Specialisation and its effects on production

[Mellorando]

Specialization can increase the productivity of and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production. Specialization Leads to Economies of Scale, The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good. Or put another way, the same time and the same money allows for the production of more goods.
Specialization leads to a much more efficient supply chain and opens up greater production possibilities. Individual companies are able to produce specific cell phone parts at a lower opportunity cost than if one company were to build up the infrastructure required to manufacture every single part themselves.


Advantages
1 Workers become quicker at producing
goods (more productive)
2 An increase in productivity causes the
cost if production to decrease (lower
average costs)
3 Production levels are increased
4 Specialised workers tend to get higher
pay
5 Workers' specific skills will be improved
More motivation from job satisfaction

Disadvantages
1 Greater cost of training workers
2 Quality may suffer if workers become
bored by the lack of variety in their job
3 More expensive workers
4 Boredom for the worker as they do the
same job everyday
5 Workers' skills may suffer as they are
only doing one job
6 Workers may eventually be replaced by
machinery

 

[Jasz]

The inclusion of machines and other production technology in the workplace transformed work into a more specialized process. As factories were organized, people were hired to perform specific jobs within the context of the process as a whole. The result is that most workers do one or two things better than anyone else, and they never have to do something they are not good at. In other words, they enjoy doing their job and feel valued for their contributions .


Specialisation is the process of taking a complex and diverse whole, then subdividing it into smaller and simpler parts. Specialisation has many effects on production. One major effect is that it allows for mass production with an increased output per worker. Another is that it increases efficiency through the division of labour and skill-sharing. By dividing tasks into small jobs, workers can perform their own task over and over again, becoming highly efficient at performing only one task while other workers are performing different tasks