1.1.5 Specialisation and the Division of Labour Flashcards
define specialisation
when an individual, firm, region or country concentrates on the production of a limited range of goods or services
define division of labour
dividing the production process into a number of tasks and assigning each worker a specific task
which economist explained division of labour and proved the benefits of increased productivity
adam smith
what are the four advantages of specialisation to workers and firms
workers become more skilled at performing a certain task - become quicker at doing the job, increasing productivity. workers can also specialise in the task they are best suited to
workers do not waste time moving from one operation to another, therefore their labour costs per unit are lower as downtime avoided
workers only have to be trained to complete one task, reducing training costs
allows a production line to be used with robotics/machinery allowing workers to complete the work faster and more accurately - boosts output and quality at a lower cost per unit
what are the four disadvantages of specialisation to workers and firms
workers can become bored as work is repetitive and often mundane - higher labour turnover, increasing costs of recruitment or selection OR workers may demand a higher wage to compensate for boredom
specialisation creates interdependence in production. if one group of workers goes on strike, it could halt production across the whole industry
breaking production into different tasks makes it easier to replace skilled workers with machines - this can increase technological unemployment
loss of skills for workers as they are only trained in one task. they are left vulnerable to not finding new work if left redundant, increasing risk of long-term unemployment
what are the four things the impact of DoL/specialisation depends on
how effectively a firm matches a worker’s natural skill and interest to task they are given
extent of technological change in production
how effectively managers can reduce boredom
the type of product
why does the effectiveness of division of labour depend on how effectively a firm matches a worker’s natural skill to the task
if skill does not match task-demotivating, repetitive etc
higher turnover
if opposite is true, greater job satisfaction and productivity
why does the effectiveness of division of labour depend on extent of technological change in production
as more technological change, workers are less reliant in the production process - lower wages, bored, redundant
why does the effectiveness of division of labour depend on how effectively managers can reduce boredom
if manager is effective at reducing boredom, division of labour is more effective and lower turnrover
how can managers reduce boredom
may need to motivate workers through higher wages, rotation of skills, regular breaks
why does the effectiveness of division of labour depend on the type of product
not all products need to be specialised, if it is a product with a simple production process or without a need for high output, there is no need to overcomplicate
describe the natural advantage advantage of specialisation for countries
some countries specialise in the production of certain goods and services that they have a natural advantage in producing.
this allows the country to trade their excess supply and exchange these goods/services for those it does not produce
this enables all countries to benefit from increased output, leading to widening choice and lowering prices
describe the industry advantage of specialisation for countries
specialisation in one product allows an economy to grow around that area of specialisation, boosting jobs in that industry and aids the whole economy
describe the government revenue advantage of specialisation for countries
government revenue (from output, income and trade) more spending on improving living standards e.g infrastructure/education
describe the jobs advantage of specialisation for countries
more jobs as more output may lead to higher demand for workers, increasing incomes
