Distinct divisions of labor are efficient for a number of reasons. First of all, workers with few highly specific skills are usually cheaper to hire than those with broader education and experience. Secondly, it is less expensive to train employees in narrow areas. Finally, strict compartmentalization of tasks makes it easier for managers to control employees, and, therefore, to control and increase productivity. But however profitable this strategy might be in the short run, it can ultimately work against the organization.
To begin with, fragmenting work into small units leads to employee alienation. Those responsible for only a detailed component of a project can easily lose sight of larger organizational goals and their own importance in achieving them. Research indicates that they then become less committed to their work, and less productive. Of course, unproductive employees can be replaced. But replacement is costly; and high employee turnover is bad for organizational morale.
In addition, compartmentalizing tasks can stifle creativity, as well as undermine self-motivation and pride in ones work. With little collaboration or even communication between discrete work units, larger creative insights are lost. And, cooperative efforts usually foster a series of common purpose and pride in accomplishment.
Of course, diversifying jobs and increasing worker participation in larger projects could lead to lower productivity. But the experience of large manufacturing corporations like General Motors shows just the opposite. When GM facilities implemented these and other strategies to improve work-place quality, they reported that productivity increased.
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