Definition of division of labour (worker specialisation)

Microeconomic Decision‑makers – Workers

Objective

Define the concept of division of labour (worker specialisation) and explain why firms use it.

Definition of Division of Labour

Division of labour is the process by which a production process is broken down into a series of separate tasks, each performed by a different worker or group of workers who become specialised in that task.

Key Features

• Each worker focuses on a narrow set of activities.
• Workers develop specific skills and expertise.
• Tasks are arranged in a logical sequence to produce the final product.

Why Firms Encourage Specialisation

1. Increased productivity – Repeating the same task reduces the time taken per unit (learning‑by‑doing effect).
2. Higher skill level – Workers become more proficient, leading to better quality.
3. Reduced idle time – Less time is wasted switching between different types of work.
4. Economies of scale – Larger output can be achieved with the same or fewer resources.

Illustrative Example

Consider a simple shoe factory that produces 1,000 pairs of shoes per week.

Diagrammatic Representation

Summary

Division of labour enables workers to specialise, which raises productivity, improves quality, and helps firms achieve economies of scale. This concept is fundamental to understanding how firms organise production and make decisions about resource allocation.