Specialization / Division of Labour
What is specialization?
It is when one person is an expert in something.
Name an advantage of division of labour.
Workers are trained in one task and specialise in this – this increases efficiency and output
Less time is wasted moving from one workbench to another
Quicker and cheaper to train workers as fewer skills need to be taught
What is opportunity cost?
When you miss out on something during a decision.
What is division of labour?
When the making of a product is divided into many steps for different people to do. Each task is done by one person to make the product.
Name one disadvantage of division of labour
Workers can become bored doing just one job – efficiency might fall
If one worker is absent and no one else can do the job, production might be stopped
If I choose to watch a movie instead of going out on a walk, what is my opportunity cost?
Going on a walk.
Tell us how you can use DIVISION OF LABOUR when selling milk.
Hint: making milk has many tasks, like collecting milk from the cow, making the carton, putting milk in the carton...
One person can milk the cow, another person can make the carton, and one person can put milk in the carton and then seal the lid so the carton is safe to be sold.
What will happen if Maya is absent?
If one worker is absent and no one else can do the job, production might be stopped
Ahmed has to decide to spend his money on a new, bigger building for all of his employees and more space to produce his products, or to get a fancy car for just himself.
What is the opportunity cost?
Which should he choose?
The opportunity cost is whichever option he DOESN'T make. If he chooses the car, the building is the opportunity cost because he misses out on it.
He should choose the building because it benefits more people (employees and him) and the new building will bring him more money if he has space to produce more products in it so he can sell more.