Specialisation and division of labour

• specialisation


  when an individual, firm ,country concentrates on the production of a narrow range of goods and services
• disadvantages of specialisation

  1. often not flexible
  2. countries may be less self sufficient and stuggle when trade suffers
• Advantages of specialisation

  1. improved productivity of labour
  2. Increased innovation (focused on RnD)
  3. increased output
  4. increased quality of goods and services because of increased skills of labour
• Division of Labour

  1. specialisation of workers into performing a narrow range of tasks
  2. can concentrate on a section of the process and repeat it
• Advantages of division of labour

  1. Decreased training time decreases costs and increases profits
  2. Lower skilled work means lower pay and increases profits
  3. Easier to source labour and find workers
  4. Easier to locate and fix problems
• Disadvantages of division in Labour

  1. monotonous work demotivates employees and productivity increasing staff turnover
  2. can lead to structural unemployment
  3. with one absence the entire production process stops