1.2.2 Productivity and division of labour
- Syllabus
- 2026
- Topic
- 1.2.2
- Level
- —
Learning objectives
1.2.2a ProductivityDefinition of productivity.1.2.2b Factors affecting productivityFactors affecting productivity:• land – use of fertiliser, drainage, irrigation, reclamation• labour – quality of labour, including improved human capital through education and training and impact of migration• capital – increased quantity and technological advances.1.2.2c Division of labourDefinition of division of labour.1.2.2d Division of labour: effects on workers and businessesAdvantages and disadvantages of the division of labour to workers and businesses.
Measure output produced from each input
Productivity measures output produced in relation to the inputs used, usually over a stated period of time.
Labour productivity=number of workerstotal output
If 135 workers produce 33,750 units per month, labour productivity is 33,750 ÷ 135 = 250 units per worker per month.
Productivity is a rate of output per input, not total output alone. A firm can raise total output by employing more workers without increasing productivity per worker.
Trace improvements in land, labour and capital into productivity
| Factor | Productivity improvement | Causal route |
|---|---|---|
| land | fertiliser, drainage, irrigation or reclamation | improves usable land, growing conditions or yield from a given area |
| labour | education and training improve human capital; skilled migration can add knowledge | workers perform tasks more effectively and make fewer errors |
| capital | more machinery or technological advance | each worker or unit of time can produce more output |
Better drainage can remove excess water from farmland, improve crop growth and raise output from the same area of land. Training can similarly raise output from the same number of workers.
A larger input quantity raises productivity only if output rises proportionally more. Buying machinery that is unused, or adding workers without more output, does not guarantee higher productivity.
Split production into specialised tasks
Division of labour means breaking the production process into smaller tasks and assigning workers to specialise in particular tasks.
Instead of each worker making a complete product, one may assemble, another paint and another inspect. Repetition allows each worker to focus on a narrower operation and the outputs then combine into the finished product.
Division of labour describes how tasks are organised. It is not simply employing many workers, and it does not require every worker to have a different occupation.
Evaluate specialisation for workers and businesses
| Stakeholder | Advantages | Disadvantages |
|---|---|---|
| workers | skill and speed at one task; less time switching; some tasks may require less initial training | repetition can cause boredom, low motivation and loss of broader skills; dependence on one role can increase job risk |
| businesses | higher productivity, consistent quality, faster training and scope for specialised machinery | monotony may reduce quality or raise absence/turnover; one absent worker or failed stage can disrupt the whole process |
Specialisation can increase output because repetition builds speed and workers avoid changing tools or stations. The gain depends on coordination and motivation, so extreme repetition can weaken the benefit.
Do not assume division of labour always benefits the firm or always harms workers. Evaluate the task, technology, workforce response and time horizon.