Forms, Advantages and Disadvantages of Division of Labour

len Alfred Ajibola - Sat, 29th June, 2019 @ 08:03: AM

Topics in Commerce

Scheme of Work for Commerce, SS1, First Term Scheme of work for Commerce, SS1, Second Term Scheme of work for Commerce, SS1, Third Term Division of Labour - Conditions necessary for Division of Labour Forms, Advantages and Disadvantages of Division of Labour Balance of Trade and Balance of Payments Production - Definitions, Examples and Types of Production Deferred payment and its benefits Commodity Market, Types and Importance of Commodity Market Marketing: The Four P's of Marketing and Branches of Marketing Meaning, Scope, Functions and Characteristics of commerce

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Forms of Division of Labour:

Forms of division of labour relates the various ways through which division of labour may be carried out. Take for instance, in a country like America, one state may choose to specialize in the production of a cars while another state specializes in another different area, lets say agriculture. Before we delve into the forms, advantages and disadvantages of division of labour, it is ideal you get a good understanding of what division of labour really is. Please read on division of labour here.


Below are some forms of division of labour

  • Complex division of labour

This form of division of labour relates to process specialization. This means that the work an organization does will be divided into different and specific processes. For instance, in a bottled water company, one person may be required to carry out water generation, another does water purification, another for bottling the water, another for adding labels to the bottled water while another does the transportation and sales. Mass production industries embark on this form of division of labour.


  • Occupational division of labour

This form of division of labour relates to the various occupation available in a society, country or state. For instance, in every society, some are teachers, while others may be bankers, doctors, lawyers, architects and so on. In this way, the societal jobs are shared among people who are experts with regards to their respective occupation.


  • Geographical division of labour

The geographical location of industries will affect this form of division of labour. For instance, a region like Nigeria may be specialized in production and export of petroleum while another region or state may be responsible for importing the fractions of petroleum like petrol and kerosene into Nigeria. Please read on the fractions of petroleum here. Also, the city of Bombay is distinguished for its cotton production, while the Democratic Republic of Congo is widely know for cobalt mining.


Advantages of Division of Labour

1. There is an increased production of quality goods and services in the market.

2. It promotes a country’s economic growth through an increased manufacture and exportation of quality goods and services.

3. Production industry maximizes the use of machines and technology because experts/professionals are responsible for their management.

4. Production industries make more profit as a result of increased production of goods and services.

5. There is an increased product competition in the market since every industry will work towards employing the best workers in their respective department.

6. The consumers will have a wide range of options for various commodities since there is an increased production of goods and services.

7. Employment opportunities will be increased because more people will be gainfully employed.

8. Division of labour saves time and expenses of training since one becomes better at the job they do repeatedly over a period of time.

9. Division of labour fosters the spirit of co-operation among workers.

10. It encourages an efficient use of machinery and tools by the workers since they work on their area of specialty.


Disadvantages of Division of Labour

1. It may become difficult to hold any of the workers accountable for poor sales since they were all cooperative in the processes of production.

2. The job becomes monotonous and boring since the worker does the same work over and over again.

2. Special skills and potential of workers may not be harnessed since they always do the same job.

3. If dismissed from work, the worker faces risk of unemployment because he or she is not diversified in work experience.

4. Some sets of workers may be under appreciated due to the nature of their specialization.

5. Over-dependence on the various departments of production may prove disastrous especially when an unexpected negative event occurs to a vital department of production.

6. If a crucial institution in a society, for instance, medical institution embarked on strike, lives will be lost. Also, the breakdown of the transport industry may affect the economic activity of a society.

7. A worker cannot claim the glory that comes along with a great job even when he does the most important aspect of the job.

8. If there is a limitation in the size of the market, division of labour will not feasible.

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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.

Amazing facts in Commerce

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
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Commerce can be defined as the exchange of goods and services, usually for money and on a large scale that will require the transportation of such goods and services.

Commerce is very important to the life of any Nation for the following reasons:

  1. Commerce facilitates the exchange of goods and services which everyone can enjoy, regardless their location or whether the goods is produced within or outside their country.
  2. Commerce creates an awareness of the existence of goods and services through advertising.
  3. Commerce offers employment to a very large number of people in a Nation.
  4. Commerce promotes rapid transfer of both oral and written messages through communication.
  5. Commerce determines the standard of living in a Nation. This is because the extent of commercial activities is crucial to wealth of  a nation.
  6. Commerce makes for the protection against risk in day to day business operations.
  7. Through commerce, there is a steady supply of goods in a Nation. This is because commerce ensures that goods produced are stored until needed.

A public company is not owned by an individual. Usually, it is owned by groups or a very large number of people.

The shares of a public company are traded freely on the stock exchange.

Below are some features of a public company

  1. A public company must receive it’s training certificate to commence business.
  2. The minimum membership is two while the maximum membership is limitless.
  3. A public company has a legal status. It can sue and be sued.
  4. A public company files and publishes its annual reports, including its accounts.
  5. The liability of its members is limited.
  6. The shares are easily transferrable through the stock market.
  7. A public company can issue debentures to be secured as its assets.

Please read on the types of business structure here

The four elements of the marketing mix are usually referred to as the 4 “P”. These are:

  1. Product: Anything thing that satisfies a consumer’s need is referred to as a product. Product may come in the form of manufactured goods, raw materials or services.
  2. Price: Price is defined as the exchange value of goods and services supplied. In simple terms, it serves as a mechanism of exchange.
  3. Promotion: It involves all the processes that concerns with how business organizations should inform their customers about its product. If done properly, the demand of product will be increased. Promotions can take the form of advertising, search engine optimization, social media marketing, trade fairs exhibition and so on.
  4. Place: The place as a marketing mix concerns variables such as location and transport facility where the distribution of goods and services take place.

Think of marketing mix as the set of marketing tools that an industry or company uses to drive or accomplish its marketing objectives in the target market