Bartering: Specialisation

SPECIALISATION AS IT RELATES TO BARTERING;


-In the early era when bartering was used a simple form of specialization was used. Persons made goods, hunted and gathered foods for their uses. This was called subsistence / direct production. Direct production is when one produces products for personal use without the help of others, for example subsistence farming, sewing own clothes and constructing a house for self. Back then in the villages persons first started to specialize in the making of goods like pots, tents etc for their personal uses. By engaging in specialization they were able to make a surplus (an amount greater than their needs).Specialization is defined as the situation where an individual focuses on a particular task and so become an expert in doing so. After the realization that they were good at making things for themselves they then broaden the horizon to produce more so that other persons’ needs can be satisfied. In doing so, they started to do indirect production. Indirect production is a type of production in which goods and services are produced in a large scale mainly for selling .

 
Division of labor-the assignment of different tasks to different persons to achieve efficiency.

Specialization of labor-is the separation of larger tasks into smaller tasks to different workers given that they have the skills and knowledge to perform tasks at the expected quality.

Levels of Specialization:
1. By product or occupation. Agriculture-pig farming, poultry, fishery

2. By process.eg. Forestry Different processes in the industry include:
-cutting logs
-sawing logs to lumber
-measuring lengths
-making different types of board
-finished products. Tables, door

3. By firm-Texaco specializes in petroleum products, aviation fuels

4. By industry-tourism; accommodation, transportation, recreation

5. By region- Trinidad specializes in petroleum .Grenada specializes in spice

6. By nation- Brazil specializes in coffee production, Switzerland in international finance.

Advantages of specialization:

It saves time taken to train person- after doing one task they would become expertise.

It increases productivity-the output per man

Standardized products are created which leads to less wastage and errors.

Disadvantages:

Motivation to do the same task everyday is not the same which can lead to inefficiency and errors.

Loss of individual craftsmanship- persons don't get the opportunity to express their talents. They may use machines to speed up production.

Disruption of the production process can occur when one worker is absent or ill.This too can cause increase workloads on others.

Occupation immobility can occur -this is where it is difficult to find jobs other than what you are specialized in.