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Using production theory to describe the changes in productivity due to expansion.

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.

a. describe in terms of production theory why it might be that no amount of "cracking down" can rise employee productivity at CF&D.

b. Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers. Fully describe your alternative in terms of production theory.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M923084

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