Linking strategies to HRM practices

SAS organization implements supportive management practices to improve employee satisfaction and commitment. SAS is a high-involvement organization with a well defined human resource strategy that seeks a competitive advantage by creating a working environment based on the theory that happy employees lead to happy customers.

The organization is functional structure with a low degree of formalization. SAS organization is one of the organizations that have proved that greater productivity and profitability can be arrived at by investing in employees. (Charles, 1998)

What are they doing that is different than most others?

SAS organization has invested in creating a warm working environment that has motivated employees to come to work every day. The firm encourages employees to bring along family members and kids to the organization. In addition to supportive management practices, the organization offers generous perks and benefits to its employees. (Rebecca, 2003)

How and why did SAS do what they did?

SAS has achieved employee loyalty, productivity and innovation by putting into practice four leadership values by first valuing employees as the main assets of the organization. The management holds employees in the highest esteem due to the recognition that employees determine the performance of the organization. Secondly, SAS is known to be munificence towards its employees. Thirdly, the organization has integrated culture of trust. Employees are surveyed on the characteristics of trust proven to be most influential on engagement, respect for fellow employees, open communication and transparency into career paths. The organization also ensures that employees understand the significance of their work. In 2009, the founder assured the organization’s employees that none of them would lose their job. The assurance enabled the employees to focus on work and enabled the firm to record profits in the wake of the world’s most severe economic crisis.

What was their goal?

The goal of the firm was to maintain the employee-focus organizational culture.

How did it work out?

Employee loyalty and customer satisfaction are interlinked and this has led to the company’s success even during the economic downturn.

How did it impact their employees in terms of retention, satisfaction, and productivity?

The human resource management practice has positively impacted on retention, satisfaction and productivity.

Could your firm do what SAS did? Explain why or why not.

Any organization can put into practice the SAS’s Human Resource Management practices by recognizing that employees are a long-term investment to the company.

References

Charles Fishman (1998) Fast Company Sanity Inc The Wal-Mart Effect: How the World's Most Powerful Company Really Works--and How It's Transforming the American Economy.

Rebecca Leung (2003) Working the good life: SAS provides Employees with generous incentives. CBS NEWS Apr 18

SAS (2013) The power to know company information.

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