This is the breaking down of the production
process into a large number of separate
operations, each operation being undertaken
by one man.
Division of lobour therefore takes place when
there is more than one person undertaking the
entire process of making an article. In modern
factories work is broken down into different
specialized operations.


1. Lower unit cost : The entrepreneur can
estimate costs of production and out more
accurately. With work divided into small
processess in factories there is going to be an
increase in output at lower unit cost.
2. Saving of time : The production of an
article entails different processes, if work is
divided to workers on their specialized field,
they work on it faster for next assembly stage.
3. Less fatigue : With the introduction of
division labour, workers do not become tired
quickly because they work in conjunction with
others. since workers does small part of the
production process.
4. Increase output : Output per man hour is
greatly increased because workers limit their
productive efforts to one job they are best
5. It enables each worker to specialize in
the task for which he is best suited :
Division of labour makes it possible for each
worker to specialise in the work for which he
has the greater aptitude.
6. It improve skill of the worker on the job :
it give the workers opportunity of acquiring
greater skill at the job they are engaged in.
7. Economy in the use of machinery :
Another advantage of division of labour is that
it promotes the efficient use of machines and


1. Interdependence of workers. 2. Loss of
craftsmanship. 3. Boredom. 4. Production of
standard standardised goods. 5. Increased risk
of unemployment. 6. Division of labour may
lead to greater risk of over production.


1. The nature of goods and services : Some
goods and services are suitable for large scale
production while others cannot produced on
large scale.
2. Increase cost of production : If cost of
production is increasing as a result of high
cost of inputs, division of labour cannot be
3. Managerial ability : Managerial ability must
be duplicated as the firm expands .This causes
difficulties to management in organizing and
coordinating the factors of production
4. The size of the market :
5. Low development of distribution.
6. Government policies.
7. Where standardisation is difficult to
8. The indivisibility of work into smaller

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