Case study SAS Institutes

Discussion Questions:

1. From the statements of David Russo and Jim Goodnight, it is evident that SAS is focused on giving employees a relaxed atmosphere and in ensuring high-productivity, high-quality work, loyalty and cohesiveness among its employees. Which of the leadership styles identified by Lewin and his associates would best help SAS achieve these goals, and why? 

2. Several trend-setting companies today favor open work arrangements to facilitate open communication and collaboration. However, SAS Institute believes in providing private offices for all its employees. Do you agree with its strategy? Why/ why not?  

3. According to David Russo, Human Resources, “Jim’s idea is that if you hire adults and treat them like adults, then they’ll behave like adults.” Would you agree or disagree with this statement? Support your chosen position. 

4. What are the implications of the flat organizational structure at SAS? Can you think of any instances in which a more vertical management structure might be useful at SAS? Explain your answer.

Quiz:

1.   David Russo describes the ideal manager at SAS as someone who is confident of his technical expertise, considerate and supportive, someone who simply removes obstacles for his team and largely stays out of the way.  According to Fiedler’s Contingency Model, which of the following combinations of factors would best support the emergence of the above leadership style?

a.   high-LPC leader in high situational control

b.   low-LPC leader in high situational control

c.   low-LPC leader in moderate situational control

d.   high-LPC leader in low situational control

2.   David Russo says that the role of leaders in SAS is primarily to remove obstacles for their teams. This perspective is most consistent with the ________.

a.   Substitutes for Leadership Model

b.   Leader-Member Exchange Model

c.   Normative Decision Model

d.   Path-Goal Theory of Leadership

3.   SAS Institute provides private offices to all its employees. Which of the following is a reason stated for this policy?

a.   Most SAS employees are senior-level employees who expect private offices.

b.   It helps employees develop a sense of ownership of their space.

c.   Private offices allow for better monitoring and control.

d.   Private offices are less expensive than open working spaces.

4.   SAS has a very flat organizational structure. Which of the following is a reason stated for this strategy?

a.   It gives top management a more filtered account of what is going on in the company.

b.   It allows Jim Goodnight, the CEO, to narrow his span of control.

c.   It frees personnel from the task of managing subordinates and focus on product development instead.

d.   It allows for better monitoring and control of its staff.

5.   SAS has a very flat hierarchy with few managers. From David Russo and Jim Goodnight’s statements, it appears that the employees as SAS work effectively with relatively less direction and control. This indicates that various aspects of the work environment provide enough resources and support to allow subordinates to achieve their goals without having to refer to their leader, often even replacing a leader. Which leadership model is reflected in this aspect of the leadership style at SAS?

a.   Substitutes for Leadership Model

b.   Leader-Member Exchange Model

c.   Normative Decision Model

d.   Path-Goal Theory of Leadership