Economics 12 Notes for Economics Notes

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Labor division

Labor division

It is defined as assignment of different works to different workers in such a way so that the productivity or efficiency can be increased. It is the process of placing of right persons to right jobs. It is always made according to the nature of works and the qualities required and qualities the workers have. The works are different in nature. To perform different works, different qualities are required. Some are mental works whereas some are physical works. Labor division is made vertically and horizontally. The division of labor form MD to the workers is vertical labor division and division of labor between departments or sections or in different places is horizontal labor division.

Advantages of labor division:

  • It helps in the best selection of employed because each person gets the job over which he or she is best suited.
  • It helps in increasing production because work is divided into smaller parts
  • It helps in invention because when the same job is done by same man again and again then he/she can find better and quicker ways of doing it.
  • It helps in saving great time because a worker doesn’t have to waste time in moving from one part to another part of work.
  • It helps in saving of learning time because a worker has to do only a part of the work and s/he can learn that easily
  • Production becomes less expensive
  • It helps in increases cooperation and discipline amongst workers.
  • It facilitates greater mobility of labor. If the labor is depressed or there is strike in a factory the workers can easily go to another factory.
  • It helps in increasing efficiency of workers.

Disadvantages of labor division

  • It increases monotony amongst the workers.
  • It increases the dependence of worker. The worker becomes a link in a chain of various processes.
  • It reduces responsibility. No one can be held responsible for overall manufacturing defects because a worker is concerned with only a part of the job.
  • It results in many losses; loss of efficiency, loss of personality and mental development.
  • When the worker gets to do only a part of the job then s/he knows only that much and becomes an expert. S/he finds it hard to get job on other places.
  • There is no direct relationship between workers and the employers and there are large numbers of employees. This gives rise to conflict in return strikes may occur.

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