Division of Labor and Market:
It is defined “Division of Labor is limited by the extent of market”. Whenever markets for a commodity grows from local to national and national to international, producers of that commodity split and sub-split the procedures of its production into finer and finer divisions of labor. Each sub-division is assigned to a specific set of specialist workers. As an outcome, production increases extremely.Merits of Division of Labor:1. Division of labor enhances effectiveness of labor whenever labor repeats doing similar tasks.
2. Facilitates the utilization of machinery in production, resultant in inventions. Example, More’s telegraphic codes.
3. Time and materials are position to the best and most proficient utilizations.Demerits of Division of Labor:
The demerits of Division of Labor are as follows:
1. Repetition of similar task makes labor to feel that the work is dull and stale. It kills the mankind in him.
2. Narrow specialization decreases the possibility of labor to find alternative avenues of the employment. This outcome in raised unemployment.
3. Kills the expansion of handicrafts and the worker drops the satisfaction of having made a commodity in occupied.
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Production planning can also very much assist in cost reduction. The location and lay-out of the factory have important affect on cost.
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