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Productivity » The Division of Labour

What you'll learn this session

Study time: 30 minutes

Edexcel spec: 1.2.2 (c) and (d)

What the division of labour means
The advantages of the division of labour to workers
The advantages of the division of labour to businesses
The disadvantages to workers and to businesses

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What is the division of labour?

On a production line each worker does one task, which is the division of labour

Think about making a cheese sandwich at home. You do every job yourself: slice the bread, cut the cheese, butter it and wrap it. Now think about a sandwich factory. One worker slices bread, another adds the cheese, another wraps and another packs the boxes. Each person does one small job over and over. This is the division of labour, and it is examined on Paper 1 as part of Business Economics.

Key terms:

Division of labour: splitting the making of a good or service into separate tasks, with each worker doing one task. It is also called specialisation of tasks.
Specialisation: when a worker concentrates on one task or job, and so becomes good at it.

The idea works in services too. In a hospital, one person books the appointment, a nurse takes your temperature, a doctor decides on the treatment and a pharmacist gives out the medicine. Each person does the part they are trained for.

Advantages to workers

🎓 Skill

Doing one task again and again makes a worker quicker and better at it. They learn the tricks of the job and make fewer mistakes.

💼 Easier training

A new worker only has to learn one small task, so they can start the job quickly and begin earning sooner.

💰 Possible higher pay

Skilled specialists whose work is in demand can be paid more. Also, if the business earns more, it may pass some of this on in wages.

🏆 Doing what you do best

Workers can do the task they are best at or enjoy most, instead of every job.

Advantages to businesses

Higher output per worker: specialist workers are faster, so the business makes more from the same number of workers. The productivity of labour goes up.
Lower costs per unit: more output from the same wage bill means each item costs less to make. The business can then make more profit or charge lower prices.
Quicker training: because each job is simple, new staff can be trained fast and it costs less.
Better quality: workers who do one task all day usually make fewer errors, so there are fewer faulty products.
Less time lost: workers do not waste time moving from one job to another or changing tools.
Easier to use machines: a simple repeated task is easier to give to a machine. The business can swap that one task for a machine without changing everything.

Worked example

A bakery has 6 workers. When each worker does every job, the bakery makes 120 pies a day.

The owner divides the work. Two workers make pastry, two make fillings and two assemble and bake. The bakery now makes 210 pies a day with the same 6 workers.

Before: 120 / 6 = 20 pies per worker. After: 210 / 6 = 35 pies per worker.

The wage bill has not changed, so the cost of wages for each pie has fallen. This is a clear gain for the business.

Disadvantages to workers

Doing the same small task all day can be boring, a big disadvantage of the division of labour for workers

😴 Boredom

Repeating one small task all day is dull. Workers may lose interest and enjoy the job less.

🔄 Narrow skills

A worker who knows only one task has not learned a wide range of skills, so it can be hard to move to another job.

🚫 Risk of losing the job

If a machine can do the single task, or the business closes, the specialist may find it hard to get new work.

💪 Strain

Doing the same movement over and over can cause tiredness or injury to hands and backs.

Disadvantages to businesses

Workers become bored: bored workers can lose focus, make more mistakes or have more days off. Staff may also leave, so the business has to hire and train again.
Everything depends on each task: the work is a chain. If one worker is ill or leaves, or one machine breaks, the next stage may have to stop and the whole line slows down.
Hard to cover absence: other staff only know their own task, so it is difficult to fill in.
Lower quality in some cases: workers may not care about the finished product if they only see one small part of it.
Higher pay demands: unhappy workers may ask for higher pay to make up for dull work, which can push up costs.

Common mistakes

Writing only the good points. The spec asks for advantages and disadvantages, so give both when a question asks you to evaluate.

Mixing up who gains. Say clearly whether a point is about workers (skill, boredom) or the business (output, cost per unit, quality).

Saying that the division of labour means workers share the profits. It means dividing the tasks, not the money.

Exam-style question

Sunvale Cycles makes bicycles and has 10 workers. Before, each worker built a whole bicycle. It now uses the division of labour: some workers make frames, some fit wheels and some fit brakes and gears. Output rose from 40 to 70 bicycles a week with the same 10 workers.

(a) Define the term 'division of labour'. [2 marks]

(b) Calculate the output per worker after the change. [2 marks]

Model answer

(a) Dividing the production of a good into separate tasks (1), with each worker specialising in one task (1).

(b) Output per worker = 70 / 10 (1) = 7 bicycles per worker per week (1).

(c) Advantage: workers become more skilled at their one task (1) because they repeat it, so they work faster and make fewer mistakes (1). Disadvantage: the work can become boring (1) because they do the same task all day, so they may lose interest or want to leave (1).

Exam tip

In part (c) the question names the workers, so do not write about the business. Pick one point for workers on each side and explain it.

Recap

The division of labour splits production into tasks, with each worker specialising in one.
Workers gain skill and easier training, but may face boredom, narrow skills and job insecurity.
Businesses gain higher output, lower unit costs and better quality, but face dependence on each stage and unhappy workers.

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