Case Study, SAS Institute Inc.Management culture is a very important factor in the imprinting of a company: it shapes the relationship between the work environment and employee satisfaction. I will answer some questions regarding SAS's particular strategy of running the company in which the employees are incredibly loyal, thanks to the benefits and care they receive from the employer.1. One critic calls SAS "a big brother approach to managing people." Is the company too paternalistic? Can a company be too paternalistic? I believe that SAS's approach to people management is the result of an accurate analysis carried out by management. Therefore, when management discusses how to improve 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 more ways to spend money than just raising salary levels. With its strategy to increase employee retention, the company has created a culture and programs that encourage and drive employee retention. 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 great services. In the short run, With enough venture funding and sufficient demand for products, any business model can seem viable in the long run, those companies that actually run their businesses efficiently and produce sustainable results will be the ones you continue to read about." ( 18).I don't think this is a "big brother approach" at all; in the end, it's just a way to achieve a better business outcome. The top 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 loyalty program expenses are more than justified by the overall cost savings, so this is not paternalism, but smart business in action.2. When, if ever, do family-friendly practices become too paternalistic? Family-friendly 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 a large part of the company's value is represented by the skills of the workforce.