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)