What is the main difference between 'Specialisation' and 'Division of Labour'?

The distinction between 'specialisation' and 'division of labour' is an important concept in business studies. Specialisation refers to the process by which individuals or businesses focus on a specific task or type of work, enhancing their expertise and efficiency in that area. This can apply to individuals within a company, industries as a whole, or even countries specializing in certain products based on their resources and capabilities.

On the other hand, division of labour refers specifically to the breakdown of a production process into distinct tasks, allowing each worker to focus on a particular task. This concept is often implemented within a single organization to improve productivity by assigning different tasks to different workers.

The option stating that specialisation is company-wide while division of labour deals with specific tasks accurately captures this relationship. It highlights that specialisation can occur at various levels (individuals, companies, or even industries), while division of labour is typically more focused on the organization of tasks within a production process. Thus, the correct answer emphasizes this key difference, reinforcing the understanding that both terms, while related, serve distinct purposes in the context of economics and business operations.