After two quarters of increasing levels of production, the CEO of Canadian Fabrication and 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 lazy or inefficiently supervised, the CEO instructed the shop foreman to “crack down” on the new workers to bring their productivity. Explain carefully in the terms of production theory why it might be that no amount of “cracking down” can increase workers’ productivity at Canadian Fabrication and Design?
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