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?
A leadership style refers to the way in which leaders set up plans and activities to be done and then give direction on how to carry the set activities and also motivate their work force (Newstrom and Keith, 1993: 67). A leader may decide to be democratic, authoritative or free reign.
According to Lewin, Lippit and White (1939: 271) the choice of leadership style is determined by the leaders’ requirement to make decisions for the organization. Lewin’s styles of leadership include democracy, autocracy and the laissez-fare.
As it seems, SAS has adopted a democratic and laissez-fare styles of leadership. It C.E.O James Goodnight seems to value his employees so much that he allows them a say in the decision making processes of the company. David Russo the head of human resources at SAS says that “Jim’s idea is that if you hire adults and treat them like adults, then they behave like adults.” This is why SAS records the lowest employee turnover annually. SAS success has therefore been achieved by having dedicated employees treated with respect and dignity. SAS has saved a lot of expertise as well as working hour by keeping most of their employees and saved a lot of money that could have been used to train new employees.
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?
SAS institute has adopted a flat organizational structure with only four layers separating the top executives and other employees. Every employee has been allocated an office to allow autonomy and independence of the employee. This has enhanced confidence and a sense of belonging in the employees thus their loyalty to the institute. Open work arrangements seek to have employees crammed together in work places in a bid to reduce the costs. Conflicts arise easily in open work places and employees are less motivated as compared to when they allowed their autonomy and independence (Schriesheim, 1982). The strategy is therefore viable for SAS institute. The institute records the lowest employee turnover yet it not even among the highest paying soft ware companies.
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.
This statement is true in every sense of its words. Treating adults as adults definitely creates a sense of mutual respect. The employees feel respected and thus maintain their loyalty to the company and their C.E.O. This has encouraged most of SAS institute employees to remain intact in the company. Disrespecting them or belittling employees by issuing orders in a manner to indicate that they are lowly would definitely rub badly on the company’s success. This has not been the case at SAS and thus the truth of Jim’s proposition.
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.
It is evident that a flat organizational structure is working well at SAS institute. SAS sales exceeded the $1billion mark in 1999 and is currently the largest private soft ware company in the world. Thus is in part of the strategy the institute has employed of the flat organizational structure. The only possible instance of a more vertical structure is during the introduction of new employees as they are in the training period. Once the employees get acquitted with the institute doctrines and working structure, they too get incorporated in the flat organizational structure.
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
Fred Fiedler Least-Preferred Co-Worker scale is used to determine which person an employee did not enjoy working with the least. The higher the score in this scale, the more relation-ship oriented a person is while the lower the score, the more task oriented a person is (Puls, 1988: 56). In the case of the managers in SAS institute the high LPC leader in low situational control was the most suitable in achieving the current status of that institute. As stated in their philosophy, each employee is allowed independence and autonomy. Tasks are delegated after which the employees are left to make their own decisions.
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 Path - Goal theory of leadership.
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
Reference list
Lewin, K., Lippit, R. and White, R.K. (1939) ‘Patterns of aggressive behavior in experimentally
created social climates’. Journal of Social Psychology, vol. 10, no. 3 pp. 270-302.
Newstrom, J. W. and Keith, D. (1993) Organizational Behavior: Human Behavior at Work, New
York: McGraw-Hill.
Puls, E. C. (1988) Fiedler’s contingency model: leader behavior change across situations.
Illinois: Illinois Institute of Technology.
Schriesheim, C. A.(1982) ‘The Great High Consideration: High Initiating Structure Leadership
Myth: Evidence on its Generalizability’, The Journal of Social Psychology, April, pp.
220-230.
