What is specialisation?

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  • Specialisation
    • Benefits to the firm
      • Workers become quicker at producing goods (more productive)
      • An increase in productivity causes the cost if production to decrease (lower average costs)
      • Production levels are increased
    • Benefits to the workers
      • Specialised workers tend to get higher pay
      • Workers' specific skills will be improved
      • More motivation from job satisfaction
    • Costs to the worker
      • Boredom for the worker as they do the same job everyday
      • Workers' skills may suffer as they are only doing one job
      • Workers may eventually be replaced by machinery
    • Costs to the firm
      • Greater cost of training workers
      • Quality may suffer if workers become bored by the lack of variety in their job
      • More expensive workers
    • Specialisation refers to workers only employed on a small aspect of their work.

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