Division Of Labour.ppt

Division of labour Simple division of labour Complex division of labour Regional division of labour

Simple division of labour Workers specializing in producing a good

or service Singers Cooks Sportsman Actress/movie director

Complex division of labour • Specializing in a sub-process in the

production of a good

• Hair Saloon Hair washing Hair cutting, Hair dyeing

Complex division of labour • In a McDonald restaurant • Manager: for planning & management • Cooks: producing hamburger, potato slices, • Receptionist: Welcome/assist customers • Salesperson : receiving orders from customers • Cleaners: cleaning

Regional division of labour Different countries specialize in producing

different products Japan : car production USA: airplane production Saudi Arabia: oil production

Regional division of labour Different districts specialize in producing

different products/services US example California (fruit growing) Detroit (car manufacturing) Silicon Valley (IT industries)

Division of labour raises labour productivity Choosing the most suitable person for the

job Practices makes perfect Saves time in training labour Saves time in changing to other stages of production Stimulate use of machines (mechanization)

Advantages of division of labour Raising labour productivity Economy of capital (make full use of

machines and saves resources from producing capital goods) Raising living standard – more leisure – greater world output

Disadvantages of division of labour Work becomes dull and monotonous Over interdependence among stages of

production causes disruption Decline /Loss of craftsmanship Greater risk of unemployment Highly standardized products (limited varieties and choice for consumers)