SPECIALIZATION: Is the concentration on one job or one line of production. Although, division of labour gives rise to specialization.
DIVISION OF LABOUR
This is the splitting of production process into different stages so that each stage is handled by different individual(s).
ADVANTAGES OF DIVISION OF LABOUR
- Division of labour encourage specialization.
- It encourages the use of machinery
- It increases the skills of workers
- It also increases productivity
- Encourages employment of specialists
- It saves time and reduces fatigue.
- It facilitates exchange and encourages reduction in unit cost.
- It equally increases leisure time.
- It increases standard of living.
DISADVANTAGES OF DIVISION OF LABOUR
- It makes work monotonous and boredom.
- It declines craftsmanship and skill.
- It encourages greater risk of unemployment.
- It also promotes immobility of labour.
- It makes man loose interest in working – i.e. it makes man become a tender to machines.
LIMITATIONS OF DIVISION OF LABOUR
- Division of labour is limited by the size of the market.
- The existence of technological knowledge.
- Effective nature of monetary system also limits division of labour.