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The most well known form of specialization is through
i. Functional Specialization
ii. Social Specialization
In functional specialization, jobs are broken down into simple and repetitive tasks. It is Efficiency driven, based on Division of Labour. This creates high substitutability among employees and facilitates their easy replacement by management...
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Functional specialization is characterized by non-convergence of principal-agent objectives.
In social specialization, individuals are specialized, rather than their work. It is value-driven or expertise-driven specialization. Social specialization is characterized by high degree of goal convergence of principal-agent...
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