The Division of Labour

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  • Created on: 30-10-12 17:17
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The Division Of Labour
1. The process of making the product, raw materials
2. How effective you are
3. How much you made within a time limit
4. Allocate rolls
Production relates to total output (final products/services)
Productivity relates to the output
Key concepts:
Specialisation the production of a limit range of goods by an individual factor of production of a
firm or country
Division of labour: breaking the production process down into a sequence of tasks, with workers
assigned to particular tasks
Benefits to division of labour:
Increased aptitude :repetition of task leads to them being done more expertly
Time saving: less time switching between tasks and more time producing products
Working with peoples strengths: working to peoples strengths will lead to more products
produced at higher quality
Use of capital equipment: as the amount produced increases, it becomes more worthwhile using
machinery to save further effort
Specialisation requires EXCHANGE
Specialisation: the products of a limited range of goods by an individual factor of production or
firm or country
Without exchange people will have to be self-sufficient on many tasks
Specialisation has allowed people to enjoy a standard of living hat would be impossible through
self sufficiency
There used to be a system of barters where you exchange goods and services to other goods
and services
What are the advantages of higher productivity to businesses and the economy?
Higher profits
Lower average costs
Improved competitiveness in overseas market
Division of labour


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