Now imagine everyone has to be able to log on to each workstation.
In general, in any NFS based environment all machines that NFS-mount common filesystems need to carry a full collection of login and group information so that things like 'ls -l' work on the NFS filesystems. If you want everyone to be able to log into every machine, they also need some sort of password information as well (either by distributing shadow files or by various other means).
NFS is an unstable buggy mess suitable only for light personal use. I have never been at an org that wasn't actively migrating off of legacy NFS , and that ended years ago.
With that said, the environment NFS was designed for is increasingly uncommon. NFS is not necessarily a good fit for other environments, even if they look superficially similar.