Division of labour refers to a process wherein the production of a commodity is divided into different processes and each process is performed by a specialized worker or set of workers.

Advantages of the Division of labour

The main points of the Advantages of the Division of labour are given below:

1. The right man in the right place: Under the division of labour, workers are so distributed among the various jobs that each worker is put in the right place. There will be no round pegs in square holes.
2. Improvement in skill: It will increase the skills of the workers. By doing the same kind of work constantly, the worker becomes highly skilled on his particular line. Since practice makes a man perfect.
3. Less training required: Less training is required for a part of a job than the whole job. Therefore, workers are more easily trained with lesser time and expenditure.
4. Large scale production: Division of labour leads to specialization which in turn helps to increase productivity. Thus, a firm can enjoy the economics of large scale.
5. Saving in tools and implements:  It is not necessary to provide each worker with complete set of tools. Because he needs a few tools only for the job he has to do.
6. Cheaper thing: Division of labour tends to increase the size of the firm. Due to economies of scale cost of production reduces and goods become cheaper.