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Answer :
Specialization in organizations can be horizontal, where employees are generalists doing various tasks within a division, or vertical, where employees have specialized roles within a functional structure. Understanding these helps in grasping how organizations optimize productivity and relate to comparative advantage. The correct option is 1.
In organizational structures, specialization refers to how jobs are divided and the level of focus on specific tasks. Horizontal specialization implies a broad role where an employee may perform a variety of tasks related to a single functional area. This can be seen in divisional organizational structures where employees act as generalists. For example, a marketing employee may handle promotions, advertising relations, and marketing research for a specific product line.
On the other hand, vertical specialization refers to a more narrowly defined job with a greater emphasis on depth within a function. In functional organizational structures, each person often has a highly specialized role, such as an event planner exclusively planning promotional events. Employees handle large volumes of transactions and focus on efficiency and expertise within their specialized function.
Understanding these types of specialization is crucial for grasping how organizations optimize their structures for productivity and how they relate to the production possibilities model and the concept of comparative advantage. The correct option is 1.
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