Introduction
One of the main tasks of economic systems is maximizing output per unit of input. Resources include money, time, human labor, technology, and natural supplies. Division of work ensures that each employee specializes in a specific task, allowing them to master their skill and learn how to be effective and use fewer resources to accomplish their objective. This paper discusses labor division in the context of capitalism and productivity and provides a real-life example.
Importance of Division of Labor to the Capitalist Economy
The principle of division of labor is mostly viewed from the perspective of utility maximization. However, the foundation of the labor division is based on the concepts of capitalism and society in general (Münch, 2016). Since ancient times, communities have been interdependent – some people would engage in hunting while others worked on the construction of shelter (Münch, 2016). As global economics rose, division of labor strengthened, which gave people, companies, and institutions to specialize in order to maximize their contribution.
The emergence of capitalism is considered to be the catalyst of specialization. Humans have the tendency to exchange goods and services, and the division of labor facilitates this process between employers and employees. For capitalists, the division of labor is beneficial because it provides them an effective way of determining wages and evaluating employee efficiency (Charnock & Starosta, 2016). Also, when people specialize in specific areas, capitalists have more power to take away control of the labor process from workers (Charnock & Starosta, 2016). In other words, the division of labor can be considered as a strategy of maximizing profits and ensure the production process is uninterruptable. It is easier to replace a specific portion of a system than reconstructing the system as a whole.
It is important to note that the division of labor is less likely to exist without capitalism. When a person specializes in one specific area, they infer that the rest of their needs are covered by third parties. For instance, an individual developing software needs clothes to wear but has no time to make their own outfits. For the division of labor to work, a larger commercial setting is required, where utilities attained from specializing can be used to obtain other goods.
Efficient Production
Increasing efficiency in one area of production contributes to overall productivity. Therefore, when workers focus only on one specific task, they can perfect that activity and work effectively. When all workers are efficient, then the overall efficacy is also increased (Munger, 2019). This principle allows for the creation of economies of scale, in which the cost of production decreases as each of the inputs are utilized in an efficient manner.
To increase efficacy, it is essential to maximize the capacity of available resources. It is much easier to maximize the potential of a person who specializes in a specific skill. On the contrary, when an individual loses focus and spreads themselves across a plethora of responsibilities, it is far more challenging to enable them to become proficient in at least one ability (Munger, 2019). A smart labor division strategy minimizes the time to market a product (Munger, 2019). If a commodity is manufactured in four steps, and all employees work in one stage at a time simultaneously, then the waiting time between different phases is high. However, when there is a division of labor, then the subsequent steps can be started as soon as the previous stages for one item are finished.
Examples
I have witnessed the division of labor in a software development company. When working on a project, each employee has a distinct set of responsibilities. There is one software architect that oversees the system under consideration. To ensure that the architect does not become the bottleneck of the project, software developers start writing code before the architect finishes their whole work. Developers are also divided into several types – front-end developers work on visual input systems of a product and back-end developers work on the functionality of a system. Database experts ensure that data is stored and retrieved in an effective manner.
In addition, there are user interface designers that prepare wireframes, sketches, and high-fidelity prototypes so that front-end developers can use them as reference. Business analysts construct concise system requirements specifications from information obtained from clients. Eliciting requirements is an important step in the software development process, but developers rarely engage in this activity. Every person on the team focuses on specific tasks and improves in a specialized skill set, which allows them to perform efficiently. Division of responsibilities also helps them avoid burnout because they do not have to disperse themselves across utterly different tasks.
Conclusion
The division of labor is integral to how society has functioned from early ages. It is a precondition for economic prosperity as it elevates collective capacity to deliver more goods in less time and for less input. Capitalists use division of labor to determine wages and protect the labor process from individual workers. At the same time, productivity is increased dramatically when an appropriate strategy is in place.
References
Charnock, G., & Starosta, G. (Eds.). (2016). The new international division of labour: Global transformation and uneven development. Springer.
Munger, M. (2019). Division of labor, part 1. Adam Smith Works. Web.
Münch, R. (2016). The global division of labour. Palgrave Macmillan.