Division of Labor is a process in which the production of a commodity is divided into several stages and at each stage a skilled laborer is employed. It is an important feature of modern large scale production. Industrialization and technological changes led to the adoption of division of labor .
Types of Division Of Labor In Economics
Division of labor is of three types. They are
- a) Simple division of labor,
- b) Complex division of labor
- c) Territorial division of labor.
Simple Division of Labor: This was prevalent in old days. Even today we observe this process in our villages. The farmers, blacksmith carpenters, weavers etc., who perform a particular type of activity are examples of this type. These persons perform all kinds of work from beginning to the end in their production sphere.
Complex Division of Labor : When the manufacture of an article is divided into a number of parts and each part is entrusted to a worker or group of workers, it is called complex division of labor.
Territorial division of labor : The specialization of a particular locality in the manufacture of a commodity is known as territorial of labor. Certain localities or regions in a country are famous for the manufacture of a particular commodity. For example, the. West Bengal specialized n Jute industry, Maharashtra specialized in Cotton and textile industry.
Advantages And Disadvantages Of Division Of Labor In Economics
Advantages of Division of Labor:
The following are the advantages of division of labor:
1. Increase in production: Division of labor increases production in an industry. The quantity of output can be increased to a great extent in those industries where division of labor is introduced. More is the divisions, more will be the output.
2. Right man in the right place : Division of labor enables the employer to employ right man in the right place. Responsibility and work can be allotted to the employees on the basis of their natural abilities and aptitudes. Due to this the employees perform their duties with great interest, responsibility and devotion. This increases the of efficiency of the laborers.
3. Increases skill: Division of labor involves performing the same job for several times. This increases the skill and dexterity of the laborers. Repetition of work makes them perfect and experienced in their job. As a result the productive efficiency of laborers would increase.
4. Saves time : Division of labor saves the valuable time Of the employees and employers in the sphere of production. As the production of a particular part of a commodity requires less time, laborers can produce large quantity of components of a commodity in a short time. All the laborers can assemble different parts of commodities.
5. Saves tools : Division of labor saves the machines or tools of the workers. As the workers in this system engage in the production of a particular part of a commodity, they require only a few tools. They do not require all the tools needed for the production of a commodity. As a result the number of tools needed by them is less. This leads to saving of tools.
6. Low cost of production : Division of labor means reduction in cost of production. Large scale production is possible due to division of labor. Large scale production yields both internal and external economies of scale. Consequently the entrepreneurs can produce more output with less Costs.
7. Use of machinery : As division of labor leads to specialization in Production process, productive operations are done with latest machinery, operated by skilled persons. Machinery can be introduced wherever possible. Machinery enables the laborers to perform complex tasks and saves their energies. This results in more production.
8. More employment opportunities : Division of labor provides more employment opportunities, Skilled and experienced persons are taken into jobs. As a result employment opportunities will increase.
9. Inventions : Division of labor helps to make inventions. New techniques of production are adopted and new machines are employed in Production. This avoids unnecessary delay, repetition and human energies in production.
Disadvantages of Division of Labor:
Division of labor has certain merits. As the same it has the following demerits or disadvantages.
1. Monotony : Division of labor makes the laborer to do the same job again and again. This creates monotony and boredom among the laborers
2. Kills incentive : Under specialization the laborers do the same work for several times. As a result they discharge their duties mechanically. They lose personal incentive and initiative in their job. This destroys the reasoning and thinking power of laborers.
3. Irresponsibility : Division of labor may increase irresponsibility among the laborers. In a factory, division of labor is introduced several persons are employee at various stages to perform different jobs. As a result no single person was entrusted with the task of producing the whole commodity. The laborers do not bother about the work 0f their colleagues. They do not own responsibility for any fault or failure in making a commodity.
4. Risk of unemployment : Even though specialization creates more employment opportunities, it ultimately leads to displacement of laborers in the long run. The employers always make efforts to introduce machinery. This leas to the displacement of laborers. Besides, production carried through machinery and latest techniques require less manpower. As a result the problem of unemployment increases due to the introduction of division of labor.
5. Personal relations absent : In small scale production we observe sound personal relations between the workers and the management. But in large scale production where division of labour prevails, such sound personal relations do not exist. The employer finds it difficult to discuss labor problems with the laborers. Hence division of labor greatly affects the personal relations between the employers and employees.
6. No satisfaction : Division of labour involves the manufacture of a commodity by several persons. So no one feels satisfaction regarding the production of a commodity.
In spite of the above disadvantages, we cannot altogether oppose it. The demerits of division of labour should be rectified by following several measures. Increase in wages, reduction of working hours, provision of recreation facilities etc., are some measures. to be adopted for rectifying the defects of division of labour.
Limitations of Division of labour :
Division of labour has certain limitations. They are mentioned as follows :
1. Availability of capital: Division of labour is limited by the extent of the availability of capital. The more the availability of capital, the more will be the chances of introducing division of labour. If capital is not available in abundance, it is not possible to adopt division of labour on extensive scale.
2. Size of the market : Division of labour can be introduced when there exists proper market. It is not possible to introduce division of labour when the demand for commodities is limited. The greater the extent of the market, the larger will he the scope for introducing division of labour.
3. Technological progress : Invention of new methods of production and new machinery enables the adoption of complex division of labour. The scope for division of labour increases as technological changes take place in an economy.
4. Continuous production: Division of labour is limited by the nature of production. It is easy to introduce division production is carried continuously. For example division of labour cannot be introduced in agriculture as it is a seasonal occupation.
5. Transport and banking Facilities : There must be a well developed transport and banking facilities for the production and transport of the goods produced through division of labour.