Specialization and Division of Labor Divide and Conquer Specialization and Division of Labor Economics LAP 7

Objectives Explain types of specialization. Compare the advantages and disadvantages of specialization and division of labor.

Explain types of specialization. Objective Explain types of specialization.

The varsity basketball team has won 20 games in a row. How? Each player specializes in what he does best.

Specialization Make the best use of our resources Focus on the production of certain products Trade or exchange them for other things we need

Specialized Resources Human resources Natural resources Capital goods

Forms of Human-Resource Specialization Specialization by trade or profession Type of work that you perform to earn a living Most common type of human-resource specialization

Forms of Human-Resource Specialization Specialization by stage of production Occurs when more than one stage is needed to change a raw material into a finished product

Forms of Human-Resource Specialization Specialization by task Used when jobs are so specialized that a worker does one small part of the total job Also known as division of labor

They’re Toadally awesome! Scope and Specialization Scope: The number of different operations in a job and the frequency with which they are done Low level task = low job scope Free Toy inside! A tasty, nutritious, breakfast treat! They’re Toadally awesome! Adding toys to cereal boxes is low in scope, but developing the promotional campaign is a high scope job.

Depth and Specialization The amount of control an employee has over the task that is to be done Low depth = low decision-making power High depth = much decision- making power and ability to set own pace

Objective Compare the advantages and disadvantages of specialization and division of labor.

Advantages of Specialization Simplified worker training Simplifying a job task makes it easier to teach and learn.

Advantages of Specialization Increased employee interest and satisfaction Employees become proud of their part in the process.

Advantages of Specialization Increased production rates As employees become familiar with their jobs, they can increase company output.

Advantages of Specialization Increased level of skill Skill level increases as employees practice their job tasks.

Advantages of Specialization Increased quality of work As skill increases, the quality of work increases.

Advantages of Specialization Ease of transferring to a similar job Because of their knowledge and skill, employees find it easier to transfer to similar jobs.

Advantages of Specialization Higher employee income As employees become more productive, they become more valuable. Employers may give employees a pay raise as a reward for outstanding performance.

Disadvantages of Specialization Increased interdependency Results when each employee does just one part of a total job

Disadvantages of Specialization Increased boredom on the job Caused by continually doing the same task

Disadvantages of Specialization Decreased pride in work Caused by repetition or not seeing the final outcome of work

Disadvantages of Specialization Decreased morale and enthusiasm for the job Results from decreased pride in work Workers can exhibit a “Who cares?” attitude.

Disadvantages of Specialization Increased chance of worker obsolescence because of technological advances Caused by continuous changes in technology

Disadvantages of Specialization High degree of specialization may cause difficulty in transferring or obtaining another job. Results from high salary expectations

Combating the Disadvantages of Specialization Job enlargement Job rotation Job enrichment Job satisfaction

How is your work divided up? Advantages? Disadvantages? Ways to overcome disadvantages?

According to his union contract, Elijah must use forklift to move everything. He’s not allowed to clean up the box that fell on the floor. Is this a case of specialization that’s gone too far? Is it a logical, efficient way to divide the labor based on know-how? What do you think?

MBAResearch Acknowledgments Original Developers Christopher C. Burke, April J. Miller, MBAResearch Version 2.0 Copyright © 2011 MBA Research and Curriculum Center®

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