Division Of Labour And Specialization

CONTENT
• Meaning
• Advantages and Disadvantages
• Limitation

DIVISION OF LABOUR: is the breaking of production processes into smaller units or processes with each process being undertaking by a worker or group of workers. Division of labour is a complex process mainly practiced in industry where workers specialize in the production of a small portion of a production, and may not see the end product and may not make use of it.

ORIGIN OF DIVISION OF LABOUR
Adam Smith (1723 – 1790) popularly called the “Father of economics” established the theory of Division of labour in 1776 . He visited a pin making factory place where he found out that eighteen (18) processes are involved with only ten men working there producing 20 pins a day .

He concluded that if each process is handled by different individuals more pins will be produced. The theory was applied and as a result 48,000 pins were produced daily . This development was the origin of modern day division of labour.

Examples of Division of Labour

i Division of labour in domestic work.
ii Division of labour in factory/industry
iii Territorial division of labour among separate firms, eg Textile industry
iv Extensive division of labour among different countries

ADVANTAGES

1. It leads to higher productivity.
2. It encourages specialization.
3. Creation of job opportunity is possible.
4. There is product standardization.
5. It saves a lot of production time.
6. It encourages the use of machines.
7. Work becomes less fatigue.
8. Easy training of workers.
9. it encourages inventions and innovations.

DISADVANTAGES

1. Monotony of work.
2. Decline in craftsmanship.
3. The use of machine reduces employment opportunities.
4. Some machine can badly affect the health of the workers.
5. Increase in interdependence among individuals and industries.

LIMITATIONS

1. The Size of the Market : The extent to which goods and services produced are demanded will determine whether or not division of labour will de applied since the main reason for it is to increase supply.
2. The Nature of the Product :- Certain responsibilities or services cannot be divided e.g. hair cutting , driving , farming etc.
3. Availability of Factors Inputs (e.g. Labour )
4. Capital Availability
5. Level of Technology Availability
6. Managerial Competence
7. Technical Difficulties

EVALUATION

1. What are the major advantages of division of labour?
2. What are the limiting factors to division of labour?

SPECIALIZATION:

is the process by which an individual, a firm or a country concentrates his or its productive efforts on a particular line of production in which he or it has the greatest advantages over others. That is, it is the act of limiting one’s productive efforts to a particular aspect of economic activity. Division of labour is one aspect of specialization.
People could specialize in law , medicine , teaching , sport etc. Specialization is a result of Division of Labour . This process depends on the type , size of the firm and goods and services produced . Though it applies to industrial and agricultural economy , it is useful in family and individual set-ups.

TYPES OF SPECIALISATION

1. Specialization by Process: is the type in which production process is divided into different stages for each skilled worker in an industry.
2. Specialization by Sex: is the type in which certain occupations are exclusively either for male or female as dictated by custom, tradition or by law.
3. Specialization by Product: is the type in which an individual or a firm concentrates on the production of a particular commodity.
4. Geographical/Territorial Specialization: is the type in which certain region or territory specializes in the production of a particular commodity

EVALUATION

1. What is specialization?
2. Briefly explain the four types of specialization

READING ASSIGNMENT
Amplified and Simplified Economics for SSS by Femi Longe Chapter. 4 pages 49-53
Fundamentals of Economics for SSS by . R.A.I. Anyanwuocha Chapter 8 Pages 75 – 82.

GENERAL EVALUATION

1. Why do we study economics?
2. Define economic rent.
3. What is quasi rent?
4. List the agents of economic system.
5. What is the importance of macro- economic?

WEEKEND ASSIGNMENT
SECTION A

1. Division of labour was propounded by A. David Richardo B. Thomas Malthus C. Lord Keynes D. Adams smith.
2. The concentration of one’s productive efforts on a particular line of production is………. A. distribution B. specialization C. efficiency D. co-ordination
3. Division of labour give rise to A. the exchange of goods and services B. delay in production C. the production of limited goods D. unemployment
4. The concentration of a region in a particular aspect of economic activities is…………. A. specialization by sex B. specialization by product C. specialization by process D. territorial specialization
5. Division of labour may be restricted when A. an ailing economy has improved B. producers live in villages C. market is small d) there is inflation

SECTION B

1. Define division of labour and specialization.
2. Explain the factors limiting the use of division of labour.