Productivity
After
two quarters of increasing levels of production, the CEO of Canadian
Fabrication & Design was upset to learn that, during this time of
expansion, productivity of the newly hired sheet metal workers declined with
each new worker hired. Believing that the new workers were either lazy or
inefficiently supervised (or possibly both), the CEO instructed the shop
foreman to “crack down” on the new workers to bring their
productivity levels up. Explain carefully in terms of production theory why it
might be that no amount of “cracking down” can increase worker
productivity at CF&D.Provide an alternative to cracking down as a means of increasing the
productivity of the sheet metal workers. Fully explain your alternative in
terms of production theory.