How does specialisation/division of labour increase productivity?
Examples can vary according to sector you choose, I will choose the services sector, because it’s hard to define labour intensive work in this discipline. Say, I work as an investment banker in a wealth management division of an International Investment Bank. I’m a part of a wealth management team where we try to maximise the return on our client’s wealth which they have entrusted upon us to provide good return rather then, keeping them in the savings account. No way on earth I could perform this task on my own. In our TEAM, we procure skill mixing (division of skills aka labour) where, One person’s only job is to monitor the current market trend which will give me green or red light to go ahead or not for an investment decision, Mine is to take ascertain the risk leverage of loss and decision to invest or not based on advice from my Other team member who is responsible for short/long term market analysis in area of investment. This way, we solely concentrate on our area of specialism,
