Division of labour
Without the factors of production, companies cannot get started. To be successful, however, they need to make good use of those resources. To make best use of labour, you need to organise it. The division of labour is one way to achieve this. Let's take making shirts as an example. What do you need to do to make shirts? You need to design it, find the right material, cut the material, sew the pieces together, dye the shirt and sew on the buttons. One person working on their own could probably do all these tasks. This is one way to organise labour. Another way is for the number of workers to share the job. Each worker is responsible for one task in the process. This is an example of the division of labour. The division of labour is not a new idea. Even very early societies had some form of labour specialization.
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