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LESSON NOTE
Subject: Economics

Topic: Division of labour, Specialisation And scale of production .

Learning Objectives: by the end of the lesson, the learners should be able to:

  1. Define the terms division of labour, specialization
  2. State and explain the types of specialization and division of labour.
  3. State the advantages and disadvantages of division of labour and specialization.
  4. State the limitations to division of labour and specialization.

Lesson Summary
Definition:
Division of labour is defined as the breaking down of a production process into a number of separate operations , whereby each operation is undertaken or performed by one person or a group of persons .
Division of labour is a complex process mainly practised in industrialised communities where a worker specialises in the production of a small portion of a product and he may not see the end product and may not make use of it.
Division of labour for example, exists in the publishing industry where each worker or group of workers or individual are involved in writing of manuscript , editing , filming , plating , printing, folding , collating, sewing , binding , and finally trimming. It is the joint effort of all these groups of workers that enables a complete book to he produced .

Specialisation

Definition: specialisation is defined as the concentration of the productive effort of an individual .a firm or a country in a given aspect of economic activity or on a particular line of production in which it has the greatest advantage over others .specialisation is the performance of a single job or economic activity in which an individual or economic activity on which an individual .firm or a country has comparative advantage . Division of labour is one aspect of specialisation. Specialisation is a result of division of labour .

Types of specialisation and division of labour

(1) specialisation by process :this is the type of specialisation in which a production process of specialisation in which a production process is divided into different operations or stages and each worker , or firm or country now concentrates on only one operation or stage .for example , a firm -a printing company -may concentrate on the printing stage or aspect of a publishing outfit .
(2) specialisation by sex :this is the type of specialisation in which a certain occupations are exclusively either for males or females as dictated by custom , tradition or by law .for example men are mainly involved in driving of trailers while women may be involved in local weaving of traditional cloth called aso oke in Yoruba land .
(3) specialisation by product :this is the type of specialisation in which a producer (individual)or a firm or government concentrates on the production of a particular commodity .for example a firm may concentrate on the production of malt drink and an individual farmer can concentrate on the production of poultry eggs .
(4) Geographical or territorial specialisation :this is the type of specialisation in which certain geographical region or territory specialises in the production of a particular commodity .this specialisation is made possible in this region as a result of the type of climate and natural resources available in the area .for example , the presence of petroleum in the Niger delta region enables the area to specialise in the drilling of petroleum .

Advantages of division of labour and specialisation

(1) increase in production :division of labour and specialisation lead to increase in production because the various experts along the production process work together to boost greater production . (2)Time saving :division of labour helps to save time that would have been wasted in moving from one operation to another .
(3) Development of greater skill:division of labour enables each worker to develop greater skill through repetition of the same process.
(4) Large scale production :division of labour and specialisation lead to large production of goods and products.
(5) lower unit cost :since division of labour leads to greater productivity , that is , large quantities are produced and in less time , the unit cost of the product will be less.
(6) it leads to specialisation :division of labour makes one to be a specialist in the performance of a particular job .
(7) Economy in the use of tools : division of labour makes it possible the full and efficient use of tools and machine since they are handled by specialists.
(8) less fatigue :in division of labour a worker concentrates on only a portion of the production and since he makes use of machines and work together with others, he does not get tired easily .
(9) production of standard goods :division of labour and specialisation help to produce standard of goods which posses the same specifications like size , colour , shape , weight , etc.
(10) development of technology :through the use of machinery , different types of technology are developed to further facilitate production .the above factors or advantages will encourage entrepreneurs to adopt division of labour in production .

Disadvantages Of Division of labour And specialisation

(1) monotony or repetition :in division of labour , a worker performs the same job on daily basis , the job therefore becomes monotonous and boring to him and this may lead to loss of interests in the job being done .
(2) decline in craftsmanship : as a result of the use of machines in division of labour , people ko longer make use of their skill in the production of goods , rather , they become machine -minders . (3) Reduction in employment opportunities :in division of labour , machines are usually used with few workers this tends to reduce the level of employment among the workers .
(4) problem of mobility of labour :under division of labour , a worker stays on a single job for a long time and this makes it difficult for him to move to another jobs .
(5) problems from increased interdependence : division of labour has meant that workers and industries may have to depend on one another before production can take place absence of such a worker or industry may result in the closure of the entire production .

Limitation to division of labour and specialisation

Many factors limit the importance of division of labour and specialisation .these factors may either encourage or discourage the division of labour depending on whether they are favourable or unfavourable.
(1)The size of the market :if the size of the market is large and it can absorb all the quantities of goods produced , then division of labour is favoured .but in a situation where the market is small , division of labour is not encouraged .
(2) The nature of the product :products that can be broken down into stages will require division of labour whereas products that cannot be broken down into stages eg driving , barbing , hairdressing .etc tend to limit the importance of division of labour in production.
(3) level of technology : the level of technology sets a limits to the extent of specialisation .new technological breakthrough may allow further specialisation and division of labour.
(4) availability of capital : capital must be available in sufficient quantity to enable adequate payment of salaries and wages to workers and other materials to be purchased.
(5) availability of labour : the availability of qualified workers determines the stages into which production process will be divided .lack of qualified labour limits the advantages of division of labour in production.
(6) Government policy : certain government policies can determine whether division of labour can operate or not .where government policy favours large scale production , division of labour is bound to operate.
(7) development of commercial sector : a well developed commercial sector demands high volume of products and such high volume of products can only be met through the adoption of division of labour . Done Studying? Assess your learning with the following questions.

  1. Define the terms division of labour, and specialization.
  2. State and explain the types of specialization and division of labour.
  3. State the advantages and disadvantages of division of labour and specialization.
  4. State the limitations to division of labour and specialization.

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