Division of Labour and the Need for Cooperation Among Individuals - Essay Example

According to the phrase by Adam Smith, the division of labour is not essentially an outgrowth of human wisdom. It basically emerges out of every man’s quest to pursue self-interest. It is necessitated by the inevitable need for cooperation among individuals in a bid to satisfy their wants. It is a coincidental occurrence in which man finds their interests geared towards a common direction. When an individual is in need of attaining something which he does not have, he or she has no option, but to cooperate with others so that he or she can gain their favours in obtaining what he or she lacks. No man can live in isolation from other people. Everyone is in constant need of each other’s services. However, this service is never provided out of kindness alone. One will most likely offer to assist if his or her interests are well provided for. As such, people offer to cooperate in pursuit of self-interest and not out of pure wisdom and kind-heartedness. This forms the basis through which man engages with each other. People usually focus on the interests of others in pursuit of their own interest and not out of humanity. Never do we refer to our personal needs, but the interest of others. The size of the production unit is one factor that determines the division of labour. The bigger the production unit, the higher is the propensity to divide work into smaller units to increase productivity. Smaller industries do not need as much division of labour as large productions units. The nature of the industry also plays a great role in determining the extent of division of labour. Manufacturing factories will need more division in their labour than agricultural industry, where activities cannot easily be divided. From the look of things, division of labour is not driven by wisdom, but trade. Every individual who lacks something proposes to his or her neighbour to exchange what they have for what they need. Division of labour arises out treaty, barter that people acquire what they lack. Adam Smith explains with the case of a tribe of hunters or shepherds. In his example, the individual who makes bows and arrows regularly trade them for cattle or for venison with his compatriots. His productivity can increase by focusing more on his production of bows and arrows for which he exchanges for more cattle and venison. Consequently, he narrows down his passion in the line of production of bows and arrows, not because of wisdom, but in pursuit of his own interest, which is obtaining more cattle or venison from his neighbour. Through trade, people focus on what they can do best in order to gain what they want. It is not out of wisdom that they become specialised in what they do. It is out of their constant push to achieve their individual interests that they dedicate themselves to their lines of production. Clearly, it is the pursuit of self-interest that eventually leads to division of labour, which is facilitated through trade. In order to trade with others, each person must produce what he has in excess and exchange the surplus with the neighbours for what he lacks. Therefore, the certainty of the possibility to exchange all the surplus product of labour motivates people to specialize in particular occupation, which they can do best. It is on this basis that people get motivated to harness and perfect whatever talent or genius they have. It is not out of their wisdom that they choose to focus on any particular occupation, the urge to maximize their self-interests. Trade facilitates exchange of what one has for what he lacks and thus encouraging individuals to focus on what they can do best. Adam smith attributes the variations that occur in human talents to evolution rather than nature. His argument is that people were rather the same when they were born. Later on, their dissimilarities begin to surface as they engage in different occupations. He argues that habit, custom as well as education, play greater role in shaping human talent in various directions. The variation in individual talents then widens as people grow and become noticeable as people specialize in divergent professions, where scarcity in resemblance between individuals who were once similar becomes scarce, “But without the disposition to truck, barter, and exchange, every man must have procured to himself every necessary and convenience of life which he wanted”(9). In the animal kingdom, nature has brought about great distinction among animal, but every animal still fends for itself and can exist in isolation from the genius of others. On the other hand, the divergence in human genius is so crucial for the proper existence of others. Various products of their distinct talents are brought together for the benefit of mankind through trade from “where every man may purchase whatever part of the produce of other men's talents he has occasion for”(9). It is the power to exchange surplus produces of different talents that determines division of labour. The degree of division of labour is dependent on the extent of market. The nature of the job can also necessitate division of labour. For example, a porter can only best work in a great town. Villages may not be the best places to ply his or her trade. Money plays a significant role in facilitating the power of exchange, which drives division of labour. Before money came into play, there was huge trouble in exchanging commodities. In order for exchange to be successful, one must possess a commodity which others are in need of. This proved to be inconvenient in most cases because people were forced into having what their neighbours are less likely to reject. Money was brought into trade in order to make the process of exchange easier. As such, it has grown as a commercial instrument that facilitates trade across the world. Money solves the problems of exchange value of commodities that was characteristic of barter trade. The values of all commodities are currently expressed in monetary terms. Therefore, division of labour is not a product of human wisdom but necessitated by inevitable quest to fulfill personal interest. Because people have distinct capabilities, facilitated by their specialisation in various occupations, they are constantly in need of each other to satisfy their wants. This calls for trade. Individuals have to exchange what they produce in excess using their talents for what is produced by other people’s labour. Therefore, the power and ability to exchange what individuals produce in excess is a major determinant of division of labour. The size and nature of the industry also play a crucial role in determining the extent to which work is divided. Read More