Having focus within your workplace is integral for productivity. However, there also needs to be a fine balance between keeping the workplace focussed and creating an atmosphere that is stifling to both creativity and enjoyment. People need to feel comfortable, but not so comfortable that they get no work done.
Balancing the two can be very hard. Much of it is to do with how you treat your staff. If you are fair and supportive, they will simply want to achieve their best for you, whereas if you come across tyrannical they may well feel obliged to try and get more work done, but they will rarely go out of their way to do it to the best of their ability. With morale low, the workplace will suffer in many different ways.
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