Division of Labour

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.

Examples Mechanic Doctor Cashier Farmer

Types of division of labour Simple division of labour Complex division of labour A person specialises in a sub-process of the production of a good.

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 Decorating Monitoring Transporting Constructing

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.

U.S.A. specialises in the production of computers. Examples U.S.A. specialises in the production of computers.

Japan specialises in the production of hi-tech products. Examples Japan specialises in the production of hi-tech products.

Malaysia specialises in the production of rubber. Examples Malaysia specialises in the production of rubber.

Brazil specialises in the production of coffee. 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 job practice makes perfect saving time in training saving time in moving around operation making full use of capital goods mechanisation

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 interdependence Disruption 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 market When 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 good The scope for division of labour is limited for production that requires highly specialised skills.

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