7 Limitations to Division of Labour are listed and explained in this article and we hope you find it informative and helpful for your research.
Despite the fact the division of labour is good for the rapid production of goods and services, a lot of factors still limit the importance of the division of labour.
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These factors may either encourage or discourage the division of labour depending on whether they are to a positive or negative effect on the division of labour.
We have listed out seven limitations to the division of labour in this article and we are very sure that if these limitations are duly addressed, there will be a great improvement in the process of dividing labour into our companies.
Limitations to Division of Labour
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Below are Limitations to Division of Labour:
1. The size of the market
The market size of all products and services is a determining factor in whether the division of labour is needed or not.
If the size of the market is large enough to perfectly take in all the quantities of goods produced by all companies then a division of labour is will be highly favored in the companies, more companies will employ more people so that they can produce more products and services.
But in a situation where the market is small, division of labour is not encouraged Because if the companies do so, they will run out of funds to take care of their personnel which will ultimately affect the outcome of the company.
2. The nature of the products
There are those products and services that naturally dies not require division of labour because one person can comfortably handle the whole process.
For instance, Products that can be broken down into stages will require division of labour whereas products that can not be broken down into stages, e.g. driving, barbing, hairdressing, etc. These kinds of occupations tend to limit the necessity of the division of labour in production.
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3. Level of technology
The level to which technology influences a particular sector usually sets a limit to the extent of division of Labour. When there is a new technological breakthrough it usually may allow the further capability of the division of labour.
4. Availability of capital
In order for the division of labour to be made possible, there must be adequate capital made available. Capital must be available in sufficient quantity to enable adequate payment of salaries and wages to workers and other materials to be purchased.
5. Availability of labour
The availability of qualified workers has a greater effect on the stages into which the production process will be divided.
When there is little or less qualified labour, there will be a great limit to the advantages of division of labour in production.
6. Government policy
Some of the policies of the government greatly determine whether the division of labour can operate or not in a particular place.
Where government policy favors large-scale production, division of labour is bound to operate but where it doesn’t, every effort to diversify labour will greatly be in vain.
Read Also: Advantages of Division of Labour
7. Development of the commercial sector
A well-structured commercial sector demands a high volume of products and such a high volume of products can only be possible when the adequate division of labour is duly adopted.