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1、FortheexclusiveuseofL.SHAWGRADUATESCHOOLOFBUSINESSSTANFORDUNIVERSITYHR-6REV.JANUARY1998SASINSTITUTE:ADIFFERENTAPPROACHTOINCENTIVESANDPEOPLEMANAGEMENTPRACTICESINTHESOFTWAREINDUSTRYJimGoodnight,oneoftheco-foundersandcurrentlythechiefexecutiveoftheSASInstitute,andDavidRusso,hisvicepresidentfo
2、rhumanresources,wereconsideringthechallengesfacingthecompany.SASInstitute,alargeandsuccessfulsoftwarefirm,facedanincreasinglycompetitivejobmarketand,becauseofitsongoinggrowth,theneedtorecruitatalentedworkforcethatcouldhelpitbuildandmaintainitsintellectualcapital.But,overtheyears,SASInstitu
3、tehaddevelopedacultureandsetofpractices,particularlyaroundissuesofoutsourcing,recruiting,compensation,andbenefits,thatreallydifferentiateditfromvirtuallyallofitscompetitors,particularlythoseintheSiliconValley.ThequestionfacingGoodnightandRussowassimple:couldandshouldtheInstitutemaintainits
4、uniqueapproachtopayandotherpractices?Andifitdidso,coulditreasonablyexpecttocontinuetothriveinaworldinwhichsoftwaretalentwasascarcecommodity?Toanswerthatquestion,theyhadtoconsidertowhatextentSAS’ssuccesshadbeenbecauseofitsmanagementphilosophyandpractices,ortowhatextentithadsucceededinspiteo
5、fthosepracticesbecauseofitsbeingintherightplaceattherighttimeinthedevelopmentofthesoftwareindustry.COMPANYBACKGROUNDSASInstitutewasfoundedin1976byDr.JamesGoodnightandthreeothercolleagues,AnthonyBarr,JaneHelwig,andJohnSall.TheoriginalproductoftheInstitutewasdesignedtoperformstatisticalanaly
6、sesofdatafrom,forinstance,agriculturalexperiments.Goodnight,thesonofahardwarestoreowner,helpedpayhiswaythroughcollegeatNorthCarolinaStatebymoonlightingasaprogrammer.______________________________________________________________________________ThiscasewaspreparedbyProfessorJeffreyPfefferast
7、hebasisforclassdiscussionratherthantoillustrateeithereffectiveorineffectivehandlingofanadministrativesituation.Copyright©1998bytheBoardofTrusteesoftheLelandStanfordJuniorUniversity.Allrightsreserved.ThisdocumentisauthorizedforuseonlybyLaytenShawinTeamandInterp
