Division of labour is the breaking down of production process into smaller components and each of the components/units is performed by different people.
Specialization can be defined as the concentration of a worker in an aspect of production.
ADVANTAGES OF DIVISION OF LABOUR
1) Division of labour increases output when different stages of production is undertaken by a worker or a group of workers.
2) Division of labour saves time.
3) It increases skill
4) It also reduces fatigue.
5) It creates employment opportunities because more labour needs to be employed to carry out different tasks.
6) Division of labour leads to specialization because workers eventually focus on a particular line or stage of production.
DISADVANTAGES OF DIVISION OF LABOUR
1) It brings about monotony of task. When the same procedure is carried out daily, it leads to boredom or dullness.
2) It brings about immobility of labour. When labour is too specialized he may find it difficult to change job or relocate.
3) There is a decline of craftsmanship. For instance, a fashion designer who has specialized in ordinary sewing may not know about embroidery (design).
4) It leads to unemployment. A worker who lost his job may not find another job in that exact field in which he has been specialized over time.
LIMITATIONS OF DIVISION OF LABOUR
1) Work cannot be produced en masse in some fields like creative art.
2) The nature of some job and products may not give room for division of labour.
3) The availability of labour will determine the degree of specialization in a business.
4) The level of technology available to a business can limit the extent of specialization.
INTER-RELATIONSHIP BETWEEN EXCHANGE AND PRODUCTION
Exchange is the process of giving out value in order to have something of value in return.
Exchange is regarded as an outcome of specialization and production. They are related in the sense that production, which is the creation of goods and services, can be enhanced greatly when the processes are broken into stages to be performed by different people. Division of labour and specialization lead to mass production.