DIVISION OF LABOUR

Division of labour can be defined as the breaking down of a production process into a number of seperate operations, whereby each operation is undertaken or performed by one person or a group of persons.
        Division of labour, for example, exist in the publishing industry where each worker or group of workers or individuals are involved in writing of manuscript, typing of manuscript, editing, printing, coating, sewing, binding and finally trimming.it is the joint effort of all this group of workers that enables a complete book to be prodeced.
     
         SPECIALISATION

Specialisation is defined as the concentration of the productive effects of an individual, a firm or a country in a given aspect of economic activity.

       TYPES OF SPECIALISATION.
1. Specialisation by product: This is the type of specialisation in which a producer (individual or a firm or government) concentrates on a production of a particular commodity. (Malt drink, production of poultry eggs).
2. Specialisation by sex: This is the type of specialisation in which certain occupations are exclusively either for males or females.
3. Specialisation by process: This is the type of specialisation in which a production process is divided into different operations or stages.

ADVANTAGES OF DIVISION OF LABOUR.

1. Creation of employment.
2. Development if great skills.
3. Development of technology.
4. Time saving
5. Lower unit cost
6. It leads to specialisation .
7. Increase in production.
     DISADVANTAGES OF DIVISION OF LABOUR
1. Monotony
2. Reduction in employment.

LIMITATIONS OF DIVISION OF LABOUR.

1. The size of the market
2. Level of technology
3. Government policy
4. Availability of capital.

LARGE FIRM AND SMALL FIRM.
A firm may be defined as the independently administered business unit which is capable of carrying out production, construction or distribution activities.

Characteristics
1 Small firms require small capital while large firms require large capital.
2. Small firms require small market while large firms require large market.
3. Small firms employ few workers while large firms employ large number of workers.