Division of labour refers to the specialisation in work. The task is moved apart in any system so that the person may specialise individual, organisations to acquire specialised capabilities.
Types of labour-
- 1) Product based division of labour
When a person specializes in the production of a particular commodity or service it is called as 'Product based division of labour'. It is also known as "Simple Division of labour." E.g. Farmers, carpenters, black smith, cobbler etc.
- 2) Process based division of labour
In a modern economy, production of a good or service involves several processes. When each worker specializes in one or two processes is known as 'Process based division of labour'. It is also known as "Complex division of labour". E.g. Corporate offices, spinning of cotton by spinners.
- 3) Geographical division of labour
Sometimes, a particular region are able to produce a commodity in abundance due to some advantage. When a region is specialize in the production of a commodity, then it is called as "Geographical division of labour". E.g. Textile mills in Mumbai, jute industry in West Bengal, sugar industry in U.P. etc.