SAS is a privately held $3.2 billion company located on a 200-acre campus in Cary, North Carolina. The company has an on-site Work/Life Center that is available to all employees free-of-charge. The center is staffed by master’s-level professionals who help employees deal with a broad range of issues such as parenting, stress management, relationship management, preparing teens for college, and aging and elder care. It also maintains a library of more than 2,500 titles related to managing work-life balance and a Caring Closet that gives employees free short-term access to medical equipment such as wheelchairs, walkers, and shower chairs.
Although it may be difficult to quantify the benefits of these investments, SAS firmly believes that retaining happy and healthy employees is instrumental to its success. To further reinforce this point, the company also provides its employees with an on-site Health Care Center (staffed by doctors, nurse practitioners, nurses, physical therapists, registered dietitians, and medical laboratory technologists) as well as an on-site full-service pharmacy.
Six key concepts for decision making are:
- Every decision involves choosing from among at least two alternatives.
- Identify criteria for choosing among alternatives by distinguishing between relevant and irrelevant costs and benefits.
- Focus on the future costs and benefits as you evaluate the alternatives.
- Remember that sunk costs are always irrelevant when choosing among alternatives.
- Remember that only future costs and benefits that differ are relevant. Future costs and benefits that do not differ are irrelevant.
- Opportunity costs for the future should be considered.
Making decisions can be challenging. Managers spend much time and energy in making decisions, such as whether to make or buy components, relocate plants to new locations, even abroad, close plants or segments, accept special orders or offers, etc. How well the organization makes decisions determines an organization’s profitability and success.
In the Unit 8 Discussion, you should begin to understand how decisions are made before working in an organization. You should appraise the decision making process that occurs in organizations similar to SAS above wherein the company chooses to invest in its workforce by providing work-life balance for employees, libraries, use of green technology, etc.
As you formulate your initial post, select another company to research similarly. Perhaps select a company in which you hope to obtain a job. What characteristics about the company’s organizational culture and corporate philosophy appeal to you? What alternative companies did you consider and why? Can you identify whether the company’s decision making is more quantitative or qualitative? Are any costs or benefits for the resulting culture in the organization shown in their financial statements? Or if you found another source for relevant information, please identify and cite sources. Where did you conduct the research?
For decision-making purposes, distinguish the purpose of the two areas of accounting (financial and managerial accounting). Appraise each area and explain where relevant information for the company can be obtained for decision-making purposes.
