division of labour
division of labourOne of the oldest concepts in the social sciences. It denotes any stable organization, co-ordinating individuals, or groups carrying out different, but integrated activities. Its first and most celebrated use was in classical political economy, the precursor to modern economics. According to Adam Smith, division of productive labour greatly increases the wealth-creating capacity of a society. Unrestrained by government or administrative rules, the free market encourages producers to specialize in activities where they have a natural advantage. By specializing, they benefit from greater dexterity, more efficient use of materials and time, and from mechanization. Simultaneously, the hidden hand of competition penalizes insufficiently specialized (by implication inefficient) producers, and encourages the prudent (rational) exchange of goods and...
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