Management . book Hidden value - Assignment Example

Management Hidden Value SAS Management and SAS Introduction SAS is a company that likes to do things a little different and by doing this became very successful. SAS is the largest software company in the World today and they contract out virtually nothing. In an era where most companies are outsourcing many different parts of their business, they have chosen not to. In this paper, we will take a closer look at what is being done that helps them to be so successful and also maintain that success.

Pay and Benefits The employees get a generous set of benefits and there are many types of employees. The types of people that are normally outsourced but are not here include day care workers, on site health professionasl, food service workers and even security guards. They have a beautiful place to work and relax as well as good income and benefits which shows concerns for the welfare of all of its staff. People work about 35 hours per week, allowing employees to have a life other than their job.

They have a 7500 square foot medical facility which is run by 6 RNs. The average waiting time is 5 minutes. Higher Wages and Stock Options in trade Yes, in this case trading higher wages and stock options for lower pay is acceptable. . In the one, you get high wages and stock options but work many hours and are unable to have time with family and in the end mean less because of this. Certainly that is what happened with the latest deep recession. It would be better to have worked under the auspices of a company that remained stable even in bad times than the one who collapsed when things got tough.

There are many unusual benefits at SAS that would attract myself and many others, Shorter working hours and the understanding of the needs of family values is certainly one of those. Ideas The first unusual idea was not to outsource during a time when everyone is outsourcing. Yet they remain profitable which shows that they are, in fact, making progress during a failing economy. Not outsourcing gives them a better chance at controlling how their company is run as each of those outsource areas have great deal of influence on the present company/s work value.

Another great idea, among many, is their philosophy that they as a company are built on relationships. With this philosophy from senior management, the rest of corporation carries that philosophy forward. Every employee wants to be treated like a human being instead of a number and this has really been driven home by SAS. Arguments Many people from other companies feel that SAS has set themselves up for terrible failure. Treating your employees fairly is one thing, but benefits and salary increases in a time like today is a risky decision.

There are also many that criticize their policy on outsourcing. Most companies believe that the more that you are able to outsource something to someone else the higher your profits. SAS on the other hand, however, believes that if you keep it in the company, you keep your employees working and you provide a better quality product. Conclusion SAS has taken on a whole new image compared to most corporations today and in doing that has stirred up controversy. However SAS has stated that they are not in the business of sales, they are in the people business and by doing business that way, they have better retention and smaller employee costs.

All of these things that are done for employees shows up in the final value of the product. References Reilly III C, & Pfeiffer J. (2000). Hidden Value President and Fellows of Harvard College: Boston.