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Gibson's management believes that the 2 0 percent increase will not be possible without a change in working conditions, so they change work hours. The

Gibson's management believes that the 20 percent increase will not be possible without a change in working
conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30
p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid
hours is the same as before, but production increases, perhaps because workers are given a bit more control over
their workday. After this change, valve production increased to 1800 units per day.
(a) Calculate labor productivity for the initial situation.
(b) Calculate labor productivity for the hypothetical 20 percent increase.
(c) What is the productivity after the change in work rules?
(d) Analyze the results from OMs perspective.

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