During a time of increasing sales and production, the Sample Fabrication Company CEO hired additional workers to handle the increased production.

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 the productivity had declined with each new worker hired. The CEO was upset and demanded the production manager determine whether they had hired lazy workers who shoudl be fired or whether the supervisor was ineffective at managing th enew workers or both. Whatever the explanation, the CEO insisted that a solution be found to bring productivity levels of th enw employees up to the the previous levels. Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective superviosr are to blame for the decline in productivity? What other explanations might be possible?

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