Productivity and division of labor

Question 1

What is ‘productivity’?

Answer 1

The rate at which goods are produced, and the amount produced in relation to the work, time, and money needed to produce them.

Question 2

What’s a ‘piece rate’?

Answer 2

The amount of money that is paid for each item a worker produces, rather than for the time taken to make it

Question 3

What is ‘division of labor’?

Answer 3

The breaking down of the production process into small parts with each worker allocated to a specific task

Question 4

What is ‘specialization’?

Answer 4

The production of a limited range of goods by individuals, firms, regions of countries

Question 5

How can improved motivation contribute to higher productivity in a business? Provide two examples.

Answer 5

Improved motivation, such as through financial incentives or job rotation, can lead to higher productivity as motivated workers are likely to be more engaged and efficient in their work

Question 6

What are some advantages of the division of labor for businesses?

Answer 6

• improved efficiency
• reduced production time
• easier organization of production

Question 7

What are some advantages of the division of labor for workers?

Answer 7

• becoming more skilled
• enjoying more job satisfaction
• potentially earning more income.

Question 8

How can migration contribute to improved productivity?

Answer 8

Skilled immigrants can contribute to improved productivity in an economy by bringing their skills and expertise to the labor market.

Question 9

What is job rotation, and how can it improve motivation?

Answer 9

Job rotation involves an employee changing tasks from time to time, which can make work more interesting and less boring, improving motivation.

Question 10

How can training improve productivity?

Answer 10

Training improves the quality of human capital, allowing employees to acquire new skills and perform better at their jobs.

Question 11

What are some factors that can affect land productivity?

Answer 11

Factors affecting land productivity include the use of fertilizers, pesticides, drainage, irrigation, reclamation, and genetically modified crops.

Question 12

How can productivity be calculated for labor?

Answer 12

Productivity = output/input

Question 13

Why is raising productivity desirable?

Answer 13

Raising productivity allows more goods and services to be produced with the same or fewer resources

Question 14

How is becoming more skilled at a task for workers an advantage?

Answer 14

• Constant repetition of the same task will usually mean a worker will get better and better
• workers with well-practiced skills will be able to find employment more easily.
• The more highly skilled they are, the more they are likely to get paid

Question 15

How can specialization be a disadvantage for workers?

Answer 15

• work can become boring as it is repetitive.
• This is most likely to occur if a particular task requires little skill.
• Boredom may lead to job dissatisfaction and affect motivation.

Question 16

How is improved efficiency an advantage for businesses?

Answer 16

• Workers can perform tasks more quickly and accurately, leading to fewer mistakes and increasing productivity.

Question 17

How can reduced production time be an advantage for businesses?

Answer 17

• Workers do not need to waste time moving from one task to another.
• This involves moving around the workspace collecting tools, changing workstations, and resetting machinery.
• Specialists are likely to remain at the same workstation repeating their task without moving around.

Question 18

How can repetitive and boring tasks become a disadvantage for businesses?

Answer 18

• Workers become dissatisfied and poorly motivated resulting in poor-quality work, staff arriving at work late, increased rates of absence, and high staff turnover.
• There may be some workers detached and try to avoid work which will reduce productivity and have an impact on profitability.

Question 19

How can loss of flexibility be a disadvantage for businesses?

Answer 19

• If a highly skilled and specialist worker is absent, and there is no one else to replace with those skills, production may be disrupted.