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MGMT630 FINAL TERM SOLVED PAPERS

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Using of pin production industry as an example, Smith argued that 10 individuals, each doing a specialized task, can produce between them about 48,000 pints a day. However, if everyone worked independently and everyone had to perform tasks, it would be quite an achievement to make even 10 pins a day.

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Smith concluded that the division of work increases productivity by increasing the skills and dexterity of each worker, saving time lost in change tasks, and creating labor-saving inventions and machines. Continued popularity of job specialization e.g.

MGMT630 FINAL TERM SOLVED PAPERS:

specific tasks performed by hospital surgical team members, specific meal preparation tasks performed by restaurant kitchen workers, or specific positions played by football or cricket players team – are undoubtedly due to the economic benefits Adam Smith cites.