9 Analyse the reasons, why number of employees can’t be a good approach to measure business size. [6]

[Sir Afzal Shad]

Q9 Analyse the reasons, why number of employees can’t be a good approach to measure business size. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Kumail Alvi]

[KN] Part-Time and Temporary Workers.
[AN] Many businesses hire part-time, seasonal, or temporary employees. These employees may not be considered core to the business's operations.
[AN+] Their inclusion can distort the measure of business size.

[KN] Size of the Labor Force vs. Size of the Business.
[AN] A small business with a few high-paying employees might have a significant economic impact, while a larger business with low-wage workers might have a smaller economic footprint.
[AN+] The size of the labor force may not correlate with the financial or economic size of a business.

[Syed Raza]

[KN] labor productivity
[AN] The number of employees doesn't account for variations in productivity or the type of work performed. Two companies with the same number of employees might have significantly different outputs, revenue, or profitability due to differences in roles and efficiency.
[AN+] thus leading to growth of the firm.

[KN] seasonal changes
[AN] Many industries experience seasonal fluctuations in demand, leading to variations in employee count. For instance, retailers often hire more workers during the holiday season.
[AN+] These fluctuations are temporary and don't necessarily indicate long-term business size or stability.

[Ibrahim Aamir]

[KN] capital intensive businesses
[AN] some firms are manly running on capital which means that there is very less employs involved
[AN+] those firms could be producing high output so it would be incorrect to judge from the amount of employs

[KN] part time workers
[AN] some workers would be working as part time for the business and still producing more output then the full time workers
[AN+] thus measuring from the employees would lead to incorrect answers

[Salman Khalid]

[KN] Limited Reflection of Complexity
[AN] The number of employees may not reflect the complexity or scope of a business. a technology company with a small team of highly skilled engineers may have a greater impact and reach than a larger company with a high number of administrative staff.
[AN+]A small team with advanced technology can accomplish tasks that would have required a larger workforce in the past.

[KN]Seasonal or Project-Based Work
[AN]industries like agriculture, retail, or construction, may have fluctuating employee numbers due to seasonal demands or specific project-based work.
[AN+] this makes measuring employees useless as they arent even that accurate most of the year

[Syed Mustafa Ali]

[KN] Productivity Variation
[AN] Employee count doesn't consider the efficiency and productivity of a business.
[AN+] A smaller company might be more efficient and productive, making it economically significant despite having fewer employees.

[KN] Revenue and Market Impact
[AN] A business's financial performance and market influence can be better indicators of size and significance.
[AN+] Some large enterprises with extensive revenue streams and market share may not require a correspondingly large workforce, making employee count an inadequate measure of their size.

[Humzah Zafar]

[KN]Efficiency not considered
[AN]efficiency and productivity isnt considered
[AN+]leads to inefficient measurement of the business as a small firm may produce more than a big one

[KN]Part-time workers
[AN]some workers may work part time in a firm
[AN+]Thus measurement may not be efficient as some workers are not permanent and loyal

[khuram khan]

[KN] Limited Reflection of Complexity
[AN] The number of employees may not reflect the complexity or scope of a business. a technology company with a small team of highly skilled engineers may have a greater impact and reach than a larger company with a high number of administrative staff.
[AN+]A small team with advanced technology can accomplish tasks that would have required a larger workforce in the past.

[KN]Seasonal or Project-Based Work
[AN]industries like agriculture, retail, or construction, may have fluctuating employee numbers due to seasonal demands or specific project-based work.
[AN+] this makes measuring employees useless as they aren't even that accurate most of the year

[Talha Asim]

[KN] skill of workersAN] a firm like primary sector businesses do not have much skilled workers and hence cannot be compared with a technical secondary sector business which requires more skilled workers[AN+since both the workers have different productive capabilities they cannot be compared
[KN]capital and Labour intensive [AN]a capital intensive business has less labour and a labour intensive as the name suggests has more labour [AN+] thus the business not even requiring such labour in a capital intensive firm cant be recorded in comparison with a labour intensive

[Shaliza khawaja]

(kn) seasonal employment
(an)as some industries open in winter and close in summer or vice versa
(an+) these kind of industries employe rate fluctuates frequently hence not a good idea to measure business size through employees
(kn)efficiency of workers
(an)some workers might work more then the other workers
(an+)hence understate the work quantity

[hafsa kashif]

[kn] seasonal hiring or changes in business operations which will lead to the business size being inaccurately measured
[an] as some industries open and close in a specific season
[an+] in such businesses the employees number fluctuates frequently making it not the best to be used for measurement
[kn] capabilities of different workers
[an] some businesses have a large pool of inefficient and unskilled labor while the other may have a short amount of labor but they are highly skilled with high productive capacity
[an+] therefore it would lead to understating the work quality

[Maham fatima]

[KN] Some businesses may be capital intensive
[AN] therefore they might be producing high quantity and quality of output with a few workers
[an] hence such a business may even have high brand image.


[KN] Low productivity
[AN] A business may have large no. of workers but it may be possible that they a unskilled and inefficient
[AN] hence this can reduce the level of output

[Hadia Zia]

[KN] Automation and Technology.
[AN] The company may be using high capital intensive methods for the production which may erase the need of larger workforce.
[AN+] Thus this will lead to inaccurate measure of business size if it is based on the number of employees.

[KN] May not take in account the productivity.
[AN] It is possible that a business with a small workforce is likely to be more efficient, however the productivity will get erased if business size is measured by no of employees.
[AN+] Thus this will lead to inefficient and incorrect measurement.

[khadija nasir]

[kn] investment into machinery
[an] a major business could invest more into machinery meaning they wouldnt require a large number of employees
[an+] this could lead to misinterpretation pf the businesses size compared to competitors

[kn] temporary employees
[an] if a business is selling seasonal products, it cuts down its workers when the product is off season and not in demand to save costs
[an+] measuring through the number of employees is inconvinient as it will not show the right size

[Areena]

[Kn]Capital intensive
[An]Some firms may use production methods which employ few workers but produces high output levels
[An+] thus those firms producing high level would be incorrect to judge based on employes

[Kn]part time workers
[An] workers who works half of a working week are counted as one emplyess or two
[An+] therefore this measurement could be wrong