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Economics Essays

Division of labour is a kind of specialisation in relation to employees, involving splitting the process of production into various different tasks, with an employee assigned to each one. These workers combine to make the final product. In the area of services, the same idea applies – for example, when you go to a restaurant it is rare that the same person will be both cooking food and serving it.Dividing production into specific tasks benefits the firm selling the product immensely. Allowing workers to focus on mastering one task improves their ability to do that task well, which increases efficiency. This means that more units can be produced in the same amount of time, so production rates go up; also, less labour hours are needed to produce the same amount of goods, reducing costs for the company. The quality of the goods can also increase if each worker improves their ability to perform a specific task.