in the correct position for success.
The philosophy behind SAS Institute was the basis on how the company was developed. By holding four main principles up on the totem pole, kept the business profitable. The first and most important principal, keeping the employees happy, is the first step for business development. In order to find customers for life, customers need to be satisfied. In order to satisfy customers, a business needs to have employees to do the satisfying. In order for employees to satisfy, they need to be happy with their work. The second principal, intrinsic motivation, is a great idea. The proper way to keep employees working is to internally inspire them to do good work. This way, the employees will work and be effective without much supervision and micromanaging. The third perspective is the long-term scope on things. To look into the future and foresee the potential for anything is always beneficial. The fourth part of the management philosophy is the bottom-up decision making. Not having a clearly defined goal for finance or growth has apparently worked for SAS. I'm not really sure how this philosophy works, but it seems to just give people a mindset of "do the best you can, and things will keep getting better". This philosophy might just be a focus on a lesser management type of goal.
The recruitment and selection process for SAS is a good one. They have been focusing on a more family-friendly place that helps people deal with real life. This focus goes back to the first principal that SAS has of keeping the employees happy. The compensation focus for SAS is unique since it does not focus on commission. This way employees are more inspired to build the long term relationships with customers rather than just focusing on the sale itself. The good work environment for SAS, I believe has been an important contributor to the success of SAS. Its important to the employee to have a "normal" work day. Employees that are tired, and that work late are not as efficient. The idea that people need rest is common sense, but is sometimes overseen in the workplace. SAS's performance management theory is an important part in the development of their organizational structure.
Sunday, March 1, 2009
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