Specialisation and Division of Labour

Division of Labour is where a production procedure is split into different stages. Workers are responsible for a particular stage, usually in which their expertise lies. Thus by doing this, the maximum production for a day’s work would increase.

An equal division of labour is where a task is split into separate jobs so that it would take roughly the same amount of time to complete one job as another.

Adam Smith provided an example of this; in a day 1 worker could create a maximum of 20 pins, so 10 workers could create 200 a day. However if the production process was split into 10 different stages, with one worker on each stage the maximum production would dramatically increase to 48,000 pins produced a day. [...]