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4 November, 22:08

Explain efficiency, productivity, and lower cost and how they might affect the division of labor? (Work output and salary)

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  1. 5 November, 01:53
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    1. Efficiency: A more efficient production process would require highly specialized laborers that are capable of handling the process with expertise and speed.

    2. Productivity: This means that higher productivity will require a more skilled work force.

    3. Lower cost: A lower cost will attract a less specialized work force.

    Explanation:

    Division of labor is the act of dividing the production process into simpler manageable parts. These parts are the assigned the human resource with specialized skills to handle each part. The production industry has become so wide and technical, that the need for specialized workers cannot be ignored. The workers are required to be skilled and capable of handling the particular work. There are different factors that might affect the division of labor. They are; efficiency, productivity and a lower cost.

    1. Efficiency: efficiency in general terms can be defined as a measure of the output as compared to the input. In the context of production, efficiency is a measure of comparing the quality and quantity produced to the amount of resources that are used in the process of production. A more efficient production process would require highly specialized laborers that are capable of handling the process with expertise and speed.

    2. Productivity: this is the intensity at which a company is resourceful. It also ties closely with efficiency. The major difference is that efficiency deals with how well the resources are utilized while productivity deals with the quantity produced. To produce more, the labor has to be either increased or the workers themselves have to work faster. Working faster requires skills. This means that higher productivity will require a more skilled work force.

    3. Lower cost: a lower cost means that the amount of expenses used for production is reduced. This means that the amount of salary paid to workers will also be reduced. Experienced and skilled workers require considerably higher pay as compared to less experienced and less skilled workers. A lower cost will attract a less specialized work force.
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