International Division of Labor

Division of labour

Division of labour means that a worker specializes in producing a good or a part of a good.

There are THREE types of division of labour:

• Simple division of labour• Complex division of labour• Regional and international division of

labour

Simple division of labour

• It occurs when different workers specialize in producing a particular good or service, e.g. a farmer, a tailor or a teacher.

Complex division of labour

• It occurs when different workers specialize in different sub-processes in the production of a good, e.g. in a school, different teachers teach different subject.

Regional and international division of labour

• It occurs when different regions or countries specialize in the production of different goods. E.g. coffee in Brazil.

Advantages of division of labour:

To the employer:

1. Raise the productivity: a. People specialize in the job that they

can do best. b. Practice makes perfect. Through

repetition, workers become more skilful. c. Division of labor reduces training

time for each worker.

To the workers::

1.Each worker can specialize according to his ability and particular skills.

2. It saves more time in learning just a job.3. The worker may experience less fatigue

in doing repetitive job.

To the society;

1. Division of labor allows a country to enjoy comparative advantage. When production is specialized ,Productively is raised. More and a greater variety of goods will be produced. With international trade and with division of labor, each participating country can enlarge its range of consumption pattern and enhance its total consumption. Thus the living standard is raised for all people.

2. A certain country or district may develop its fame for certain country.

Disadvantages of division of labour:

To the workers:

1. Keep on doing the same job would lead to monotony.

Monotonous(dull) work reduces productivity. Workers

have less job satisfaction when they repeated the same

kind of job.2. The use of machinery leads to a loss of skill and

workmanship. There is little or no craftsmanship since the

production of an article is divided into many tasks.

Workers do not have any sense of achievement.

What is Labour?• Labour refers to human efforts, both

mental and physical that are employed in production, e.g. a waitress, a saleslady, a clerk, a

manager or a teacher.• Labour means the input provided by

the labour force.• The supply of labour is measured in

terms of man-hours/ man-days available for production i.e.

Supply of labour= number of workers X hours of work

Productivity of labour

Factors affecting the productivity of labour :

• Education and Training Technical education and on-the-job training improves workers’ technical know-

how. Workers can produce more output.• Working environment Workers can work better in a

clean and tidy working environment with air-conditioning and good lighting.

Average Product = Total Output or Total value of Output

Units of Labour (in man- hours)