Division of labour

1
Division of labour

• Simple division of labour
• Complex division of labour
• Regional division of labour

2
Simple division of labour

• Workers specializing in producing a good or
  service
• Singers
• Cooks
• Sportsman
• Actress/movie director

3
Complex division of labour

• Specializing in a sub-process in the production
  of a good
• Hair Saloon
• Hair washing
• Hair cutting,
• Hair dyeing

4
Complex division of labour

• In a McDonald restaurant
• Manager for planning management
• Cooks producing hamburger, potato slices,
• Receptionist Welcome/assist customers
• Salesperson receiving orders from customers
• Cleaners cleaning

5
Regional division of labour

• Different countries specialize in producing
  different products
• Japan car production
• USA airplane production
• Saudi Arabia oil production

6
Regional division of labour

• Different districts specialize in producing
  different products/services
• US example
• California (fruit growing)
• Detroit (car manufacturing)
• Silicon Valley (IT industries)

7
Division of labour raises labour productivity

• Choosing the most suitable person for the job
• Practices makes perfect
• Saves time in training labour
• Saves time in changing to other stages of
  production
• Stimulate use of machines (mechanization)

8
Advantages of division of labour

• Raising labour productivity
• Economy of capital (make full use of machines and
  saves resources from producing capital goods)
• Raising living standard
• more leisure
• greater world output

9
Disadvantages of division of labour

• Work becomes dull and monotonous
• Over interdependence among stages of production
  causes disruption
• Decline /Loss of craftsmanship
• Greater risk of unemployment
• Highly standardized products (limited varieties
  and choice for consumers)