As in, there are people who don't work well at work and management knows they likely won't work well if not worse if from home. However because personnel issues are hard these people linger on and stifle benefits that others could enjoy because no one wants to put up with the idiocy when they are told, so and so can work from home but you cannot.
To raise productivity first act on those who are not productive so that the rest of the team doesn't have to tip toe around a problem that has been to obvious.