2-3 Job specialization aDam smith, 18th century economist, found firms manufactured pins in two ways Craft - each worker did all steps Factory -each worker specialized in one step eSmith found that the factory method had much higher productivity. Each worker became very skilled at one, specific task o Breaking down the total job allowed for the division of labor win/MeGraw-Hill CThe McGraw-Hill Companies, Inc, 20002-3 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Job specialization ⚫Adam Smith, 18th century economist, found firms manufactured pins in two ways: ◼ Craft -- each worker did all steps. ◼ Factory -- each worker specialized in one step. ⚫Smith found that the factory method had much higher productivity. ◼ Each worker became very skilled at one, specific task. ⚫Breaking down the total job allowed for the division of labor