Ch15 - Productivity and division of labour

• Productivity

  The rate at which goods are produced, and the amount produced in relation to the work, time and money needed to produce them
• Factors affecting productivity

  • Land
  • Labour
  • Capital
• Improving productivity

  Businesses make better use of their resources
• Land

  • Use of fertilisers and pesticides
  • Drainage
  • Irrigation
  • Reclamation
  • Genetically modified crops
• Fertilisers


  Chemicals given to plants to improve their health and appearance and raise crop yields
• Pesticides

  Chemicals used to kill pests
• Drainage

  Improving the flow of water off the land to make it more productive
• Irrigation

  Redirecting water from natural sources to land that needs more water to become productive
• Reclamation

  Creating new land from oceans, riverbeds or lakebeds to grow crops
• Genetically modified crops

  Plants that are less likely to be affected by disease, may produce higher yields and more appealing to consumers
• Labour

  • Training
  • Improved motivation
  • Improved working practices
  • Migration
• Training

  Increasing the knowledge and skills of workers so they can do their jobs more effectively
• Motivation

  If people are motivated at work, they will be more productive
• Financial incentive scheme

  Piece rates, which involves paying workers according to how much they produce
• Non-financial incentive


  Needed for workers not motivated by money
• Working practices

  The way labour is organised and managed can affect productivity
• Migration

  Attracting skilled workers from overseas to improve the quality of human capital
• Capital

  • Improvement may occur because more capital is employed, possibly at the expense of labour, or how technology is more efficient than existing technology
• Primary sector

  • Use of machinery such as tractors, combine harvesters in agriculture
• Secondary sector

  • New technology in manufacturing, complex plant and equipment in factories and production lines
• Tertiary sector

  • Increasing use of technology in the provision of services
• Division of labour

  Breaking down of the production process into small parts with each work allocated to a specific task
• Advantages of division of labour for the worker

  • Focusing on the same task allows the worker to become more skilled
  • More highly skilled workers are likely to get paid more
  • Workers may enjoy more job satisfaction if they are highly skilled in a specialist task
• Disadvantages of division of labour for the worker

  • Work can be boring because it is repetitive
  • Repetitive tasks can have health implications
  • Risk of unemployment if too specialised
• Advantages of division of labour for the business

  • Efficiency is improved through specialisation
  • Greater use of specialist tools, machinery and equipment
  • Production time is reduced
• Disadvantages of division of labour for the business

  • Repetitive and boring tasks can lead to worker dissatisfaction and poor motivation
  • Problems can occur if one stage of production depends on another stage
  • Loss of flexibility if highly skilled and specialist workers are absent