Specialisation & Division of Labour 1

Specialisation/Division of labour:
Specialisation refers to a particular area of knowledge or the process of becoming an expert in
particular area. In an industrial or commercial setting, specialisation arises because of division of
labour. Division of labour is the split up of production process into smaller task/job and assign them
to labour so that they become specialized by doing the same task/job over and over again.

Type of Specialisation:
1. Specialisation by a number of countries (At a regional level): refers to an area of region
covering number of countries is able to produce large quantities of particular products often
from natural resources. For example the Middle East region countries such as Dubai, Saudia
Arabia, Qatar, Iraq, is rich in oil.

2. Specialisation by country(At a national level):

 Many countries are well known for particular industries.
 They specialise in what they do best or most economically. This is called comparative
advantage.
 The workforce develops specialist expertise and achieve greater output.
 Any surpluses that may be created are exported to other countries.
 For example Japan is well known for its cars and electronics, Switzerland manufactures
watches etc.

3. Specialisation within a country or a particular city or town:

Certain parts of a country concentrate on producing certain products or services. This may be
because a particular region has certain natural resources such as mineral deposits, climate, soil
or geographical position.

4. Specialisation by firms and factories: Many companies or factories may specialise in

particular products within an industry e.g. one company may specialise in producing
chocolate other company may specialise in processed food or ready-made meals etc.

5. Specialisation by process: Specialisation occurs because of division of labour because by

doing the same task/job over and over again the labour become expert in that particular
task/job.

6. Specialisation by occupation: Individual people may also specialise and become known for
their particular skills i.e. professional people such as teachers or doctors specialise in these
occupations.

Advantages and disadvantages of specialisation

1. Advantages/disadvantages To a manufacturer:

Advantages
 It enables the manufacturer to concentrate on one product.
 It enables the manufacturer to take advantage of division of labour.
 It increases output of standardised products at lower prices.
 It enables the greater use of machinery and technology so reduces the need for labour
and therefore reduces labour costs.
 It saves time.
 It may lead to increased efficiency as new and better techniques are introduced.
 There is a reduction in training costs.

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Specialisation & Division of Labour 2

 Tasks are often simple so it is possible to employ people who do not have
qualifications and so may be paid less.
 It allows the manufacturer to take advantage of economies of scale.
Disadvantages
 Boredom among the workforce may lead to mistakes, industrial unrest or lack of
quality.
 People doing small task in a large factory may feel isolated and so moral will suffer.
 Workers become interdependent to each other workers work. Thus anyone worker is
being absent, the whole process of production may slows down and ultimately
production stops.

2. Advantages/disadvantages to the individual worker:

Advantages
 By doing the same job again and again, the worker becomes more skilled and may
work at a greater speed.
 Reduction in manual effort as more machinery is used.
 Workers may become more mobile as they can be employed in a variety of work-
places where task are simple and easy to learn.
 Job take a shorter time to learn.

Disadvantages
 Boredom leading to loss of quality and lower output.
 Some skills may no longer be required e.g. a typist may get replaced by a computer
operator.
 Less pride in the job and less job satisfaction as worker is no longer responsible for
making the whole product as a whole.
 Instability of employment - Workers in one industry are often dependent on the
workers of another industry.

3. Advantages/Disadvantages to the consumer.

Advantages
 The production of standardised products means reduced costs and lower prices.
 This may mean more goods are affordable, leading to a higher standard of living for many
people.

Disadvantages
 The output becomes standardised. The choice of goods may be reduced unless consumers
are willing to pay higher prices for a custom-built product.

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