Economic Basics Topic 3 - Productivity Flashcards
Production
A process which involves converting resources into goods and services
Productivity
The amount of output that can be produced with a given amount of resources
Labour productivity
Output per worker (calculated by total output /number of workers)
Specialisation
Production of a limited range of goods or services by individuals, firms, regions or countries
Division of labour
The breaking down of the production process into smaller parts, with each worker specialising in a smaller specific task
What is:
Job rotation
Regularly changing the job done by a particular person
Advantages of division of labour for workers
The worker can specialise which will mean that the worker will get better at that task and make it easier to find employment
Advantages of division of labour for firms
Efficiency is improved because tasks are completed in less time and more accurately which leads to less mistakes and higher productivity, as well as being able to use equipment which will speed up the rate of production. e.g. CAD technology
Disadvantages of division of labour for workers
Work can become very boring as it is always doing the same thing. This is especially the case if it requires low effort. This will lower the motivation and can lead to health problems. Additionally, if a worker is too specialised there is a low range of tasks that they can complete which can lead to unemployment
Disadvantages of division of labour for firms
- People can become bored of the work which will lead to low quality work and people trying to avoid work, which will lower productivity.
- There could also be a problem that the production process could be slowed if just one part of the chain is not as efficient which will affect the rest.
- Due to workers being specialized, it means that they are inflexible and production could be paused momentarily if specialised workers in a certain topic are absent.
