IGCSE BUSINESS STUDIES Topic : Specialisation or Division of labour

Specialisation and Division of Labour

Because of the fact that choice involves opportunity cost, the factors of production have to be used in the most efficient way. This is achieved through Specialisation and Division of Labour. This means every individual performs a specific task only so that he can give in the best output. Division of labour can be defined as

the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons.

As the workers become specialised in a particular task, it results in 'specialisation'.
Division of labour is most visible in assembly lines which are used for mass production of goods. example. a car assembly line.
There are advantages and disadvantages related with division of labour.

Advantages

Specialisation results in greater efficiency and productivity
Time and resources are saved as the workers become for conversant with the process

Disadvantages

Repeatedly doing the same job can result in boredom for the workers
If a worker cannot complete his or her job on time this may result in a bottleneck for the whole production process.