Every worker is different. Some require more supervision and management than others. However, I think it is entirely possible for employees to work more efficiently at home than they would in an office. In my own experience, I find that there are far more distractions at the office than when I'm working at home.
There are some jobs where telecommuting is not beneficial; however, there are some jobs that can be done equally as well from home. This is beneficial for the environment and can be beneficial to the company because office space is not needed. A combination of telecommuting and working in the office seems to work well for many companies, especially those that are trying to be more green.
Not only does it cut down on employers costs, as far as resources like electricity. It saves the employees money on gas money or bus fare. It keeps the streets less crowded, so people are not spending an hour sitting in traffic. Which also means people have more time to actually get their work done because they do not have to deal with all that wasted travel time.
Telecommuting can be nice for a number of situations, but efficiency is not one of them. When one is at home, one constantly feels the pull of many other non-work obligations, from cleaning to laundry to errands. Some may also feel less supervised and be tempted to take advantage of the opportunity to surf the Internet or watch TV instead of working productively. Efficiency isn't an advantage I'd list.
No, I think it is better to do the traditional way of working and go to the office to get your work done, especially if you are a boss. If the boss is at home, and the workers are stuck at an office working, then they will not want to work hard.