ADVANTAGES OF DIVISION OF LABOUR/SPECIALIZATION

1) INCREASE EFFICIENCY-A person who performs the same job everyday becomes more efficient in his operations.

2) TIME SAVING-No time is wasted by moving from one task to another.

3) MECHANIZED PRODUCTION-Makes it possible the greater use of machinery.

Complex process can be broken down into simple operations each conducted with use of different machines which make task light and easy.

4) INCREASED PRODUCTION- Allow production to be undertaken in large scale hence increased production.

5) FULL EXPLOITATION OF RESOURCES-Regional and international specialization enables regions and countries to exploit their potential natural resources.

6) FULL USE OF LABOUR TALENTS- Enable labor to make use of their natural talents towards production.

7) EMPLOYMENT OF SPECIALISTS-Firms are able to employ specialists in different stages of production hence more production and productivity.

8) ECONOMIES OF SCALE-Leading to more output and reduction in costs of production.

9) STANDARDIZEDPRODUCTS-Through specialization, labor produces standardized products hence consumers consume standardized products.

10) SAVING OF MACHINES AND EQUIPMENT- A worker uses machines and equipment economically and efficiently as he uses it repetitively.

DISADVANTAGES OF DIVISION OF LABOUR/SPECIALIZATION

1) MONOTONY AND BOREDOM-Repetition of the same work by workers leads them into monotony and boredom which leads to low productivity

2) LABOUR IMMOBILITY-Labour becomes immobile i.e. low chance for a laborer to move to another type of employment.

3) UNEMPLOYMENT-In case the work is automated and laborers failing to sustain alternative jobs due to lack of alternative skills.

4) LOSS OF CREATIVITY-As far as workers specialize in their areas, they are limited to learn other skills hence loss of creativity.

5) INCREASING COST OF PRODUCTION-Upon employing specialists who are highly paid.

6) OVER DEPENDENCE ON OTHER COUNTRIES-Due to international specialization.

7) LACK OF RESPONSIBILITY –As far as the worker is concerned only with a part of the whole job.

8) MARKET AND FACTOR LIMITATIONS-Division of labor and specialization is discouraged in condition where output is limited by markets or factors of production.

9) PRODUCTION PROCESS STOPPAGE-Happen when a specialist or several of them are absent in the production process as workers are depending one another towards production

10) ECONOMIC PROBLEMS- May happen when a country specialize in producing one kind of product to run her economy and its demand fall.

LIMITATIONS OF DIVISION OF LABOUR

The following are factors which limit the extent of division of labour;

1) LIMITED SIZE OF MARKET

This happen when the market is not wider due to ineffective demand, the division of labor is worthless.

2) INEFFECTIVE PHYSICAL DISTRIBUTION FACILITIES

This happen when the physical distribution facilities such as transport, communication, warehousing etc are poor or not available to enable effective exchange of goods and services.

3) THE NATURE OF PRODUCTS

Some of goods and services by their nature cannot be produced by dividing the labor processes.

4) LIMITED SIZE OF THE LABOUR FORCE AND AVAILABLE CAPITAL

A Community possessing a relatively few workers and little capital equipment may not be able to engage division of labour.

CONDITIONS FOR EFFECTIVE DIVISION OF LABOUR

The following are necessary conditions for effective division of labour to exist;

-High spirit of cooperation among workers

-Large extent of demand (market size)

-Availability of capital and labour

-Proper organizing ability

-Standardization of products and processes

-Effective exchange and distribution facilities.

The developed countries in Europe and North America have very complex exchange economies as compared to the simple economies of countries in Asia and Africa. They are in complex economies in the sense that, division of labour is carried out in a very advanced degree with application of massive amounts of capital and modern methods of production as opposed to the ones in simple economies in which there is no or little capital and poor methods of production leading to low scale division of labour.