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In this article we will discuss about:- 1. Definitions of Division of Labour 2. Types of Division of Labour 3. Economic Effects 4. Advantages 5. Disadvantages 6. Conditions.
Definitions of Division of Labour:
“The system of distributing a particular type of job(s) to a particular type of worker is known as specialization or division of labour.”
“Division of labour is defined as a system wherein the operations necessary to make a finished product are so minutely divided that each worker performs only one or at the most only a few simple operations.”-A. H. SMITH
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“The specialization of worker in particular parts of a production process, is called the division of labour.” —PENGUIN DICTIONARY OF ECONOMICS
The effect of division of labour is clearly visible these days, in every industry. In automobile plants initially a bare chassis is put on the conveyer belt which passes through the different units of the plant where, section wise, different units are installed on it one after another. At the other end it comes out of the plant as a finished product.
It is not only in the manufacturing plants, but in other fields also where there is economic activity like, Hospitals, Hotels, Educational Institutions, etc., where division of labour is a common phenomenon.
Here, it must be clearly understood that the division of labour is concerned not only with the people, but also for the whole region. Some examples of regional specialization of labour are those of West Bengal (for jute and jute goods), Switzerland (watchmaking), Denmark (dairy products), etc.
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Thus, specialization or division of labour means that every person or region specializes in production of one particular commodity or service in full or in parts.
Types of Division of Labour:
Division of labour may be simple, complex and territorial depending upon various factors involved, which are described below:
1. Simple (Personal or Occupational) Division of Labour:
The people around us can be divided into farmers, traders, doctors, teachers, weavers, etc., according to their respective occupations. This type of division is called simple or occupational division of labour in which people are specialized in one type of occupation. When manufacture is split into diverse parts and many workers come mutually to finish the work, but the input of each worker cannot be known is simple division of labour.
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In case of more complex works further divisions are made. A specialization in the medical field is a very good example of occupational division of labour. There are specialists of skin disease, heart specialists, eye specialists, dentists, etc. This type of division is also known as personal division of labour because each individual takes up only one specific job depending on his ability and aptitude.
2. Complex or Process Division of Labour:
In this system the total work is divided into many small steps or processes. Each specialized function is undertaken by an individual or a group of individuals leading to the final product.
This type of division of labour is further classified in following two categories:
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a. Complete Process of Complex Division of Labour:
In this system the total work is divided into parts and sub-parts in such a manner so that the product of each part is able to yield a commodity in a complete form for the next process. For example, consider the jobs done in a cloth mill, where spinning, weaving, sizing, bleaching, etc., are done by different processes and by different workers in such a way that completely finished cloth is finally made for use.
b. Incomplete Process of Complex Division of Labour:
In this system the work is divided into different processes and sub-processes in such a way that only a part or a component of a commodity is produced. Since the part produced in one process is not directly passed on to the next process in a complete form, this system is known as incomplete process of complex division of labour. For example, the different parts of an automobile are incomplete parts unless and until they are assembled together to produce the complete car.
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3. Horizontal and Vertical Division of Labour:
a. Horizontal Division of Labour:
When the process of production is divided between different parts in such a way that the different parts of the process can run simultaneously, then it is called horizontal division of labour. The different parts of an automobile can be manufactured simultaneously and assembled together at the end. Hence, the workers engaged in producing different parts of an automobile is an example of horizontal division of labour.
b. Vertical Division of Labour:
On the other hand, vertical division of labour is related to the successive stages of production of a commodity. For example- in order to produce cotton textile, raw cotton has to be transformed into yarn by spinning. Only then the yarn can be woven into cloth. Spinning and weaving cannot be done simultaneously on the same bag of raw cotton. Hence, the division of labour of the workers in the cotton textile industry is an example of vertical division of labour.
4. International and National Division of Labour:
We can also distinguish between division of labour between countries and division of labour between the different regions of a country.
a. International Division of Labour:
Because of limitations of resources and technology, a country cannot produce everything that its people wish to consume. It produces only those goods and services which it finds advantageous to produce. It imports the other goods and services from other countries. Thus, there arises a division of labour between countries. Different countries concentrate on the production of different goods and services. This is called international division of labour.
b. National Division of Labour:
We also see division of labour between different regions of a country. In India, for instance, we see a concentration of jute mills in the eastern states and a concentration of cotton textile mills in the western and southern states. Thus, there is a regional division of labour between jute and cotton textiles production. Such regional division of labour is often caused by considerations of availability of raw- materials, natural resources, climatic conditions, etc.
5. Territorial or Geographical Division of Labour:
Sometimes due to diverse reasons, the production of goods is focused at a state or nation. This specific type of division of labour comes into being when the workers or factories having expert in the production of specific article are found at a specific place. That place may be the most appropriate geographically for the production of that article.
Economic Effects of Division of Labour:
The division (specialization) of labour has now become very essential so as to maintain the desired living standard of the common masses. People cannot provide everything such as food, cloth, education, health and entertainment by working themselves. Even if they are able to do so, the quality may not be of desired standard for all the items.
Moreover, by doing all types of work, they may remain so busy that they would find little or no time for leisure. Thus, people specialize only in one branch of productive work, as per their capability and aptitude, and acquire high standards of quality and efficiency in their field.
The overall improvement in living standard of the people is particularly due to specialization (division) of labour. Due to this aspect, large- scale manufacture of good quality commodities has become possible for the use by common masses.
Inspite of many advantages, there are certain disadvantages of specialization of labour like social evils of factory system, class-conflicts among workers, etc.
Advantages of Division of Labour:
The division of labour has been advantageous to society as a whole, i.e., to producers, to workers, to consumers and to society, as will be clear from the following:
(I) Advantages to the Producers:
The division (specialization) of labour helps the producers to earn more monetary benefits in their productive activities in the following ways:
1. Increase in Production:
With the specialization (division) of labour, the workers become more skilled and efficient. They acquire higher speed in work, which ultimately results in more production, quantitatively as well as qualitatively. This directly enables the producers to earn greater amount of profit.
2. Reduction in Cost of Production:
The specialized (expert) worker with the help of machines, produces more quantity of goods in less time and with minimum wastage. This reduces the cost of production thereby resulting in more profit to the producer.
3. Improvement in Quality:
As the worker acquires greater skill in performing the work, the quality of the commodity produced is better. The good quality product becomes more and more popular and acceptable to the consumer. This increases the overall turnover and the net profit of the producer.
4. Introduction of Machinery:
By the division of labour, a worker is required to work only for the simple process or sub-process. For such segments of work, machines can be introduced easily. The use of machines, by the skilled (specialized) worker helps in standardization of the product and in achieving a higher production, thereby providing more earnings to the producer.
5. New Innovations:
Consequent to the division of labour, the worker uses only one kind of machine and tool or attends to only one process of the total work continuously for a long period and that creates a situation, when he thinks freely while on the job.
Sometimes, this free thinking originates an entirely new idea in the mind of a worker, which sometimes results in a new invention. The producers, by making use of these inventions are able to produce better goods and earn more profit.
6. Economy of Large-Scale Production:
With the help of the division of labour, the commodities are being produced on large-scale, and in an efficient and quick way. This results in all kinds of internal and external economies for the production units. As such the cost of production is reduced and simultaneously, the quality of manufactured goods is improved. This ultimately yields more profits to the producer.
7. Utilization and Employment of Unskilled Labour:
Due to simplification and bifurcation of complex processes into several small parts, even the less skilled workers can be employed to perform these tasks. This reduces the cost of production on account of lower wages of an unskilled or semi-skilled worker. In addition to the above, this increases overall employment in the country.
(II) Advantages to the Workers:
Besides being beneficial to the producer, the division of labour is also beneficial to the workers.
Benefits to the workers accrue in the following ways:
1. Right Man in Right Place:
Under this division of labour, the individual worker is assigned a job for which he is best suited. This helps the work to be completed in the most appropriate way, besides providing a feeling of job satisfaction to the worker, because a worker feels a kind of pleasure when he performs the job of his taste, capability and aptitude.
2. Improvement in Efficiency:
The worker is assigned one type of work, according to his aptitude and skill so that he does not feel the monotony of work, but attends the work with zeal and devotion which naturally improves the efficiency of the worker. Practice makes him perfect and so gradually he becomes an expert of that job. The improvement in efficiency makes him an expert of the job and directly increases his remuneration resulting in the worker to get some benefit.
3. Saving of Time:
Due to the fact that a worker has to carry out only one type of job, he is not required to move frequently from one job to another. Also he needs not to change the tool or machine now and then. Thus, he can work continuously without any loss of time and give more output.
4. Less Training Period:
Under the division of labour, only a part of job is required to be attended by the worker for which he can be imparted necessary training in a very short duration.
5. Reduction in Physical and Mental Strain:
By continuously performing a small part of the total work, the worker becomes fully accustomed to it, which reduces mental and physical strain. With the aid of machines, his work becomes still easier.
6. Increased Employment Opportunities:
Due to the division of labour, the number and variety of jobs have increased. This paves the way for the setting up of large number of large scale and small-scale industries and the subsidiary units. This rapid industrialization creates more employment opportunities for the workers. Even less skilled or unskilled workers get a chance for some kind of job.
7. Formation of Worker’s Union:
Large scale industries employ hundreds and thousands of workers. These co-workers generate a feeling of ownership, unity and cooperation. This led to formation of trade unions to safe guard the interests of workers.
(III) Advantages to the Consumers:
Since the division (specialization) of labour ultimately results in an overall improvement in the quality of product and reduction in costs, the consumers are also benefited.
1. Availability of Goods at Cheaper Rates:
Large-scale manufacturing of almost all types of commodities is possible now, because of the specialization of labour. The large-scale production improves the external as well as internal economies in the production process, thereby resulting in a lower cost of production. The lower cost of production makes it possible for wholesalers and retailers to sell goods at cheaper rates.
2. Large Varieties of Goods:
Besides the reduction in cost of production, large varieties of each type of commodities are also readily available on account of simplification and division of complex processes of production. The division (specialization) of labour has made it possible to manufacture at cheaper rates, the products requiring higher skill.
For example- car is now being conveniently produced by making the appropriate division of labour, in which many simplified jobs are being done by less skilled or unskilled labour at cheaper rates. As there was no division of labour in the past, many of the commodities were available at very high price due to the complex process of production. Only the rich people could afford those goods.
3. Improvement in the Standard of Living:
Due to the availability of a variety of goods at cheaper rates, the consumers have a better choice for purchasing the goods of their choice and standard. Consumption pattern of the society reflects its standard of living. The coming up of new manufacturing units, has resulted in a situation, where every now and then, some new variety of product appears in the market. This has provided a greater opportunity of selection and choice of goods to the consumers.
(IV) Advantages to the Society:
The advantages of specialization of labour to the society are explained as below:
1. Rapid Economic Development:
The means of production, i.e., raw materials, capital, means of transport and communications, banking facilities, etc., are utilized to maximum extent (or say fully) and do not remain idle. Consequently more employment opportunities are being generated. Even the less skilled or unskilled workers get some kind of a job, due to the development and the growth of main and subsidiary industries and thus the economic development of a region occurs. Thus, division of labour causes rapid economic development and the society as a whole is benefited.
2. Increased Number of Organizers (Entrepreneurs):
In this system of division of labour, the productive process of work is divided into several small parts or sub-parts. This creates a necessity of an organizer to co-ordinate between different units of work and to solve their complexities. The work of an organizer and a manager is very tedious and full of responsibilities, for which specially qualified and trained persons are required.
The division of labour encourages new productive units and industries and so more and more trained and qualified managers and organizers are required to look after and manage the new industries.
Disadvantages of Division of Labour:
We have discussed the advantages of the division of labour, which have benefited various groups and sections of the society.
But there are certain inherent demerits in such system, which are as follows:
1. Monotony of Work:
Under the division of labour, the worker is required to perform the same type of job again and again. The job becomes monotonous and the worker gradually loses interest in it. His zeal and initiative to learn and do something new gets diminished and this causes a kind of mental fatigue, which ultimately spoils the quality of work. To overcome this situation, the assignment of some new type of work must be planned, which may provide a kind of freshness to the mental status of the worker.
2. Loss of Creativity:
Since the worker does only a part of the whole job (in the production of a commodity) he cannot say that particular whole item has been made by him. As such his creative instinct remains unsatisfied and he cannot have a sense of pride or pleasure of creating something of decent quality fully on his own. This gradually causes a loss of creativity.
3. Lack of Responsibility:
Under the system of division of labour, a product passes through various stages in the hands of different workers and then acquires the final shape. Whenever, the pieces produced are defective, it is very difficult to fix responsibility for defect in the product.
4. Greater Risks of Unemployment:
In case a worker is removed from the job or leaves it on his own, it becomes very difficult for him to find the same type of job again as he is unfamiliar with the other parts of the process. Sometimes, he has to remain unemployed. However, if he knows complete work pertaining to his field, the risk is limited.
5. Excessive Interdependence:
Due to specialization (division) of labour, the interdependence between workers increases manifold. Since every worker produces only a small part of the complete commodity, they depend on each other for the final product. Any problem or defect in one part may cause disturbance and dislocation in the entire process of production.
6. Defects of Factory System:
The division of labour has resulted in a large-scale production under factory system, where thousands of workers are employed and, the work is done by utilizing different types of machines. Since the factory system has certain inherent defects, the society as a whole has to suffer due to these defects.
Most important defects of the factory system are:
i. Concentration of wealth in few hands,
ii. Increasing population in industrial centers,
iii. Water and air pollution,
iv. Unhygienic environment around industrial centers,
v. Exploitation of women and children, who are employed as workers, and
vi. Moral degradation.
7. Imbalance in Territorial Development:
On account of territorial division of labour, some areas become more developed and advanced as compared to others. This creates a regional imbalance. The regions around Kolkata (Calcutta), Mumbai (Bombay), Kanpur, Jamshedpur, etc., are economically more advanced, whereas many parts in Rajasthan, Madhya Pradesh, Odisha and North-Eastern states are highly backward.
8. Class Conflict:
Division of labour facilitates large-scale production, due to which the producers reap all the external and internal economies of production. This helps them to earn voluminous profits. The producers, thus become very rich, while the workers get only meager wages and remain poor.
This divides the society into two classes:
i. Rich class of capitalists and producers, and
ii. Poor class of low paid labourers.
Both of these classes make efforts to safeguard their interests; as such, they come in conflict with each other. This class conflict leads to the disruption of social harmony and retards the economic progress of the country.
9. Lack of Mobility of Labour:
The division of labour makes the workers gets stuck up in a particular process of work for his life, so he has less chance to move out to any other work.
10. Retarded Personality:
Repetition of the same task again and again leads to intellectual dullness. It kills the initiative and weakens the desire to learn. As a result the development of physical and intellectual personality of a worker may be retarded.
Conditions of Division of Labour:
The modern economic development is difficult to imagine without adopting the specialization of labour, yet it must be borne in mind that division of labour has some limitations and can be adopted only when certain conditions are fulfilled.
The factors which determine the extent of applicability of this system, are discussed below:
1. Size of the Market:
The extent to which division of labour can be adopted, depends upon the size of the market for a particular product. The concept of market includes the area or region, number of buyers and their purchasing power, etc. If the product has limited market, its production on large-scale is not economically viable.
Therefore, only few workers can be employed and so the division of labour will also be very limited. On the other hand, if the product has a large market, more production is necessary, for which more workers are required and accordingly the division of labour will also be to a greater extent.
2. Attitude of Workers:
Division of labour becomes useful and beneficial when the workers have willingness and positive attitude towards it. If the workers do not adjust and co-operate among themselves for the changes, which is necessary for the division of labour; the system of division of labour will not yield the desired results.
3. Nature of Product:
If the product is such, that it can be split up into different parts and sub-parts, only then the division of labour will be possible. The example of such products are aeroplanes, cars, textiles, cement, sugar, etc. The division of labour cannot be adopted for those products which are influenced by some kind or special type of art or fashion. This applies to articles which are prepared according to individual’s taste or choice. The examples are like making of marble goods and idols, embroidery, painting, ornaments, etc.
4. Availability of Factors of Production:
The availability of other factors of production influences the extent of division of labour. If the availability of other factors, like land, capital, entrepreneur or organizer are available only to a limited extent, the volume of production of the goods will be restricted. Under such circumstances, the division of labour to a great extent does not become economically viable.
5. Technological Developments:
The technologically advanced countries utilize new types of highly developed machines and tools and new complex methods of production are adopted. These circumstances are favourable for introducing complex type of division of labour. On the other hand, if less advanced and less developed technology is utilized, the highly advanced division of labour becomes totally uneconomical.
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