Adam Smith Essay Example | Topics and Well Written Essays - 1250 words

Adam Smith - Essay Example Advantages of division of labor can be seen in large organizations that have various branches and finally the branches incorporate into one bigger organization. Each branch has its own set of activities that it works on and has perfected. For instance, in a manufacturing organization there could be branches such as finance, production, sales, and marketing among others. Combination of all these branches makes one large organization and bringing together activities from the various branches gives better performance than if these tasks were to be conducted by one body. In his example about pin making, Smith argues that division of labor yields better results that non specialization (Smith, 2007, p. 3). This implies that division of labor is certainly an important aspect in increasing production levels in an organization. Actually, division of labor yields multiples than what would have been produced without division of labor. Combinations of the results presented from division of labor are seemingly unachievable if each person carried out the entire process alone. Borrowing from Smith’s example of pin making, it is evident that sometimes production of one person may not even yield one complete production of a pin per day. The efficiency and change brought about by division of labor is amazing. Increasing number of branches within an organization raises the chances of more production. This implies that breaking down a large organization into various stand-alone branches adds efficiency and consequently increased production. Evidently, countries that have adopted division of labor are more productive. Each person in the society has specific tasks and upon bringing the various different tasks together, the total production of the country is great. For instance, areas with huge chunks of land are used specifically for farming and the people around those areas only dwell in