Division of labour - advantages and disadvantages

The expression “division of labour” refers to the dividing up of economic tasks into specialization. Thus few workers these days produce the whole commodity but only undertake particular parts of production process. The advantages of division of labour first recognized Adam Smith. He described pin making in The Wealth of Nations: “One man draws out a wire, another straightens it, a third cuts it, a fourth points it, and so on” and as a result we have increased production.

Advantages of division of labour are:

1. Increase in skill and dexterity - tasks can be done more expertly because their constant repetition.

2. Time saving - time can be saved in the training of people; a person can quickly be trained to fulfill one operation in some production process

3. Individual aptitudes - division of work gives people a chance to do what they are best at. Some people are physically strong, while the others have good mental aptitudes.

4. Use of machinery - it is very useful and saves the effort.

Disadvantages of division of labour:

1. Interdependency - one person is dependent upon other people, sometimes those people are thousands of miles away. No one is independent.

2. Dislocation - because of interdependency the possibilities for dislocation are very great. For example, a strike by key workers such as the miners can bring the whole country to a halt.

3. Unemployment - if the skill, acquired by training, is no longer required it is very difficult for the person to find alternative work.

4. Alienation - if a person's job is one simple operation, he or she should feel bored. Some manufactures have undertaken job enrichment schemes.

All modern nations, states, firms, and individuals specialize in production of economic goods and services, although in varying degrees. The individuals, the most basic economic entity, specializes to greatest extent. The ultimate extension of the principle is that of the specialization of nations, which is the basis of the theory of international trade.