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 Singers Cooks Sportsman Actress/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 production USA: airplane production Saudi Arabia: oil production

Regional division of labour Different districts specialize in producing different products/services US example California (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 perfect Saves time in training labour Saves time in changing to other stages of production Stimulate use of machines (mechanization)

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

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)