Division of labour is an important feature of modem industrial organisation. Division of labour occupies so important a place in modern production process and adds so greatly to the total output and wealth of a country that Adam Smith, the father of economics, selected it as the first topic for discussion in his book, “An Enquiry into the Nature and Causes of Wealth of Nations.”
Division of labour may be simple or complex. Simple division of labour refers to the production of a single commodity by a person. In a society, where simple division of labour refers to the set up, there every worker would be producing only one commodity. Some will be producing cloth, some will be making shoes, some others will be producing farm products, but everybody will be producing either farm products or clothes or shoes. In the old village societies, there prevailed this simple division of labour, and therefore, the old village society composed of farmers who produced agricultural goods, weavers who made cloth, cobblers who made and repaired shoes, etc.
However, in the modem days, division of labour is of complex type. In fact, it is the complex division of labour, which has increased so greatly the productivity of the modem production system.
Many advantages have been claimed for the mechanism of labour division. The system of division of labour has proved to be very beneficial for the society.
Advantages of Division of Labour:
(i) Increase in Productivity : The biggest benefit of division of labour is that it increases the productivity of every worker. The productive capacity of the individual and the community has increased significantly with the division of labour.
(ii) The Right Man in the Right Place : Another major benefit is that under the division of labour, the work is allocated according to the capacity and skill of the individual workers. This ensures a high level of efficiency because the right person is put into the right work. Thus, it eliminates the possibility of fitting a square peg in a round hole.
(iii) Dexterity and Skill : The worker becomes highly skilled and acquires high degree of dexterity because of the repeated performance of the same operation. As the age -old dictum goes, practice makes a man perfect. The worker acquires perfection in his skill because he has to carry out the same operation over and over again. This adds to his productivity.
(iv) Inventions are Facilitated: Another important advantage is that it promotes the development of new ideas and the development of better technology. This is due to the fact that when a worker is performing the same operation repeatedly, he can think of doing that process better and better. Even some mechanical devices can do that easily and more efficiently. Thus, the division of labour results in the invention of new machinery and better tools.
(v) Saving in Time : Under the division of labour, a worker is a part of the whole process and therefore he should only learn a part of the process. Thus long-term training that is provided unnecessarily, is avoided. This greatly saves time and money.
(vi) Economy in the Use of Tools : A worker is not given a complete set of tools for the whole process. They are made available only with those instruments which are required by them to perform that part of the process which is allocated to them. Thus, a set of tools can be used by many workers, which is a great economic benefit.
(vii) Use of Machinery Encouraged : By breaking up the production process of a commodity into small and simple operations, production can be easily carried out by suitable machines. Machines can be economically used only when they are fully used, that is, when their productive capacity is fully utilized. Division of labour involves production on a large scale and therefore permits the maximum and economical use of machinery.
(viii) Cheaper Goods : Another unique advantage of labour division is that large scale production costs are cut off. Commodity production is largely based on low cost per unit production, which ensures the production of novelties, and makes goods available at cheaper prices. Even poor people can buy them too. As a result, people’s standard of living has increased.
(ix) Rise of Entrepreneurs : Since the work is divided into various processes, someone is required to coordinate the work. This has resulted in the rise of entrepreneurs whose job is to specialize in the art of organisation. The rise of entrepreneurs has greatly contributed to the increase in efficiency and productivity of the modem economy.
