Division of labour

Simple division of labour

Complex division of labour

Regional division of labour

Simple division of labour

Workers specializing in producing a good or service

SingersCooksSportsmanActress/movie director

Complex division of labour

• Specializing in a sub-process in the production of a good

• Hair Saloon

Hair washing Hair cutting,Hair dyeing

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

Regional division of labour

Different countries specialize in producing different products

Japan : car productionUSA: airplane productionSaudi Arabia: oil production

Regional division of labour

Different districts specialize in producing different products/services

US exampleCalifornia (fruit growing)Detroit (car manufacturing)Silicon Valley (IT industries)

Division of labour raises labour productivity

Choosing the most suitable person for the job

Practices makes perfectSaves time in training labourSaves time in changing to other stages of

productionStimulate use of machines (mechanization)

Advantages of division of labour

Raising labour productivityEconomy of capital (make full use of

machines and saves resources from producing capital goods)

Raising living standard – more leisure– greater world output

Disadvantages of division of labour

Work becomes dull and monotonousOver interdependence among stages of

production causes disruptionDecline /Loss of craftsmanshipGreater risk of unemploymentHighly standardized products (limited

varieties and choice for consumers)