Closing a factory

Increased Productivity Without Bosses

A new Swedish study reveals that a decision to close a factory often leads to increased productivity during the period before it finally closes.

The dissertation from Örebro University is based on a number of Swedish factories where management announced they were closing down, often in favor of transferring production elsewhere.

According to the researcher, after a short period while the shock sets in, production rises. The primary reason seems to be that in the final weeks and months, management gets less involved, and the employees have more freedom and responsibility to organize their work.

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