Division Of Labour And Specialization A Tool Of Industrial Growth And Development

Project and Seminar Material for Human Resource Management (HRM)

Division Of Labour And Specialization A Tool Of Industrial Growth And Development


The research study conducted on this topic “Division of labour and specialization, a tool of industrial growth and development” was extensively done to include all the works and of it that could be sued to achieve industrial growth and development in any industry.

Indeed, for a firm, government establishment to grow, there is need to master the use and application of division of labour and specialization since no man is an Island, there exist division off labour in our homes, offices, firm every schools and other institution of higher learnings.

Despite few disadvantages attributable to this principle, the advantages however, outweighed its demerit for example, increase production scale, economy in the use of machine saving of time, etc are the economic benefit obtained in the application of the principle.

Though the research work reveals that poor application of the theory may not yield fruitful result. Such as lack of motivation to employees, irregular promotion, law salaries etc may hamper the process thereby resulting in inefficiency.

Therefore, this work has been properly administered to provide an enlisting solution to the area of problems and suggest critical ideals that would guild any management to achieve his industrial goal.

Chapter One

1.0 Introduction:

To enhance the better understanding of the project topic – “ Division of labour and specialization a tool of industrial development and growth”, it is proper to start its origin and consequently the modern approach.
Division of labour has been with us for a time now. It started in a primitive form with the creation of human being by God, God created man and women and made their function known to them. While the man was made to get the daily bread for the family, the woman was also changed with child bearing.

Division of labour can also be formed among insects and ants. In ants the soldiers are meant to secure the ants, the workers are meant to look around for food while the Queen and the king are charged for child bearing. All this are form of division of labour.

Similarly, specialization has taken place in this primitive Form of division of labour.

From the study of history, it is known that in the most primitive community everybody tried to be self sufficient. Each person provided whatever he needed. But as the population grew, life became a little more difficult. Nature was namable for provide for every thing and individual wanted in a particular geographical region. It then became necessary for each individual to engage in a particular activity in which he can undertake with much case. Since he could not provide or be in access of everything he needed, it became necessary for him to produce more of what he could, so as to exchange the extra quantity for what he needed but which he was unable to produce. This is form of division of labour and specialization in the rural community.

In modern world, the origin of division of labour dates back to the period of the industrial revolution. With the change in the production methods, operations in industries were split up to different aspects and people started to specialize in different aspect of the production processes. With this specialization, the product of a simple commodity necessitated the co-operation of many individuals who specialize in different aspects of production process.

This productions brought about increase in output. Adam smith identified this as early as 1776 in the book, which he published at that time which be called “Enginery into the wealth of nation”. By his visits to put making industry he discovered that as a result of division of labour, the output of the industry increased by more than 200%.
Finally, the modern approach of division of labour is about the effectiveness of employers of labour to harness all available economic resources at their disposal to the attainment of qualitative and grantitation provision of goods and services.

1.1 Statement Of Study

Perhaps, over the year, the most prominent reason for industries undergoing poor industrial development is due to inadequate attention given to division of labour and specialization. This country is blessed with natural resources both human and material. Yet we remain underdeveloped. Now it is time to ask, division of labour and specialization can’t we practice them in our various home, industries , communities etc. why can’t our industries change its industrial status through this technique? My own opinion is stated below.

Since the concept of division of labour dates back to 1776 when Adam smith had a visit to a pin-making industry, there was an increase in their production by over 200%. Similarly, vita foam industry a firm that practice division of labour and specializes in foam making in Nigeria, in the year 2003, its annual turnover was N3,887 million. This is because the management segregates duties. The company which first opened in 1963 at Ikeja, Lagos is now having five factory location and seven main distribution channels through out the federation. This growth and development was as a result of effective division of labour and proper management.

From foreign discussion, one can equally agree with me that these economic tools can be used to attain industrial development in our industries as a whole. But the critical issues are how can this positive change occur.

1.2 Objective Of The Study

Apart from knowing the extent of mass production and industrial growth of vita foam industry, there are several other objectives of this study. They are:

  1. To study the activities of vita foam industry
  2. To understand the different products manufactured by the industry both main product and by product.
  3. To know why vita foam industry’s products are of higher quality when compared with other industries engaged in related goods and services .
  4. To know the extent of changes in personnel management as it affect division of labour and specialization.
  5. To know the extent of turnover as it affect the demand of its product because it express people’s likeness for their product.
  6. To point out or give recommendation in areas where the company has shortfalls in it’s use of labor services.

1.3 Significance Of The Study

The apparent reason why I write on this topic is to recommend to top managers be it government owed establishment or individual owned, the heed to embark and encourage division of labour in such establishments. As we all know, division of labour and specialization contributes immensely to industrial development and growth.
Since we all know that if increase output, saves time, avoid duplication of tools, enable specialization and less fatigue at work. It becomes clearly that every manager should master its use and application for fully developed and efficient management.

1.4 Statement Of Hypothesis

In order to determine the validity and reliability of the information gathered the following hypothesis were formulated.

  1. Ho: Division of labour and specialization is not a tool of industrial development and growth.
  2. Ho: Division of labour and specialization increase productivity in an industry
    Hi: Division of labor and specialization increase productivity in an industry.
  3. Ho: Vital foam industry has not recorded any significant result throughout the use of division of labour and specialization
    H1: Vital foam industry has recorded significant result through the use of division of labour and specialization.

1.5 Research Questions

Several questions were formulated to enable me form an opinion, for instance in

Production Area:

  1. Do managers of vita foam use the technique of division of labour and specialization in their industrial production, purchasing sales and personnel management?
  2. Are they complying with the laid down policies and objectives of the company?
  3. Do they, the management use high qualified and skilled labour or unskilled and low paid workers?
  4. Is management performing up to anticipated level of production?

Marketing Are:

  1. Have the management separated duties?
  2. Is it one person that receives and records cash?
  3. If yes, how can they predict and discover fraud?
  4. Do they keep records of inventories?
  5. If yes by whom?

Purchases Areas:

  1. Does the purchasing manager always sign every purchased invoice?
  2. Is every purchase of material actually be the quality approved?
  3. How does the company made payment?

Personnel Cost Area:

  1. Do the management have time card?
  2. Is employee actually paid for what they actually worked for?
  3. And finally, do the company has good internal control systems?

1.6 Scope And Limitation Of The Study

Specifically, the scope of this work is limited to division of labor and specialization as it affect vita foam industry Enugu branch. This include labour utilization, skilled and unskilled labour, especially production aspect, the reference were made to factory side Aba. Though the industry has many factory and depot, but I limited my study to activities of Enugu depot and factory of Aba.

1.7 Definition Of Term:

a. Division of labour

Breaking down of production process into deferent stages so as to enable each person partake in the production line to perform and specialize on work he know best.

b. Specialization

When an individual, firms or government concentration on production related commodities and exchange for others in which it do not produce.

c. Industrial growth

This can be defined as a rapid and sustained rise in output with low and efficient input.

d. Industrial development

Overall orends or process in which output transformation are achieved with little reference to or significant degree of industrial growth.

e. Firm

An arm of industry engaged in production

f. Industry

A group of firm producing similar products.

g. Formulation of hypothesis

series of questionnaires prepared to enable on form an opinion.

h. Scope and Limitation

The extent and sample size used in the study.

i. Objectives of study

The reason why the researcher undertake such project work.

j. Literature review

Making references to other material where related problem of the study has been treated.

k. Company corporate policy

The incorporation clause of the company.

l. Company profile

Mean brief story about history, growth, development and prospect of the company.

m. Reports of directors

Statement enclosed in the annual report pointing out the area of weakness or otherwise satisfaction of board of directors.

n. Reports of the Auditors

Statement enclosed in the annual report stating whether in their opinion the assets and liabilities shows true and fair view of income statement.

o. Five years financial summary

As the name implies show in brief with comparative figures the five years financial statement.

p. Cash flow statement

Indicated the sources and application of fund.

q. Statement of value added

The extra wealth created by a business entity in cause of its effort to provide goods and services.

r. Accounting policy

It means accounting rules and concept being adopted by the company in dealing with its records and accounts.

s. Shareholders information

Means such vital information relating to Liquidity of the company profitability, dividends and returns on capital employ as would enable them make future forcast.

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