Specialisation and the Division of Labour

• The division of labour occurs when a job or task is broken into separate operations.
• This will make the task easier and quicker to perform.
• By organising the workforce output can be significantly increased for a given number of workers.

• Specialised staff can produce items of higher quality.
• Employees will become more skilled at their tasks, reducing the chances of them making mistakes.
• The time taken for a worker to move from one task to another is reduced.
• Less training is needed due to the repetitive nature of work.
• Staff can be replaced by machines with ease.

• Employees could become demotivated by repetitive work and the lack of training.
• Employees are likely to demand higher wages for their specialisation.
• Abilities are limited to a specific set of skills.

Owners

• More efficient output may reduce the company's costs, allowing greater profits.
• Lowers training costs.
• Possible costs of labour turnover.

Customers

• Higher quality products can be sold at cheaper prices because of lower output costs.

Workers

• Staff could become bored.
• May receive higher or lower pay.