SAS Institute

In this case, I figure out some points that help this company has competitive, and following are my summary about this company.

1. This is a private company, so he doesn’t need to really care about the requests of stockholder, and it easier for him to put customer at first position.

2. Care about market-share growth more than how much money he will earn.

3. Their company culture is freedom , fun, and creativity, so their employees are really love to work for this company. It also cause their employee have proactive attitude, and the company have low turnover rate.

4. Employees are this company’s important  capital, and they provide good benefit and workplace for them.

5. They use long term decision and bottom-up decision in this company, so the first line’s sales can provide the idea what their customers really want.

6. How this company motivate their employees? They don’t use sales commission system that most of the companies usually use, so their employee will care about what their customers really need and make a long term decision for this company. Besides, SAS Institute give bonuses with no formula, and I think it’s also motivate them to keep trying hard not restrict by a bonus limit.

7. The don’t use contract workers and no contract programmers provided by temporary help agencies. I think it also a long term decision for this company because contract worker usually have no loyalty.

8. The organizational structure just have three or four level, so it people can communicate easily and quickly.

9. Employees will have a lot of movement in this company, so they can understand more about this company and get more different skills.

10. They will not tell their employees what is good performance and what is not, and they just give them the tools what they need and train them the skills what they want.

Actually I never heard this company before, but I can understand why this company can be a the ninth largest independent software firm in the world. The most impressive thing is he doesn’t use sales commissions system to motivate their employees to get higher sales. In Taiwan, sales commissions system is used really common in companies. Under this system, most of the sales are not really care about how to make the benefit for customers but how to get higher commission. I think it’s shortsighted and not really motivate sales to get good performance. Therefore, the case of SAS Institute let me think  about that does sales commissions system really motivate employees? If ir is, does this motivation keep for long time?

Moreover, I agree with this company that doesn’t use contract worker a lot. I had experience about using contract worker, and it exists many problems. Contract workers do not have loyalty for our company because they will probably not stay in this company for a long time, and they may not work really hard for you.

Finally, could it continue to succeed with the same management practices that had brought it to its present position? Frankly, I don’t think so. the scale of SAS Intitute becomer bigger and bigger, their management way will also be changed. They will have more employees, so I don’t think they can use the same organizational structure, and it will  become harder for using bottom-up decision. I think the culture could be keep, but the stucture will be changed. It’s also have to think about how to deal with people for different culture when they work on international business. I think it cannot be same system in every place, and they have to figure out how to change. I believe they will continue to succeed in the future if they keep their advantages and adjust their organization to international style and diversity.

Nordstorm

In this case, I will compare with the case of SAS Intitute because they use totally different system to motivate their sales .

Sales-per-hour Incentives

I think we should discuss about how this system operate in a company because I think it still really commonly use in many companies; maybe not in USA, but still in Taiwan. Does sales-per-hour Incentives really work on motivating employees? Will the motivation  sustain for a long time? What kind of culture they will have if companies use sales-per-hour incentives?

In SAS Institute case, they do not use sales commission system to motivate their sales because they do not think it will really motivate employees. I agree with this opinion because it is a way to do long term decision.

In Nordstrom case, I think sales-per-hour incentives is a “negative reinforcement.” I remember that professor told us how he lets students come to class every time. He gave extra credit point for students if they come to class; however, he also took the points out if student absence. So, what will students do if they have one absence? That is kind of punishment. and people hate punishment. In Nordstrom, sales may work really hard to achieve their target; however, if they don’t achieve the target one time, or two time, what will they do? They will feel punishment and useless, especially when everyone can know your performence. That has so many pressure, and it causes sales to give up after they tried their best for a long time.

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