Specialisation and Division of

Labour
Because of the fact that choice involves opportunity cost, the factors of production have
to be used in the most efficient way. This is achieved through Specialisation and Division
of Labour. This means every individual performs a specific task only so that he can give
in the best output. Division of labour can be defined as

the separation of a work process into a number

of tasks, with each task performed by a separate

person or group of persons.

As the workers become specialised in a particular task, it results in 'specialisation'.

Division of labour is most visible in assembly lines which are used for mass production of
goods. example. a car assembly line.

Importance of Specialisation
Specialisation results in greater efficiency and productivity. As the workers don’t have
to move between jobs. This leads to lower cost of production.

Time is saved as the workers become for efficient in performing a particular job.

By doing the same job repeatedly, the workers become ‘experts’, they commit less
mistakes and hence leads to less wastage.

Due to specialisation production level increases which make it possible to carry out

mass production.

Specialisation is good for workers too. They master the job and can bargain for better
wages.

However,

In specialisation each worker is assigned a particular piece of work and he or she does
that particular task. Repeatedly doing the same job can result in boredom for the
workers.
Repetition of work leads to a mundane routine for workers, this kills their
motivation. They might become careless. This will lead to more errors and affect the
quality of production.

Moreover, a job might be broken into small identifiable tasks, which a different set of
workers might be doing. Now If a worker cannot complete his or her job on time this may
result in a bottleneck for the whole production process.

Workers lose flexibility due to over specialisation on a particular job. If by any reason,

that particular skills becomes obsolete, the worker will become redundant and might end
up losing her job.

The business will have to invest in training their workers in particular skills. This costs
money which adds up to the cost of production.