Specialisation and the division of labour

  • Created by: izzy
  • Created on: 09-06-13 22:25

Over 200 years ago, the great classical economist, Adam Smith, first explained how, with a single production unit or firm (he took the example of a pin factory), output could be increased if workers specialise at different tacks in the manufacturing process.

Smith had established one of the most fundemental of all economic principles: the benefits of specialisation or the division of labour. According to Adam Smith, there are three main reasons why a factory's total output can be increased if workers perform specialist taskts rather than if each worker attampts all the tasks himself or herself. These are:

  • a worker will


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