14-Specialization And Division of Labor

Question 1

Define Specialization

Answer 1

It occurs when an Individual’s Business or Country Concentrates on Production of limited Range of tasks
Specialization at level of individual worker is referred as Division of Labor

Question 2

State the Advantages of Specialization

Answer 2

–> INCREASES PRODUCTIVITY and LIVING STANDARDS across the world
–> UK specializes in Medicine, Tourism and Financial Services
–> These goods can be traded for other goods provided by other countries
–> Thus Increased Global Output and Countries can benefit from GREATER CHOICE, LOWER PRICE and HIGHER LIVING STANDARDS

Question 3

State the Disadvantages of Specialization

Answer 3

–> Country may suffer from LOWER EXPORTS, LOWER GROWTH RATES and STRUCTURAL UNEMPLOYMENT when the Demand for their goods fall
–> makes the country OVER-DEPENDENT on IMPORTED GOODS
–> a country specializing in production and exports of Minerals can face problems of RESOURCE DEPLETION

Question 4

Define Division of Labor

Answer 4

Production Process is Broken Down into Smaller Tasks and each Worker Focuses on a Specific Task
Eg- Construction involves Carpenters, Electricians etc

Question 5

State the Advantages of Division of Labor

Answer 5

–> INCREASES LABOUR PRODUCTIVITY as Repetition of tasks makes workers SKILLED and EFFICIENT
–> NO TIME IS WASTED in Moving from one task to another and workers dont have to Keep Changing Tools
–> Workers can CONCENTRATE on those jobs which best suits their SKILLS
–> TIME and EXPENSE for Training will be Reduced as Workers are Trained For Specific Task
–> In Manufacturing, this approach Enables production line methods where a task is repeated to be completed by Machine/Capital as it is Cheaper compared to Wages
–> Average Costs Falls as WAGES REMAIN SAME but LABOR PRODUCTIVITY INCREASES, This will Increase Profits for Firms

Question 6

State the Disadvantages of Division of Labor

Answer 6

–> Repetition of Tasks leads to MONOTOMY and BOREDOM thus DECREASED MOTIVATION and LOWER PRODUCTIVITY amongst Workers.
–> HIGHT STAFF TURNOVER leads to Increased RECRUITMENT and SELECTION COST
–> Production Process in INTERDEPENDENT thus any Interruption will have a CHAIN EFFECT and lead to Temporary Stoppage of Workers
–> Breaking down production line into different tasks makes it easier to REPLACE WORKERS WITH MACHINES leading to STRUCTURAL UNEMPLOYMENT
–> Workers Trained in one Particular Task will have LIMITED SKILLS. It makes it difficult for them to Find New Jobs If they are made Redundant since they are OCCUPATIONALLY IMMOBILE