Mathematical modeling of optimal allocation of remote workforce: an interdisciplinary investigation with Hofstede's cultural factors and managerial ability

Abstract

PurposeAs the pandemic begins to ease, many companies are figuring out that working remotely is the future of work and “a new normal”. This research focuses on strategic planning and practices inherent in remote work, and aims to identify the optimal balance between virtual and on-site working. Specifically, the authors investigate the moderating effects of managerial ability and Hofstede's cultural factors.Design/methodology/approachThe authors build a mathematical model to locate the optimal balance between virtual and on-site working. A numerical study is presented, and additional sensitivity analysis is conducted to validate the proposed model.FindingsThis model provides organizations with a general guideline with recommended optimal percentages of remote workforce based on specific Hofstede's national scores. The authors also find that organizations with varying levels of managerial ability exhibit different adoption rates of remote working.Research limitations/implicationsBecause of the chosen research approach, the proposed model may lack empirical verification and require further adjustment of parameters. Therefore, researchers are encouraged to empirically and statistically test the proposed model further.Practical implicationsThis model equips organizations and practitioners with a general guideline to identify their desired portion of remote workforce. The incorporation of managerial ability and cultural factors makes our model applicable to various business structures across different sectors.Originality/valueThis proposed model addresses this optimization problem from a mathematical perspective with an interdisciplinary approach. The model also considers the moderating effects of managerial ability and Hofstede's cultural factors.HighlightsThe main contribution of this study is the theoretical development of our mathematical model that identifies the optimal balance between remote and on-site workforce in the context of managerial ability and Hofstede's cultural factors.A numerical study is presented, and additional sensitivity analysis is conducted to validate the proposed model and highlight the moderating effect of managerial ability and cultural influence on the adopted percentages of remote working.Our study suggests that organizational capabilities, managerial skills, and culturally suitable work arrangement are vital in successful development and implementation of remote working policy.Practical managerial implications and general guidelines are offered to organizations and practitioners.