Specialisation is when we concentrate on producing a specific product or task.
Specialisation happens at all levels
Specialisation of tasks within extended families in many of the world's poorest countries
Within businesses and organisations
In a country
In a region of a country
What is division of labour
Division of labour is the breaking down of a production process of a good/service into smaller tasks, each of which is carried out by a different person / factor input.
It is a type of Specialisation.
In the Division of Labour, no one person is able to produce an entire product
Possible gains from Specialisation
Higher output: Total production of goods and services is raised, and quality can be improved
Variety: Consumers have access to a greater variety of higher-quality products
A bigger market: Specialisation and global trade increase the size of the market offering opportunities for economies of scale to be exploited, leading to lower unit costs and prices.
Possible losses from specialisation
Unrewarding, repetitive work that requires little skill can lower motivation and eventually lower productivity
Workers may take less pride in work and quality suffers
Dissatisfied workers cause absenteeism to increase
People move to less boring jobs creating a problem of higher worker turnover
Increased risk of repetitive strain injuries at work
