Such situations may arise from poor management or from a variety of other reasons. The recruitment policy may be responsible.
People do the job in front of them just well enough to get by. There is no motivation to do it better. It is enough to survive to the next day.

There was a time when many public-service departments might have seen themselves under this coding. Things have changed and are changing due to better leadership.

Poor morale is contagious because once it has been established newcomers soon pick up the local culture. If they do not, then they have a hard time with their workmates.