The Ideal Person

Nietzsche’s Ubermensch concept of the â€Å"ideal person† was able to achieve self-actualization, and has developed himself holistically. What Nietzsche meant by achieving self-actualization was to achieve one’s full potential through creativity, independence, spontaneity, and a grasp on the real world. I see an ideal person as someone who surrounds themselves with happiness and love even with no money or fame. Most people consider the ideal person beautiful and rich. But as many people may say, money doesn’t always bring happiness or love, it could lead to loneliness and emptiness, even with all of the material things.An ideal person, as lived their life without regrets. I do agree with an ideal person is someone who can achieve their full potential through everything they do. They put all their hard work and effort into what they need to accomplish and with the best of their ability. I believe this is the most important similarity with our ideal person a s well as Nietzsche’s. A difference between our theories would be that we may see an ideal person as someone who is less fortunate but doing the best of their potential to provide for themselves and their family.And we would see that as with the resources they have and can afford then they are achieving a self-actualization. Nietzsche may be that as not a real ideal person, because someone might not look up to that certain person because they are not so called living the glam life, and having everything around them. He may think that he is not achieving his full self-actualization because of that, when really is he by being happy in life and grasping everything around him that he can and not taking it for granted. Nietzsche believes that the ideal person is high, rare, and far between and mainly mentions them as a â€Å"he†.In my belief the ideal person can be of any gender, by achieving greatness, and many people are ideal and not as rare as he mentions. With the main differences in mind I think that his Ubermensch is not plausible. He see’s the ideal person as a higher power and rare and far between, like the so called superman that is seen in comic books, that was created after his theory. His person is like a fantasy that people wish they were instead of being normal people around us that achieve their potentials and that are plausible.

Informatie Management

Does Telework increase productivity? Assignment 2: The proposition Bachelor Thesis â€Å" Does Telework increase productivity† Erasmus University Rotterdam Boudewijn Schuitmaker348393bs Robin Kettenes335450rk Marlot Sep 337273ms Bachelor Thesis â€Å"Does Telework increase productivity† Erasmus University Rotterdam Team: Group 6 (BA-02-06) Assignment number: 9 Date: 13-06-2012 Disclaimer: â€Å"This document is written by Marlot Sep, Robin Kettenes and Boudewijn Schuitmaker, who declare that each of them takes responsibility for the full contents of the whole document.We declare that the text and the work presented in this document is original and that no sources other than mentioned in the text and its references have been used in creating it. RSM is only responsible for supervision of completion of the work but not for the contents. † Index Summary of the research proposal4 1. Preface6 2. Abstract7 3. Introduction8 4. Literature review12 5. Methods17 6. Results 19 7. Discussion26 Appendix28 Bibliography35 * Summary of the research proposal In this chapter a summary of the research proposal can be found. Summary| | Name instructor| Dhr. Nick van der Meulen| Team number| 6| Name student 1| Robin Kettenes|Name student 2| Boudewijn Schuitmaker| Name student 3| Marlot Sep| Proposition| Telework will lead to an increase in productivity| Focal unit| Employees who perform their work at other places than at the office itself, for at least one day a week| Theoretical domain| All employees who work at other places than at the office itself, for at least one day a week, in the Netherlands. | Concept 1 | Telework| Concept 2 | Employees’ Productivity| Type of relation | Causal| Minimum size of the effect for having managerial relevance| The minimal size of effect for having managerial relevance is 20 % increase of productivity. Typical parameter of effect size used in previous tests| Items scales difference in productivity means is used between t eleworkers and non-teleworkers. | Range of effect sizes obtained in the replication history| In the replication history on average an effect of productivity increase of 20% is measured by teleworking. (Newman, 1989), (Dubrin, 1991) and (Hartman, 1992)| Preferred research strategy| Longitudinal survey| Actual research strategy| Considering the research time (two months time) and the context of this research (a Bachelor thesis project) a cross-sectional survey is chosen. | Population that is surveyed, or from hich subjects are recruited| Population that is surveyed are executive employees of the department of Operations & Services of the organization of TNT Express Benelux in Houten, the Netherlands. The number of subjects is 22. | Expected pattern (or â€Å"hypothesis†)| The expected pattern for the hypothesis â€Å"teleworking will lead to more productivity† is a regression of 0. 20, meaning that an increase in teleworking will lead to an increase of 0. 20 in an amount of productivity. The expected pattern for the hypothesis â€Å"distraction will have a negative influence on the relation between teleworking and productivity† is a regression of -0. 0, meaning that an increase in distraction will lead to an decrease of 0. 20 in a amount of productivity, when teleworking. | Observed pattern| The observed pattern for the hypothesis â€Å"teleworking will lead to moreproductivity† is a negative relation with a regression beta score of -1,311,meaning that if the degree of teleworking increases with one unit, the productivity will decrease with 1,311. The observed pattern for the hypothesis â€Å"distraction will have a negative influence on the relation between teleworking and productivity† is a positive relation with a regression beta score of 0,188.Thus, for the increase of one unit distraction, the productivity will increase with 0,188. | Test result| Teleworking has a negative effect on productivity and distraction has a posit ive relation on productivity. | Non-response bias assessment (worst case analysis)| The number of missing cases is 5. The worst case analysis show that if the five respondents joined the survey, and where very different form the obtained ones, a positive effect of teleworking on productivity (2,775) and a negative effect of distraction on productivity (-0,173) could be found. Your contribution to what is known about the proposition| Our contribution to the proposition â€Å"Telework will lead to an increase in productivity† is that teleworking does not always lead a positive change in productivity such as suggested in many scientific articles. In our research a negative relation is found on productivity when teleworking. | Most important recommendation for further research| The most important recommendation is, in order to do a replication study, a longitudinal survey.The longitudinal survey enables the future researchers to measure the change in productivity that takes place at a later point in time when employees telework. In this research the measure of productivity towards teleworking is only done once. | Preface This bachelor thesis is written as part of our studies Business Administration at the Erasmus University Rotterdam. The main subject of this thesis is â€Å"Telework†. We selected this subject out of many other subjects because we wanted to write our thesis about a topical subject and teleworking has become a major hype in the last few years.Many businesses implement teleworking in their company for various reasons. So, is assumed that teleworking will lead to cost reduction, more productive employees and more satisfied employees. But, the main question is does telework provide all these benefits? In this thesis we will look at the effect of teleworking on the productivity of employees. Abstract The relation between teleworking and productivity is of critical concern for organizations that might be planning to implement teleworking o f for those who have already done.In this research the relation between teleworking and productivity is examined, controlling for age, gender and family status. The effect of distraction on the productivity of employees was also measured. A survey among 17 teleworkers at TNT express was conducted online to gather data. In result of different multiple regression analysis’, a negative impact of teleworking on productivity was discovered. Furthermore, a slight positive impact of distraction on productivity was found. The results look paradoxical, but there are several reasons to explain these results and shed a new light on the telework-productivity research.Introduction In the last few years there has been an increasing demand for flexible work and flexible organizations. The concept of teleworking offers a solution to this increasing demand. At this moment 20 to 30 million people in the U. S. currently work from home at least one day a week (Telework Research Network, 2011). I n the literature several definitions of telework are used. The most common definition of telework defines telework as work performed at home, a satellite office or other places than the office itself, to reduce commuting (Shin, 2000).There are several motives companies could have to adopt the concept of telework. Obvious motives are cost reduction and increased productivity. Additional benefits for teleworking employees are increased job satisfaction and a better work-life balance (Harpaz, 2002). In this thesis a proposition, regarding telework and productivity, will be tested. The proposition that will be tested is: â€Å"Telework will lead to an increase in productivity†. In general this means that this research measures if employees have a higher productivity if they telework, and thus have the opportunity to work besides the office, than if they are office-bound.The increase in productivity is often measured due the comparison of output produced by a given amount of input , often office hours. If the employee, who teleworks, uses exact the same time as an office-bound employee for a job, while delivering a greater amount of work, an increase in productivity due telework can be concluded. The first who formulated the concept of telework in 1973 was Jack M. Nilles from the University of Southern California, Los Angeles. He defined Teleworking as â€Å"any form of substitution of information technologies for work-related travel† (Madsen, 2003).The one clear motive for the expansion of teleworking, mentioned by Nilles, was the reduction of transportation congestion, particularly in overcrowded urban areas. Although these public benefits were not sufficient enough to implement teleworking. Economic benefits like cost reductions, space savings and reduced rental rates for office space ensured that companies were more likely to introduce the concept of teleworking. According to Nilles productivity will increase as a result of working harder and worki ng more hours per day, because of less distraction, interruptions and stress (Nillis, 1988).After Nilles formulated the proposition that telework increases productivity for the first time, it has often been examined. Some articles stated that telework increased productivity. For example at AT&T, a telecommunication company, telework increased productivity with almost 10 percent, according to AT&T's annual telework survey among 1,500 employees. Another example of increased productivity is IBM where 87 percent of the employees report that they believe that their productivity have increased significantly (Apgar, 1998).In fact several articles stated that the productivity of employees is higher when they work at home. Only one research shown a decrease in productivity. However this decrease was later followed by an increase of productivity (Bailey, 2002). Despite several articles have examined the relation between telework and productivity, it is dificult to measure productivity. Like m entioned earlier, productivity is based on the relation between input and output. There have been problems when measuring the productivity of today’s knowledge workers. First of all, most knowledge workers do not produce â€Å"units† per given period (e. . per hour, day or month). Because output is often measured in â€Å"units†, the productivity of knowledge workers is hard to measure. Secondly, there is not a direct correlation between units of labor and units of output for these knowledge workers. Extra input from one additional worker does not necessary lead to more output. The classic definition does not enable to measure knowledge workers’ productivity, certainly not when measuring besides the office (Gordon, 1997). In the research on the relation between telework and productivitity a number of methodological weaknesses have been discovered.Most studies use self-report suverys to collect data from teleworkers. These self-report surveys can result in false responses from teleworkers in their productivity evaluations. This so called self-response bias has not been taken into account in many productivity research. Data collection from both, teleworker and manager will be a better way to measure productivity. Next to that sample populations are selected under specific personality and task criterea, which could be related to a higher work motivation and therefore contributes to increased productivity.Another explanation for increased productivity could be the relegation of other tasks to office-bound employees. Higher productivity can also be explained by the increase in working hours, due less commuting (Shin, 2000). Due the difficulties of measuring productivity some articles falsly claim the fact that telework increase productivity. Like mentioned earlier, productivity measurement for knowledge workers has been a dilemma. In measuring input and output the term â€Å"productivity† is inadequate for knowledge workers.Theref ore this research measures â€Å"productivity† not only due the quantity of work, but due several concepts. The concepts used in this research to measure productivity are: quantity, quality, timeliness and multiple priorities. The questions how much can be done (quantity), how well it is done (quality), when it is done (timeliness) and how many things can be done at once (multiple priorities) are being covered. Using multiple concepts enables to put the quantity factor in the context of a bigger picture and not just simply focus on an increase in output (Gordon, 1997).As stated earlier, there are several definitions for teleworking. Most definitions focus on the fact that employees have the possibility to work everywhere and not as much on the fact that employees can work whenever they want. In this research the most common definition of Shin, Sheng and Higa will be used. Shin et al. defines telework as work performed at home, a satellite office or other places than the offic e itself, to reduce commuting (Shin, 2000). Figure 1 Causality Model The causality model of this thesis, shown in figure 1, consist of two concepts: teleworking and productivity.The independent concept in the causality model is teleworking and the dependent concept is productivity. The focal unit of this research theory is the entity of which the range of values of one or more variable attributes is explained by the theory (Hak, 2011). The focal unit consists of employees who perform their work at other places than at the office itself, for at least one day a week. The minimum number of days teleworkers work besides the office is chosen because several instances use this minimum, like the Telework Research Network.The national average number of days a teleworker works besides the office is 2,4 days a week (Telework Research Network, 2011). The productivity of teleworkers is measured due the comparison of their productivity when working besides the office and when working at the offi ce. There is not chosen for the comparison of the productivity of teleworkers and office bound employees, because this is not valid. The variation in productivity between teleworkers and office-bound employees should not necessarily come from teleworking, but can be explained by several other factors for instance by personal ifferences. The theoretical domain of this research, the universe of instances of the focal unit, consist of all employees who work at other places than at the office itself, for at least one day a week, in the Netherlands. Literature review After Nilles claimed that productivity increased as a result of teleworking in 1973, it has often been examined. In 1982 Olson researched the effect of telework on productivity. Although there were no measures of performance data, employees and managers pronounced that teleworkers are more productive than office-bound employees.The study also revealed that teleworkers are more responsible and conscientious about schedules, h ad better documentation and scheduled their time better. Employees felt that they worked more efficiently or produced higher quality work, when working at home. Few employees found the office very distracting and therefore could be more productive at home (Olson, 1982). This results are consistent with Olson’s later longitudinal study of three pilot teleworking programs, which revealed that teleworkers believed that their performance was enhanced due teleworking (Olson, 1989).In 1989 Bailyn also researched the effect of telework on productivity among 89 system developers, including 49 teleworkers. More than a quarter of the software developers reported that their most productive work times fell out of the traditional office days. Bailyn assigned this productivity increase to the fact that teleworkers have individual control over time and the ability to allocate work over all time periods, including the weekends. The survey also indicated that employees needed quiet and privac y to be productive (Bailyn, 1989).Bailyn also noted that only tasks that do not require extensive interaction will benefit from teleworking (Bailyn, 1988). One year later Newman stated that teleworking is ideally for those whose jobs require them to handle a flow of information, like programmers, engineers, speechwriters and business analysts. The personality of the teleworker must include being capable of handling autonomy. According to Newman, experienced workers make the best candidates for teleworking. Similar to Olson, Newman stated that the work-at-home programs often result in increased output from staff, naming eing less distracted meant being more productive. In Newman’s study at the Travelers Insurance Company productivity increased with 20 percent. Despite of the increased productivity, limiting the geographic boundaries of the company’s hiring pool due offering work-at-home arrangements to employees was the prime reason for teleworking (Newman, 1989). In Du brin’s research the reasons for teleworking were to solve staffing, space, and other business problems including keeping motivated employees away from the distractions of other workers (McKee, 1988).According to Dubrin an implicit assumption about teleworking programs is that employees who work at home will be equally more productive that office-bound employees. Dubrin’s observation of company records suggests that home workers increased their productivity from 5 to 100 percent (Dubrin, 1991). Dubrin tested the hypothesis â€Å" telecommuters are more productive than are employees performing comparable work on company premises† among employees of the NPD Group. The participants in this research were mainly women.The fact that only women are represented in Dublin’s studies makes it difficult to separate findings between males and females. The degree of distraction was measured due different statements in the questionnaires. The questionnaire items ‘B eing able to keep busy all the time’ show that telework has a positive influence on the productivity. The work-at-home group scored significantly higher (13. 81) than the group in-house workers (6. 36) at the t-value of 4. 20. The research found that productivity was increased by 30% when projects were moved from company premises to homes.The productivity was measured in transactions per hour, occurred when a project was shifted from in-house to at-home. The results are consistent with findings of Newman. In Dubrin’s research the productivity findings showed that people who worked at home part-time are more productive than those who worked at home full-time. It is concluded that productivity increases when work is structured, repetitive and measurable. In order to conclude evidence that telecommuting increases productivity, it is necessary to move in-house workers into their homes and then measure the productivity changing (Dubrin, 1991).Accoring to Frolick, Wilkes, Ur wiler productivity is expected to increase when teleworkers work according to a flexible schedule in an informal setting. The question whether telecommuters are more productive than office-bound employees was researched in a semi-structured telephone interview among 45 individuals in 10 organizations. The average time that each of the interviewees had spent in the telework programs was 2,3 years. The results of the interviews revealed that every teleworker and every telework manager reported that productivity had increased as a result of their telecommuting programs.In each case the respondents stated that teleworker productivity was higher than the productivity of office-bound employees. The average increase of productivity was approximately 20 percent. This result is consistent with other researches like Niles 1990 (Frolick, 1993). Frolick et al. attributed this productivity increase to lack of interruption and the ability of the teleworker to schedule his or her work in a flexibl e manner. In this study all the teleworkers cited ‘fewer interruptions’ as a contributing factor to their productivity and 17 of them cited ‘greater flexibility’ in performing their jobs (Frolick, 1993).Hartman, Stoner and Arora noticed two fundamental problems in the previous study, namely an extraordinary small sample size and maintaining a broad, non restrictive definition of telecommuting that leads to clouded outcomes and conclusions. In their study telecommuters were selected from 11 different organizations, both public and private, including telecommunications, insurance, banking, publishing, and city an state governmental units. The research was done due a self-report survey among 262 telecommuters.Telecommuting productivity was measured by the respondent’s feeling about how the output per hour was changed, working at the office versus working at home. An overwhelming 84 % reported that productivity was increase while working at home, 12 % re ported no change and just 4% reported a lower productivity. Hartman recognized that the self-reported perceptions of comparative productivity might be biased, but the outcomes were consistent with the productivity increase in other studies (Hamilton, 1987)(Moody, 1986). Neufeld and Fang focused on the influence of distraction, gender and family status on teleworker’s productivity.Their research assumed that gender and family status (defined as social factors) are negatively correlated with teleworker productivity. When working at home, the family status is important because family is often around. Therefore they may have a large effect on the teleworkers, and their productivity. The results of the study are obtained by semi-structured interview. For measuring the social factors, direct questions are used (such as do you have children at home? ). For measuring distraction, questions are used like; is your environment distraction free?The results showed that teleworker producti vity is not associated with family status and gender, but on the other hand, a distraction free environment was associated with teleworker productivity (Neufeld, 2005). Another study of Derrick J. Neufeld, which examined productivity among four different kinds of organizations, showed that claims of a higher productivity correlated to teleworking are overblown. In this study, productivity is measured among 200 Canadian employees, and the results show that the increase in productivity is statistically insignificant.Cynics predicted that distractions from working at home will reduce productivity. But despite these distractions, productivity is not reduced, but slightly increased. This study of Neufeld shows that teleworking is significantly more correlated with organizational flexibility than with productivity (Cassiani, 2000). Kelley Butler also looked at the relation between distraction and teleworker productivity. Butler stated that the top 6 distractions, while working at home, ar e household chores, television, pets, errands, internet and children.The data was collected from a CareerBuilder survey. Some of the teleworkers (17%) was so distracted by these factors, that the distraction costs one hour of their working hours (Butler, 2011). Thompson, Vivien and Lim examined the differences in gender on the perception of teleworking. Their data was collected from a questionnaire survey among IT professionals in Singapore. Results showed that males perceived that teleworking improved the quality of life and their productivity in a greater extent than females.Also, in this research productivity increases while teleworking, because an employee can plan the work schedule during the hours when one is most productive. But on the other hand, the study also shows that distractions at home may be harder to solve than distractions at the office. An analysis of the covariance was used to measure the difference between gender, and the relation to the advantages and disadvant ages of teleworking. The results show that there is no significant difference in gender (Thompson, 1998). Author| Literature effect found|Olson, 1983| Preliminary evidence from the exploratory study shows that individuals can be as or more productive when working at home| Olson, 1988| Telecommuting experts and practitioners regularly cite at-home productivity gains ranging from 15-25%| Newman, 1989| Work-at-home programs often result in increased output from staff| Newman, 1989| The Travelers Insurance Company productivity increased with 20 percent among 80 commuting staff| Di Martino, 1990| A two-year pilot project (†¦ ) reported productivity gains averaging 43 per cent per participant.Teleworkers (†¦) noted productivity increases varying from 12 per cent to 20 per cent. State employees working at home have been rated (†¦) as 3 to 5 per cent more effective than they would have been if they worked from nine to five in the office. | Dubrin, 1991| Productivity was incre ased by 30% when projects were moved from company premises to homes| Dubrin, 1991| Observation of company records suggests that home workers increased their productivity from 5 to 100 per cent| Hartman, 1991| A significant negative correlation between the ratio of telecommuting hours to total work hours and telecommuting productivity was revealed. Hartman, 1991| The full-time employed telecommuters reported higher levels of productivity (3. 59) in comparison with part-time employed telecommuters (2. 65). | Hartman, 1992| Telecommuters were asked whether they felt their productivity (output per hour) at home was higher or lower than at the office. An overwhelming percentage (84%) reported higher productivity while working at home, only 4 % of the telecommuters reported lower productivity, and 12 % reported no change. Frolick, 1993| The findings indicate a significant increase in productivity (20%) among teleworkers| Apgar, 1998| 87 per cent of employees (†¦) report that they bel ieve their productivity and effectiveness have increased significantly| Baruch, 2000| How teleworking influences the way people work after opting to telework were examined (†¦).Compared with previous arrangements of work effectiveness 34 per cent and 42 per cent felt it was much better or better (respectively), totaling a positive impact for 76 per cent, with just 5 per cent suggesting no difference and 3 per cent worse. | Pearlson, 2001| A survey in 2001 of 150 executives in large U. S. companies found that 36 percent saw no difference in productivity levels between telecommuters and onsite employees, while 26 percent felt that telecommuting could compromise job performance| Table 1 Reported effect sized of the effect of Teleworking on ProductivityAuthor| Effect| Olson, 1983| Some of the individuals interviewed cited problems with motivation and numerous distractions at home that made concentration difficult| Newman, 1989| Work-at-home programs often result in increased output from staff, naming being less distracted meant being more productive| Hartman, 1991| Family disruptions and their association with telecommuting productivity and satisfaction, the correlation with productivity is -. 20 (p = . 06). Frolick, 1993| Most claims of productivity to date have been attributed to a lack of interruption and the ability of the teleworker to schedule his or her work in a flexible manner. | Baruch, 2000| Better performance was attributed mostly to the elimination of distractions, which are typical at the workplace and subsequently the ability to focus on work. | Young Lee, 2005| The results indicated no significant effect of perceived distractions on perceived performance| Wilson, 2004| Could be more productive without such ‘distractions’. Fonner, 2010| Results show that working remotely the majority of the time alleviates forms of stress and distraction including acting as a buffer from workplace injustice which may provide a more productive and s atisfying work environment| Table 2 Reported effect sized of the effect of Distraction on Productivity Methods The research strategy is to test the proposition that assumed that teleworking will lead to an increase of productivity. The replication history research has indicated that this theory has empirically been confirmed for various populations.If the proposition is true in the domain, then it must be true for the population in the domain. In order to claim whether a proposition is true, empirical evidence is required to show its correctness. This research deduces a hypotheses regarding teleworking, distraction and increasing productivity by an empirical research. Ideally a causal relationship between teleworking, distraction and productivity is measured in a longitudinal survey. The longitudinal survey is defined as a research strategy in which a change in value of the relevant concepts is observed in all members (or in samples) of a population of instances of a focal unit.In a longitudinal survey it is possible to find a population of comparable cases in the theoretical domain in which the value of teleworking (named here as variable X) has changed over time. A causal relation â€Å"X influences Y† (variable Y is employees’ productivity) is observed in the cases, if the value of Y has changed after the change of value X. Considering the research time (two months) and the context of this research (a bachelor thesis), this research uses a cross-sectional design to measure the relationship between teleworking, distraction and employees’ productivity.A scatter plot is a useful tool to show a possible correctness of the proposition. The cross-sectional design enables to concentrate on variations of cases within one particular population. In this research the population is a department within an organisation. The population consists of all executive employees of the department Process ; Policies of TNT Express Benelux in Houten, the Nether lands. The number of employees/cases is 22. #| Name employee:| | | | | 1| Bert Schut | 14| Koos Jansen | 2| Corne Vroegh | 15| Marielle Sitskoorn | | David Roofthoofd | 16| Marina Elegeert | 4| Erik van Duin| 17| Martijn Otte | 5| Geug Leendertse | 18| Maurice Hidma | 6| Guy Gevaers | 19| Mette Kok| 7| Harrie Dasselaar| 20| Michiel Bierman| 8| Henk Jansen | 21| Tessa Koster | 9| Jack Beks| 22| Thomas Goossens | 10| Jan Harmen Hietbrink| 11| Jef Kleinschmidt | 12| John Meisters| 13| John van Oeffel | Figure 2 Employees of the Process ; Policies department at TNT express In the cross-sectional research, qualitative and quantitative data of respondents is collected more or less simultaneously.The self-report survey will be sent out to all cases at the same moment and held during the same time of period. The independent variable (teleworking) is a quantitative variable measured in percentages. The other independent variable (distraction) is a qualitative variable, measured in likert sch ales with categories like: never, sometimes, regularly, often and always. Productivity is a qualitative variable. The controlling variables are gender, age and family status. Gender is divided into male and female (0=male and 1= female).Family status is measured in four different values, namely single, single with children, married or co-habiting, and married or co-habiting with children. The conceptual model of this research can be found in Figure 3. To test the five different hypothesis based on the conceptual model, a multiple regression analysis will be used. Figure 3 Conceptual Model The hypothesis concentrates on the relation between teleworking and the productivity. Assumed is that teleworking lead to an increase in productivity. This means that employees can do more work, do their work better, schedule their own work and do multiple things at once.The hypothesis is formulated as following: There is a positive relation between teleworking and productivity if the ? is ? 0,20. In the conceptual model age, gender, family status are taken into account as controlling variables. Gender could have an influence on productivity. Women, for example, are better in multitasking and could therefore have a higher score on â€Å"multiple priorities†, which influences the productivity. Family status could have an impact on distraction, therefore it is also used as controlling variable. This also accounts for age. The assumption is that lder employees are less productive compared to younger employees, which are more involved with technology. Two different regression analyses’ with different variables are plotted. * The variables teleworking / gender / distraction / age / family status in relation to productivity. (nain regression) * The variables teleworking / distraction in relation to productivity The main regression model is shown below: Productivity = ? + ? 1 Teleworking + ? 2 Gender + ? 3 Family status + ? 4 Age + ? 5 Distraction + ? ? ~ iin( 0, ? )Th e regression analysis will show which variable will have the highest influence on the dependent variable productivity, corrected for the influences of the other variables. The expectation is therefore that the beta of teleworking will be the highest in the model. Results The data in this research is collected due a self-report survey among employees of the Process ; Policies department of TNT Express Benelux. The self-report survey was conducted online on the Belgian website of â€Å"enquetemaken. be†. A textual version of this survey can be found in appendix 2.A link to this survey was send to the 22 employees of the department by mail. This research chose for an anonymous survey in order to ensure that respondents could be honest about their answers. This would secure the reliability of this survey. Besides that the interview was conducted in Dutch because all employees at TNT are Dutch. The employees filled in questions concerning telework and productivity. Several non-rel ated questions, concerning job satisfaction and work-life balance, were added in order to cover the real purpose of the research.In order to guarantee the reliability and validity of this research, the questions of the survey are based on questions used in other research. The productivity measurement is divided into four determents that are each tested individually. These four determents are quantity, quality, timeliness and multiple priorities (Gordon, 1997). Lee and Brand used questions like â€Å"Compared to my typical work right now, I would rate the quality of my work as† and â€Å"Compared to my typical performance right now, I would rate my job performance as† are being used.In the survey of this research four questions are used in order to measure work productivity. The exact questions can be found in the appendix. The questions in the survey concerning distraction, were like â€Å"How frequently are you unable to concentrate because of interruptions from your family? †. These questions were extended to other factors, like distractions from colleagues, phone calls/e-mails/texts, sounds and other factors (Neufeld, 2005). According to Young Lee ; J. L. Brand, is noise one of the main distractions (Lee et all, 2010). Therefore, we devoted one question on noise.Also, the question ‘I am easily distracted from my work’ is used in their research, which we decided to put in our own survey. In the article ‘from knowledge to distraction’, written by Jonathan Spira in 2007, is stated that knowledge workers are often distracted by e-mails, phonecalls, instant messages etc. For this reason, there is decided to investigate the amount of distractions by these influences in the survey. In this article, also is stated that ‘colleagues popping in’ might be a factor of distraction. This factor is also added to the survey.The last question regarding distraction, is about ‘other distractions’. This is to make sure that there are not any parts of distraction missed. The non-response bias of this survey was 22,7 percent. Five employees did not fill in the survey because they were not available in the two weeks the survey was online. If the non-response bias is very high it can effect the representativeness for the population. A data grid of the results of this survey can be found in table 4. A detailed calculation of the degree of productivity and distraction can be found in appendix 3.Total Work hours| Telework hours| Degree of distraction (1=low, 5=high)| Degree of Productivity (1=low, 5= high)| Gender (1=male, 0=female)| Age| Family status * | 40| 20| 3. 2| 4| 1| 58| 3| 50| 33| 3. 4| 3. 75| 1| 40| 1| 50| 30| 2. 4| 3. 5| 1| 53| 3| 42| 7| 2. 4| 3. 75| 1| 54| 3| 40| 5| 2. 4| 4. 5| 1| 48| 4| 50| 25| 2. 2| 4| 1| 44| 4| 40| 15| 2. 2| 3. 75| 0| 40| 4| 40| 25| 2| 3. 75| 1| 28| 3| 40| 32| 2. 4| 3. 5| 0| 32| 3| 40| 8| 3. 2| 4| 1| 42| 3| 45| 8| 2. 4| 4| 0| 32| 3| 40| 2| 2. 4| 3| 1| 32| 1| 45| 8| 2. 4| 3. 75| 1| 51| 4| 60| 36| 2. 6| 4| 1| 31| 3| 45| 8| 2. 6| 3. 5| 1| 36| 4| 45| 35| 3. 8| 4| 1| 38| 4| 50| 5| 2. | 4. 75| 1| 40| 3| 44. 82353| 17. 76471| 2. 623529| 3. 852941| -| 41. 11765| -| *= (1= single, 2=single with children, 3=married or co-habiting, 4= married or co-habiting with children)| Table 3 Data Grid of the survey at TNT Express The expected pattern Hypothesis 1: Teleworking will lead to more productivity The expected pattern for the first hypothesis â€Å"teleworking will lead to more productivity† is a regression of 0. 20, meaning that an increase of an hour teleworking will lead to an increase of 0. 20 in an amount of productivity. In the literature review several articles reported that teleworking increase productivity.However, there are also articles that claim a negative effect of teleworking on productivity. A summary of the reported effect sizes can be found in table 1 in the literature review section. The effect sizes of the relation betwee n teleworking and productivity, found in the literature, vary from a negative relation to a positive relation. The majority of effects are positive, which means that productivity was increased due to teleworking. Although the majority of effects were positive, the claimed productivity increase ranges from 5 % to 20 %, up to 100 %.There is one article by Hartman (1991) that claims a negative correlation between telecommuting and telecommuting productivity. Derived from the literature review the expected pattern, in which the hypothesis is true, is a regression coefficient of 0. 20 or more. This means that if the degree of teleworking increases with one hour, the productivity will increase with 0,20. The hypothesis 2: Distraction has a negative influence on productivity The second hypothesis is aimed at the independent variable distraction on the dependent variable productivity.The correlation is expected to be -0. 20, meaning that an increase of one unit distraction will have a decre ase of 0. 20 in the amount of productivity. In the literature several effects of distraction on productivity are found. A summary of the reporter effects can be found in table 2 in the literature review section. The effects found in the literature review suggest that distraction has a negative influence on productivity. The effects vary from no significant effect on performance to being more productive when distraction is eliminated.The expected effect of distraction on productivity is expected to be negative in this research. The correlation is expected to be -0. 20, meaning that an increase of one unit distraction will have a decrease of 0. 20 in the amount of productivity. The observed pattern Hypothesis 1: Teleworking will lead to more productivity The results of the main multiple regression analysis show that 26 per cent of the variance is declared by the model. The correlation between the observed and expected values of dependent variable is 0,509. In appendix 4 the SPSS outpu t of this research is shown.Surprisingly, the degree of teleworking has a negative influence on productivity. This can be interpreted by the beta of the quantity of teleworking, which is -1,311. This means that if the degree of teleworking increases with one hour, the productivity will decrease with 1,311. The hypothesis 2: Distraction has a negative influence on productivity Another surprising output is the influence of distraction on productivity, which has a beta of 0,188, where a negative beta is expected. Thus, for the increase of one unit distraction, the productivity will increase with 0,188.A partial regression analysis, without the controlling variables gender, age and family status, shows that there is a slight difference in the variance declared by the model and the correlation between the observed and expected values of the dependent variable. These figures fall to 0,259 and 0,067. The betas of the degree of teleworking and distraction fall to -1,287 and 0,148. For this reason, the controlling variables will be added to the other regression analyses. There are several ways to explain the surprising betas of teleworking and distraction.First of all, the results are based on the answers of only 17 respondents. In the partial regression plot (with the variables distraction and productivity) is clear that because of a few amount of outliners, the R2 linear is climbing a little. Without these outliers, there is a large possibility that the distraction beta will be negative, which was expected. Another explanation is that the employees of TNT express do not relate distraction to their productivity. They tend to give themselves a high overall score on productivity, regardless of the degree of distraction and teleworking.Another possibility is that the amount of distraction actually does not influence the productivity. Figure 4: The relation between distraction and productivity Because of the little number of respondents, the few outliers pull the mean of the productivity up. These respondents have a small quantity of teleworking, but tend to give themselves high scores on productivity. Therefore, the linear line of the quantity of teleworking is declining, where it would have been rising without these three outliners. This can be an explanation for the negative effect of teleworking on productivity.But on the other hand, it might be possible that the teleworking does have a negative effect on productivity. In a worst-case analysis, the five missing respondents could dramatically influence the results of the regression analysis. This would be, if the respondents all would score low on productivity and on high distraction (or vice versa), or if degree of teleworking among the employees is high and their productivity is high too (or vice versa). Figure 5: The relation between teleworking and productivityThe worst-case analysis of the effect of telework on productivity shows that, when the five missing respondents would have been very d ifferent from the ones obtained, there is a positive effect (2,775) of telework on productivity. This positive effect is shown in figure 6. This in contrast with the results of this research, without the missing five respondents, where a negative effect was discovered. If the five missing respondents participated in this research and were very different from the ones obtained they could have a drastic impact of the results of this research.The expected positive effect of telework on productivity could be discovered in this scenario. Figure 6: Worst-case analysis of the effect of telework on productivity The worst-case analysis of the effect of distraction on productivity shows that, when the five missing respondents would be very different from the ones obtained, there is a negative effect (-0,173) of distraction on productivity. The worst-case analysis is shown in figure 7. This negative effect corresponds to the expected effect of distraction on productivity, but not to the observ ed effect in this research.This means that if the five missing respondents participated in this research, the outcomes of this research could be dramatically different and the expected negative effect of distraction on productivity could be measured. Figure 7: Worst-case analysis of the effect of distraction on productivity Overall can be concluded that if the five missing respondents participated in this survey they could have changed the outcomes of this research dramatically. The expected effects of this research could be found when adding the five missing respondents.Discussion The test results found in the multiple regression analysis? , claim roughly that TNT express should increase the distraction among employees, and decrease the degree of teleworking. But, as shown in the results chapter, the results only show a slight negative relation. Which can be easily influenced by the missing data, as shown in the worst case scenario analysis?. Therefore, the results should be interp reted as if distraction does not have a high influence on the productivity of employees.There is not a valid relationship in the test results showing that distraction has a positive influence on productivity, because of the very low negative beta (as a result of the regression analysis’) and the possible influence of the missing values on the test results. The relationship between teleworking and productivity did show a large coherency. This large coherency was interpreted as if teleworking is not productive for TNT express. Thus, in this research, distraction is recommended and teleworking is discouraged.But it is recommended to keep in mind that the worst case scenario analysis’ (showing the missing values can turn around findings as much as possible) presume a positive influence of teleworking on productivity, and a negative influence of distraction on productivity. For further investigation it will be recommended to use more respondents, as much as possible. When m ore respondents are used, the results will be less influenced by outliers. A very low response bias is also recommended, so that a worst case analysis’ are not necessary and therefore will not show complete opposite results compared to the research.In this research, the response bias was 28 per cent. Another recommendation would be to make a connection between distraction and productivity for the respondents themselves. In this research, the respondents did not link distractions to their productivity (which can explain the divergent relation between distraction and productivity). When questions are formulated with the factors of distraction and productivity in one sentence, the link is automatically made for the respondents. Theorems for example like ‘when I am distracted by phonecalls, I feel like I can do less work’.Besides that all respondents report that they were very productive, even if they suffered from a lot of distraction. A solution for this self-respo nse bias, that often occurs in self-report surveys, is to involve the opinion of the manager of the respondents in the research as well. Because of time constraints this was not possible in this research, but it will be a good way to eliminate the self-response bias in future research. In previous research, many positive effects of teleworking on productivity were found. This research contradicts this and reveals a negative effect.Although the worst case analysis showed that there could be a positive effect, when the five missing respondents were very different from the ones obtained, the observed negative effect could also be an indication that there really is a negative relation between teleworking and productivity. In 1991 Hartman also claimed a negative correlation between teleworking and productivity. Because the research of Hartman also reported this negative effect, it could be true that teleworking has a negative impact on productivity.This would generate a new insight into the telework-productivity research, in which was assumed that teleworking increased productivity. In contradiction to earlier research on the effect of distraction on productivity, this research shows a slightly positive effect of distraction on productivity. The fact that more distraction leads to more productive employees seems contradictory, but interruptions are not necessarily bad. Little interruptions, for example, could provide a fresh new insight into someone’s work.Therefore the observed positive effect could be real and is interesting to further investigation. Because the observed effect is slightly positive and in the worst case analysis slightly negative, it could also be an indication that distraction has no effect on productivity. This is supported by the research of Lee and Brand, which indicated that there was no significant effect of perceived distractions on perceived performance. This finding could also contribute to the research on the effect of distractio n of productivity.In conclusion the findings of this research do not fully correspond to the main findings in the literature. This is actually very interesting because a new insight in the research on teleworking and productivity is generated. It can be questioned if the main findings in the literature are true. Maybe teleworking is not good for the productivity of employees and distractions are not as bad as everybody’s thinking. In order to do a replication research towards the effect of teleworking on productivity in the future a replication strategy is useful.The preferred replication strategy for the future is a longitudinal survey. The longitudinal survey enables the future researchers to measure the change in productivity that takes place at a later point in time when employees telework. In the longitudinal survey all members of a focal unit can be observed over time. Additional theoretical insight is advised in order to determine how much time should elapse between th e change in value of productivity and the subsequent change in the value of teleworking. * Appendix Appendix 1: Several definitions of Telework and/or Productivity | Author(s)| Definition of telework| Definitions of productivity| 1| Newman (1989)| Working home with the aid of computers, modems and facsimile machines. | | 2| Dubrin (1991) | Performing job-related work at a site away from the company, then electronically transferring the output to another location| | 3| Frolick, Wilkes, Urwiler (1993)| | The number of tasks effectively completed in a given timeframe| 4| Hartman, Stoner and Arora (1992) | Work arrangement where organizational employees regularly work at home or at a remote site one or more complete workdays a week instead of working in the office. Telework managers reported using ‘deadlines’ or ‘agreed upon deadlines’, and ‘on-time work and quality’ to manage and measure teleworker productivity. | 5| Nilles (1975)| Telework is any form of substitution of information technologies for work-related travel| | 6| Mokhtarian (1991)| Telework is defined as the use of telecommunications technology to partially or completely replace the commute to and from work. | | 7| Sing, Sheng, Higa (2000)| Telecommuting is the reduction of commuting distance by working home, in nontraditional satellite offices, in telecottages, or in neighborhood offices. | * Appendix 2: Self-report survey at TNT express. Onderzoek Het Nieuwe Werken bij TNT express. Voor onze bachelor thesis, onderdeel van de studie bedrijfskunde, doen wij onderzoek naar Het Nieuwe Werken bij TNT Express. Dit onderzoek is onderdeel van ons afstuderen aan de Erasmus Universiteit te Rotterdam. Voor ons onderzoek willen we graag uw medewerking vragen door middel van het invullen van een vragenlijst. Het invullen van de vragenlijst zal ongeveer 5 minuten duren. Deze vragenlijst is geheel anoniem. Alvast bedankt, Robin Kettenes, Boudewijn Schuitmaker en Marlot Sep __ ________________________________________________________________________ Het Nieuwe Werken is een breed begrip voor het tijd en plaats ongebonden werken, als gevolg van het gebruik van moderne communicatie technologieen. In ons onderzoek spitsen wij ons echter alleen toe op het plaatsongebonden werken. Het plaatsongebonden werken houdt in dat u zelf kunt bepalen waar u werkt. ___________________________________________________________________________ 1) Hoeveel uur werkt u over het algemeen per week? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. uur 2) Heeft u de mogelijkheid om buiten  kantoor te werken? Ja Nee ) Hoeveel uur per week werkt u over het algemeen buiten uw kantoor ? †¦. †¦.. uur 4) Op welke plaatsen werkt u als u buiten uw vaste werkplek werkt? Thuis Onderweg Internet Cafe Elders 5) Waar vindt u het het prettigst om te werken? Op kantoor Buiten kantoor 6) Ik ben makkelijk afgeleid van mijn werk Nooit Soms Regelmatig Vaak Altijd 7) Ik word tijdens mijn werk afgeleid door geluid No oit Soms Regelmatig Vaak Altijd 8) Ik word tijdens mijn werk afgeleid door telefoontjes/e-mails/berichten etc. Nooit Soms Regelmatig Vaak Altijd 9) Ik word tijdens mijn werk afgeleid door collega’sNooit Soms Regelmatig Vaak Altijd 10) Ik word tijdens mijn werk afgeleid door andere factoren Nooit Soms Regelmatig Vaak Altijd 11) Ik zou de hoeveelheid werk dat ik kan opleveren werk beschrijven als Erg veel Erg weinig 12) Ik zou de kwaliteit van mijn werk beschrijven als: Erg goed Erg slecht 13) Ik heb mijn werk altijd op tijd af Helemaal juist Helemaal onjuist 14) Ik ben in staat meerdere taken tegelijk uit te voeren Helemaal juist Helemaal onjuist 15) Ik vind het erg fijn om op kantoor te werken Helemaal juist Helemaal onjuist 6) Ik vind het erg fijn om thuis te werken Helemaal juist Helemaal onjuist 17) Ik vind het prettig werk en prive gescheiden te houden Helemaal juist Helemaal onjuist 18) Het is makkelijk voor mij werk en prive gescheiden te houden als ik op kantoor werk H elemaal juist Helemaal onjuist 19) Kunt u een schatting geven van de verhouding tussen de tijd dat u op uw  op kantoor  werkt en de tijd dat u buiten  kantoor werkt? (Bijvoorbeeld; 40-60 / 50-50 ) †¦. / †¦. 20) Wat is u geslacht? Man Vrouw 21) Wat is u leeftijd? †¦Ã¢â‚¬ ¦.. jaar 22) Wat is u burgerlijke staat? AlleenstaandAlleenstaand met kinderen Getrouwd/samenwonend Getrouwd/samenwonend met kinderen Appendix 3: Detailed calculation of the degree of productivity and distraction Calculation: The Degree of Distraction|   |   | 3| 3| 4| 3| 3| 3. 2| 3| 4| 4| 4| 2| 3. 4| 2| 3| 3| 2| 2| 2. 4| 2| 2| 3| 3| 2| 2. 4| 2| 2| 3| 3| 2| 2. 4| 2| 2| 2| 3| 2| 2. 2| 2| 2| 3| 2| 2| 2. 2| 2| 2| 2| 2| 2| 2| 2| 2| 4| 2| 2| 2. 4| 4| 3| 3| 3| 3| 3. 2| 2| 2| 3| 2| 3| 2. 4| 3| 2| 2| 3| 2| 2. 4| 3| 2| 2| 3| 2| 2. 4| 3| 2| 3| 3| 2| 2. 6| 3| 2| 3| 2| 3| 2. 6| 4| 4| 3| 4| 4| 3. 8| 3| 2| 4| 2| 2| 2. 6| 2. 647059| 2. 11765| 3| 2. 705882| 2. 352941| 2. 623529| Calculation: The Degree of Pr oductivity|   | 4| 4| 3| 5| 4| 4| 5| 2| 4| 3. 75| 4| 4| 2| 4| 3. 5| 5| 4| 2| 4| 3. 75| 4| 4| 5| 5| 4. 5| 4| 4| 3| 5| 4| 3| 4| 4| 4| 3. 75| 4| 4| 3| 4| 3. 75| 4| 4| 2| 4| 3. 5| 4| 4| 4| 4| 4| 4| 4| 4| 4| 4| 3| 3| 3| 3| 3| 4| 4| 3| 4| 3. 75| 4| 4| 4| 4| 4| 4| 4| 3| 3| 3. 5| 4| 4| 4| 4| 4| 4| 5| 5| 5| 4. 75| 3. 941176| 4. 058824| 3. 294118| 4. 117647| 3. 852941| * Appendix 4: The SPSS Ouput Model Summaryb| Model| R| R Square| Adjusted R Square| Std. Error of the Estimate| 1| . 509a| . 259| -. 078| 1. 64400| a.Predictors: (Constant), SumDistr, Leeftijd, Status, MateTelewerk, Geslacht| b. Dependent Variable: SumProductiviteit| Coefficientsa| Model| Unstandardized Coefficients| Standardized Coefficients| t| Sig. | | B| Std. Error| Beta| | | 1| (Constant)| 10. 929| 3. 105| | 3. 519| . 005| | MateTelewerk| -1. 311| 1. 749| -. 212| -. 750| . 469| | Geslacht| . 288| 1. 177| . 071| . 244| . 811| | Leeftijd| -. 002| . 052| -. 013| -. 042| . 967| | Status| . 764| . 474| . 448| 1. 613| . 135| | SumDistr| . 188| . 193| . 287| . 972| . 352| a. Dependent Variable: SumProductiviteit| * BibliographyApgar, M. 1998, â€Å"The alternative workplace: changing where and how people work†, Harvard Business Review May- June, , pp. 121-136. Bailey, D. E. ; Kurland, N. B. 2002, â€Å"A review of telework research: findings, new directions, and lessons for the study of modern work†, Journal of Organizational Behavior, vol. 23, pp. 383-400. 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Levendary Cafe Case study Essay

Introduction Levendary Cafà © has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Cafà ©, Howard Leventhal managed to establish a strong market position for the Levendary Cafà © in the U.S and succeeded in creating a $10 billion business model. The Cafà © has two important elements that differentiate it from its competitors, which were offering nutritious soup, salads, and sandwiches, as well as, providing exceptional service for their guests in a genuine, and friendly manner. The company’s philosophy is satisfying customers’ needs by trying to make an impact on their life and look for the long run profit as encouraged by founder, Howard Leventhal to his staff. After 32 years of experience operating in the U.S domestic market and after a slowdown in the company’s domestic growth, the company considered expending its operation internat ionally, more precisely in China, a promising market that had shown  a strong annual GDP growth of 14.5% in previous years, as well as, the arisen number of middle class income. The responsibility of overseeing the China operation was given to Louis Chen, a Stanford MBA graduate, after a two-year contract agreement between Leventhal and Chen in September 2009. A year and six months into the two-year term contract, Mia Foster was named the new CEO of the Levendary Cafà © in February 2011. The public press viewed the new CEO as being inexperienced in the international market in addition to some doubt about Foster’s ability to build a multi-national brand. Louis Chen opened the first store in Shanghai in, January 2010; the first location was in a high traffic business area. Within a year Louis Chen was able to allocate 22 additional locations for the Levendary Cafà ©, due to his strong knowledge of the country’s geography and his ability to speak both English and Mandarin Chinese. However, after a review of China’s operation by the new CEO, Foster was not happy with the way the operation was managed in China, she noticed that the accounting report was not formatted in accordance with U.S. Generally Accepted Accounting Principles (GAAP). This was the turning point in the relationship between Foster and Chen, who had not met face to face. The new CEO decided to look more closely into the China operation and planned a trip to China to meet with Chen for the first time. Identification of Main Issue The case presented a number of main issues that Levendary Cafà © faced during the expansion into the Chinese market. From the case the main issue was identified as: the Levendary brand image is not consistent in the United States and China because there is a lack of communication between the parent company and subsidiary. The contributing factors to this were the management styles, the lack of standardization, the cultural differences and the limited experience in the foreign market. These issues have been detailed below. Management style The Chinese operation lacks close mentoring and evaluation by former CEO Leventhal, who gave too much freedom to Chen with a very hand off management style. â€Å"Do right by the concept† was the expression that Chen had as a guideline for how to strategize for the China operations. As a result, Chen  was providing little information to Denver headquarter about how the operation is managed in China, which differs from Foster’s management style who appears to be more demanding than the former CEO. There was no clear strategic plan for the operation in China, when Chen was asked about a plan he mentioned that he had no plan. Standardization Foster is more process driven and valued standardization, she believed that the China operation should align with Levendary Cafà © standards in the U.S in terms of reports, and look and feel of the Cafà ©. However, Chen had a different approach where he was trying to open as many stores as he could in a short period of time, paying little attention to the U.S standardized business model. The issue of standardization clearly was another challenge between Denver headquarters and Chen, as he insists in pushing what he thinks is right and resist what headquarter is asking him to do. Cultural Difference Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S. Limited experience in the foreign market There was a lack of international market experience since the China market was the second market, Levendary Cafà © entered aside from a partnership in Dubai. Due to this lack of experience Leventhal trusted Chen with implementing the needed actions to grow a successful franchise in China. Leventhal entrusted Chen with this given his strong knowledge of the market in China. Leventhal did not understand that entering a foreign market would  take more than knowledge on the country; it would also take strong communication and management skills. Analysis and Evaluation Operational Analysis The operational analysis will cover the company’s internal strengths and weaknesses as well as their external opportunities and threats. The SWOT analysis will be on Levendary Cafà © U.S. operations. This report will also look at problems with standardization in the China operations. Levendary Cafà © has gained much strength over its 32 years of business (Bartlett & Han, 2013). The company has created brand recognition around the United States with its 3,500 cafà ©Ã¢â‚¬â„¢s (Bartlett & Han, 2013). There is good brand consistency across all 3,500 cafà ©Ã¢â‚¬â„¢s due to standardization of the Levendary product. Each cafà © has a similar design and atmosphere and offer the same core products. Levendary Cafà ©Ã¢â‚¬â„¢s standardization has allowed the company to franchise their product and resulted in expansion across the United States. Currently, two-thirds of the company’s cafà ©s are franchised (Bartlett & Han, 2013). Each region also offers different menu items fr om one and other, on top of the core menu items. For example, fewer soups are offered in the southern regions of the United States (Bartlett & Han, 2013). This adds to the company’s strong business culture of â€Å"delighting the customer† and creating a personalized experience for each customer (Bartlett & Han, 2013). Levendary Cafà © detailed and strict operating standards, policies and practices has allowed for tight control of store level expenses and close monitoring of operations (Bartlett & Han, 2013). The founder, Howard Leventhal, is an entrepreneur who wasn’t afraid to take risks (Bartlett & Han, 2013). His willingness to take calculated risk led to the company using organic grains in its bread and hormone-free naturally raised meats (Bartlett & Han, 2013). Levendary Cafà © became part of the growing trend of consumers wanting healthier and more natural menu options. 81% of Americans over the age of 50 have become more conscious of what they eat (Agriculture and Agri-Foods Canada, 2010). Levendary Cafà © target market is white-collar professionals and upper-middle-class women (Bartlett & Han, 2013). Their choice to shift towards healthier menu options is meeting their target markets change in tastes. A fully scaled test kitchen and food science  laboratory also allows the company to meet the changing tastes of their consumers (Bartlett & Han, 2013). The food team, which includes highly trained chefs from the Culinary Institute of America, is responsible for the test kitchen and laboratory, as well as conducting quality checks across all 3,500 cafà ©Ã¢â‚¬â„¢s (Bartlett & Han, 2013). Levendary Cafà © has a good organizational structure. Each knowledgeable and highly experienced member of the management team knows their responsibilities and who responds to them. There is a clear power structure. Finally, Levendary Cafà © has a strong training program for their retail employees called Operating Tools and Learning (OTL) (Bartlett & Han, 2013). OTL sets operating standards and provides employees with materials to enhance their learning (Bartlett & Han, 2013). All these strengths have resulted in Levendary Cafà © being a successful business in the United States. Levendary Cafà © also has internal weaknesses. The U.S. operations are beginning to slow and investors are losing confidence in Levendary Cafà © (Bartlett & Han, 2013). This is one of the reasons the company chose to expand into China. However, there is no separate international division from the Denver Headquarters and the new CEO, Mia Foster, lacks international management experience. Although Levendary Cafà © personalized touch has led to repeat business, it is also considered a weakness because it slows down the speed of service. Currently, there is a lack of brand recognition in China for Levendary Cafà ©. Finally, financial reports from China are being submitted in their own format and the U.S. operations are then â€Å"massaging† them to apply the U.S. Generally Accepted Accounting Principles (GAAP) (Bartlett & Han, 2013). These are all weaknesses for Levendary Cafà ©. Every company faces external opportunities and threats. As domestic business for Levendary Cafà © is beginning to slow, the company must look at opportunities to continue to be successful. Firstly, Levendary Cafà © is part of an emerging category in the restaurant industry called the â€Å"quick casual†. Another opportunity is to expand internationally. Other than the expansion into China, Levendary Cafà © is experimenting with a licensing deal in Dubai (Bartlett & Han, 2013). Some potential threats for Levendary Cafà © are the rising food costs and shifts in food trends. Food costs are beginning to rise due to a variety of factors such as climate change and a rise in oil prices (Oxfam Canada). A cha nge in food trends is a potential threat for any restaurant. If a restaurants’  product does not meet consumer’s tastes, then revenues will decrease. Levendary Cafà © will need to look at their external opportunities and threats. Levendary Cafà © China operations has three areas that need to be standardized: look and feel of the restaurant, menu options and accounting practices. Firstly, all 23 restaurants have a different design and atmosphere. The first location to open was similar to Levendary design standards, but the second location in Shanghai was a takeaway counter with no seating (Bartlett & Han, 2013). Denver Headquarters should understand that they cannot put the same restaurant that is in the U.S., in China. There should be extensive market research conducted on design and atmosphere that would be successful in China. Another option is to follow what Cafà © Coffee Days did in India. Cafà © Coffee Days offers three different formats of stores, ranging from a smaller grab and go coffee shop to a larger cafà © with areas to sit down. Levendary Cafà © could have different formats for restaurants; however each format would have a similar atmosphere to help standardize the brand in China. Secondly, menu options are vastly different across all 23 locations. For example, the Shanghai Koreatown offers dumplings with an average check of $2 (Bartlett & Han, 2013). The Beijing Embassy location offers sandwiches and soups with an average check of $10 (Bartlett & Han, 2013). Some menu items were offered at all locations, such as the chicken sandwich. A solution to standardize the menu is to do something similar to the U.S. operations. All locations would offer the same core menu items, but each region would have some different menu items that vary from one another. Chefs that have been trained in China and educated on different regional tastes should help create the core menu items and the different regional items. The final area that must be standardized is accounting practices. The current financial reports are being sent to the U.S. and massaged to meet U.S. GAAP (Bartlett & Han, 2013). All enterprises in China are required to use the Chinese Accounting Standards (CAS) such as the Accounting System for Business Enterprises (ASBE) (China Briefing, 2014). ASBE has similar standings to the U.S. GAAP and the International Financial Reporting Standards (China Briefing, 2014). An international financial analyst should be hired in order to deal with both China and the U.S. financial reports and audits. Financial Analysis A financial analysis of the U.S. and China operations provided information on Levendary Cafà ©Ã¢â‚¬â„¢s current financial status. The income statement for China can be seen below. In China, their food and paper cost is at 51%, which can be attributed to their high number of food options on the menu and the lack of distribution system set up. Once a core menu is created and more locations begin to open, Levendary Cafà © will be able to take advantage of economy of scale and lower food and paper cost. China also has a high occupancy cost at 24%. This could be a result of having to pay extra to get the better locations. In addition the Chinese real estate market is very high meaning that any location is very expensive. During the time of the case study the Chinese real estate was going through a â€Å"golden decade† (Ranasinghe, 2014) which can demonstrate the higher occupancy cost that the Chinese division occurred compared to the United States. The pre-opening expenses (12%) also contributed to the loss of income in the first year for China. After the first year of business, China had a loss of $143,620. China operations also have a lower marketing expense. Marketing is generally not a large expense in China because the local population listens more to radio advertisement, which are cheaper, and rely on word of mouth. Income Statement- China The financial statement of the U.S. operations, which can be seen below, shows that Levendary Cafà © generally follows industry standards. Their food and supply cost are slightly lower than industry standards. Generally, food and supply costs are about 29% of total sales, but Levendary Cafà © food and supply cost are at 24% of total sales. Occupancy costs for Levendary Cafà © are about 4% lower than industry standards. Levendary Cafà © spends more on marketing then industry standards, about 2% higher. Income Statement- United States Cultural Analysis **The above information was sourced from The Hofstede Centre Website (Hofstede Centre, 2010).** By completing a cultural analysis on the two countries, United States and  China, it was easy to determine how the key issue, being communication, came about. Geert Hofstede identified five different dimensions that demonstrate how â€Å"values in the workplace are influenced by culture† (International Business Centre, 2014). The different dimensions that Geert Hofstede identified are: Power Distance, Uncertainty Avoidance, Individualism vs. Collectivism, Masculinity vs. Femininity, and Long Term Orientation vs. Short Term Orientation. Through using these five dimensions one can evaluate how each culture approaches these dimensions and how it influences them in the workplace. The score beside each dimension determines how much value they place towards each dimension. It is interesting to note that on only one dimension, Masculinity vs. Femininity, the two countries have a comparative score. It is with these differences that communication issues between the two countries can be seen. Power Distance The Power Distance Dimension looks at the relationship that people hold with others in that country. China scores very highly on this dimension as people value their superiors and do not act outside of their ranking in society. In regards to the case study it is confounding that Chen is unobservant of his superiors power being Mia Foster. In the case Chen is continually rude to Mia and questions her authority. This can be attributed to two different factors. The first of which is that Chen was originally hired by Howard Leventhal therefore Chen believes that Mia is not his superior. Leventhal gave Chen freedom to expand the Levendary business into China with little guidance or instruction. To have a new CEO enter the business Chen will not feel the need to respect Mia, as he still believes his true superior is Leventhal. In addition Chen, while he is from the Chinese culture, had many experiences and training in the United States. Therefore it can be seen that Chen was of American culture and acted as such. The United States had a low score on the Power Distance so while Chen is with the Chinese branch of Levendary he still has the American cultural values. Uncertainty Avoidance Uncertainty Avoidance looks at the way that culture embraces uncertainty. With a low ranking in the Chinese culture it is evident that this country looks at laws as flexible. This is seen in Levendary China as the standards between all the restaurants vary and are different from the brand standards that are seen in the United States Levendary stores. In addition the difference in accounting practices can be seen. The China division was very lenient about their reporting of finance to the US Division. Individualism vs. Collectivism This dimension looks at how individuals think and act, if it is for the greater good or if it is for their own well-being. The Chinese culture looks out for the group when making decisions. This is demonstrated in the case when Chen disrespects Mia Foster. He previously considered Leventhal to be his group and when Mia takes Leventhal’s position then he does not recognize her as an insider. This results in his mistrust of Mia and her authority within the Levendary Cafà © company. Masculinity vs. Femininity The Chinese culture has high ranking in this and is seen through Chen’s demeanor. He is very competitive and is eager to be successful. This is seen through his urge to keep his position with Levendary China and the fast pace in which he opened the stores in China. In addition his actions of being very abrasive with Mia Foster is because he feels threatened that she is trying to take over his position with Levendary. He had never had his business interfered before by anyone from the Denver Headquarters so he put his back up when Mia started to interfere with how he was running his operation. Long Term Orientation vs. Short Term Orientation Long Term and Short Term Orientation looks at how a culture is prepared for the future. The Chinese culture is very focused on planning for a long-term future. This dimension demonstrated the American culture that Chen must have picked up on his time in America. With his time managing the Chinese division of Levendary, Chen was very short sighted and opened up a large amount of stores in a short period time. Instead of formulating a business plan, which would encourage growth for the future of the business, Chen did not have one and was simply opening businesses when he found an available location. Parent Company vs. Subsidiary In this case, the parent company would be Levendary Cafà © U.S. operations and  the subsidiary would be Levendary Cafà © China operations. In terms of restaurant size, U.S. restaurants range from 2,500-4,000 square feet. China restaurants are smaller in size; they range from 500-1,500 square feet. These results in less staff needed for China restaurants, approximately 13-20 staff members. The U.S. restaurants need about 24-26 staff members. The larger U.S. restaurants are able to accommodate more customers; they usually have 84-120 seats and can serve anywhere from 560-3,210 guests per day. Due to smaller size, China restaurants have a maximum of 80 seats currently and can serve 260-430 guests per day. In terms of menu options, the only item that is offered in both the U.S. and China is the chicken sandwich. The Suburban U.S./Denver restaurants make more revenue and have a larger square footage then the China restaurants. However, the China restaurants have higher average revenue per square foot. Restaurants in Beijing make $537.33 revenue per square foot and restaurants in Shanghai make $576.00 revenue per square foot. The Suburban U.S./Denver restaurants make $531.50 revenue per square foot. A chart can be seen below which clearly details the difference between the parent and subsidiary company. Alternatives and Recommendations Alternatives Mia Foster is left with a very difficult decision at the end of the Levendary Cafà © case study. As the new CEO of the company she has to make a decision that will result in profitability for the company and chose an action plan that ensures long-term success for the business. As such that are a variety of alternatives that Mia Foster will have to chose from in order to move forward with the company. The following list presents the many alternatives that should be considered: 1. Shut down all operations and solely focus business in the United States. The China division stores look and feel vary from what the Levendary Brand is trying promote in their US Division. In order to continue with the stores in China then restoration will need to be completed to all the stores. Mia Foster will need to determine if the China division profits are worth the renovations and continuation of Levendary China. 2. Fire Louis Chen and hire a new manager for the China Division. Louis Chen has proven hi mself as a capable entrepreneur and someone who is  knowledgeable of the Chinese retail market. However he lacks communication skills, which was noticeable through the expansion of 23 Levendary shops in China that do not fit with the brand image. Chen is also extremely confrontational and may not be the best fit with the new CEO, Mia Foster, as he already had built a rapport with Howard Leventhal, the previous CEO. If Louis Chen cannot properly function and communicate with the US Levendary division then he may need to be replaced by someone with a fresh perspective on the business. 3. Hire a management firm to manage the China Division of Levendary. It is apparent through the case study that the US Division of Levendary has not been able to communicate in an effective manner with an international branch of their company. The Hofstede Dimensions that were listed above demonstrates the cultural differences that separate the two branches of Levendary. With no cultural training Mia Foster and the US Division are not communicating properly with Louis Chen. An alternative to the situation would be to hire a management firm to look after the China division. A management firm with International experience would be a solution to the communication problem because they would understand how to conduct business while ensuring good communication. 4. Create a separate division of Levendary for the China stores. The Levendary stores in China are off brand from the original concept that is seen through out the United States. This is largely due to the fact there is limited communication because the key players in the United States and Louis Chen in China. In order to fix this problem it would be wise to bring the structure that works so well in the United States and duplicate this order in China. With 23 stores in China, Levendary will need a separate branch in China, as it will provide structure to that side of the business. With more supporting players in China, asides from Louis Chen, then Levendary will be able to maintain the brand and in addition, more supporting managers will ensure that communication is maintained between the US Division and the China Division. 5. Make a joint venture with TATA Group to expand into China. The TATA Group is a â€Å"global enterprise headquartered in India, and comprises over 100 operatin g companies, with operations in more than 100 countries† (TATA, 2015). TATA has operating companies in China and as such they will be able to reduce the large operating costs that Levendary China is currently experiencing. As noted in the Analysis and Evaluation section, the operating  costs are very high. Entering into a joint venture with a company who has established infrastructure will help eliminate these costs and allow Levendary to increase their profits for the first couple of years. In addition the joint venture will allow Levendary to be partnered with people who are culturally aware and possess cultural intelligence. 6. Replace the US Division Chief Operating Officer, Nick White. It was easy to identify that communication was a large issue between the US and China Division Levendary. It is easy to target Louis Chen as the main culprit of this issue as he was combative and disrespectful to Mia Foster. However the blame can also be placed onto the COO of the US Division, Nick White because he was responsible for keeping communication with China and overseeing the brand image in China. Nick White clearly let this responsibility go and as a result the China Division does not reflect the US vision for Levendary. If someone has to answer for the mistakes that were made in China than perhaps it should not be Louis Chen but instead it could be Nick White. Recommendation After evaluating all of the above alternatives for Mia Foster and Levendary Cafà © to pursue it was decided that the best alternative would be number 4, create a separate division of Levendary for the China stores. This alternative includes renewing the contract for Louis Chen and brings more managers to China to help grow Levendary in the China market with the vision and brand image of the US Division. Levendary in the United States can contribute a large portion of their success to their hierarchal structure as it allowed for proper communication and good reporting methods. If Levendary China were to create a China Division then it would allow for better communication between the United States and China and Chen would have the support he needs to ensure the brand image is seen between all stores. Action Plan In order to properly implement the alternative that was stated above, an action plan is needed. The action plan is detailed below through three different stages. The Short Term Plan looks at what the business should do in one years time, the Medium Term plan looks at what the business should do in two to three years time and the Long Term plan encompasses a five year  outlook. This is detailed below: Short Term: 1) The first critical step that needs to be taken is to ensure that proper communication starts immediately between Mia Foster and Louis Chen. If the two parties were to sit together and put all of their issues out then they can sort their current problems. Starting with good communication between Foster and Chen will ensure that it continues into their future business dealings. 2) Renew the contract with that Louis Chen has with Levendary China. Louis Chen has proven to be a valuable asset with Levendary Cafà © as he knows the retail market and is passionate about the work that he is doing. While it is arguable that Chen did not complete his work in a successful manner, he was with out support and was given little direction and free reign from the former CEO, Leventhal. With support and proper structure Chen should be able to work within these constraints. Therefore it can be seen that his contract should be renewed for another term with the stipulation that Chen will be working underneath other Levendary managers in China. 3) Denver Headquarters will need to create a business plan for their operations in China. With 23 locations currently in China they will have to decide which locations needs renovations and if all 23 should be maintained. By restructuring the current operations in China, Levendary Cafà © will have a more focused plan that will allow for the China operations to strive. If the Denver Headquarters were to work with Chen and use his knowledge of the China market than they can collaborate and develop a structured business plan. 4) Once a proper business plan has been developed Chen will need immediate support in China. By creating a separate China Division Chen will have the support he needs to standardize operations and reinvigorate the Levendary brand. Managers with cultural training should be placed into the new China Headquarters. Chen will be a regional Vice President however a new top manager will be placed in this division who will be above Chen on the hierarchy and will be the direct contact between itself and Denver. Medium Term: 1) Standardize operations all throughout the China Division. This includes a standardized brand image through all stores and a consistent menu. As with all locations in the United States there are set menu items in all locations  with special items according to the region. Levendary China will need conduct market research that will allow them to understand menu staples that should be available in all locations. In addition regional specialties should be included on the menu. 2) In addition to the standardization of restaurant practices the accounting practices will also need to be redeveloped. As per Chinese law all foreign business enterprises must follow the Chinese Generally Accepted Accounting Principles (China Briefing , 2013). Levendary China must follow â€Å"Accounting Standards for Business Enterprises† (China Briefing , 2013) and the Denver Headquarters should hire an international auditor who can then transfer all numbers to follow the US GAAP. 3) Monitor the new business plan for Levendary China and ensure that it is being properly followed and that brand standards are being maintained. Long Term: 1) Mia Foster should monitor and evaluate China operations on a constant basis. This will ensure that communication is kept to a high standard and that the brand image remains constant. 2) Once operations in China find their place in the market, Levendary China should appoint a Chief Franchise Officer who will develop franchise opportunities in China. This will allow more stores to be built and the brand to have more exposure with less of a expense put on the company. 3) A re-evaluation of their foreign expansion should be completed. The company should decide if they would like to find other potential foreign markets where they could continue the growth of Levendary or if they should focus directly on their domestic growth. Additional Questions 1. As it relates to the case, explain what this passage implies: An old mentor had once told Foster that there were three types of managers in a new business’s evolution to greater scale: the go-getter, the local baron, and the professional manager. All three types could be entrepreneurial in spirit, but not all were equally well suited for the various stages of a business’s growth. Chen was clearly a go-getter who had evolved to become a local baron. The question in Foster’s mind was whether he could transition to become a professional manager. Before answering the question of whether or not Louis Chen can become a professional manager, it is important to  identify the characteristics of one. The discussion in class brought to light that a professional manager is someone that has an understanding of the long term goals of a company, understands the value of standardization among all locations and understands the value and importance of brand image. A professio nal manager should also be educated and trained; furthermore, this individual needs to assume the role of middleman and understand top management’s goals and relay this information to his employees while collecting their feedback. Lastly, the class discussion brought to the surface that a professional manager should have extensive core knowledge on how the company should operate. Further research has shown that a professional manager should know how to plan, organize, lead and control all the efforts of his/her employees to complement the company’s values and standards (Sandeep, 2013). Howard Leventhal chose Louis Chen for his role because of Chen’s energy and enthusiasm. On a personal level it reminded Leventhal of himself at a younger age. Howard had told Chen to establish a strong market position as a base to eventually franchise outlets throughout China with the instructions to â€Å"do the right thing by the concept† but was given the freedom to operate the restaurants as he saw fit (Han & Bartlett, 2013). To enter the market in China Chen said himself â€Å"We just have to be flexible†¦Chinese eat few dairy products, so we should downplay our cheese soup†¦most people arenà ¢â‚¬â„¢t familiar with turkey, but they love chicken, so we’ll adapt the menu just as we do in the States† (Han & Bartlett, 2013). Chen believed that Levendary could succeed if it adapted its food and concept. According to Merriam-Webster Dictionary a go-getter is a person who works very hard and who wants very much to succeed (Encyclopoedia Britannica Company). Chen demonstrated the characteristics of a go getter as he opened up the first Levendary Cafà © only three months after returning from Denver. This location was a corner ground floor location in a new high-rise office building and the concept of the restaurant was prominent and luxurious. This restaurant was positioned as casual dining with table service and higher prices than local fast food concepts (Han & Bartlett, 2013). This location proved to be a hit among the white-collar employees working in the building. Because of competition Chen was forced to move quickly to purchase locations for the remaining restaurants and in the first year managed to secure prime locations for good prices and grow the chain to  23 restaurants. Then Chen demonstrated he was a local baron with his in depth knowledge of the Chinese market and was familiar with the neighborhoods in Shanghai and Beijing; his real estate knowledge was a major asset for the Levendary brand. He said it himself that he wa s in the trenches running 23 restaurants that he had built by reading market needs and sending opportunities (Han & Bartlett, 2013). Based on the information collected from the case it does not appear that Chen could develop into a professional manager. Because Chen wasn’t given any direction, he took it upon himself to change the concept, the look and feel and the menu items of Levendary Cafà ©. However, the way he handled Mia Foster and her colleagues from Denver and based on the definition of a professional manager Chen can’t develop into a professional manager and Levendary should look for someone to lead the China team while he continues to focus on the 23 restaurants that he has already built. Chen also became very defensive when Mia tried to communicate with him and based on the definition of a professional, he should be open to listen to their suggestions and input and adapt them to Levendary in China. If Chen had the instincts of a professional manager he would have taken it upon himself to contact his colleagues in Denver to update them on the progress he was making in China and should have taken the standards and values of Levendary Cafà © and applied them in China because that was his responsibility. To become a professional manager Chen would have to see the value of standardizing all the restaurants; however he did provide a great platform for the future growth of Levendary in China and should be kept on the team with certain responsibilities and be made aware of the expectations from Mia Foster. Works Cited Agriculture and Agri-Foods Canada. (2010). Health and Wellness Trends : U.S. Market. Ottawa: Government of Canada. Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School. China Briefing . (2013, February 5). China GAAP vs. U.S. GAAP and IFRS. Retrieved February 10, 2015, from China Briefing: http://www.china-briefing.com/news/2013/02/05/china-gaap-vs-u-s-gaap-and-ifrs.html China Briefing. (2014). Retrieved February 10, 2015, from China GAAP vs. U.S. GAAp and IFRS: