Question

Employees Love SAS

SAS, a software company established in 1976, has consistently been praised as one of the best places to work. Year after year, the company receives high rankings and awards from magazines such as Fortune and Working Mother. Review the three segments of the case and write your responses as instructed.

Because employees do the actual work of the business and influence whether the firm achieves its objectives, most top managers agree that employees are an organization's most valuable resource. To achieve organizational objectives, employees must have the motivation, ability (appropriate knowledge and skills), and tools (proper training and equipment) to perform their jobs.

Read the case below and answer the questions which follow.

SAS, the world's largest privately held software company, was one of only a few prosperous companies during the demise of dot-coms in the early 2000s. While other companies were laying off workers, SAS managers worked hard to hire the most talented employees and to retain this talent by providing a great working environment and generous benefits. From day one, they established flexible work schedules and 35-hour workweeks. Morale at SAS is high, translating to higher productivity and employee loyalty. Although typical high-tech companies have annual employee turnover rates as high as 25 percent, SAS's annual turnover is just 3 percent.

SAS begins by choosing impressive locations for its offices instead of the typical science park and business centers. The company's headquarters are located on a wooded 200-acre campus in Cary, North Carolina, which includes not only a health care center, child care center, and 77,000-square foot recreation and fitness center, but also an art department that is dedicated to campus aesthetics. The company's international locations are also picturesque: The European headquarters in Heidelberg, Germany, overlooks the river Necker and a ruined castle, while the U.K. offices occupy an Edwardian manor house on 110 landscaped acres in Buckinghamshire. Employees enjoy these work settings and find the positive organizational culture motivating.

SAS takes steps to ensure that employees feel valued and secure in the knowledge that the company intends to take long-term care of them. The company offers generous monetary incentives for employee performance, including hefty cash bonuses and profit sharing and is committed to long-term employee health and wellness through onsite fitness centers and numerous programs dedicated to work/life balance. SAS provides generous paid vacation policies and has no set sick leave policy. The company also has a 24-hour health care center at the Cary facility that is free to full-time employees and their immediate family members. The SAS philosophy of treating employees well has obviously paid off and contributes to the company's long-term success.

1- Low turnover at SAS is best explained by:

Multiple Choice

• SAS makes investments in employee satisfaction, causing morale to be high.

• The dotcom bust makes it difficult for SAS employees to find a job.

• SAS employees are highly specialized, thus they can't leave.

• Most SAS employees have working spouses that also work at SAS.

• SAS employee contracts make it nearly impossible for a SAS employee to quit.

2 -Which of the following is an example of an intrinsic reward at SAS?

Multiple Choice

• Creating a software that is good for society because it makes people more efficient.

• Free membership in the fitness center.

• Access to a 24-hour health care clinic available for employees.

• Profit-sharing for employees.

• Hefty bonuses for high performance.

• 3- Which of the following is likely untrue regarding the SAS perspective on motivation?

  Multiple Choice

• The leaders at SAS have a "Theory X" perspective on employee motivation.

• The leaders at SAS have a "Theory Y" perspective on employee motivation.

• SAS employees have satisfied their physiological needs.

• SAS employees have satisfied their safety needs.

• SAS employees have their hygiene needs satisfied.

• 4- Which of the following is an example of a way SAS fulfills employee "motivator" factors based on Herzberg's two-factor model?

  Multiple Choice

• Recognizing employee achievements with hefty bonuses

• Offering fair salary commiserate with skill level

• Providing safe and pleasing working environments

• Providing a 24-hour healthcare center

• Having no set sick leave policy

• 5-Which of the practices described at SAS is most closely aligned with the classical theory of motivation?

  Multiple Choice

• Offers generous monetary incentives for employee performance.

• Provides an on-site fitness center.

• Has programs focused on work/life balance.

• Has a 24-hour healthcare center.

• Promotes generous paid vacation.

Answer 1

Ans 1. SAS makes investments in employee satisfaction, causing morale to be high.

Ans 2. Creating a software that is good for society because it makes people more efficient.

Intrinsic reward is something that comes from within the employee

Ans 3. The leaders at SAS have a "Theory Y" perspective on employee motivation.

Theory X- Authoritarian Style of management

Theory Y- Participative Style of management

Ans 4.  Recognizing employee achievements with hefty bonuses

Recognition is a motivator factor as per Herzberg's two-factor model

Ans 5. Has programs focused on work/life balance

Three Classical Motivation theories are:

• Maslow's Hierarchy of Needs Theory
• Herzberg's Two-Factor Theory
• Theory X and Theory Y