Division of labour is an economic concept where the production process is divided into different stages or tasks, and each worker focuses on a specific task. This specialization increases efficiency and productivity because workers become skilled at their particular job, use tools more effectively, and reduce wasted time switching between tasks. Adam Smith popularized this concept in his 1776 work, illustrating it with the example of a pin factory where dividing tasks among workers greatly increased output. It is a key factor behind large-scale production and economic growth since the Industrial Revolution. Division of labour enables:

• Faster production with less training.
• Workers to focus on tasks best suited to their skills.
• Economies of scale by producing high volumes efficiently.

However, it can also cause monotony and low morale for workers performing repetitive tasks. In summary, division of labour is the splitting of work into specialized roles to improve efficiency and productivity in economic systems.