BUS-Z 302 Lecture 5Outline of Last Lecture I. Steak n’ ShakeII. Team FormationIII. SAS videoOutline of Current Lecture I. SASII. What not to learn from SASIII. What to learn from SASIV. The 7 HR Practices that Matter Most Current Lecture-SASoWhy should we not replicate SAS?-The cost is so highIf you spend all of that on your employees you would have to pass some onto consumers and possibly raise prices-It has to do with the industry that they are inThey are a software programming company so they have high profit margins-May create the wrong set of incentives or expectationsWhat happens if you have to take it away?-Entitlement may become present-If you're a publicly traded company you'll have a lot of people questioning you and your motives-What if Jim Goodnight leaves?New owner may want to put money someplace else-Their business won't be able to sustain according to historySomething will happen that will erode SAS's revenue streamoBest companies to work for perform more than 2x better than the general market-Great workplaces provide 3x the return-Why do they outperform the market?These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-What NOT to learn from SASoEvery company should do what SAS is doingoIf you do what SAS does, you will see instant positive resultsoPeople culture is the only thing that mattersoPositive cultures are just about being and giving people lots of really cool perks-What to learnoFocusing on people leads to:-Better selection pool-Lower turnover-Higher productivity-Higher quality/innovation-Better citizenshipoFocusing on people means different things in different contextsoCan't afford NOT to focus on people….maybeoYou win with peopleoBuilding culture takes timeoYou can do some form of this anywhere but has to fit your people and contextoThe bar for people-first cultures is actually very low- a fraction of SAS-like people focus would seem extraordinary in most firms-The Seven HR Management Practices that Matter MostoSelective hiring-You want to be choosing from a larger pool than what you have positions to offer-It all starts with creating this and making people want to come to you and stay with youoCommitment to talent development-You're getting better and learningoDecentralized decision-making-People choose to work hard in order to keep their jobs and not allow someone else to take their job that is in the huge pool of applicantsoRelatively high and performance-based pay -The marriot paying $12 to their housekeepers Increased the pay rate and decreased the labor rateStill spent the same amount of money but was able to up productivity and lower the loss of employeesoReduced status barriersoExtensive sharing of information-Line of sight-Its hard to have employees be productive if they don’t know how the company operates -Give employees a sense of ownershipoEmployment