4 The Division of Labour

The division of labour increases the productivity of workers by allowing them to concentrate on a fixed and simple task, and hence to become more efficient at that task over time.

The division of labour, and hence productivity, increased with the emergence of the factory system, in which many workers were brought together under one roof for the first time and each worker was responsible for a small part of the final product. This was very different from the craft manufacture system, in which each worker was responsible for producing the entire product.

Increases in productivity, even if just in one industry, can be transmitted throughout the economy for several reasons. First, increases in productivity can lead to higher incomes for all economy’s citizens. All output must be transformed, through the process of production and sale into someone’s income (for example, the boss’ profits and the workers’ wages). Hence, increases in productivity, which allow more output to be produced by a given amount of input, also lead to more income per head, that is, greater wealth for society. For example, if more cars can be produced due to increases in the productivity of car production, more cars are sold, which means that the car manufacturers’ revenues increase. Furthermore, if, as is sometimes the case, increases in wages, are linked to increases in productivity, then workers’ wages may also rise (or,

at least, their employment prospects may be more secure).

A second way in which increases in productivity diffuse throughout the economy concerns the effect on prices. Increases in productivity tend to lower the cost of production, precisely because more output can be produced with the same amount of inputs. Since cost reductions tend to be translated into price reductions, increases in productivity eventually tend to reduce prices. Indeed, the introduction of assembly lines made a substantial contribution to the affordability of consumer durables such as the car. The increase in income per capita and the reduction in prices allow consumers to be better off.

Productivity may also increase for reasons not related to technological change, for example, if workers are simply ‘exploited’ more (with or without new technology). Output per worker may increase if workers are forced to work more quickly or for longer hours, are prevented from taking lunch breaks, or are given no holidays. These are all conditions that still persist today in some low-income countries, as well as in some industries in those western countries in which workers are not unionized and/or work in ‘sweatshops’, that is, factories that operate illegally in terms of international standards for wages and working conditions.

For a new technology to affect economy-wide productivity it must be widely adopted across industries instead of being restricted to a narrow domain. For

example, full electrification of factories did not occur until the 1920s. Prior to that, from the 1890s to the beginning of the 1920s, most factories simply added electric motors to existing (older) equipment. Until the 1920s power transmission in factories was still operated through the ‘group drive’ system, in which only parts of the factory were electrified and electric motors turned separate shafts. The ‘unit drive’ system did not appear until the boom period of the 1920s, which opened up the potential for new, fully electrified plants. The switch from group to unit drive transmission allowed

individual electric motors to run machines and tools of all sizes. The new unit drive not only allowed huge savings in fuel and energy efficiency, but also allowed the factory layout to be more amenable to the assembly-line system, which spread throughout the economy in the 1920s (although it had first been used by Ford Motors in 1910). The new technology facilitated the circulation of materials, made workers more productive and reduced downtime, as the entire plant no longer had to be shut down to make changes in just one department.

(adapted from Macroeconomics)

4.1. THEORETICAL CONCEPTS EXPLAINED

craft manufacture = is the process of manufacturing by hand with or without the aid of tools. The term craft production refers to a manufacturing technique applied in the hobbies of Handicraft but was also the common method of manufacture in the pre-industrialized world. For example, the production of pottery uses methods of craft production. A side effect of the craft manufacturing process is that the final product is unique. While the product may be of extremely high quality, the uniqueness can be detrimental as seen in the case of early automobiles.

division of labour = refers to the degree to which the various tasks involved in the production of a good or service are divided among different workers.

labour force = the number of people employed plus the number of unemployed. (forța de muncă)

labour productivity = the measurement of economic growth of a country. Factors affecting labour productivity: 1) Skills and qualifications of workers. If workers become more skilled with relevant training, then this can increase labour productivity; 2) Morale of workers. In a period of industrial unrest and low worker morale, productivity is likely to fall; 3) Technological progress. The implementation of new technology is one of biggest factors in improving productivity. For example, the assembly line introduced from the 1920s made huge strides in productivity. In recent years, the development of microcomputers and the internet have also enabled improvements in productivity. (productivitatea muncii)

output = the amount which a company, person or machine produces

output gap = an economic measure of the difference between the actual output of an economy and the output it could achieve when it is most efficient, or at full capacity. There are two types of output gaps: positive and negative. A positive output gap occurs when actual output is more than the full-capacity output. Negative output gap occurs when actual output is less than full-capacity output. (decalaj de producție)

input = something put into a system or expended in its operation to achieve output or a result, especially: a. Energy, work, or power used to drive a machine. b. Computer Science Information put into a communications system for transmission or into a computer system for processing. c. Any of the items, including materials, equipment, and funds, required for production.

wage(s) = the money paid to an employee in return for work done, especially when it is paid weekly and in cash. Note on usage: The plural wages is more usual when referring to the money earned, but wage is used in collocations before other nouns. The term ‘wages’ refers to weekly or hourly pay for workers, usually paid in cash. For employees paid by a monthly check, the term used is “salary”.

salary = 1. regular payment for work done, made to an employee usually as a check at the end of each month. 2.

assembly line = 1. an arrangement of workers, machines, and equipment in which the product being assembled passes consecutively from operation to operation until completed. Also called production line. 2. a process in which finished products are turned out in a mechanically efficient, though impersonal, manner.

downtime = time during which production is stopped especially during setup for an operation or when making repairs.

4.2. PRACTICE4.2.1. READING COMPREHENSION1. Answer the following questions:

1. What is the difference between the factory system and the craft manufacture system?2. Explain in your own words what “sweatshops” are.3. What were the consequences of the new technology?4. What did the “unit drive” system replace?5. What were the positive aspects brought about by the new unit drive?6. What did most factories add to existing equipment, from the 1890s to the beginning of the 1920s?7. When did the full electrification of factories occur?8. Are increases in productivity related only to technological change?9. What does the division of labour refer to?10. Why is the division of labour associated with productivity?

2. TRUE/FALSE: Decide whether the following statements are true or false:

1. Productivity may also increase for reasons that are not all related to technological change.

TRUE FALSE 2. Hard working conditions are to be faced in industries where workers are not unionized.

TRUE FALSE 3. The ‘unit drive’ system did not appear until the boom period of the 1930s.

TRUE FALSE 4. Sweatshops are big factories that operate within legal boundaries according to international standards for wages and working conditions.

TRUE FALSE 5. From the 1890s to the beginning of the 1920s, most factories changed completely their old equipment.

TRUE FALSE 6. The switch from group to unit drive transmission could not allow individual electric motors to run machines and tools of all sizes.

TRUE FALSE 7. All input must be transformed, through the process of production and sale, into someone’s income.

TRUE FALSE 8. Decreases in productivity can lead to higher incomes for the citizens of one economy.

TRUE FALSE 9. If workers are exploited more, then productivity undoubtedly increases.

TRUE FALSE 10. The new technology facilitated the circulation of materials, made workers more productive and reduced downtime

TRUE FALSE

3. MULTIPLE CHOICE: Fill in the blanks with the most appropriate word or phrase from the text:

1. The division of labour allows workers to concentrate on a fixed and simple task, therefore becoming more … at that task over time.a) effective b) efficient c) efficacious d) efficiently2. The … of the factory system triggered an increase in productivity.a) emergence b) appearance c) birth d) set up3. All … must be transformed, through the process of production and sale into someone’s income.a) input b) put in c) put out d) output4. Increases in wages, linked more often than not to increases in productivity may lead to more secure … in workers’ employment.a) future b) factors c) prospects d) conditions5. The effect on prices is a second way in which increases in productivity … throughout the economy.

a) diffuse b) spread c) distribute d) divide6. Cost reductions tend to be … into price reductions so increases in productivity eventually tend to reduce prices.a) interpreted b)

communicatedc) translated d) dissipated

7. Output per worker may increase if workers are forced to work more quickly or for longer hours, are … from taking lunch breaks, or are given no holidays.a) avoided b) escaped c) skipped d) prevented8. ‘Sweatshops’ are factories that operate … in terms of international standards for wages and working conditions.a) legally b) illegally c) lawfully d) within the

law9. Until the 1920s, only parts of the factory were electrified and electric motors turned … shafts.a) separate b) divided c) parted d) severed10. The … from group to unit drive transmission allowed individual electric motors to run machines and tools of all sizes.a) button b) knob c) switch d) key

4. Select information from the text and fill in the diagram below:

a. division of labour productivity

factory system = …………………

each worker was responsible for = ………………………a small part of the final product ………………………

technological change

b. productivity increase

no relation totechnological change

= ……………………………………………………

group drive system[only parts ……]

c. power transmission wasoperated through

……………………….

………………………

4.2.2. VOCABULARY STUDY1. SYNONYMY. Find words in the text that would fit the following lines of synonyms.

1) accomplishment, completion, construction, mass-production, ….2) business, commerce, enterprise, activity, production, trade, …3) calculation, expectation, forecast, likelihood, plan, possibility, …4) aim, bestow, direct, distribute, scatter, shed, spread, …5) per head, per unit of population, proportionately, …6) amalgamated, associated, combined, organized, syndicated, …7) apparatus, articles, devices, facilities, fittings, machinery, …8) development, flourishing, growth, increase, strengthening, …9) complying, conforming, pliable, cooperative, manageable, ,…10) aid, assist, ease, expedite, help, promote, speed up, …

2. MATRIX. Fill in the missing word forms, where they exist:

verb noun (person)

noun (abstract)

adjective adverb

consumerillegally

affordability

unionizeproductive

facilitateelectrificati

onworker

technological

persistmanufactur

eremergence

eventually

3. LABOUR. Fill in with a suitable adjective that makes up the right phrase with the word labour:

force, productivity, division of, dispute, relations, under a misapprehension, a point, movement

(1) The Australian labour … has its origins in the early 19th century and includes both trade unions and political activity.(2) Cooperative labour … are even more crucial if an industry wants to attract and retain the best talents, therefore there is a crucial need for a good work climate.

(3) Australia is facing a decline in labour … growth in the next 50 years.(4) Conciliators and mediators’ performance is essential to the success of any labour … resolution.(5) The … labour also implies assigning each worker to the job that suits him best.(6) Canada’s economy outperformed international rivals, but labour … remains a challenge.(7) If you labour … or an argument, you keep making the same point or saying the same thing, although it is unnecessary.(8) Most industrialists labour … that unrestrained economic growth can be achieved without damaging the environment.

4. Fill in the blanks with one of the following words. Each word may be used once only:

body, branch, collect, divided, effects, manufactures, obvious, trifling, wants, workmen

The (1) … of the division of labour, in the general business of society, will be more easily understood, by considering in what manner it operates in some particular (2) … . It is commonly supposed to be carried furthest in some very (3) … ones; not perhaps that it really is carried further in them than in others of more importance: but in those trifling manufactures which are destined to supply the small (4) … of but a small number of people, the whole number of (5) … must necessarily be small; and those employed in every different branch of the work can often be collected into the same workhouse, and placed at once under the view of the spectator.

In those great manufactures, on the contrary, which are destined to supply the great wants of the great (6) … of the people, every different branch of the work employs so great a number of workmen, that it is impossible to (7) … them all into the same workhouse. We can seldom see more, at one time, than those employed in one single (8) … . Though in such manufactures, therefore, the work may really be (9) … into a much greater number of parts, than in those of a more trifling nature, the division is not near so (10) …, and has accordingly been much less observed.

(slightly adapted and abridged from Smith, Adam. (1723–1790). Wealth of Nations. The Harvard Classics. 1909–14. [available at

28.01.2013: http://www.bartleby.com/10/101.html])

5. Choose the correct explanation for the given words or phrases:

1. be better off: a) be richer than one was previously; b) be more useful and interesting; c) be far from being better

2. to diffuse: a) to make use of; b) to be out of use; c) to disseminate ideas, information among people

3. employment prospects: a) employment contracts; b) employees’ wages; c) opportunities for future success regarding employment

4. unionized workers: a) a group of workers who are on good terms; b) workers that are members of a trade union; c) believers in the principles of trade unions

5. sweatshop: a) a shop where one can go and buy sweaters; b) a small business, factory, etc. where people work hard in bad conditions for very little money; c) hard work done for very low wages, especially in a factory

4.2.3. TRANSLATION PRACTICE1. Translate the following texts into English:

a) Diviziunea muncii este sursa solidarităţii sociale. Comte a fost cel care a menţionat primul faptul că diviziunea muncii nu este doar un fenomen economic, ci este un element principal în solidaritatea socială. Diviziunea muncii sociale are un caracter moral pentru că necesităţile impuse de solidaritatea socială sunt nevoi morale.

Dreptul este cel mai vizibil simbol al solidarităţii sociale. Acesta reprezintă organizarea vieţii sociale în cea mai exactă şi precisă formă. Se pot clasifica diferitele sisteme de reguli juridice pentru a vedea care tip de solidaritate socială le corespunde. Exista două tipuri de sancţiuni juridice: sancţiuni represive (ele au ca obiect a-l atinge pe agent în viata sau în libertatea sa, a-l priva de ceva de care se bucură şi sunt caracteristice dreptului penal) şi sancţiuni restitutive (constă într-o „repunere a lucrurilor la locul lor” şi sunt caracteristice dreptului civil, comercial, procedural, administrativ şi constituţional).

Durkheim arată cum sancţiunile represive reflectă o societate caracterizată de o solidaritate mecanică. Regulile penale exprimă condiţiile esenţiale ale vieţii colective pentru orice tip de societate. Sancţiunile penale demonstrează rezistenţa sentimentului colectiv la o anumită crimă, un act fiind criminal atunci când ofensează stările puternice şi definite ale conştiinţei colective. Toate crimele decurg direct sau indirect din conştiinţa colectivă.

În opoziţie cu sancţiunile represive, cele restitutive reflectă o societate caracterizată de o solidaritate organică. Dreptul restitutiv corespunde unei solidarităţi negative, care constă în raporturi între un lucru şi o persoană, dar şi între două persoane. Aceste raporturi negative sau de abţinere nu implică sub nici o formă cooperarea. Raporturile pozitive sau de cooperare derivă în cea mai mare parte din diviziunea muncii sociale şi nu din conştiinţa colectivă.

Durkheim explică dualitatea fiinţei umane în felul următor: în fiecare din noi există două conştiinţe – una conţinând stări personale, reprezentând personalitatea individuală şi alta conţinând stări comune tuturor indivizilor, simbolizând societatea.

Deci, în societăţile în care dreptul penal este foarte răspândit, morala comună este foarte întinsă, fiind o mulţime de practici

colective care stau sub protecţia opiniei publice. În schimb, unde dreptul restitutiv este foarte dezvoltat, există pentru fiecare profesie o morală profesională. Îndatoririle permanente ale indivizilor derivă din natura scopului ales; ei îndeplinesc funcţii familiale sau sociale şi astfel au o serie de obligaţii de la care nu se pot abate.

Diviziunea muncii sociale este direct proporţională cu densitatea morală a societăţii, iar aceasta din urmă creşte o dată cu creşterea densităţii fizice. Creşterea densităţii sociale poate apărea în trei moduri: mărirea concentraţiei spaţiale a oamenilor; formarea şi dezvoltarea oraşelor; creşterea numărului şi eficienţei modalităţilor de comunicare.

Chiar dacă societăţile pot creşte în volum (mărime absolută), ele nu cresc neapărat în densitate. O societate care se măreşte, dar numărul contactelor sociale nu creşte, poate rămâne segmentară, şi nu evoluează într-o diviziune a muncii. Oamenii îşi diferenţiază specialităţile în scopul de a diminua competiţia şi pentru a coexista. Diviziunea muncii sociale diferenţiază pentru a uni şi pentru a aduce oamenii mai aproape. În societăţile simple, arhaice, oamenii se pot înlocui uşor unii pe alţii în munca lor. Comte şi Spencer sunt de părere că în societăţile dezvoltate este tot mai greu pentru membrii acestora să se substituie unii pe alţii în sarcini. Durkheim are o opinie contrară acestora, spunând că fenomenul substituirii este observabil chiar şi la cele mai înalte nivele ale unei societăţi dezvoltate. Orice membru al societăţii trebuie să fie pregătit oricând să facă altceva decât a făcut până la un moment dat. Civilizaţia, ca intensificare a vieţii sociale este doar un efect şi nu o cauză a diviziunii muncii.

(adaptat după http://www.roportal.ro/articole/emile-durkheim-studiu-de-autor-58-2.htm)

2. Translate the following texts into Romanian:

a) The main focus of Adam Smith’s The Wealth of Nations lies in the concept of economic growth. Growth, according to Smith, is rooted in the increasing division of labor. This idea relates primarily to the specialization of the labor force, essentially the breaking down of large jobs into many tiny components. Under this regime each worker becomes an expert in one isolated area of production, thus increasing his efficiency. The fact that laborers do not have to switch tasks during the day further saves time and money. Of course, this is exactly what allowed Victorian factories to grow throughout the nineteenth century. Assembly line technology made it necessary for a worker to focus his or her attention on one small part of the production process. Surprisingly, Smith recognized the potential problems of this development. He pointed out that forcing individuals to perform mundane and repetitious tasks would lead to an ignorant, dissatisfied work force. For this reason he advanced the revolutionary belief that governments had an obligation to provide education to workers. This sprung from the hope that education

could combat the harmful effects of factory life. Division of labor also implies assigning each worker to the job that suits him best. Productive labor, to Smith, fulfills two important requirements. First, it must “lead to the production of tangible objects.” Second, labor must “create a surplus” which can be reinvested into production.

Another main concern for Smith involved tracing the roots of value. He identified two different kinds of value, “use value” and “exchange value.” The concept of exchange value interested Smith considerably. The diamond-water paradox, in particular, proved puzzling to him: Why is it that diamonds, which have very little practical use, command a higher price than water which is indispensable to life? By discovering the true source of value Smith hoped to find a benchmark for measuring economic growth. Eventually Smith settled on labor as the source of value: the number of hours of labor that a good can be exchanged for constitutes its inherent worth. The value of a good can also be referred to as the “natural price.” The natural price need not function as the actual cost of a good in the marketplace. Competition, however, was expected to push the market price towards the natural price.(adapted from http://www.victorianweb.org/economics/division.html)

b) The IFAD supported Lowland Agricultural Development Program (LADEP) in Gambia is the first phase of a longer-term effort of community-driven development of lowland areas. The goal is sustainable improvement of traditional rice production in order to enhance food security for impoverished rural households. Rice growing in the program areas is primarily done by women. The Food and Agriculture Organization (FAO) conducted a participatory rapid assessment of the LADEP in December, 2000. The focus of the assessment was on various dimensions of emerging impact, including on gender relations. Questions of division of labour in rice production and consumption, and the impact of the project on women's workload, were among those reviewed.

With the exception of pump irrigated rice (almost always controlled by men), traditional lowland rice is mainly women's responsibility, but with variation among ethnic groups, particularly in terms of control of produce.Because women provide most of the labour for rice growing, an increase in women’s workload was a recognized LADEP risk. The program plan anticipated that women would provide 80% of the labour for construction (estimated at 200 labour days per km of dike), and they would acquire an expanded area for rice cultivation. Under actual implementation, 65% of the workforce for dike construction was female and total person days per hectare averaged 190, but with wide variations.

(adapted from http://www.ifad.org/gender/learning/resource/natural/gm_labour.ht

m)

c) Big business is mass entertainment in America. Like all entertainers, the stars of the show ought to know what their audience wants. It used to be enough for company bosses simply to be tough: think of “Neutron” Jack Welch at General Electric, gruff-and-tough Lou Gerstner at IBM, or “Don” Michael Armstrong at AT&T. But tastes are fickle. One-time food-industry king Frank Perdue’s TV pitch (“It takes a tough man to make a tender chicken”) gets the chief executive only so far with today’s touchy-feely audience. Increasingly, America’s business leaders need a cuddly side too.

Consider: Jeff Immelt, Mr Welch's replacement at GE, is said to be every bit as tough as his red-blooded predecessor. Yet he recently appeared on the cover of Fortune magazine, open-shirted and woolly-jumpered, looking about as mean as a teddy bear. When he gets mad, we are told, Sam Palmisano, the “people guy” who took over from Mr. Gerstner at IBM recently, starts snapping pencils. Bill Ford, the puppy-eyed environmentalist who has replaced brutish Jacques Nasser at Ford, stars in his own TV ads, in which he promotes family values. Louis Camilleri (Philip Morris), Richard Parsons (chief executive-elect at AOL Time Warner) and Dave Dorman (boss-in-waiting at AT&T) are all polishing up the same act: it pays to be nice.

Does it? Daniel Goleman, a business-book writer, has peddled the nice-is-good theme for several years, and done rather well for himself. In his latest offering (“Primal Leadership: Realizing the Power of Emotional Intelligence”, Harvard Business School) he counsels business leaders to create a “reservoir of positivity that inspires passion and motivates people”. The rise of the “knowledge worker”, the shift from mass manufacturing to people-friendly service businesses and the democratising influence of IT all point to a future in which the boss needs to be more open and approachable—the kind of person you wouldn't mind going fishing with for a couple of days, as John Allen of Lippincott & Margulies, an image consultancy, puts it.

(adapted and abridged from “Chief executives, Nicer at the top, Tough bosses are out, teddy bears in” – The Economist, March 14th

2002)