Specialisation and Division of Labour

Flashcards covering key definitions, advantages, and disadvantages of specialisation and division of labour.

Specialisation

When people and businesses focus on what they are best at.

Division of Labour

When production is split into different tasks and each worker performs one of these tasks; it is a form of specialisation.

Productivity and Efficiency (Advantage of Specialisation)

Workers are trained in specific tasks and specialize in them, increasing productivity and efficiency.

Higher Quality Output (Advantage of Specialisation)

Specialisation with division of labour results in higher quality output.

Economies of Scale (Advantage of Specialisation)

An increase in efficiency from specialisation and division of labour leads to economies of scale.

Resource Optimization (Advantage of Specialisation)

Workers become more skilled and experienced, reducing waste of time and resources.

Employee Boredom and Dissatisfaction (Disadvantage of Specialisation)

Repetitive tasks can cause boredom and dissatisfaction for employees, reducing motivation and job efficiency.

Production Disruption (Disadvantage of Specialisation)

If a worker cannot present, production will be disrupted, causing a waste of time and resources, as well as low output and efficiency.

Increased Costs (Disadvantage of Specialisation)

Specialised workers require higher wages, and training current employees will increase costs.

Unemployment Risk (Disadvantage of Specialisation)

Risk of unemployment in case of a change in tasks and preferences of customers.