Division of Labour and the Conditions necessary for it

Alfred Ajibola - Sat, 29th June, 2019 @ 08:11: 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 and the Conditions necessary for it Forms, Advantages and Disadvantages of Division of Labour Balance of Trade and Balance of Payments Meaning and Types of Production Deferred payment and its benefits Commodity market explained Marketing Explained

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Division of Labour:

You may have heard someone being referred to as “Jack of all trade and Master of none”. Funny enough, it will be somewhat right to say Jack is hardworking but the truth is, he may never achieve professionalism on whatever job he does. For instance, lets say Jack owns a shoe production company. If he decides not to employ anyone, he will end up performing every task that relates to shoe production by himself. Some of these task may include:

  • Purchasing all the raw materials needed for shoe production

  • Melting the raw materials

  • Remolding the raw materials into shoe designs

  • Adding labels to the shoes

  • Marketing and distribution of the shoes

As you may have imagined, it is almost certain that Jack may not be specialized in each of the above phases of shoe production and as a result he might end up not delivering the best of quality shoes to his customers.

Division of labour may be defined as the process of splitting job process into a number of different processes such that each process is done by a different person or group of persons.

With Division of labour, a person or group of persons perform only a part of the job.

Through the process of division of labour, one worker may constantly perform a specific aspect of the job and as a result, may become specialized in that area. The result of specialization in the different department of the job will imply the production of goods with the highest quality. Please you may read on production here.

Note: Some notable scholars did come up with their own definitions of division of labour.

According to Hanson:

Division of labour simply means the specialization of processes.

According to Chapman:

Division of labour is defined as the specialization of works.


When starting a business, one may begin small; and without any form of division of labour as a result of little capital. As the business grows, the entrepreneur will likely hire professionals so as to further increase his/her output. Please read on how to start a home based fish farming.

The point is: the growth of a business is one of the conditions or prerequisites to embark on division of labour.


Below are needed conditions for Division of labour

1. Presence of a Big Market

According to various economists, they are of the opinion that division of labour will thrive where there is a big market for a product. A person who make little sales or profit on his product as a result of a small market will find it difficult to pay other people to work for/with him. On the flip side, a large factory will embark on division of labour since there is a large market to sell their numerous products. Please you may read on production here.


2. Nature of the job

Division of labour is necessary for some jobs while it remains unrealistic for other jobs. For instance, a taxi driver will find it difficult to embark on division of labour while a water production company will likely require division of labour to achieve its business purposes.


3. Availability of Capital

An entrepreneur with little capital will find it difficult to embark on division of labour while another with a huge capital will likely embrace division of labour since there is enough money to pay professionals. Also, availability of capital will influence the purchase of machineries for production; and as a compliment, division of labour and the use of machinery or technology go hand in hand.


4. Increasing returns from sales

A producer who make a good amount of money in return from the sale of their products will likely support the possibility of division of labour because they may likely further the production of their product to a larger scale. Such producer may also choose to expand his/her business by establishing it in a different location or area. Please read on Advertising here.


5. Availability of labour

There can only be division of labour where labour is available. Recall that labour is one the factors of production and may require the use machines/technology to carry out their specific function. Scarcity of labour will lead to scarcity of division of labour even when there is availability of capital. Please read on Gender Equality here.


6. Organizational ability

An entrepreneur who lacks the skills and ability necessary to organize production on a large scale may find it difficult to handle the workers or assigning them to their field of expertise. As a result, such entrepreneur may not be able to employ suitable persons to work in their organization. You can read on ways to reduce conflict in any Organization.


7. Definition of job processes

When a staff or hired labour does not understand the specific job they are meant to perform, division of labour may not scale well. Such staff perform other duties that are already been done by others.


8. Development of the transport system

Division of labour will flourish in a society where there is a good transport system. A good transport system is a requirement for having a large market; and a large market on the other hand will encourage division of labour. Even the drivers that transport the products for marketing are part of the team that makes up division of labour. Please read on transportation system here.


Please read on Forms, Advantages and Disadvantages of Division of Labour here


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.

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Amazing facts in Commerce

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder "Jeff Bezos" is the richest man in the world as at 2018/2019


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