Specialization of Labor

Definition

Specialization of labor is the division of work into unique tasks assigned to specific individuals or groups, focusing on their particular skills or expertise. This approach enhances productivity and efficiency by allowing workers to concentrate on areas where they are most skilled.

Related terms

Division of Labor:

The separation of tasks in any system so that participants may specialize.

Productivity: The measure of efficiency with which goods and services are produced, often quantified as output per hour worked.

Economies of Scale: Cost advantages reaped by companies when production becomes efficient, as costs can be spread over a larger number of goods