Division of labour and specialisation
Yvonne Harvey, Contributor

Members of the winning Titchfield high's Schools' Challenge Quiz team which defeated York Castle. From left, Kian Scott, Sherrick Matthews, Kayon Warren and Kevron Grant. - Photo by Francine BlacK

Hello again. You will remember that in last week's lesson I discussed the fact that the needs and wants of early man were very few. As time went on, however, societies became more complicated and the wants of individuals increased. People had the desire to improve their lifestyles through satisfying a greater number of their wants. In order to realise this, the production of goods and services had to increase.

Division of labour was one method of ensuring this.

Division of labour and specialisation is the basis of the modern economy. So what is division of labour?

This term refers to the splitting up or dividing up of the workforce in such a way that each person or group of persons concentrates on doing different tasks within the production process. With division of labour, people are engaged in what they do best. The goods and services are then exchanged for money and the money is used to purchase the goods and services that are not produced by the individual.

Division by process

One of the main forms of division of labour is division of labour by process. For example, in the furniture industry, some individuals may be responsible for the felling of trees, some may be engaged in cutting and shaping the wood, others may join the pieces of wood together to make various items of furniture and still others may prepare the items for the finishing touches. A final group may be committed to the task of spraying the furniture and getting it ready for sale. The garment industry, car manufacturing and hairdressing industries are other examples of division of labour by process. Try to find some other examples of division of labour by process and split up the production processes as I did in the above example of the furniture industry.

What about specialisation? Well, division of labour leads to specialisation. Specialisation comes about with division of labour because, as individuals undertake and concentrate on certain tasks, they become efficient and proficient and can, therefore, be regarded as specialists in these areas.

An early economist by the name of Adam Smith used the pin-making industry to illustrate the main advantage of division of labour and specialisation. In his example, he showed that without division of labour and specialisation, one person could only produce 10 pins in a day. However, with division of labour and specialisation, the making of pins was split into 18 different processes undertaken by 10 individuals. They were able to produce 48,000 pins in a day, an average of 4,800 pins per person per day.

Below are the advantages and disadvantages of division of labour and specialisation.

Advantages

1. Average output (output per head) increases.

2. Production speeds up because of the greater use of machinery and equipment.

3. The skill of the worker is increased through the repetition of tasks.

4. Tasks are simpler and easier to learn.

5. Less time is taken to train individuals.

6. Unit cost of production is reduced and the lower costs can be passed on to the consumer in the form of lower prices.

Disadvantages

1. Since persons are repeating single tasks, the work often becomes monotonous and boring.

2. As individuals concentrate on particular tasks, their skills in other areas decline.

3. Unemployment results from the greater use of machinery.

4. Interdependence of the various areas means that a mistake made in one area affects the whole production process.

5. Production is also affected by absentee workers and workers who take industrial action.

6. Occupational immobility often results from unemployment. This means that if one becomes unemployed, it is difficult to find another job elsewhere in the specialised field.

So then, how do we limit division of labour and specialisation?

Limitations

1. The size of the market. Where the demand for the product is small, division of labour cannot be carried out to any great extent, since there will be unsold output.

2. The nature of the product. Some goods and services do not lend themselves to being split up into different processes, therefore division of labour and specialisation are difficult, e.g., dental services.

3. The costs involved. Often costs of capital and equipment are too expensive for small firms.

4. Specialisation necessitates standardisation of the product. In some trades and industries, this is not desirable, e.g., in the fashion industry.

Now students, you know I am not going to leave you without some homework. So here it is:

(a) Distinguish between division of labour and specialisation. (4 marks)

(b) Give two examples which clearly illustrate division of labour. (4 marks)

(c) Discuss three benefits of specialisation. (6 marks)

(d) Outline three limits to specialisation (6 marks)

Total marks: 20

Next week, we will move on in the unit by considering the functions and responsibilities of a business. Take care, until then.

Yvonne Harvey teaches at Glenmuir High School.