SPECIALISATION AND DIVISION OF LABOUR

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Specialization is concentrating on the production of a particular product which country can produce best or concentrating on a skill which a worker is best at. Specialization based on products by countries is based on absolute and comparative advantage. Specialization based on skills is known as division of labour.
Division of labour
Specialization by individual is called division of labour. Division of labour means breaking the process of production into single operations where each worker specializes in the production of one specific task. The word division of labour was coined by the world famous economist Adam Smith in 1882 in his famous book title ‘wealth of nations’.

‘Adam Smith wrote about the division of labour in Wealth of Nations back in the 18th Century. He said that by splitting the production of a good into a number of different tasks, and allocating each task to a different worker, then more could be produced as workers developed greater skill in performing their particular task with the use of specialist tools designed for just that task, thus leading to less wastage of materials and less time spent on their task’

According to Adam Smith the labour productivity of the pin factory rose from 20 per worker to 48000 pins on aggregate production.
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Labour productivity is output per unit of input. The other type of productivity is capital productivity.
This is output per unit of capital used. The reasons for increase in productivity by the workers in the pin factory example are due to.
·  Saving of time by the workers by moving from one work unit to another in order to use different machines and tools. Once a worker is specialized, then the worker will remain in one place due to which movement time is saved.
·  Workers will be able to specialize in the production of those tasks which they are best at doing. This will increase the individual worker productivity, thus leading to increasing the organizational productivity as a whole.
·   Saving of specialized tools since tools are not given to each worker, rather than that, it is only given to those workers who are specialized in that particular task which require tools. Thus it helps to reduce cost of tools.
·   Division of labour makes an individual to gain knowledge and skill in a narrow range of task. Therefore constant practice makes the labour perfect in the task making output to increase.

However, division of labour has its drawbacks as well. It is summarized below:

·  If the work is broken down into too many small tasks, the work becomes tedious and monotonous (dull & boring) workers feel that they are being alienated from the work leads to poor motivation which causes low quality and reduced output of the worker. The worker will be trying to do everything possible to avoid work such as going to toilet and loitering around.
·   If workers specialize in a particular skill than the worker will lose the other sills which he/she is good at.
·   If a machine breaks down or a specialized worker is absent then it can run into the risk of interruption in the whole production.
·   Cannot practice in small markets.