And that possibility is worth more than letting people get work done? I mean, if people don't get enough work done, you're never going to get to the point where you need to shuffle things around.
They'll get the work done, at the expense of their sanity.
Also, market inefficiency works here too, I think - it can take years before a company tanks. So productivity drop can go unnoticed forever (even when a company fails, there will be enough other factors to blame). Not to mention that marketing can successfully paper over all kinds of crap; mediocre is the standard in our industry.
