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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.


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