- 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.
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How the division of labour can increase output
- 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.
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Disadvantages of specialisation
- 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.
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How the division of labour affects stakeholders
- More efficient output may reduce the company's costs, allowing greater profits.
- Lowers training costs.
- Possible costs of labour turnover.
- Higher quality products can be sold at cheaper prices because of lower output costs.
- Staff could become bored.
- May receive higher or lower pay.
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