Case Study, SAS Institute Inc. Management culture is a very important factor in the footprint of a company: it shapes the relationship between the environment of work and employee satisfaction. I will answer a few questions regarding SAS's particular strategy of running a business in which employees are incredibly loyal, thanks to the benefits and care they receive from the employer.1. One reviewer calls SAS “a great approach to human resource management.” Is the company too paternalistic? Can a company be too paternalistic? I believe SAS's approach to people management is the result of careful analysis by management. Therefore, when management discusses improving employee retention rates, the initial topic is often increasing salaries and bonuses. This is partly true, because money is a key element; As SAS can attest, retention efforts can be very effective if they focus on other ways to spend money than just increasing salary levels. Through its strategy to boost employee retention, the company has created a culture and programs that encourage and retain employees. According to Pfeffer (2001), “your profits come from loyal customers who do business with you for reasons other than just price. Customer loyalty is a consequence of the loyalty of employees who produce great products and provide excellent service. In the short term, with enough risk money and sufficient product demand, any business model may seem feasible. In the long run, the companies that actually run their businesses efficiently and produce lasting results will be the ones you continue reading about. (18).I don't think this is a "big brother approach" at all; Ultimately, it's just a way to achieve better business results. The upper management prefers to spend money on employees rather than spending money on recruiters to find new employees, and that is why the organization follows this employee policy. The expense of the retention program is more than justified by the overall savings, and so this is not paternalism, but smart business in place.2. When, if ever, do family practices become too paternalistic? Family practices are just a different approach to strengthening the bond between employees and the company; there is no evidence of a relationship between this type of approach and paternalistic behavior. This is especially true if much of the company's value lies in the expertise of the workforce..