Division of Labor:
The concept ‘Division of Labor’ was mentioned by Adam Smith in his book ‘An Enquiry into The Nature and Causes of Wealth of Nations’.
Meaning of Division of Labor:
Division of Labor means dividing the procedure of production into distinct and numerous component procedures and assigning every component in the hands of a labor or a set of laborers, who are specialists in that specific procedure.
For illustration, a tailor stitches a shirt in full. In case of garment exporters, cutting of cloth, stitching of hands, body, holes for buttons, collars, stitching of buttons, and so on are completed independently by various workers. Thus, they are combining the portions into an entire shirt.
A tailor might stitch a maximum of four shirts a day. In case of garment exports organizations, it might stitch more than 100 shirts a day. Therefore, division of labor outcomes in raised production.
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