In studying the forms of business undertaking, we have really been studying the different ways in which society secures cooperation and organization of the factors of production as a whole. We have now to study the ways in which the factors, considered separately, are organized for increased efficiency. And first as to labor.

If it were possible to conceive of a people among whom every individual produced for himself all that he used, exchanging products with no one, we should have an example of isolated or unorganized labor and unorganized production. But there is no evidence that such an extreme state of things ever obtained anywhere. Wherever we find men gathered together, we find some socialization, some organization of their efforts to secure a living, some organization of labor.

Forms of Organization. 1. Simple Associated Effort. One of the earliest forms of organization to be developed among men, and one that still plays a considerable part in the economy of the world, is that which has been named simple associated effort. When a group of men unite their efforts in raising a heavy weight, or two men beat together a heated iron or work a saw, we have illustrated this simple form of organization. Sometimes, as in the first of these cases, the combination is to effect a result which could not be accomplished at all by the single individual. Always the combination results in a greater accomplishment than would flow from the sum of the efforts of the several individuals.

2. Division of Occupations. With advancing civilization, industry as a whole has been more and more broken up into parts, and the parts have, therefore, constantly been growing smaller. One of the earliest steps in the organization of labor, perhaps even earlier than that which we have described above, was taken when the members of primitive society began to specialize in their work. And the whole story of society since, not only in its economic phase, but in all its other phases as well, has been one of increasing specialization of work or function. With division and subdivision constantly taking place, it is clearly impossible to recognize or name all of the stages of progress. But two of these stages are recognized in popular speech as of distinct character. The first of these is what we may call division of occupations. Probably the most primitive form of such division was that by which among savages the men took upon themselves the functions of warriors and hunters, putting upon the women the tasks of the household and the field. Division of occupations is indicated by the names of the manifold trades or callings.

3. Division of Labor. The further subdivision of existing occupations has been the work of the last few centuries, and especially of the eighteenth and nineteenth. To this further subdivision this further organization of labor has been given the technical name division of labor, although, as we have seen, division of occupations is but an earlier division of labor on larger lines. This form of organization is of such prime importance in modern industry that it calls for detailed and careful study.

In our discussion of labor as a factor of production, it was pointed out that the efficiency of labor is in great measure conditioned by the efficiency of its organization. Such efficiency of organization is secured in the highest degree through division of labor. Division of labor as well as division of occupations might perhaps with equal propriety be called cooperation of labor. Productive processes, especially in manufacturing, are to-day divided into minute parts, one part or perhaps two or three very small parts being given to each laborer, or to each group of laborers. Thus, in a modern watch factory, one workman makes one small part of a watch, another a second, and so on. So many are the divisions of the process of watchmaking that no fewer than 300 workmen are required to organize efficiently such an establishment. In the same way, instead of one man performing all the operations in the making of a boot, as was once the rule, we have to-day a front cutter, back cutter, back-stay cutter, top cutter, facing cutter, lining cutter, sorter and buncher, size and case marker, stay skiver, top skiver, crimper, front trimmer, top-front stitcher, top-back stitcher, and so on to as many as 113. But while the workmen divide the processes among themselves, they unite in producing the completed article, and hence we may say that division of labor implies cooperation of labor. When we use the phrase "division of labor," we are looking at one side of the process; while, when we speak of cooperation of labor, we are viewing it from another side. And the same is true of division of occupations.

Division of Labor Illustrated. A good illustration of division of labor is afforded by the needle-making industry as it is generally conducted to-day. Steel wire, which is itself the product of highly divided labor, is the raw material of the needle factory. All needles pass through the same general list of processes. These, as the visitor to the factory may view them, are in outline as follows: The wire is first put through a machine called the straightener and cutter, which removes all bends in the wire and cuts it into pieces about one-third the length of the finished needle. These short pieces, called blanks, are placed in small iron cylinders, which are rotated in such a manner as to keep the wire in constant motion under friction. They are thus freed from scale and dirt, and are ready for cold swaging." For cold swaging, the blanks are put into a hopper, from which they are taken by machinery, one at a time, and held so that one end is presented to the action of a set of revolving sectional steel dies. By the constant opening and shutting of these rotating dies, the end is compressed and drawn out to form the needle " blade." After the swaging is finished, another bit of machinery is made to stamp upon the flattened surface of the needle a number or mark, which indicates what sort of needle it is finally to be. Inequalities are next remedied by rimming all blanks to a uniform length. When the blanks have been trimmed and stamped, they are taken to a grooving machine, by which a short groove on one side of the needle and a long groove on the other side are made simultaneously. The needle is now ready for its eye. Women are usually employed in this process, which calls for a high degree of manual dexterity and keen sight in controlling the blanks as they are "fed" through the machine. One girl with modern machinery can punch about seven thousand needle-eyes a day, or more than a dozen a minute. The needles are next given their points by machines, which differ according to the kind of point, as " round," " twist," " diamond," etc. So far as shape is concerned the needles are now complete; but the softness of the steel up to this point makes them useless for practical purposes. They must therefore be hardened and tempered, and this in turn requires several distinct processes and opportunities for divided labor. Next they are sharpened and polished by a piece of machinery which holds nearly a hundred of them at once against a brass wire scratch-brush revolving 8000 times a minute, and afterward against a bristle brush. The eyes of the needles are then smoothed by stringing the needles on a cotton thread, covered with oil and emery, which is drawn back and forth at different angles to the needles so that the polishing powder acts on all parts of the aperture. Next follow finish pointing, done on a fine emery, and finish-polishing, done by a revolving brush with crocus and alcohol. Counting and packing offer still further opportunities for divided labor, by which the utmost economy of energy is achieved.

The Advantages of Division of Labor. It has been usual for economists to enumerate the advantages of the division of labor as follows : First of all, it secures (1) a gain or saving in time. This gain in time is twofold, (a) The workman does not have to pass so frequently from one operation to another, and (6) he can learn his special process in less time. In the second place, division of labor secures (2) a gain in skill. In the third place, the system results in a (3) gain in adaptation, by finding a place for every one and putting every one in his place. The man who is physically or mentally strong can devote his whole time to work that is worthy of him, while the man who is weak in muscle or in mind can find work in which great powers would in part be wasted. In the fourth place, division of labor secures (4) a gain by paving the way for invention. The processes being rendered simple, the individual workman can make himself more familiar with them, and can therefore see where and how improvements can best be made. It has therefore happened that a large proportion of modern inventions have come from the brains of the workmen. Finally, division of labor secures (5) a gain through a more complete utilization of capital. Each workman using one tool or one set of tools, or operating one machine, keeps the capital employed all the time.

Disadvantages of Division of Labor. But division of labor has also its dark side. First of all, the system, by making possible and profitable the employment of women and children, (1) often deprives men of their employment. In American cities, one may sometimes find fathers at home " keeping house," while their wives and children are working long hours in factories. In the second place, division of labor (2) gives rise to a dependence of man upon man that is often, at least in part, an evil. Thus a strike by a particular group of men in one business mining, for instance may throw out of employment not only all the other men in that business, but also thousands or tens of thousands of other men whose work depends upon the product of the industry in which the strike occurs. The same sort of hardship results from division of labor when workmen too old to acquire a new trade are deprived of their usual employment by a change in the conditions or methods of production. These evils, to be sure, right themselves in the long run ; but, as one writer has keenly remarked, the long run is too long for the ordinary man, whose life is but a short run. A third evil connected with the system of divided labor is, that by it (3) labor often loses its attractiveness and, at the same time, its educational value. A workman who makes a whole watch can acquire such love for his work as makes him an artist; but who can learn to love the mere routine of putting metal disks under the face of a die for ten hours a day? "It is," as one writer has well said, "a sad thing for a man to have to testify that he has never made more than the eighteenth part of a pin."