Disadvantages Of Division of Labor

Business , Management
Main drawbacks or disadvantages of division of labor can be expressed as follows:

1. Monotony Of Work

Repetition of same kind of work everyday may lose their interest and create monotony. It leads to decrease in efficiency and quality of work. Therefore, monotony of work is one of the major drawbacks of division of labor.

2. Interdependence

There is interdependence between different departments, different units, different workers groups and different companies. If any one of them do not operate properly, the whole production process will be disturbed.

3. Reduce Worker Mobility

In division of labor, one one type of task is given to each worker. So, it reduces workers mobility.

Division of labor increases the risk of over production because of increased efficiency. Over production may lead to depression.

5. Unemployment Problem

Due to the lack of mobility, workers cannot develop new skills and ideas to do different type of job. They can only perform certain part of the job. So, it will be difficult for them to find other types job in the future.
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Advantages Of Division Of Labor

Business , Management
Main benefits or advantages of division of labor can be expressed as follows:

1. Right Man For Right Job

Division of labor follows the principle of 'Right man for right job'. Appropriate job is given to the workers according to their skills and ability that helps to improve employees' performance that leads to increase in the productivity of the firm.

2. Higher Productivity

Workers are employed in right place as per their capacity. Skilled and capable workers can perform their job efficiently without wasting the time and effort. Specialization minimizes errors in the production process. It leads to higher productivity.

3. Skill Enhancement

Workers can enhance their skills because of the repetition of same kind of work everyday. So, division of work makes the workers perfect in their job.

4. Less Training Period

Because of specialization, workers do not need to learn the whole task. They can learn only a part of the job which is related to them. So, it saves time and effort while conducting training program.
advantages division of labor
5. Invention

By doing the same task again and again, talent workers may discover the simple and easy process to perform the job. So, division of labor may lead to invention.

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6. Low Cost Of Production

Division of labor ensures higher productivity because of efficient use of human and other resources. Increased production leads to lower cost of production per unit. 

7. Increase Goodwill

Because of large scale production, cost of production can be minimized. So, customers get high quality products at lower price. It helps to increase goodwill and image of the firm.
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Disadvantages Of Market Economy

Business , Economics
Main drawbacks or disadvantages of market economy can be highlighted as follows:

1. Wealth Disparity

One of the major drawbacks of market economy is unequal distribution of wealth. It widens the gap between wealthy and poor individuals. Rich people become more wealthier and poor become more poorer.

2. Distorted Investment

Producers invest their capital only in profitable sectors. So, factors of production are not employed adequately in public sectors like education, health, transportation etc. 
disadvantages market economy
3. Workers Exploitation

In market economy, workers are highly exploited by the producers. Bad working condition, no safety measures, long working hours and less wage payment are the major problems of workers.

4. Economic Instability

Because of the lack of control, regulation and supervision, market economy may create uncertainty and instability in the whole economy of the country.

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5. Poor Quality Goods

Main motive of market economy is profit maximization. So, producers can make low quality products to earn more profit.

6. Monopoly

Large producers can dominate the market by eliminating the rival companies. It may create monopoly in the market.
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Advantages Of Market Economy

Business , Economics
Main advantages or benefits of market economy can be highlighted as follows:

1. Increase Business Efficiency

There will be a competition among producers to produce high quality products at lower cost. So, latest technology and modern methods of production are introduced. Therefore, market economy helps to increase business efficiency.

2. Promotes Innovation

It is another notable benefit of market economy. It promotes innovation because producers wants to create new products in order to gain high profit.

3. Consumer Sovereignty

In market economy, products are produced according to the need and demand of the consumers. So, it gives emphasis on consumer sovereignty. 

4. Proper Use Of Economic Resources

Economic resources are properly utilized so that maximum profit can be obtained and wastage can be minimized.

5. Foreign Investment

Market economy helps to bring foreign investment in the country which helps in industrial and economic development of the nation.

                advantages market economy

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6. Freedom Of Choice

Consumers are free to choose and consume the products or services according to their needs, choice and income. Large variety of products are available for all types of people.

7. Fare Competition

It encourages free and fare competition among the producers. 
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Disadvantages Of Branch Banking

Banking , Business
Major limitations or disadvantages of branch banking system can be highlighted as follows:

1. Chance Of Mismanagement

Because of large size, various branches, large number of employees and large scale operation there may be a lack of strict supervision, effective communication and proper controlling in branch banking system. So, there is a high chance of mismanagement in this type of banking.

2. Long Decision Making Process

In branch banking system, branch managers have very limited power. They have to consult with the head office to make any decision. So, decision making process is very long as compared to unit banking.

3. No Prompt Action

Prompt action cannot be taken because of delayed decision.

Branch banking requires high operating and overhead expenses because of large size, different branches and large number of employees.

5. Lack Of Initiative

Branches have limited powers and they cannot take decisions independently without consulting the head office. So, this type of banking system may lack initiative.
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Advantages Of Branch Banking

Banking , Business
Major advantages or benefits of branch banking can be studied as follows:

1. Large Size

Branch banks are large in size and they are spread all over the country. So, they gain the benefits of large scale operation.

2. Adequate Capital

Branch banks have much more capital than unit banks. So, they never suffer from the limitations of inadequacy of capital.

3. Less Costly

These banks have effective management, sufficient resources and proper system which reduce the cost of operation.

4. Adequate Deposit And Investment

They can collect huge amount of deposit from the public which leads to greater investment capacity.

5. Increase Public Confidence

Services provided by branch banks are far better than the services of unit banking system. It helps to build public confidence and trust.

6. Risk-Spreading Capacity

In branch banking system, losses of one branch can be recovered by the profit of other branches.
advantages branch banking
7. Employment Opportunity

Branch banks require more human resources to operate in different departments, sections and branches. So, it creates employment opportunity in the country.

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8. Goodwill And Image

Proper and convenience service provided by branch bank helps to maintain goodwill and image of the organization.

9. Efficient Management

Management is very effective and efficient because of specialization, division of labor and highly qualified managers and staffs.
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