Final answer:
The production manager is engaging in specialization, which enhances workplace efficiency and productivity. Through specialization, the company can take advantage of economies of scale, thereby lowering the cost of production per unit and increasing overall output. This method relates to scientific management, which divides labor into small, repetitive tasks to maximize efficiency.
Step-by-step explanation:
The production manager in a manufacturing company divides employee work into small segments so each employee can concentrate on just a few tasks. This strategy is known as specialization, and it is a method to increase efficiency and productivity within a company. Specialization allows businesses to take advantage of economies of scale, which reduces the average cost of producing each unit as production levels increase.
Specialization involves workers focusing on a limited range of tasks tailored to their preferences and talents. This approach allows for the learning and enhancement of specific job-related skills. In the realm of production, this concept is closely associated with the ideas of Fredrick Taylor's scientific management, which advocated for the division of labor into repetitive tasks to boost efficiency.
The underlying theory is that, as workers become proficient at particular tasks, the overall production process becomes more streamlined, leading to a decrease in the time and cost associated with manufacturing. Consequently, this process benefits the company through higher output and lower production costs, while society enjoys a variety of goods and services that would be unfeasible under less specialized production systems.