It is the social structural foundation of the
specialized commodity production divided
between industries, firms, and occupations of
workers, or the technical division of tasks.
Division of labor is a kind of Specialization. It is to
satisfy the largest possible number of wants, we
have to organize them by division of labor a way
that yields the greatest volume of output.
Types of division of labor
There are three types of division of labor
• Simple division of labor
• Complex division of labor
• Regional and international division of labor
Simple division of labor
•A person specializes in producing a particular
product or service.
•It is more common in a primitive society.
Complex division of labor
•A person specializes in a sub-process of the
production of a good or service.
•It is more common in modern society.
Regional and international division of
•Different countries specialize in certain types of
•Production of Cars in Japan
•Production of electronic goods in china
•Production of fruits in Pakistan
Merits of Division of Labor
• Better goodwill
•Practice makes perfect
•choosing the best person to do a job
•Economy of time
•Economy of capital goods
•Possibility of mechanization
•Practice makes a man perfect.
•By concentrating on the repeating the same task again
and again, a worker acquires dexterity, skill and speed,
and more-over, division of labor avoids waste of time
and effort caused by changes from one task to another.
•Specialization requires simplification of tasks and
facilitates use of labor saving devices. Due to all these
the quantity and quality of work increase tremendously.
Division of labor increases the efficiency of
workers. Wasteful duplica-tion of process and
tools is avoided. Large scale production offers
several economies in the use of materials,
machinery and skills. Therefore, costs of
operations are reduced.
Specialization implies that the worker need not
learn the entire job. He needs to learn only a
part of the whole task. Much time and effort is
saved in the training of workers. Physical toil is
•When a worker performs the same job again
and again he tries to discover new and better
methods of doing the work.
•This increases the possibilities of inven-tions
and innovations. Division of labor thereby
facilitates mechanization and auto-mation of
jobs. Use of machinery reduces stress and strain
Under division of labor the whole job cannot be
completed unless workers performing different
parts of the job cooperate with each other
there-fore, division of work results in greater
cooperation and discipline amongst workers.
Besides, each worker is assigned the task best
suited to him.
Higher efficiency and better quality of work
help to satisfy customers and to earn higher
profits. Simplification, standardization and
automation of work also add to the firm's
goodwill. As the supply of a variety of goods in
the society increases, people can enjoy a higher
standard of living than before.
Economy of Time
•Save time in training of workers
•Increase duplication of tool and equipment
•Increase capital goods needed
•Decrease average cost of production
Possibility of Mechanization
•Mass production means possible to employ
machines to replace the workers
•increase labor productivity
•increase total output
•Lack of responsibility
•Loss of joy/personality associated with the production of a
•Unemployment on account of large scale production
•Class conflict between employers and employees
•Greater risk of unemployment
As a worker has to do the same work again and
again he starts losing interest and pleasure in
the work. The work becomes monotonous in
nature and bore-dom arises.
Lack of responsibility
Under division of labor, the final product is not
the output of a single person but the creation of
several workers. Therefore, no individual can be
held responsible if anything goes wrong.
Involvement of workers in their work is
Lack of job pride
As a worker performs only a part of the job, he
cannot take pride in the final output. There is
little pleasure of creating something. Specialized
workers may lose jobs due to changes in the
process of work.
•Division of labor leads to interdependence between
indi-viduals, firms, industries and countries. Failure of
any one link due to strike, war, breakdown in
transport and communication, depression, etc. may
cause great harm.
•Inferior output by one worker may spoil the quality
of the entire product. Specialists know only a single
process of production. In case of unemployment,
they find is difficult to get jobs.
•The extent of division of labor is limited by size of the
market demand. Division of labor is possible only
when the scale of production is large. Large scale
production is not always possible and it suffers from
the evils of factory system.
•Greater risk of unemployment
•It is often difficult for a worker trained for a particular
task or profession to change over to another job