During a time of increasing sales and production, the Sample Fabrication Company

Question

During a time of increasing sales and production, the Sample Fabrication Company CEO hired additional workers to handle the increased production. At the end of the first quarter after hiring these new workers, the CEO discovered that productivity had declined with each new worker hired. The CEO was upset and demanded that the production manager determine whether they had hired lazy workers who should be fired or whether the supervisor was ineffective at managing the new workers or both. Whatever the explanation, the CEO insisted that a solution be found to bring productivity levels of the new employees up to the previous levels. Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?

Explanation / Answer

By going through production theory, it can be said that the CEO is correct. In this theory, produciton is a proportional function of the workforce. He has seen that after the hiring of the new workers, the production has gone down, so it is right for him go assume that the production fall is due to inefficient workers. The managers are also to be blamed because they are directly responsible for the workforce of the company.
Other Possibel Explantion:
the most possible explanation is that, the workers may be efficient, but it take some amout of time to get used to a particular work culture or production, which typically leads to some produciton decrease for some finite amount of time, after which the production comes back to normal.This should also be taken into account.

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