Definition

Division of labour (or specialisation) takes place when a worker specialises in producing a good or a part of a good.

Types of division of labour

Simple division of labour

A person specialises in producing a particular product or service.

ExamplesDoctor

Farmer

Mechanic

Cashier

Types of division of labour

Complex division of labour

A person specialises in a sub-process of the production of a good.

Simple division of labour

Example: Building a house

Designing

Example: Building a house

Designing

Monitoring

Example: Building a house

Designing

Monitoring

Transporting

Example: Building a house

Designing

Monitoring

Transporting

Constructing

Example: Building a house

Designing

Monitoring

Transporting

Constructing

Decorating

Example: Building a house

Designing

Monitoring

Transporting

Constructing

Decorating

Types of division of labour

Simple division of labour Complex division of labour Regional or international division of labour:

Different countries or regions specialise in the production of different products according to the resources that they have.

ExamplesU.S.A. specialises in the production of computers.

Japan specialises in the production of hi-tech products.

Examples

Malaysia specialises in the production of rubber.

Examples

Examples

Brazil specialises in the production of coffee.

Advantages of division of labour

Raising labour productivity more output is produced from the

same quantity of labour the same output is produced with

less labour

Advantages of division of labour

Raising labour productivity

How can division of labour raise productivity?choosing the most suitable person for the jobpractice makes perfect saving time in training saving time in moving around operationmaking full use of capital goodsmechanisation

Advantages of division of labour

Saving resources from the production of capital goods

With division of labour, workers need not be equipped with the whole set of capital tools.

Advantages of division of labour

Example: Without division of labour

Each worker has to be equipped with the whole set of capital tools.

Advantages of division of labour

Example: With division of labour

Each worker only needs one piece of capital tool .

Advantages of division of labour

Raising living standards

Division of labour enables a larger volume and a wider choice of goods and services to be produced.

Disadvantages of division of labour

Work becomes dull and monotonous

Workers’ productivity may drop.

Disadvantages of division of labour

Greater degree of interdependenceDisruption in one

production stage results in stoppage of work in other production stages.

Disadvantages of division of labour

Greater risk of unemployment

It is often difficult for a worker trained in one job to change over to another job.

Disadvantages of division of labour

Decline in the quality of craftsmanship

Disadvantages of division of labour

Decline in the quality of craftsmanship

With division of labour, mass production methods are commonly used in modern factories.Fewer people will specialise in the production of hand-made goods. The overall quality of craftsmanship will fall.

Disadvantages of division of labour

Excessive standardization of products

Disadvantages of division of labour

Excessive standardization of products

With specialisation and mechanization, products are highly standardized. They may not suit the tastes for all customers.

Limits of the extent of division of labour

1. Size of the marketWhen the market size is small,

division of labour can be practiced only to a limited extent.

Limits of the extent of division of labour

2. Nature of the goodThe scope for division of labour is limited for production that requires highly specialised skills.

Humanities UnitCurriculum Development

Institute