Specialisation and the Division of Labour - A-Level Economics
Division of Labour
Division of Labour is a process whereby the production procedure is broken down into a sequence of stages, and workers are assigned to particular stages.
Specialisation is a result of division of labour-‐ workers carry out a specific job within the production procedure, and become skilled and specialised in that particular job.
Once labour has been divided, workers become specialized in a particular part of the production process because they repeat the task over and over.
Division of labour is often useful because some people are better at certain tasks than others. Subsequently, division of labour has lead to increased productivity.
Exam Tip: In multiple choice questions about division of labour, give examples (e.g. car manufacturing process, sandwich production line).
ADVANTAGES OF SPECIALISATION / DIVISION OF LABOUR
To the business:
- Specialist Workers always do the same task over and over, so they become good at it.
- Everyone can specialize in what they are good at.
- Reduction in training costs per worker
Increased quality of goods means firms can increase prices.
- Specialist workers do the same task over and over, so become quick at it.
- No time is wasted moving from one job to the next (e.g. car manufacturing)
- Everyone can specialize in what they are good at, and if they are good at their job they will do the job faster.
Decreased production time means production cost falls (less wage cost per unit)
To the worker:
- Higher pay for specialised work
- More choice of jobs-‐ people can specialize in jobs that appeal to them.
DISADVANTAGES OF SPECIALISATION / DIVISION OF LABOUR
To the business:
- Repetition leads to boredom amongst workers, so quality suffers.
- High staff turnover costs because workers continually quit due to low morale and boredom
- Total training costs increase due to high staff turnover (new workers have to be trained regularly)
- Specialisation leads to interdependence between departments. If one department goes on strike, it could halt production across the whole firm (e.g. when train drivers call a strike, they disrupt the work of guards and ticket inspectors).
To the worker:
- Boredom amongst workers leads to low morale
- Breaking down production into different tasks makes it easier to replace skilled workers with machines, leading to structural unemployment.
- Reduces the range of workers’ skills
Specialisation is the process of focusing on a specific task or area of production, while the division of labour is the breakdown of a larger task into smaller, specialized tasks that can be performed by different workers. Specialisation often involves the division of labour, as each worker focuses on a specific task or set of tasks that contribute to the overall production process.
There are several benefits to specialisation and the division of labour, including increased productivity, efficiency, and quality. When workers specialize in specific tasks, they become more skilled and efficient, leading to faster and more consistent production. This can also result in cost savings, as specialized workers require less training and can produce more output in less time. Specialisation can also facilitate international trade, as countries can specialize in producing goods in which they have a comparative advantage.
A comparative advantage refers to a country’s ability to produce a good or service at a lower opportunity cost than another country. Specialisation can help countries achieve a comparative advantage by allowing them to focus on producing goods or services in which they are relatively more efficient. For example, if Country A can produce wheat at a lower cost than Country B, while Country B can produce cloth at a lower cost than Country A, then it makes sense for Country A to specialize in wheat production and for Country B to specialize in cloth production. This can lead to mutually beneficial trade between the two countries.
Specialisation and the division of labour can lead to a narrow range of skills and knowledge among workers, which can limit their ability to adapt to changes in the production process or the economy as a whole. This can also lead to worker dissatisfaction and boredom, as workers may become tired of performing the same tasks repeatedly. Additionally, relying too heavily on specialisation can lead to supply chain disruptions if one specialized worker or firm experiences a problem or goes out of business.
Technology can both facilitate and disrupt specialisation and the division of labour. On the one hand, technological advancements can allow for more specialized tasks and greater efficiency in production. For example, automation and robotics can take over repetitive and dangerous tasks, freeing up workers to focus on more complex tasks. On the other hand, technology can also lead to job displacement if certain tasks become obsolete or can be performed more efficiently by machines. This can have negative impacts on workers and communities that rely on certain types of specialized jobs.
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