Answers

2014-04-12T14:22:01+01:00
Specialization is a wide economic concept that is used to describe the process of separation of various tasks within a system or a firm. Specialization will give each individual a chance to specialize in the area that one is best in. In the context of economics it describes the specialization of all the factors of productions. The factors of productions that are subjected to specializations are land, labor, capital and entrepreneurship. This different category gives rise to the four categories of specialization, land specialization, capital specialization, labor specialization or division of labor. Specialization will help in the accomplishment of some of unattainable goals of the factors of productions. In all the cases of specialization all the individual of the system will become very dependent on other units and will be difficult to work outside the specialized systems. Division of labor on the other hand is the cooperative specialization of labor. Division of labor can be dated as early as the start of civilization and was practiced by the Sumerians to group different jobs according to various skills of the members of the society. Division of labor is historically associated with increased growth in total output and is viewed as the rise of capitalism. It also helps to solve some of the most complex industrialization Processes. Division of labor as explained by Adam smith can be restricted based on the market extent. Adam has suggested that the bigger the market the higher the specialization. It can then be deduced that the global market that we are currently enjoying has resulted to so much specialization. The conditions for specialization to thrive on the global market are a free trade, free mobility and migration of labor. The process of specialization brings the law of comparative advantage into the mind. It is commonly referred to as the law of association by many economists. This is so because division of labor, free trade, specialization and law of comparative advantage results into a relationship between individuals. Every concept and idea has its main pros and cons. In specialization although there is increased efficiency and increase in productivity, there are several conflicts that will arise between the different specialized units. The conflicts might hinder the growth of the firm or job dissatisfaction by the employees of the company. Further specialization can act as an impediment to communication among the specialized units. Another disadvantage of specialization is that it can lead to burnout and boredom to the employees. An employee will have to repeat the same procedure each day for the whole year and denies the employees a chance to explore new areas. The above problems associated with specialization and division of labor is being addressed and some of the solution that has been given out are changing the structures of companies to commitment oriented approach and increase the scope of specialization. There are some emerging issues   to the modern application of specialization and division of labor brought about by market dynamics. The market dynamic factors are Information communication technology, changes and worker empowerment rights.
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