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DIVISION OF LABOUR: ADVANTAGES, DISADVANTAGES, LIMITATIONS & SPECIALISATION

economics

Division of Labour is defined as a system of breaking down production processes into different stages so that each stage is undertaken or handled by an individual or group of an individual. The principle of the division of labour is a major characteristic of present –day economic system.

 

ADVANTAGES OF DIVISION OF LABOUR

  1. Increase in output: The total output of an organization increases when each worker specializes in a task in the production process.
  2. TIME SAVING: Division of Labour helps to save time that would have been wasted in moving from one operation to another or from one machine to another.
  3. DEVELOPMNET OF GREATER SKILL: Division of Labour enables each worker to develop greater skill through repetition of the same process.
  4. LARGER SCALE PRODUCTION: Division of Labour lead to large production of goods or products.
  5. CREATION OF EMPLOYMENT OPPORTUNITY: Division of Labour helps in the employment of people who are experts to handle the various stages of production in a firm.
  6. LESS FATIGUE: In division of Labour a worker concentrates on only a portion of the production and since he makes use of machine and work together with others, he does not get tired easily.
  7. Division of Labour reduces the cost per unit of output and increases the profit ability of the producer.
  8. It encourages mechanization or the use of machinery, especially specialized machines.

DISADVANTAGES OF DIVISION OF LABOUR

  1. MONOTONY OR REPETION: In division of Labour, 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.
  2. DECLINE IN CRAFTSMANSHIP: As a result of the use of machine in division of labour people no longer make use of their skills in the production of goods, rather, they become machine – minders.
  3. RISK OF UNEMPLOYMENT: If somebody is a specialist on a single job, he faces the danger of unemployment if he loses that job, as he will find it difficult to get another job.
  4. IMMOBILITY OF LABOUR: Continuous and active stay on a particular job makes it difficult for a worker to change to another type of work if the need arises.
  5. PROBLEMS FROM INCREASED INTERDEPENDENCE: Division of labour has meant that workers and industries may have to depend on one another before production can take place. Absence of such a worker or industry may result in the closure of the entire production.

LIMITATIONS OF DIVISION OF LABOUR

  1. Extent or size of the market.
  2. Level of technology
  3. Nature of the product
  4. Availability of labour input
  5. Availability of capital
  6. Goods produced according to specification.

SPECIALISATION

SPECIALISATION: is the concentration of the production efforts of an individual, a firm, or a geographical area on a given aspect of economic activity or on a particular line of production in which it has the greatest advantage over others.

Specialization is a result of the division of labour.

CLASSIFICATION OF SPECIALISATION

  1. SPECIALISATION BY PRODUCT: This type occurs when a manufacturer concentrates on producing particular types of goods. For example, a firm like Dangote cement produces only cements.
  2. SPECIALISATION BY PROCESS: This occurs when productive processes are divided into different stages and each stage is handled by different groups of firms.
  3. SPECIALISATION BY SEX: In some countries, the laws and customs reserves some occupations exclusively for the males and others for the females. In such a situation they eventually become specialists in their respective occupations. For example, men are employed as drivers of trailers.
  4. GEOGRAPHICAL SPECIALISATION OR TERRITORIA DIVISION OF LABOUR: In this case, different geographical areas or territories concentrate on the production of particular commodities. In Nigeria, for example, the north produces cotton groundnut and etc while the south produces cocoa and palm products. This type of specialization is determined by the climate and the natural resources available in the area.

QUESTIONS

  1. Define Division of labour
  2. State and explains types of specialization.
  3. Discuss the advantages and disadvantages of division of labour and specialization.

 

See also

CAPITAL: TYPES OF CAPITAL, IMPORTANCE OF CAPITAL & ENTREPRENEUR

LOCALISATION OF INDUSTRIES

LOCATION OF INDUSTRY

IMPERFECT MARKET

MARKET STRUCTURE

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