Question

In: Economics

This assignment will be submitted to Turnitin®. Instructions Instruction: Complete your essay in a new MS...

This assignment will be submitted to Turnitin®.
Instructions

Instruction: Complete your essay in a new MS Word document and upload to iCollege. Your answer should demonstrate your ability to apply the concepts learned in our class. The word count of the text that includes your “own words” should be at least 500 words (about 700 max.). The text should be typed double-spaced using a 12-point font size in Times New Roman.

  1. The text argues that our standard of living depends upon the division of labor, upon the fact that people specialize, develop skills in their specialization, and then exchange for the goods and services they do not produce. Do you think it is possible to carry the division of labor too far? Is it likely that people get so “overspecialized” that they become alienated, and lose their creativity and their ability to understand a broad range of problems?

Suggested Answer: Students should discuss the advantages and disadvantages of division of labor. Someone specializing in the execution of a single operation might master it, but might be quite inadequate at others. Remember the famous Bruce Lee quote, “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” Related concepts: Multiskilling, job rotation, job enrichment, assembly line.

Solutions

Expert Solution

Division of labor means the allocation of different parts of production process to different workers or to different groups of workers.

Advantages of division of labor:

i) Increase in efficiency of labor: If a worker if entrusted with one part of the job of producing a commodity (rather than the whole commodity) the worker becomes more adept at doing that particular job. Then the job as a whole gets done more efficiently.

ii) Reduced average cost: Since division of labor increases total output, even with an unchanged number of labourers the average cost of producing a commodity falls.

iii) Rise in profits: The increase in quality and the improvement in the quality of output (both of which are results of increased efficiency of labor) are the most important benefits. Among these derived advantages the most obvious is the increase in the profits of the producers.

iv) Rise in national income: The production of each good increases when division of labor is introduced, the total value of all goods and services produced in the economy will increase.   

Some disadvantages of the same are given below:

i) Satisfaction of creation denied: As division of labor takes place no one gets the satisfaction of producing a whole commodity. This satisfaction is lacking in the system.

ii) Monotony: Division of labor makes the each in and day out work of a labor boring. He /she will be doing the same thing everyday which might lead to dull monotony.

iii) Possibility of overproduction: Since division of labor cases enormous increase in total output there is a risk of overproduction. Unless there is a corresponding increase in demand there is a possibility that the increases output cannot be sold in the market.

iv) Risk of unemployment: On one hand as division of labor expands the employment opportunities by making large scale production possible on an individual level it also adds to the risk of unemployment. This is because in division of labor a worker specializes in only one part of the production process.

Multi tasking: As division of labor forces workers to become specialized in a specific part of the production process it should also encourage workers to know about other parts of the job as well. This will bring about multi tasking and take away the monotony from their everyday work.

Job rotation: One way of moving away from the monotony of specialized work is to make sure a structured and  timely job rotation policy is working. Workers will get to work in different roles for different periods of time. This can help the organization to access hidden talents and learn from new techniques from fresh minds.

Job enrichment: A way to motivate and challenge the worker in the existing job role by increasing the challenges and pay potential. This acts as a chance to excel and grow in the same job role.  

Assembly line: Forming a assembly line in a manufacturing process signifies the optimum way in which division of labor can succeed.


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