Does high numbers of workers mean high level of business output.

TOZZIBLINKZ

VIP Contributor
That is definitely not entirely true because having higher number of employees in a business organisation could definitely lead to the commercial negative activity of diminishing marginal productivity . By definition diminishing marginal productivity simply means when a business organisation has increased number of employees and workers but yet do not make enough profit and output as expected and explain possibly because the raw materials or the resources that lead to the production of goods and services is not made available or it constantly could be caused by the chattering of employees to one another . It is advised that a business owner increases the size of his employees as his output and productivity increases . That definitely brings us to the question of how many employees should a business owner employs during the initial establishment of his business organisation . Well to be sincere , there is no exact amount of initial employees to be employed by a business owner when a business organisation is established newly but that should be done with caution and most importantly It should be done smartly so that the numbers of employees and workers would not exceed the numbers of available task and goals to achieve .

The main purpose of employees is to achieve business goals and objectives and the absence of enough goals and objectives to be achievable with increase number of employees and workers simply means that diminishing marginal productivity has definitely set in .
 

CALVINDOL

VIP Contributor
It has never been speculated that for you to make her business productivity and higher Business output you must employ a huge number of employees . Sometimes the reasons why your business is not making profit and income as expected and as plan may not necessarily been linked with a number of employees you have a brother it could be any other Factor like their environments in which a business is being sued waited and the ability that your business has in impacting members of the neighborhood and in most cases it could be as a result of your business customer service to outsiders and to patronizers .

Anyways there are some things that a business organisation could face that's necessary the need for it to increase the number of employees but for productivity to increase his does not entirely mean that you must employ a good or huge amount of employees . Like you already mentioned it could lead to a problem of diminishing marginal productivity as speculated in most commercial textbook which is the problem where productivity is a low scale despite having good number of employees but as a result of no present goals and objective to achieve their employees may just be around to business organisation chatting or performing other activities that never helps to achieving business goals and objectives .
 

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