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

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

3. Explain types of specialization.
Objective
Explain types of specialization.

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

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

6. Specialized Resources
Human resources
Natural resources
Capital goods

7. 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

8. 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

9. 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

10. 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.

11. 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

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

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

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

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

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

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

18. 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.

19. 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.

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

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

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

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

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

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

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

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

28. 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?

29. 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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Teenager Today
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