Division of Labour

What is Division of Labour?

Division of labour is the system of breaking down the production process into separate operations, segments, or tasks, to be undertaken by an individual who specializes in a single process. It is the sharing of work among the people involved in the production process. 

The Origin of Modern Division of Labour:

It was one of the forefathers of economics, Adam Smith, who enunciated the theory of division of labour, in 1776, in his book titled “Wealth of Nations”. Adam Smith visited a place where pins were made and found that pin-making involved eighteen different processes, at that time.

He also found that one man was coordinating all the processes of pin-making, all alone. As a result of this rigorous and slow process involved in the processes of making pins, that man was producing 20 pins a day.

Adam Smith came to the conclusion, that if these eighteen pin-making processes were handled by different individuals, instead of one man, more pins would be produced. This idea of division of labour by Smith was then applied, and as a result, 48000 pins were produced per day. This is how the application of the modern division of labour came into existence, in our present day.

Advantages of Division of Labour: 

1. Increases output: Different individuals perform different functions simultaneously, compared to when an individual performs all the functions alone.

2. Unit Cost of production can be reduced, as a result of the production of large quantities in a short time.

3. Division of labour Increases skills and production, as a result of constant practice and repetition of tasks.

4. Encourages the Use of Machines: The extent to which machines are used increases, and leads to mass production. 

5. It Saves Time: The time used in changing and exchanging tools is preserved.

6. It Reduces Fatigue: Since each worker performs only a single operation at a time, the extent to which he becomes tired is reduced and his energyEnergy is the ability to do work. Energy exists in several forms such as heat, kinetic or mechanical energy, light, potential energy, and electrical energy. Units of Energy: The SI unit... More is saved. He does not move from one point to another, or change from one production place to another.

7. Employment of Specialists: It will increase the method of production, since the workers handling the production process, are experts in the field.

8. Making the Best Use of Tools: When tools are efficiently used it will make them last longer, because each worker makes use of his own tools, and does not share them with anybody.

9. Enhances the high quality of standard goods.

10. It encourages innovation and inventions with modern equipment.

Disadvantages of Division of Labour and Specialization: 

1.  It causes Monotony of Work: The workers feel bored due to a lack of change in work patterns. Constant repetition of the same operation every day makes the work boring. 

2. Lack of Interest: Due to constant repetition of the same operation workers lose interest in the task.

3. Loss of Craftsmanship: The constant use of machines reduces workers’ potential, since no single person produces a complete product, but only engages in a small part of the production.

4. Leads to the Risk of Unemployment: The risk of unemployment increases, if the worker’s special skills are not needed in other industries.

5. Unnecessary Interdependence of Workers in the Production Process: A noodles manufacturing industry depends on the flour manufacturing industry, to supply its flour for noodles.

6. Immobility of Workers: As a result of concentration in a small part of the production process, workers find it difficult to change from one job to another, because the workers have no knowledge of the other jobs.

7. Occupational Hazard: Some industries like chemical companies, paint industries, and steel, have an increased risk of injury and other hazards, as a result of the constant inhaling of chemicals, and sophisticated equipment for cutting or shaping steel.  

Limitation of Division of Labour:

1. The Size of the Market: Division of labour leads to an increase in production, and it is favourable when the market size is big enough, to accommodate the quantity of goods produced and vice versa. The greater the size of the market the greater the extent of the division of labour.

2. The Level of Technological Development: The level of growth in the area of technology will affect the division of labour. A case where ancient tools, are being used for production, will result in development difficulty/setback.

3. The Availability of Labour Force: Inadequate workers, to operate in various production processes, render division of labour useless. 

4. The Type of Commodity Produced: Division of labour cannot be effectively practised in a small industry, for example, barbing, fishing, etc., unlike large industries, such as manufacturing companies, for example, car manufacturers, electronics companies, etc.

5. The availability of inputs and materials used in production.

6. The amount of Capital Available: Division of labour requires huge capital. Inadequate capital will limit production. 

7. Unfavourable Government Policies: Government policies such as increasing taxes and tariffs, and a total ban on equipment, affect the production process of industries. It reduces the extent to which division of labour can be performed effectively.