Hello welcome to this blog Post, I will be writing on the meaning of division of labour, advantages and Disadvantages, and limitations of division of labor and specialization.
Table Of Contents
- Definition of division of labour.
- Advantages of division of labour.
- Disadvantages of division of labour.
- Limitation to division of labour and specialization.
Definition: Division of labor is defined as the breaking down of a production process into a number of separate operations, whereby each operation is undertaking or performed by one person or a group of persons.
DIVISION of labor is a complex process mainly practice in industrialized communities where a worker specializes in the production of a small portion of a product and he may not sell the end product and may not make use of it.
DIVISION of labor, for example, exist in the publishing industry where each worker or group of workers or individuals are involved in writing of manuscript, typing of manuscript, editing, filming and plating, printing, folding, collating, sewing, binding and finally trimming. It is the joint effort of all this group of workers that enables a complete book to be produced.
Adam Smith definition: Adam Smith was once very much impressed by the effect of division of labour on output in a pin industry. He observed that by allowing a worker to concentrate on only a Small part of the production of a product, he will become more specialized and this will save time and increase efficiency in production. He noted that a man was able to produce 20 pins after going through the rigours inherent in the production processes. But when division of labour was applied, the firm was able to produce over 48,000 pins per Day.
ADVANTAGES OF DIVISION OF LABOUR
Below are the various advantages of Division of labour:
- Increase in production: Division of labor and specialization leads to increase in production because the various expert along the production process work together to boost greater production.
- Time savings: Time saving is another advantages of of labour. It helps to save time that would have been wasted in moving from one operation to another.
- Development of greater skill: Division of labor enables each worker to develop greater skill through reputation of the same process
- Large scale production: Here is another advantages of division of labour: it leads to large production of goods or products.
- Lower unit cost: Since division of labor leads to greater productivity, that is, large quantities of products are produced and in less time, the unit cost of the product will be less.
- It leads to specialization: DIVISION of labor makes one to be a specialist in the performance of a particular job.
- Economy in the use of tools: Division of labor makes possible the full and efficient use of tools and machines since they are handled by specialist.
- Less fatigue: IN division of labor a worker concentrate on only a portion of the production and since he makes use of machines and work together with others, it does not get tired easily.
- Production of standard Goods: Another advantages division of labour and specialization is that it helps to produce standard goods which possess the same socialization like size, colour, shape and weight.
- Creation of employment opportunities: DIVISION of labor helps in the employment of people who are expert to handle the various stages of production in a firm.
- Development of technology: Development of technology is another advantages of division of labour, through the use of machinery, different types of technology are developed to further facilitate production. The above factors or advantages will encourage entrepreneur to adoption of labour in production.
DISADVANTAGES OF DIVISION OF LABOUR
Below are the disadvantages of division of labour in Commerce:
- Monotony or reputation: In division of labor, a worker performs the same job on daily basis, the job therefore becomes monotonous and boring to him and this may lead to loss of interest in the job being done.
- Decline in craftsmanship: As a result of the use of machines in division of labor, the disadvantages of division of labour here is that people no longer make use of their skills in the production of goods, rather, they become machine minded. I have also written on various types of machinery here
- Reduction in employment opportunities: IN the division of labor machines are usually used with few workers. This tends to reduce the level of employment among workers.
- Problem of mobility of labor: Under division of labor, a worker stays on a single job for a long time and this makes it difficult for him to move to other jobs.
- Problem from decrease interdependence: DIVISION of labor has made it to be that workers and Industries may have to depend on one another before productions can take place. Absence of such a worker or industry may result in the closure of the entire production.
LIMITATIONS TO DIVISION OF LABOR AND SPECIALIZATION
Many factors limit the importance of division of labor and socialization. This factors may either encourage or discourage the division of labor depending or whether they are favorable or unfavorable.
1. The size of the market: If the size of the market is large and it can absorb all the quantities of goods produce, then division of labor is favored. But in a situation where the market is small, division of labor is not encouraged.
2. The nature of the products: The product that can be broken down into stages will require division of labor whereas as products that cannot be broken down into stages, e.g, driving, barbing and hairdressing tend to limit the importance of the division of labor in production.
3. Level of technology: The level of technology sets a limit to the extent of specialization. New technology breakthrough may allow further specialization and division of labor.
4. Availability of capital: Capital must be available in sufficient quantity to enable adequate payment of salaries and wages to workers and other materials to be purchased.
5. Availability of labour: The availability of qualified workers determines the stages into which production process will be divided. Lack of qualified labour limit the advantages of division of labour in production.
6. Government policy: Certain government policies can determine whether division of labor can operate or not. Where government policy favors large-scale production, division of labor is bound to operate. I have written on large scale farming production on my other article here
7. Development of commercial sector: A well-developed commercial sector demand high volume of products and such high volume of products can only be met through the adoption of division of labor.
Revision Questions
- What are the Advantages of division of labor?
- State and explain the four limitations of division of labor.
- What is the definition of division of labor?
See you in my next class on Specialisation and types of Specialisation in commerce. To join the class [Click Here]