Unit 1: Business Activity | Division of Labour

Today we use resources in a more efficient way for two reasons:

1. Machinery is more used and often specialised to perform one task.
2. Larger firms employ workers skilled in particular tasks.

Specialisation → when the production process is split up into different tasks and each worker performs one of these tasks. It is also known as division of labour.

Advantages	Disadvantages
Increases efficiency and output as workers are trained in one task & specialised in it.	Efficiency might fall as workers can become bored doing just one job.
Less time is wasted moving from one workbench to another, so production is faster.	Production might stop if one worker is absent and no other can do the job.