If a firm observes that hiring an additional worker results in a decrease in its overall productivity, what might be the underlying cause of this effect?

When a firm hires an additional worker but sees a drop in overall productivity, it could be due to several factors. One reason might be that the workspace becomes crowded, making it harder for everyone to work efficiently. For example, if a factory has limited machines, adding more workers could lead to waiting times instead of increased output. Another possibility is that the new worker might need time to train and adapt, which can temporarily slow down the team's productivity. Lastly, if the tasks are not well organized, too many workers might lead to confusion and overlap in duties, reducing overall effectiveness.