O.P.M. SPECIALIZATION 15/1/09

1.O. WHAT IS SPECIALIZATION? Specialization – Concentrating on one part of the production process. Specialisation in a firm is an important part of production. Departments specialise in different activities, such as marketing, purchasing, personnel and finance. People specialise in different tasks and skills. This is called the a Division of Labour and allows people to concentrate on the task or skill at which they are best. In business, production is divided amongst workers who each concentrate on a limited range of tasks. It is felt that division of labour raises the productivity and efficiency of the business and the economy.

2.0. Advantages and Disadvantages of Specialisation Little or no education required to obtain work. Ease in learning job. Rapid training of the workforce Ease in recruiting new workers High output due to simple and repetitive work Low wages due to ease of substitutability of labour Close control over work flow and workloads People skills are improved by carrying out tasks over a long period of time Time is saved because workers are not constantly changing tasks , moving from one area to another or collecting new tool The organization of production becomes easier and more effective Boredom stemming from repetitive nature of work Little gratification from work itself because of small contribution to each item Little or no control over work pace leading to frustration and fatigue Little opportunity to progress to a better job since significant learning is rarely possible on fractionated work Difficulty in controlling quality since no one person has responsibility for entire product Worker dissatisfaction leading to hidden costs arising from turnover, absenteeism, tardiness, grievances and intentional disruption of production process Reduced likelihood of improving the process because of worker’s’ limited perspective. Limited flexibility to change the production process to produce new and improved products Problems can also occur when one stage of the production process depends on another stage . If one stage breaks down , production might be halted.

3.0. Techniques for overcoming the Disadvantages of Specialisation Job Enrichment – entails adjusting a specialised job to make it more interesting to the job holder. Task variety – provide an optimal variety of tasks within each job. Skill variety – employees derive satisfaction from using a number of skill levels. Feedback - some means of informing employees quickly when they have achieved their targets. Ideally employees should have responsibility for setting their own standards of quantity and quality. Task identity – whenever possible, a group or individual employee should have responsibility for a set of tasks that is clearly defined, visible and meaningful. In this way , work is seen as important by the group or individual undertaking it, and others understand and respect its significance. Task autonomy – employees should be able to exercise some control over their work. Areas of discretion and decision making should be available to them.