Division of Labour and Specialization – SS1 Economics Lesson Note (First Term)

Division of labour is the breaking down of production into stages, with each stage handled by a different worker or group of workers.

Behavioural objectives

1. Define division of labour and specialisation.
2. State the advantages and disadvantages of division of labour.
3. List the limitations of division of labour.
4. Explain the types of specialisation with examples.
5. Distinguish between division of labour and specialisation.

What is division of labour?

Division of labour is a system of dividing a production process into stages so that each stage is done by an individual or a group.

• Main feature: it is a major characteristic of the modern economic system.
• Result: it leads to specialisation, because each worker concentrates on one task.
• Example (bakery): one worker mixes the dough, another bakes, another packs and another sells.
• Example (shirt factory): one worker cuts the cloth, another sews, another irons and another packs.

What are the types of division of labour?

There are two common types of division of labour: simple and complex.

• Simple division of labour: each person does one whole job or trade, as a carpenter, tailor or farmer does.
• Complex division of labour: a single product is broken into many stages, each done by a different worker, as in a bottling factory.

What are the advantages of division of labour?

The advantages of division of labour are the benefits that producers, workers and the economy gain from dividing tasks.

1. Increase in output: total output rises when each worker specialises in one task.
2. Saving of time: no time is wasted moving from one operation or machine to another.
3. Development of greater skills: repeating the same task makes a worker more skilful.
4. Larger scale production: goods can be produced in large quantities.
5. Creation of employment opportunities: experts are needed for the various stages of production in a firm.
6. Less fatigue: a worker handles only a portion of the work, uses a machine and works with others, so he tires less easily.
7. Lower cost and higher profit: cost per unit of output falls and the producer earns more profit.
8. Mechanisation: it encourages the use of machinery, especially specialised machines.

What are the disadvantages of division of labour?

The disadvantages of division of labour are the problems it creates for workers and for production.

1. Monotony or repetition: doing the same job daily becomes boring and may cause loss of interest.
2. Decline in craftsmanship: machines replace personal skill, so workers become machine-minders.
3. Risk of unemployment: a worker with one skill finds it hard to get another job if he loses his own.
4. Immobility of labour: long stay on one job makes it difficult to change to another type of work.
5. Problem from increased interdependence: workers and industries depend on one another, so the absence of one may close the whole production.

What are the limitations of division of labour?

The limitations of division of labour are the factors that restrict how far work can be divided.

• Extent or size of the market: a small market cannot take large output, so there is little reason to divide labour.
• Level of technology: low technology limits the use of machines and the number of stages possible.
• Nature of the product: some goods, such as a hand-carved piece or a portrait, cannot be split into stages.
• Availability of labour input: there must be enough workers with the right skills.
• Availability of capital: money is needed to buy machines and pay many workers.
• Goods produced according to specification: made-to-order goods, such as a tailor-made dress, need one person to handle the job.

What is specialisation?

Specialisation is the concentration of the production efforts of an individual, a firm or an area on one line of production in which it has the greatest advantage.

• Origin: it is a result of the division of labour.
• Individual: a doctor who treats only eye diseases.
• Firm: a company that makes only soft drinks.
• Area: a region that grows mainly one crop.

What are the types of specialisation?

There are four types of specialisation: by product, by process, by sex and geographical.

• Specialisation by product: a manufacturer concentrates on particular goods, as Dangote Cement produces cement.
• Specialisation by process: production is divided into stages and different firms handle each stage, such as spinning, weaving and dyeing in textiles.
• Specialisation by sex: in some societies, laws and customs reserve some occupations for men and others for women, so each group becomes expert in its own occupations.
• Geographical specialisation (territorial division of labour): different areas concentrate on particular commodities, based on climate and natural resources.

Example of geographical specialisation in Nigeria

• North: cotton and groundnut.
• South: cocoa and palm products.

What is the difference between division of labour and specialisation?

Division of labour splits a production process among workers, while specialisation is the concentration of an individual, firm or area on one activity.

Evaluation

1. Define division of labour.
2. State five advantages of division of labour.
3. Explain any three disadvantages of division of labour.
4. List four limitations of division of labour.
5. Name the four types of specialisation and give one example of geographical specialisation in Nigeria.

Assignment

1. Explain the relationship between division of labour and specialisation, and describe how division of labour can lead to unemployment and immobility of labour.