Types of production and division of labour

A bag of rice passes through many hands before it reaches your pot: a farmer, a miller, a lorry driver, a trader. Each adds value, and each is part of production. This lesson explains the stages of production and why splitting work into small tasks makes everyone more productive.

Learning objectives

By the end of this lesson you should be able to:

• define production and describe the three types (stages) of production
• explain division of labour and specialisation
• state their advantages, disadvantages and limits
• define productivity and explain how it can be raised

What is production?

Types of production

Production is usually grouped into three stages:

Tertiary production is often split into:

• commercial services, which help trade (trade, transport, banking, insurance, warehousing, advertising)
• direct (personal) services, given straight to people (teachers, doctors, lawyers, hairdressers)

Figure 1. The three stages of production, following fish from Tombo to a Freetown market. WASSCE Tutor diagram.

Division of labour

In a tailor's workshop, one person may cut the cloth, another sew, another fix buttons and another iron. Each becomes very good at their own task.

Specialisation is the wider idea: individuals, firms, regions or even countries concentrating on what they do best. Division of labour is specialisation within a production process.

Advantages of division of labour

1. Greater output: workers become skilled and fast at their task.
2. Saving of time: no time is lost moving from one task to another.
3. Use of machines: simple, repeated tasks can be done by machines.
4. Use of talents: each worker does what suits them best.
5. Lower cost per unit, so goods can be cheaper.
6. Shorter training: learning one task is quicker than learning the whole craft.

Disadvantages of division of labour

1. Monotony: repeating one task all day is boring and lowers morale.
2. Loss of craftsmanship: no worker can make the whole product.
3. Interdependence: if one stage stops (a strike, an absent worker), the whole process stops.
4. Risk of unemployment: a worker with one narrow skill may find it hard to get another job, especially if a machine replaces them.
5. Standardised goods: products become uniform, with less variety.

Limits to division of labour

Division of labour cannot be used everywhere. It is limited by:

• the size of the market: if few goods are sold, there is no point splitting the work into many tasks (the most important limit)
• the nature of the product: some goods, such as a hand-carved mask, need one skilled person from start to finish
• the amount of capital: splitting tasks often needs machines and buildings
• the supply of labour: there must be enough workers to fill the separate tasks

Productivity

Productivity can be raised by division of labour and specialisation, better tools and machinery, education and training, better management, good health and nutrition of workers, and reliable power and transport. Higher productivity lowers the cost of each unit and is the main source of rising living standards.

Key points

• Production is complete only when goods reach the final consumer.
• Three types: primary (extraction), secondary (manufacturing and construction), tertiary (services).
• Division of labour splits production into tasks; it raises output but causes monotony and interdependence.
• Its main limit is the size of the market.

WASSCE examination focus

Quick check

1. Is a bus driver engaged in primary, secondary or tertiary production?
2. Give two advantages of division of labour.
3. What is the main factor that limits division of labour?

Answers: 1. Tertiary (a commercial service: transport). 2. For example: greater output; saving of time; use of machines; lower cost per unit. 3. The size of the market.