Employee And Manager Tenure And Case Study

Length: 5 pages Sources: 3 Subject: Business - Management Type: Case Study Paper: #18355404
Excerpt from Case Study :

05 this suggests that the variable is not contributing significantly to the model. This would suggest that removing this variable may further improve the model. In addition to this it would be necessary to remove any variables which were collinear as this could interfere with the results of the regression. After using the program PHStat to analyse the variable inflation factors (VIFs) of the variables these are all below 5, which shows that there is no collinearity between variables. Therefore the improved model would be one which included all variables except X5.

Table 2: Regression model in which all explanatory variables are included

Regression Statistics

Multiple R


Adjusted R. Square

Standard Error


Using the improved model which includes all of the variables except X5, the regression equation is given as:

47508.5 + 787.3X1 + 962.6X2 + 3.8X3-25578.8X4 + 32523X6 + 93009.2X7 + 64718.3X8

There are a number of conclusions which may be drawn from this equation. First of all is that the location of the store being in a residential area and 24-hour access are both associated with increased profitability. Also, lower levels of competition and higher levels of pedestrian access are important for profitability. In terms of tenure this model also shows that both manager and employee tenure are important to profitability, although employee tenure results in greater changes in profitability.

Table 3: ANOVA table from the multiple regression with all variables included df



Significance F







Table 4: Analysis of the fit of the individual variables within the multiple regression model

Coefficients Standard Error't Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 7610.041452 66821.99424 0.113885279 0.909674466 -125804.3731 141024.4561 -125804.3731 141024.4561 X Variable 1 760.9927338 127.0856393 5.98803089 9.7159E-08-507.2580711 1014.727397 507.2580711 1014.727397 X Variable 2 944.9780259 421.6874239 2.240944293 0.028399552 103.051929 1786.904123 103.051929 1786.904123 X Variable 3-3.666606265 1.466307821...


Specifically, the model predicts that for every month increase in manager tenure there would be an increase in profits of around $787 if all other factors were kept constant. Also, for every increase of one month in employee tenure there is predicted to be an increase in profitability of around $963 if all other factors were kept constant. It was suggested that the relationship between tenure and profitability may be dependent on the length of tenure, i.e. A non-linear relationship. However the fitting of a trend line to the scatter-plot suggests that a non-linear relationship does not fit the data significantly better than a linear trend line. Therefore it would be predicted that an increase in employee tenure of 1.38 months would result in an increase in profitability of around $1,330.

Validity of the Data

The data on which the above analyses are based contains information taken from 2000, which is now eight years old. Therefore it is possible that the financial implications of increasing crew tenure have changed somewhat. It would however be considered valid to use the data to provide an estimate of the financial implications as the factors which would influence the regression model used would be largely the same. Although the data also included only the data from 75 of the 82 stores, this is a large enough sample to be considered representative of the chain as a whole. It would therefore be expected that while these other stores may not follow the model precisely, it should still provide an indication of the influence of tenure on profitability of these stores.


Based on the analysis of the data it would be recommended that increasing both manager and employee tenure may significantly increase profitability of stores. In particular, the current bonus plan would be profitable to the company if the amount of bonus offered were less than around $1,330, as this is the increase in profitability which…

Sources Used in Documents:


Berenson, M.L., Levine, D.M. & Krehbiel, T.C. (2008) Basic Business Statistics. 11th Edition. Philadelphia, PA: Prentice Hall.

Kazmier, L.J. (2003) Schaum's Outline of Business Statistics. New York: McGraw-Hill.

Levine, D.M., Stephan, D.F., Krehbiel, T.C. & Berenson, M.L. (2007) Statistics for Managers Using Microsoft Excel. Philadelphia, PA: Prentice Hall.

Cite this Document:

"Employee And Manager Tenure And" (2008, July 26) Retrieved July 31, 2021, from

"Employee And Manager Tenure And" 26 July 2008. Web.31 July. 2021. <

"Employee And Manager Tenure And", 26 July 2008, Accessed.31 July. 2021,

Related Documents
Employee Engagement Reflection on Applying Takeaways From
Words: 1276 Length: 4 Pages Topic: Business - Management Paper #: 82039466

Employee Engagement Reflection on applying takeaways from class to my current management career Applying and understanding the concept of 'employee engagement' and the 'glass ceiling' to my management career For the past fifteen years I have been employed as a manager at a transportation company with an over 180-year history in the business. I have personally witnessed many shifts in the corporate culture during my tenure as I have moved up the ranks,

Employee Retention Is Usually Defined
Words: 1635 Length: 5 Pages Topic: Careers Paper #: 6099308

What Works Best? We discussed this in "The Future" above, but other studies show curious results as well. Bucklin and Dickinson (2001) indicated that most of the common variations in incentive plans make no difference in performance. One of her studies showed that performance did not differ significantly whether the amount to be earned as an incentive was three percent or 100% of total pay. As her work seems to indicate, any

Employee Retention the Hospitality Industry
Words: 4777 Length: 17 Pages Topic: Careers Paper #: 22124429

The answers offered by the high profit seekers as stakeholders is to take advantage of the immigrant, by demanding high work hours, and even in some cases taking advantage of the individual's low level of knowledge about the rights and responsibilities of the employee and the employer, denying overtime pay, when earned, unauthorized deductions from pay, even things as simple as demanding less "ethnic" hairstyles from employees to the

Employee Benefits
Words: 594 Length: 2 Pages Topic: Careers Paper #: 98947220

Employee Benefits Describe the importance of employee benefits as a strategic component of fulfilling HRM goals. Employee benefits are very important in today's highly competitive marketplace. They are function to meet a variety of their personal and family needs for employees and for that reason are highly desirable and sought offer. For human resource managers, they can serve to attract and retain the best and brightest personnel. There are legally required benefits

Employee Motivation in a Pcba
Words: 17554 Length: 64 Pages Topic: Business - Management Paper #: 3282691

Indeed, effective problem solving in these circumstances often requires high levels of creative collaboration (Richards, 2007a, p. 34). In recognition of this reality, employers consistently name the ability to work together creatively as a primary and crucial skill -- even though many organizations have created cultures that undercut individual and collective creativity. In order to solve this problem there is a need of a comprehensive review of the facility management

How Incentives Effect the Performance of Managers
Words: 1749 Length: 4 Pages Topic: Business - Management Paper #: 27787564

Incentives and Performance Kopelman, R., et al. (2012); Further Development of a Measure of Theory X and Y Managerial Assumptions. Journal of Managerial Issues. 24 (4): 450-62. Certainly, there is no one best way to ensure that either employees or managers are properly motivated. Most scholarship, in fact, indicates that motivation is a balance between the task-relevant behavior and the maturity and acumen of the group in which the individual manages