L5 - Specialisation & Division of Labour Flashcards
What is specialisation?
When an individual, firm, region or countries concentrate on the production of a limited range of goods or services
What is the division of labour?
Specialisation of workers on specific tasks in the production process
What is productivity?
Effectiveness of effort
What is productivity measured in?
Rate of output per unit input
What are the benefits of increased productivity?
Higher output
Higher quality of output
Higher standard of living
More efficient use of resources
What can higher productivity do?
Generate more income (economic growth) due to large output and more sales
What are the advantages of the division of labour?
Workers more skilled
Time saved
Workers cheaper/easier to train
What is the benefit of division of labour for firms?
Greater quantity and quality of products
What is the benefit of division of labour for workers?
Higher skill level and maybe higher wages
How does the division of labour make workers more skilled and take less time?
Workers focus on narrow range of tasks - repeat their tasks more - more efficient
How does the division of labour make training workers easier/cheaper?
They don’t need to be trained in a variety of skillsets
What are the disadvantages of the division of labour?
Boredom - repetition of tasks
Reduced pride workers feel - not much skill (don’t feel value)
How can boredom affect workers?
Cause quality of product and workers’ moral to drop
What does specialisation lead to for a firm?
Constantly making 1 product = Better quality of product = better competitor on the marker
What are the advantages of specialisation?
Better quality/quantity of products
More efficient use of scarce resources
Higher exports
Higher economic growth = higher standard of living
