Division of Labor
In the early 1900s, Max Weber, one of the pioneers of modern sociology, designed a perfectly rational organizational form, called a bureaucracy. Among the characteristics of this "ideal" organization were specialization, division of labor, and a hierarchical organizational design. Division of labor is a form of specialization in which the production of a product or service is divided into several separate tasks, each performed by one person. According to Weber's design, inherent within the specialization and division of labor is knowledge of the precise limit of each worker's "sphere of competence," and the authority to perform individual tasks without overlapping others.' Adam Smith, an early economist, suggested that productivity would rise significantly when the division of labor principle was used. Output per worker would be raised while costs per unit produced would be reduced. Division of labor was applied, for example, in manufacturing plants that incorporated mass production tech niques. In organizations that used mass production, each worker specialized in completing one specialized task; the combined work of several specialized workers produced the final product. For example, in manufacturing an automobile, one worker would assemble the dashboard, an other would assemble the wheels, and yet another would paint the exterior. Since the time of Adam Smith, division of labor has been perceived as a central feature of economic progress. Two aspects of labor exist. First is the division of labor within firms; this concerns the range of tasks performed by workers within a particular firm. Second is the division of labor between firms; this concerns the range of products or services the firm produces. In some organizations, division of labor and the degree of specialization are being reduced, while in other organizations, division of labor and specialization are increasing. A number of factors can influence this discrepancy among organizations.For example, the degree of specialization and division of labor can be related to the size of the organization; typically, small and mid-sized employers are not able to cost justify specialized division of labor. Lindbeck and Snower (1997) report that, as the costs of communication among workers declines, the degree of specialization, and consequently, division of labor within organizations, may rise. Some literature reports that, as the size of the market increases, it sup ports more division of labor. The degree of division of labor within firms can also depend on the degree to which performance on particular tasks is measurable, and the degree to which wages affect task performance. Implementation of technology can also have a profound influence on the division of labor in organizations.