Knowt
1d. Specialisation and the division of labour
Specialisation
Specialisation takes place when an individual, firm or country produces a narrow range of goods or services and over time develops a comparative cost advantage in producing these goods and services.
Advantages | Disadvantages |
|---|---|
Higher output: Total production of goods and services is raised and quality can be improved | Unrewarding, repetitive work that requires little skill lowers motivation and hits productivity. Workers begin to take less pride in their work and quality suffers. We often see dissatisfied workers becoming less punctual at work and the rate of absenteeism increases. |
Variety; Consumers have access to a greater variety of higher quality products | Many people may choose to move to less boring jobs creating a problem of high worker turnover for businesses. The highest labour turnover is found in retailing, hotels, catering and leisure, call centres and among other lower- paid private sector services groups |
A bigger market: Specialisation and global trade increase the size of the market offering opportunities for economies of scale | Some workers receive little training and may not be able to find alternative jobs if they find themselves out of work - they may then suffer structural unemployment. |
Competition and lower prices: Increased competition acts as an incentive to minimise costs, keep prices down and therefore maintains low inflation | Another disadvantage is that mass-produced standardised goods lack variety for consumers |
Division of labour
Division of labour is an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. If workers can concentrate on one small aspect of production, this increases overall efficiency – so long as there are sufficient volume and quantity produced.
Advantage | Disadvantage |
|---|---|
Workers need less training as they only have to master a small number of tasks | If workers are highly specialised, then the job can become very boring and repetitive. This can lead to low labour morale. |
It is faster to use one particular tool and do one job. | If workers lose the motivation to concentrate and do a good job, mistakes may creep in as they get bored. |
No time is wasted with a worker dropping a tool and then picking up another. | An assembly line could grind to a halt if there is a blockage in one particular area. |
Workers can gain loyalty and a sense of achievement from their branch of the production. | Adam Smith himself recognised this potential problem and advocated education of the workforce so that they wouldn’t get too demoralised by their repetitive job. |
There is no need to move around the factory; the half- finished good comes to him. | |
Workers can concentrate on those jobs which best suit their skills and temperament. |
1d. Specialisation and the division of labour
Specialisation
Specialisation takes place when an individual, firm or country produces a narrow range of goods or services and over time develops a comparative cost advantage in producing these goods and services.
Advantages | Disadvantages |
|---|---|
Higher output: Total production of goods and services is raised and quality can be improved | Unrewarding, repetitive work that requires little skill lowers motivation and hits productivity. Workers begin to take less pride in their work and quality suffers. We often see dissatisfied workers becoming less punctual at work and the rate of absenteeism increases. |
Variety; Consumers have access to a greater variety of higher quality products | Many people may choose to move to less boring jobs creating a problem of high worker turnover for businesses. The highest labour turnover is found in retailing, hotels, catering and leisure, call centres and among other lower- paid private sector services groups |
A bigger market: Specialisation and global trade increase the size of the market offering opportunities for economies of scale | Some workers receive little training and may not be able to find alternative jobs if they find themselves out of work - they may then suffer structural unemployment. |
Competition and lower prices: Increased competition acts as an incentive to minimise costs, keep prices down and therefore maintains low inflation | Another disadvantage is that mass-produced standardised goods lack variety for consumers |
Division of labour
Division of labour is an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. If workers can concentrate on one small aspect of production, this increases overall efficiency – so long as there are sufficient volume and quantity produced.
Advantage | Disadvantage |
|---|---|
Workers need less training as they only have to master a small number of tasks | If workers are highly specialised, then the job can become very boring and repetitive. This can lead to low labour morale. |
It is faster to use one particular tool and do one job. | If workers lose the motivation to concentrate and do a good job, mistakes may creep in as they get bored. |
No time is wasted with a worker dropping a tool and then picking up another. | An assembly line could grind to a halt if there is a blockage in one particular area. |
Workers can gain loyalty and a sense of achievement from their branch of the production. | Adam Smith himself recognised this potential problem and advocated education of the workforce so that they wouldn’t get too demoralised by their repetitive job. |
There is no need to move around the factory; the half- finished good comes to him. | |
Workers can concentrate on those jobs which best suit their skills and temperament. |
