Factors necessary for Division of Labour

len Alfred Ajibola - Wed, 05th February, 2020 @ 12:43

Topics in Commerce

Principle of Marketing: Positioning as a Marketing Mix Principle of Marketing: Packaging as a Marketing Mix Elements of Promotion in Marketing Mix Principle of Marketing: Promotion as a Marketing Mix Principle of Marketing: Place as a Marketing Mix Principle of Marketing: Price as a Marketing Mix Principles of Marketing: The 7 Ps of Marketing Mix Factors necessary for Division of Labour Disadvantages of Division of Labour Advantages of Division of Labour Outbound Marketing explained Inbound Marketing explained Production - Types of Production Commerce: Definitions and Scopes of Commerce Differences between Balance of Trade and Balance of Payments Balance of Payment Deficit and Balance of Payment Surplus Disadvantages of Foreign Trade Divisions of Foreign Trade Advantages of Foreign Trade What is Foreign Trade? Types of Foreign Trade

Academic Questions in Commerce

Please check out our Test Your Knowledge page to see all Questions and Answers

The followings are principles of marketing mix except _____.

  • A. People

  • B. Positioning

  • C. Pressure group

  • D. Packaging

  • E. Promotion

  • F. Product

The followings are advantages of division of labour EXCEPT _____.

  • A. It promotes the use of machines in production industries
  • B. There is an increase in profit
  • C. It saves time and expenses of training
  • D. It fosters the spirit of division
  • E. It increases the production of quality goods and services in the market
  • F. It increases a country's economic growth

Which of the following statement is incorrect concerning division of labour?

  • A. It is the specialization of works
  • B. It can become monotonous
  • C. It is the specialization of processes
  • D. The nature of a job is not a condition for division of labour
  • E. A person performs only a part of the job
  • F. Division of labour has some of its drawbacks

What does a bearer cheque mean?

What is an order cheque?



Click here to read more on its smart academic features. Please kindly recommend to your school

Please click here to kindly support education

Factors required for Division of Labour:

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

Please read on the Concept of Division of Labour here.

You can read on the Advantages of Division of Labour here.

For a factory or company to effectively carry out division of labour, certain conditions must be met. Below are some of the needed conditions required for Division of labour:

1. Presence of a Big Market

A large pool of economists are of the opinion that division of labour will thrive where there is a big market for a product.

Please read on the Concept of Market in Economics here.

When the market for a product is small, a producer will make little sales or profit on such product. The producer will also find it difficult to pay other people to work for him.

Conversely, a large factory will embark on division of labour if there is a large market to sell their numerous products.

Please read on Production here.


2. Nature of the Job

Division of labour is necessary for some jobs while it remains unrealistic for other jobs.

Consider the instance below:

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.

Please read on the Elements of Management here.


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 the workers.

Please read on the Concept and Types of Cost here.

Also, availability of capital will influence the purchase of machineries for production; and as a compliment, division of labour and the use of machines or technology go hand in hand.


4. Increased returns from Sales

Producers who makes a good amount of money from the sale of their products will likely support the possibility of division of labour. This is true because producers will always further the production of their product to a larger scale when the opportunity arises. This is a concept of the law of supply.

Please read on Supply, Law of Supply and Supply Curve here.

Producers who also make good returns from the sale of their products may also choose to expand their business by establishing it in a different location or area.

You can read on Advertising here.


5. Availability of Labour

There can only be division of labour where labour is available. Think of labour as those who are hired to work for a factory or company.

  • Recall that labour is one the factors of production and may require the use machines and technology to carry out their specific function.

Note: Scarcity of labour will lead to scarcity of division of labour even when there is availability of capital.

Please read on the Forms of Division of Labour 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 manage and direct the workers, especially towards their fields of expertise. As a result, such entrepreneur may not be able to employ suitable persons to work in their organization.

Please read more on Management and Importance of Management here.


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 outside their job specification.

Please read on Business and Characteristics of Business here.


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.

Please read more on Transportation, its Means and Mode here.

Note: Drivers who transport products for marketing are also a part of the team that makes up division of labour.

If You are a Student, Teacher or Lover of Education, please click here to follow LEN ACADEMY on Google News


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.

Please Register here or Login here to contribute to this topic by commenting in the box below.


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 crucial (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.

Please read on the functions and characteristics of commerce here

A public company is not owned by an individual; rather it's usually owned by groups or a 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 Limited Liability Company, Its Advantages and Disadvantages here

There are seven elements of the marketing mix. 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.
  5. Packaging
  6. Positioning
  7. People

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

Please read on the Principles of Marketing Mix here