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Introduction• Division of labour is a kind of Specializatio
n. As our resources are scare, to satisfy the largest possible number of wants, we have to organize them by division of labour ~~ a way that yields the greatest volume of output. .
Types of Division of labour
• There are three types of division of labour :
• Simple division of labour
• Complex division of labour• Regional and international division of labour
Simple division of labour
• A person specializes in producing a particular product or service.
• It is more common in a primitive society.
• E.g. farming
Complex division of labour
• A person specializes in a sub-process of the production of a good or service.
• It is more common in modern societyClick for examplesClick for examples
Regional and international division of labour
• Different countries specialize in certain types of products.
Country ACountry B
E.g. production of garments in HK
E.g. production of garments in HK
Practice makes perfect
choosing the best person to do a job
Economy of time
Economy of capital goods
Possibility of mechanization
Repetition of the same task means practice makes perfect , it develops skills in the particular job , it increases labour productivity
With different talent, workers perform different jobs. It can be able to handle the job more easily.
•Efficiency of labour •total output
•Save time in training workers
•save time in changing tools from one task to another
increase labour productivityincrease labour productivity
•Increase duplication of tools and equipment
•increase capital goods needed
•decrease average cost of production
Mass production means possible to employ machines to replace the workers
• increase labour productivity
•increase total output
Disadvantages Work becomes dull & monotonous Greater degree of interdependence
Greater risk of unemployment Decline in the quality of craftsmanship
Work becomes dull and Monotonous
Worker repeats the same job every day
Work becomes dull and monotonous
Worker lose interest
Decline in productivity
Greater Degree of Interdependence
• Different departments are more interdependent because the output of one department is the input of another department
Greater Degree of Interdependence
• Different industries are more dependent on each other for the raw materials produced
rubber plantations
tyre-making industry
automobile industry
Greater Degree of Interdependence
• Countries become more dependent on each othereg.HK depends on Singapore for refined petroleum
Singapore depends on imported crude oil for refining
Greater risk of unemployment
• It is often difficult for a worker trained for a particular task or profession to change over to another job
Decline in the quality of craftsmanship
Mass production method used in modern factories results in highly standardized products
Fewer people will specialize in the hand-made products
Overall quality of craftsmanship will drop