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

(A Case Study Of Vitafoam Industry, Enugu)

5 Chapters
|
118 Pages
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13,911 Words

Division of labor and specialization serve as pivotal tools for industrial growth and development by enhancing efficiency and productivity within a workforce. These principles, often associated with the economic theories of Adam Smith, involve breaking down complex tasks into simpler, specialized components that can be performed by individuals or groups with specific skills. As workers become proficient in their specialized tasks, overall productivity increases, leading to higher output and economic growth. Specialization also facilitates the development of expertise and the efficient use of resources, as individuals can focus on mastering a particular skill or trade. This approach not only streamlines production processes but also encourages innovation and technological advancements, contributing significantly to the overall progress of industries and economies. Through the optimization of human resources and the efficient allocation of talents, division of labor and specialization play a crucial role in driving industrial development and economic prosperity.

PROPOSAL

The research topic that will be conducted on this topic “Division of labour and specialization; a tool of industrial development and growth tends to point out all the nooks and carry that can be used to achieve industrial growth in any industry.
The research also tends to point out the advantages and disadvantages involved and the poor application that will not yield fruitful result.
The research study also points out the solution to the area of problem and suggest critical ideas that would guild any management to achieve his industrial goal.

ABSTRACT

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.

TABLE OF CONTENT

Title page II
Approval page III
Dedication IV
Acknowledgement V
Abstract VII
Table of content X

CHAPTER ONE
1.0 Introduction 1
1.1 Statement of study 3
1.2 Objectives of the study 5
1.3 Significance of the study 6
1.4 Formulation of hypothesis 6
1.5 Scope and limitation of the study 9
1.6 Definition of terms 9

CHAPTER TWO
2.0 Review of related literature 13
2.1 Meaning of division of labour 15
2.2 General division of work in vitafoam industry 22
2.3 Specialization in vitafoam 26
2.4 Growth and development in vitafoam industry 28
2.5 The company corporate policy statement 30
2.6 Company profile 31
2.7 Report of directors 36
2.8 Report of the auditors 49
2.9 Five year financial statement/summary 51
2.10 Cash flow statement 53
2.11 Statement of value added 55
2.12 Accounting policies 56
2.13 Unclaimed dividend warrants and share certificate 59

CHAPTER THREE
3.0 Research design and methodology 63
3.1 Validity and reliability of the measuring instruments. 69

CHAPTER FOUR
4.1 Presentation, analysis and interpretation of data 71
4.2 Testing of hypothesis 83

CHAPTER FIVE
5.1 Summary of findings, conclusion and recommendation
5.2 Summary of findings 84
5.3 Recommendation. 86

CHAPTER ONE

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:
– To study the activities of vita foam industry
– To understand the different products manufactured by the industry both main product and by product.
– To know why vita foam industry’s products are of higher quality when compared with other industries engaged in related goods and services .
– To know the extent of changes in personnel management as it affect division of labour and specialization.
– To know the extent of turnover as it affect the demand of its product because it express people’s likeness for their product.
– 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.
a. Ho: Division of labour and specialization is not a tool of industrial development and growth.
b. 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:
Do managers of vita foam use the technique of division of labour and specialization in their industrial production, purchasing sales and personnel management?
Are they complying with the laid down policies and objectives of the company?
Do they, the management use high qualified and skilled labour or unskilled and low paid workers?
Is management performing up to anticipated level of production?
Marketing are:
Have the management separated duties?
Is it one person that receives and records cash?
If yes, how can they predict and discover fraud?
Do they keep records of inventories?
If yes by whom?
Purchases areas:
Does the purchasing manager always sign every purchased invoice?
Is every purchase of material actually be the quality approved?
How does the company made payment?
Personnel cost area:
Do the management have time card
Is employee actually paid for what they actually worked for?
And finally, do the company has good internal control system s

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.

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

Division of labor and specialization are crucial concepts in economics and industrial development. They are considered fundamental principles that have contributed significantly to the growth and development of industries and economies. Let’s delve into these concepts and explore how they have been instrumental in industrial growth.

Division of Labor: Division of labor refers to the process of breaking down a complex task or production process into smaller, specialized tasks that can be performed by different individuals or groups. Each person or group focuses on a specific task, leading to increased efficiency and productivity. This concept was famously discussed by the economist Adam Smith in his book “The Wealth of Nations.”

Here are some ways division of labor contributes to industrial growth and development:

  1. Increased Efficiency: When workers specialize in performing specific tasks repeatedly, they become more skilled and efficient over time. This leads to a reduction in the time it takes to complete tasks, resulting in higher overall productivity.
  2. Time Savings: Without the need to switch between different tasks, workers can save time that would otherwise be wasted in transitioning. This leads to smoother production processes and shorter production times.
  3. Skill Development: Specialization allows workers to hone specific skills, leading to mastery in their respective tasks. This can also lead to innovations and improvements in the methods used to carry out these tasks.
  4. Economies of Scale: Specialization often results in larger-scale production, which can lead to economies of scale. This means that as production levels increase, the average cost per unit of production decreases, leading to cost savings.
  5. Innovation: When workers focus on a particular task, they may discover innovative ways to perform it more efficiently. These innovations can drive overall process improvements and lead to technological advancements.

Specialization: Specialization, closely related to division of labor, refers to individuals, firms, or regions concentrating their efforts on producing a narrow range of goods or services in which they have a comparative advantage. This means producing what they are most efficient at, and then trading with others for the goods and services they lack efficiency in producing.

Here’s how specialization contributes to industrial growth and development:

  1. Increased Productivity: When entities specialize in what they are best at, they can produce more output with the same amount of resources. This increased productivity translates into higher economic output.
  2. Efficient Resource Allocation: Specialization allows resources (including labor, capital, and natural resources) to be allocated to their most efficient uses. This prevents waste and optimizes the use of available resources.
  3. Trade and Comparative Advantage: Specialization encourages trade between specialized entities. Each entity can focus on producing goods or services in which they have a comparative advantage (lower opportunity cost), leading to mutually beneficial trade relationships.
  4. Diversification of Markets: Specialization encourages regions or nations to produce goods for which they have a competitive edge. This leads to a diversified global market where different regions trade their specialties, creating interdependence and stability.
  5. Industrial Clusters: Specialization can lead to the development of industrial clusters, where related industries and businesses gather in close proximity. This fosters collaboration, knowledge sharing, and a skilled labor pool, further driving innovation and growth.

In summary, division of labor and specialization have been vital tools in promoting industrial growth and development. They enhance efficiency, productivity, innovation, and efficient resource allocation, ultimately leading to the expansion and advancement of industries and economies.