Question

Explain the relevance of Specialisation of tasks as propounded by Adam Smith with a relevant example which is of significance in present day scenario.

Answer 1

The Wealth of Nations as given by Adam smith revolves around a central idea of division of labor. The idea behind division of labor is the specialization of the labor.

According to the theory given by Adam Smith, large work should be divided into tiny jobs. As a worker is engaged in one job he becomes specialized in that job. As a worker also does not switches his job during the day it also saves time and money of the firm. When a worker is specialized in a job his working efficiency is increased and he produces more. Repeated jobs given to the workers increases their efficiency.

Example:

Every company establishes different departments based on a specific function. This division of department based ion their functions make the people working in a particular department specialized in that particular function of the firm. Their efficiency to perform that particular function is much more higher than any other person working in any other department. This way a company is able to increase its overall efficiency.