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In the 1st line, Manager describes "one reason" for low productivity.
But in conclusion, the manager says that the productivity (overall productivity) in office will increase.

Logical Jump: There could be more than one reason for low productivity. Suppose, we try to resolve that "one reason" mentioned in the premise. What if resolving that "one reason" disturbs some other reasons that ultimately leads to lower final productivity?

With this understanding, lets jump straight into answer choice analysis:

A. I initially picked this because the first thing that came to my mind for this question was the following: if they lessen the employee to manager ratio, the way the stimulus worded "reduce" made me think they're going to cut staff and make everyone else do more closely supervised work. This is wrong because the stimulus says NOTHING about HOW they're going to achieve this lesser ratio, it is just important that the ratio is lesser than what it was before to achieve greater productivity.

B. The stimulus says nothing about now v/s before. so this choice is irrelevant.

C. The stimulus says nothing about financial incentives. This does not help us get to the conclusion.

D. The stimulus' conclusion is "productivity... will increase" irrespective of whether the method of "supervising employees more closely" is the "most efficient". In other words, this choice is too strong.

E. This is the correct answer because it shows that productivity "will increase" even if there are any negative/undesirable consequences of increased supervision. Whether we're lessening the ratio either by reducing the employees OR by increasing the managers, the benefits to productivity outweigh the drawbacks.- CORRECT
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OE for reference:

Overview:
The argument bases its conclusion on two considerations. First, productivity in the office is lower than it could be, because of a specific cause. And second, changes are about to be made that will eliminate that cause. The argument concludes that, once those changes are made, productivity will soon increase. The question asks you to identify an assumption on which the argument for the predicted increase in office productivity depends.

The Correct Answer:

E It is possible that supervising workers more closely will have some unintended consequence that tends to reduce productivity. For example, workers who are supervised too closely might become resentful and find ways of resisting supervisory control, perhaps by working more slowly. Such a slowdown would reduce productivity. For the plan to succeed, any loss in productivity resulting from closer supervision must be less than the gain in productivity resulting from the elimination of unauthorized breaks. And this is equivalent to what (E) says.

The Incorrect Answer Choices:

A, C, D The argument lays out a plan for increasing productivity and concludes that it will work. Success of the plan in increasing productivity does not depend on whether or not the manager has hit on the best possible way of achieving an increase. Nor does it depend on some other way of trying to increase productivity not working very well. Nor does it depend on whether or not the manager has hit on the most efficient way possible of achieving an increase. So neither (A) nor (C) nor (D) is assumed.

B The manager's plan obviously cannot succeed if workers are not spending any time taking unauthorized breaks. But for the plan to succeed it does not have to be true that workers now spend more time taking unauthorized breaks than they used to. So (B) is not assumed.
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