My question is why would they perform better at the office? In your example their performance is the same and they become labeled as "slackers" by their co-work

My question is why would they perform better at the office? In your example their performance is the same and they become labeled as "slackers" by their co-worker and management. If we allow these people to perform poorly in the office, shouldn't we also allow them to perform poorly when they work remotely? If a manager is not providing adequate structure at the office, it seems unlikely that this would change regardless of where the employee is sitting. Those that need structure and do not get enough of it will flounder no matter their work location. I disagree that it is more difficult to detect those employees who are less productive when the employee is working from home. On the contrary, I suspect their lack of productivity would be even more glaring and obvious then in the office.