Division of Labour | Meaning, Advantages, Disadvantages, Limitations

The concept of Division of Labour involves breaking down production processes into distinct stages, each handled by an individual. In a textile factory, for instance, separate workers engage in processes like spinning, weaving, and dyeing. Specialization, on the other hand, is the concentration of productive efforts on specific areas where one has a comparative advantage. […]

The concept of Division of Labour involves breaking down production processes into distinct stages, each handled by an individual. In a textile factory, for instance, separate workers engage in processes like spinning, weaving, and dyeing. Specialization, on the other hand, is the concentration of productive efforts on specific areas where one has a comparative advantage. Both Division of Labour and specialization aim to enhance output while reducing production costs.

 

Advantages of Division of Labour/Specialization:

  1. Enhanced skill and dexterity of workers
  2. Increased total output
  3. Time savings
  4. Reduced fatigue
  5. Facilitation of machine usage
  6. Lower per-unit production costs
  7. Promotion of technological development

 

Disadvantages of Division of Labour/Specialization:

  1. Monotonous work
  2. Reduced employment opportunities due to machine usage
  3. Labor immobility
  4. Decline of craftsmanship
  5. Increased inter-dependence among individuals, industries, or countries

 

Limitations of Division of Labour:

  1. Market size and demand for the particular commodity
  2. Availability of labor
  3. Nature of the product being produced
  4. Availability of capital for wages, raw materials, and machinery
  5. Government policies

 

Exchange:

Division of Labour and specialization create inter-dependence, leading to exchanges between individuals, firms, or countries as they rely on others for goods and services they do not produce.

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