Evaluating SAS Institute: Leadership, Motivation, and Management

This case study examines the management practices and leadership style of SAS Institute, analyzing them through the lenses of various motivation theories. The analysis begins by evaluating the consistency of SAS's work environment with Maslow's hierarchy of needs, Alderfer's ERG theory, and Herzberg's two-factor theory, highlighting how SAS addresses employee needs and motivations. The study then assesses CEO Goodnight's leadership approach based on Vroom's expectancy theory and Locke's goal-setting theory, identifying areas of strength and potential weaknesses in his motivational strategies. Furthermore, the case study addresses the challenge of retaining employees in the face of higher salary offers from competitors, offering insights from motivation theories and considering whether changes to SAS's compensation and benefits are warranted. Finally, the case concludes with an overview of SAS's current standing in its industry, evaluating the company's performance, Goodnight's leadership, employee motivation, and any recent changes in compensation, benefits, or work practices, providing a comprehensive view of SAS as a motivational role model.

Running Head: MANAGEMENT 1
Management
Name:
Institution

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Q 1. In what ways is the work environment at SAS consistent or inconsistent with the
implications of Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, and Herzberg’s
two-factor theory?
Maslow’s hierarchy of needs is a five-tier pyramid that shows human needs. These needs
include; physiological, safety, love and belonging and self-actualization. The four levels at the
bottom are the deficiency needs and the one at the top is growth need. Deficiency is caused by
inadequacy and this motivates people when the needs are not met. For progression, one must
satisfy the needs of a lower level to qualify for the next level (Lester, 2013). The SAS satisfy
these needs by offering food and snacks to its employees. The company also offers daycare for
kids and focus on relationships rather than structure in management. Alderfer’s ERG theory is a
3 principled approach that explains human needs. The initials ERG stands for Existence needs,
Relatedness needs and Growth needs. If one fails to achieve a higher need, the person goes back
to a low-level need. This theory differs from Maslow’s in that the order of the principles is not
dependent on each other. This is because the needs importance in individuals varies in each
level. SAS satisfies this theory by offering employees healthcare, promoting relationship
structure and encouraging employees to take different roles. Herzberg two-factor theories state
that there are certain factors that cause job satisfaction and others cause dissatisfaction.
Satisfaction factors include job status, opportunities for growth and recognition. Hygiene factors
include salary, relationship with colleagues and working conditions. In Herzberg theory, there is
no hierarchy of needs. SAS considers Herzberg’s theory by giving employees independence to
work in a project of their choosing and providing them with good remunerations. Maslow’s
hierarchy of need in this context provides the best motivation as employees can measure their
growth.

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Q 2. If Goodnight’s approach to leadership is evaluated from the perspectives of Vroom’s
expectancy theory and Locke’s goal-setting theory, where is he on track and where is he in
danger of going off track when it comes to employee motivation?
According to Vroom’s expectancy theory, employees’ motivators is derived from their
choices among different alternatives. Vroom’s theory was based on the following beliefs.
Expectancy: employees believe that increased effort will result to increase performance.
Valence: this is the importance placed by an individual in a certain outcome. Instrumentality:
employees believe that if they perform well, there is something in for them. These factors
motivate employees psychologically to work in ways that will maximize pleasure while
minimizing pain (Mansouri & Rowney, 2014). Goodnight is the CEO of SAS Institute. He
applies expectancy theory by giving good bonuses to employees and providing support for
employee’s needs. He fails, however, to focus on individual needs as each employee has
different needs. According to Locke’s goal setting theory, individuals make goals and are
compelled to achieve the goals by the virtue that they set them. The principles of Locke’s goal
setting theory are clarity, challenge, commitment, feedback and task complexity. Mr. Goodnight
applies Locke’s theory by encouraging his employees to set goals through workshops. He is
always open to new ideas from his employees.
Q 3. As a compensation consultant, you’ve been called in to review how SAS pays its
employees and the benefits it offers them. You’ve heard some employees say that they could be
attracted to other employers if they offered higher salaries. Employees overwhelmingly like the
SAS benefits and the working climate, but the fact is that offers of higher pay elsewhere could be
hard to say “no” to. What insights do motivation theories offer about this situation? Should it be
addressed somehow with changes to the way SAS presently operates? Or, is this a situation

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where time will take its course and those who leave will depart for their own good reasons, while
those who stay will continue to be motivated to work hard by the current system?
Hertzberg two-factor theory categorizes salary as a hygiene factor. This is because pay
can cause job dissatisfaction if not properly addressed. An increase in salaries and remuneration
reduces job dissatisfaction. Job satisfaction can be increased by acknowledging employee efforts.
This includes offering incentives and bonuses for a job well done (Yusoff, Kian & Idris, 2013).
Job Promotions also increases satisfaction as employee experience upward mobility and the
sense of growth. Dissatisfaction in the job can be reduced by offering competitive wages and
assuring employee of job security. Giving employee permanent position offers reduces their
dissatisfaction. In my views, SAS should continue with their current model. According to
Herzberg’s theory, an increase in pay will only reduce job dissatisfaction but there should be
other factors to increase satisfaction. Reducing the benefits offered at SAS will consequently
cause a reduction in job satisfaction. Increase in pay alone cannot result to increase in job
satisfaction.
Q 4. What is the latest on SAS? How is the company doing in its industry? How is
goodnight faring as CEO? Are the employees still as motivated and happy as they appear in the
case? Have any changes been made in compensation, benefits, or work practices at SAS? Are
any planned? In short, is SAS Institute still a motivational role model for other employers, or is it
starting to show some rough edges?
SAS company is still dominating the data analytics industry. In October 2018, the
company was recognized as the best working place for women. It has also introduced diverse
workplace benefits, such as daycare and healthcare facilities for employees. The company has

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subsidiaries in over 56 countries and the employee number currently stands at 14,216 ("About
SAS", 2018). SAS’S CEO Jim Goodnight has continued to propel the company in the right
direction. He stills takes a great value and care for all his employees and constantly device ways
to ensure employee satisfaction is attained and dissatisfaction countered. Employees are very
much motivated at SAS. The company ensures productive by catering for employee issues such
as providing onset medication care to employees and their families. Constant recreation activities
such as 5 km run on the SAS campus help employees to unwind. The introduction of healthcare
for employees and their family has helped in saving time and resources for the employees. The
company offer care service to workers and their family at no cost. This has enabled SAS to
maintain its top edge in workplace employee satisfaction and was rated among the best company
to work for in a research done by Fortune Magazine’s A Great place to Work.

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References
About SAS. (2018). Retrieved from https://www.sas.com/en_us/company-information.html
Lester, D. (2013). Measuring Maslow's hierarchy of needs. Psychological Reports, 113(1), 15-
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Mansouri, M., & Rowney, J. I. A. (2014). The dilemma of accountability for professionals: A
challenge for mainstream management theories. Journal of business ethics, 123(1), 45-
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Yusoff, W. F. W., Kian, T. S., & Idris, M. T. M. (2013). Herzberg’s two factors theory on work
motivation: does its work for todays environment. Global journal of commerce and
Management, 2(5), 18-22.