Advantages and Disadvantages of Worker Specialization Quiz

Study Notes

Specialization and Economies of Scale

Specializing in one task can lead to boredom, decreased motivation, and a lack of versatility in the workforce.
Specialization in production allows for economies of scale, as it enables businesses to produce more efficiently and reduce costs.

Purpose of Business Activity

The primary purpose of business activity is to create added value, which is the difference between the value of a product or service and its cost.

Benefits of Diversification

Engaging in multiple industries can provide a business with a diversified revenue stream, reducing dependence on a single market.

Effective Communication

As businesses grow, they can prevent poor communication by establishing clear channels and protocols for communication, ensuring that all employees are informed and aligned.

Disadvantages of Integration

Integrating with another business can lead to a loss of autonomy and independence.

Factors Affecting Business Growth

A lack of access to finance or markets can contribute to a business remaining small.

Importance of Business Objectives

Having clear business objectives helps guide decision-making, allocate resources, and measure progress.

Market Calculation

The market is calculated by multiplying the number of units sold by the price per unit.

Business Objectives

The objective of increasing salaries and achieving economies of scale is often referred to as a "growth" objective.

Crisis Management

In times of crisis, a profit-making business may shift its objectives to survival, prioritizing short-term stability over long-term growth.

Description

Test your knowledge on the advantages and disadvantages of worker specialization. Learn about how workers training in specific tasks can increase productivity and efficiency, while also leading to issues such as burnout and reduced motivation.