DIVISION OF LABOR2 Division of Labor Division of labor is defined as an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks (Pettinger, 2017). If an employee is capable of focusing on one part of the full flow of production, it will allow the work to be completed more efficiently. This idea was made known in 1776 by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations. In this book Mr. Smith took a pin factory as his example. He stated that if different roles were given to workers than production would increase. The way of working is more efficient for several reasons; employees only must master one task, so there is no need for extensive training; movement around a factory is limited because the employees are concentrating on the tasks at hand. There are also some downsides to division of labor; employees get bored and lose motivation and could lead to mistakes. Overall when employees produce more division of labor is necessary to produce economies of scale.
