Accounting for the Multi-Period Impact of Service When Determining Employee Requirements for Labor Scheduling

Providing good customer service, inexpensively, is a problem commonly faced by managers of service operations. To tackle this problem, managers must do four tasks: forecast customer demand for the service; translate these forecasts into employee requirements; develop a labor schedule that provides appropriate numbers of employees at appropriate times; and control the delivery of the service in real-time. This paper focuses upon the translation of forecasts of customer demand into employee requirements. Specifically, it presents and evaluates two methods for determining desired staffing levels. One of these methods is a traditional approach to the task, while the other, by using modified customer arrival rates, offers a better means of accounting for the multi-period impact of customer service. To calculate the modified arrival rates, the latter method reduces (increases) the actual customer arrival rate for a period to account for customers who arrived in the period (in earlier periods) but have some of their service performed in subsequent periods (in the period). In an experiment simulating 13824 service delivery environments, the new method demonstrated its superiority by serving 2.74% more customers within the specified waiting time limit while using 7.57% fewer labor hours.

A Field Study of the Impact of a Performance-Based Incentive Plan

Much management accounting research focuses on design of incentive compensation contracts. A basic assumption in these contracts is that performance-based incentives improve employee performance. This paper reports on a field test of the multi-period incentive effects of a performance-based compensation plan on the sales of a retail establishment. Analysis of panel data for 15 retail outlets over 66 months indicates a sales increase when the plan is implemented, an effect that persists and increases over time. Sales gains are significantly lower in the peak selling season when more temporary workers are employed.

Team Member’s Centrality, Cohesion, Conflict, and Performance in Multi-University Geographically Distributed Project Teams

This study examined team processes and outcomes among 12 multi-university distributed project teams from 11 universities during its early and late development stages over a 14-month project period. A longitudinal model of team interaction is presented and tested at the individual level to consider the extent to which both formal and informal network connections—measured as degree centrality—relate to changes in team members’ individual perceptions of cohesion and conflict in their teams, and their individual performance as a team member over time. The study showed a negative network centrality-cohesion relationship with significant temporal patterns, indicating that as team members perceive less degree centrality in distributed project teams, they report more team cohesion during the last four months of the project. We also found that changes in team cohesion from the first three months (i.e., early development stage) to the last four months (i.e., late development stage) of the project relate positively to changes in team member performance. Although degree centrality did not relate significantly to changes in team conflict over time, a strong inverse relationship was found between changes in team conflict and cohesion, suggesting that team conflict emphasizes a different but related aspect of how individuals view their experience with the team process. Changes in team conflict, however, did not relate to changes in team member performance. Ultimately, we showed that individuals, who are less central in the network and report higher levels of team cohesion, performed better in distributed teams over time.