With
the development of factories in
the 18th century, they began to specialize. Division of labour and
specialization are closely associated. Division of labour means the act of breaking down or
splitting some productive labour work into a number of separate specific tasks
(activities). In the process of division of labour, the separate specific task
will have to limited to a particular act. Specialisation is limiting the activity of a person
to a single/particular task. Under division of labour, each worker does a
particular task. Division of labour and specialisation is applied in the
production in large scale such as car, TV sets and so on. In these production
units assembly line or line production
method is used. (i.e. While the product moves down the line each
worker does his task). This kind of production method is also known as mass production.
In United Kingdom different regions started specializing in different products
based on the availability of resources. The Midlands for cars, Lancashire
for clothing and textiles, Tyneside for ship building, and so on.
Countries also started specializing in different industries such as Japan for
electronic industries, Italy for shoes, USA for defence equipment, and Maldives
on fishing industries and so on. Different countries are doing this because
they have skills to do and resources suited to the production of
certain goods and services.
International trade arises because the production of different kinds of goods
requires different kinds of resources with different proportions and these
resources are unevenly distributed throughout the world. More over the international mobility of resources is
extremely limited. [Land is geographically immobile]. Labour is
restricted by barrier of language and imposed restrictions of
immigration. Capital is geographically mobile but not international due
to unfavourable conditions such as political instability, threats of
confiscation, barriers to take profit outside the country and so on.]
Division of labour means the
act of breaking down or splitting some productive labour work into a number of
separate specific tasks (activities).
In the process of division of labour, the separate
specific task will have to limited to a particular act. Specialisation
is limiting the activity of a person
to a single/particular task.
Under division of labour, each worker does a
particular task. Division of labour and specialisation is applied in the
production in large scale such goods as car, TV sets and so on. In these
production units assembly line or line
production method is used. (i.e. While the product moves down the
line each worker does his task). This kind of production method is also
known as mass production.
For example, the production of a wooden furniture may
be divided into activities such as cutting the tree, sawing the timber, cutting
the wood into suitable sizes, planning, shaping, making joints
and nail holes, assembling, and polishing.
Advantages of division of labour and specialisation
1 Creation of more job
opportunities: Division of labour and specialisation create
more job opportunities by breaking down a particular process into different
activities. More jobs will be created to suit the ability and interest of
different workers.
2 Saving time: - when
division of labour and specialisation is applied, the production is by assembly
line or line production method. [i.e. While the product moves down the
line each worker does his task.] Therefore worker need not move from one
machine to another and the labour time can be utilised more effectively.
3 Utilisation of
machine and tools: - Division of labour and specialisation a set of tool can
be used by many workers and not tools will be left idle (unused). Like that
every operation of machinery can also be utilised fully.
4 Improved
productivity: - Division of labour and specialisation will help to
improve the productivity. At the same time, it improves the standard of
production and provides leisure to the labour without loss of production.
Disadvantages Division of
labour and specialisation
1 Boredom: - By doing
the same work throughout the time the labourer feel monotony and frustration.
2 Loss of
craftsmen-ship: - In division of labour and
specialisation each worker is limited to one single task, this leads to
the loss of skill of the individual worker.
3 Loss of variety of
products: - By applying division of labour and specialisation
the production is standardised and the products are identical and thereby
consumers cannot find variety of products.
4 Dependence:
- Division of labour and specialisation makes the firms too much
interdependent. That means in a line of production, if one worker stops
the work the entire line will be stopped.
In traditional economies, goods are exchanged for
other goods which are known as barter
system. As economies developed, money was introduced along with
the increase in the production. The excess productions of goods are
exchanged for money by those who want those goods. Exchange is the process of giving
something and receives something different in return (give something and get
something else in return) For example: exchanging land for money or exchange
fish for cash
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