Introduction to Economic Theory
Businesses can achieve a higher level of productivity by utilizing division of labor. Division of labor separates production into a series of related functions. Each worker is assigned to preform one task. This allows the worker to become very skilled at the task improving spread and accuracy of production. Nearly 230 years ago Adam Smith saw the importance of the implementation of the theory while observing a pin manufacturer. He observed that when each worker would work on one specific task they were able to produce far more pins then if one worker was assigned to assemble whole pin. According the Economic textbook if a group of 10 workers each preformed a separate task they would produce 48,000 pins per day, 4,000 per worker compared to an individual making 20 per day preforming all tasks (33).
Outside Research The idea of division of labor first came from insects. Insects use division of labor to survive in the wild. People may think it is crazy to use copy what insects and implement them into a business, but what the insects are doing is very smart. According to Gene E. Robinson division of labor is allows for different activities to preformed at once creating groups of specialized individuals that are more efficient of an individual who would preform tasks sequentially (637). A lot can be learned from insects, as they have been able to survive for so many years from what they do, without it they may not exist.
Real world Application A very good example of division of labor is how Henry Ford used it. He created the assembly line, which is just a line of workers preforming a specific task to speed the process of building things up. According to Meryl Davis Fords use of the assembly line was a marvelous way to save workers’ precious time, but was also a way to decrease expenses (1). Ford was able to build cars faster and
