EconomicsExam code: 0455

Workers & Wages

Microeconomic Decision Makers

Division of labour (worker specialisation) is breaking down the production process into separate tasks, with each worker concentrating on a particular task rather than making the whole product alone.

Exam tip

Define division of labour in two halves

The specimen mark scheme gives one mark for each half of the definition: production split into separate tasks, and each worker concentrating on one of them. An answer that says only that workers specialise has the second half alone, so it earns one mark. When division of labour comes with mechanised production, keep the two costs apart: output per worker rises, so average cost falls, even though total cost rises with the larger output, while repetitive work tends to lower motivation.

Splitting a job into specialised tasks has clear gains, but also costs.

AdvantagesDisadvantages
Workers become skilled and faster at their single task, raising output and productivityRepeating one task can become boring, lowering motivation and increasing mistakes
Less time wasted moving between tasks or toolsIf one specialist worker is absent, the whole production line can be held up
Easier and cheaper to train a worker for one task than for the whole jobWorkers have narrow skills, which can make them occupationally immobile if the job disappears
Allows the use of specialised machinery for each taskStandardised output gives less variety and less personal pride in the finished product

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