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SAS Institute as the management model example for new generation companies.

Katiuska C. Otero H.

Business Administration Undergraduate degree. University of the People.

Bus 1101: principles of business management 

Inst. Lance Vegren

November 25th, 2020

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SAS Institute was setting its first steps in 1966, due to “vast amounts of agricultural data were collected

through USDA but without computerized statistics. A consortium of eight universities came together and the

resulted program was the Statistical Analysis System, SAS” (About SAS, website information profile) These

first steps couldn’t predict the big success SAS was going to become, but not only for the software created

by the big minds in the company, but majorly because SAS could excel from other companies thanks to the

exceeding efforts to gain the trust of the workers, and be seen as a loyal company to them as well.

SAS understood sooner than later that investing in people; the employees, would have a long-time

reward, as it did. This is the main reason why SAS is also known as a pioneer in management skills: by

understanding that healthy employees will keep the company healthy as well. Staff at SAS company can

enjoy from huge benefits that other companies such as Google, are implementing as a philosophy in the

structure of the company: keeping people happy.

Big gymnasiums, kindergarten and day care for families, as well as unlimited sick leaves and much more

benefits for workers, might be something that only a company as big as SAS could do, but that are part of

the immense trust that has towards its employees. Workers as well, pay with loyalty since, “SAS has treated

employees well in bad times as well as in good times”. Jim Goodnight stated “For 2010, I make the same

promise that I did last year—SAS will have no layoffs (…) Maintaining this position throughout the downturn

puts us in the best position to meet the expected market upturn.” (Management principles, 2012, p.68)

SAS Institute definitely sounds like the dream job. But the company also has a big eye on details and a

very keen sense for positioning the right people in the right places. People are highly taken into account, but

managers must make sure that people’s doing what they’re best at. This is the reason why a profound

detail, taking the four factors into consideration is key to understanding the psychological aspects and the

needs that the company’s requiring:

 People with the openness factor at the highest, is flexible and curious. There’s a deep interest in

intellectual affairs and are endless sources. Innovators and prosecutors of ideas, these are the
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creatives that brings companies fresh and renewed concepts. The downside is that so much

routine might bore them. There’s also a tendency of not finishing projects because of a new

interest.

 Conscientious people on the other hand, are organized and systematic. People with these

characteristics are often taken into consideration in jobs that are required with high logical and

performance skills. And even though every company likes having a person that appreciates

systems and routines, conscientious people tend to focus on details and have difficulties in seeing

the connections between all of the processes.

 High extraverted people enjoy talking and being around others. In the company, these people are

generally interested in joining people together, since they see big opportunities arising from big

gatherings. Here’s where the high extraverts spread their wings; in making connections to others

and are usually leaders in citizen behaviors in the working community (for good or not)

 Agreeable people are the caring types. They are warm, tolerant and patient. They tend to help

others in the work community without been asked because it’s intricate their nature. People with

this characteristic help in creating and maintaining healthy environments.

 Neuroticism is the final and not very liked factor to be considered. Neurotic people tend to be

moody, anxious and temperamental. This characteristic specially reacts, sometimes even over

thinking in situations that are displeasing. People with this characteristic tend to have problems at

work, maintaining interactions to other people or making long lasting friendships.

What does all these have to do with work behaviors? As human beings, people have a big response to

the environment. Home, school, work or any other that people’s involved in, play a great role in

determining the reaction to have towards those specific characteristics. In the specific case of work

behaviors, if a company keeps their employees happy, the negative work behaviors are most likely not to

be present or almost absent. This is due to the fact that people might have a mixture of gratitude, but also

understanding that jobs with those benefits are difficult to find.

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From the point of view of the company, job performance is an important factor to be considered. The

mental ability, “also known as cognitive ability or intelligence (…) can be divided into several components

such as reasoning abilities, verbal and numerical skills, and analytical skills” (Management principles, 2015,

p.106-107) of course, different natured jobs will require diverse abilities that are not always the same, to say

for example, the case of a school, where some of the characteristics of the personnel would be patience and

consideration towards children and the case of SAS itself, which, even though cares and values the human

and caring nature towards employees, also values people highly conscientious and analytical.

The organizational citizenship behaviors on the other hand, refers to the perceptions of organizational

justice and interpersonal relationships, (Management principles, 2015, p.107) also takes part of the general

environment of the company. People keep building a good-natured working place in which the mental ability

do not take great part in constructing good relations with others since should be expressed towards

everyone in the company, but if it’s first encouraged by management. After all, children learn from the

example of their parents, and the company appears as a parental figure to the employees.

Absenteeism and turnover are the two factors that have inflicted the most damage to companies in

diverse situations. “The cost of absenteeism to organizations is estimated at $74 billion. According to a

Mercer Human Resource consulting study, 15% of the money spent on payroll is related to absenteeism”

(Management principles, 2015, p.112). When people avoid their responsibilities under a false healthy

reason or of any other nature, the company must fill the emptiness with an equally-qualified personnel that

might cost an extra charge. In the case of SAS, they manage unlimited health leaves, but because the

company and the employees work in a trusting symbiosis that keeps them at the top companies: people

want to go back to work.

On the other hand, turnover is the unexpected permanent leave from the company. Every time an

employee leaves, the company must recruit as fast as possible, to try to heal the vacancy left. This costs not

only the time, but in many cases, the lose of clients due to low quality of service. Loyalty is a characteristic
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that saves companies from losing money in recruiting and finding the perfect candidate for the newly

opened vacancy.

Reading the story of SAS Institute has really inspired me. I believe that they were pioneers in

understanding that losing employees mean losing costumers, time and money. They saw the project of

investing in others, a substantial reward that could be only withdrawn in time. They waited, believed in their

philosophy and understood that the people they said hello to everyday, are just like the ones sitting in high

management seats. Trust creates trust.

Word count: 1.223 words. 

REFERENCES

Bauer T., Erdogan B., Mason C., (2012) Management Principles. Management Principles (v.1.1)

https://2012books.lardbucket.org/books/management-principles-v1.1/index.html

Crowley, M. C. (2013, January 22). How SAS became the world's best place to work. Fast

Company. http://www.fastcompany.com/3004953/how-sas-became-worlds-best-place-work

Gregg Learning. (2018, November 1). Key work-related attitudes [Video]. Youtube.

https://www.youtube.com/watch?v=AgzWxRBhzoo&feature=emb_title

2-minute psychology (2013, September 16th) The big 5 personality model [video] Youtube.

https://www.youtube.com/watch?v=xXATiPciG8o&feature=emb_title
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