Undercover Boss And The Division Of Labor

One of the marvels of capitalism is the division of labor. The infamous essay by Leonard Read "I, Pencil" does a brilliant job of showcasing the international division of labor and specialization with regards to the manufacturing of a simple pencil.

There is an example of the division of labor that is featured in the TV show "Undercover Boss" which I find quite fascinating. "Undercover Boss" follows a CEO of a big company as they literally go undercover in an effort to learn more about what is really going in the business.

I've only seen the show a handful of times, but there was a theme that kept reoccurring, regardless of the company. The boss will work in several of the positions offered by the company, and this is where the division of labor comes in. In one show in particular, out of the 5 or 6 jobs that the boss tried, he was fired from all of them for not being able to keep up a productive pace! Think about it, the CEO is the highest paid position in a company, yet they can't seem to perform when it comes to warehouse work, production lines, and distribution jobs just to name a few. This might not seem fair.

The role of a CEO is to lead a company though, and this doesn't require the ability to do every job that exists within the company. No one can do it all, and this is why specialization is so important. Each job requires different a different skill set, including the CEO. Each position is dependent on each other for the company as a whole to operate efficiently and profitably.

An easy way to think about the division of labor in your own life is to simply take a look around your bedroom or office. Look at every type of good you own, and then ask yourself this question, "How many of these items do I personally know how to make?" For almost everything you own, the answer will be no, and this fact is quite amazing. The division of labor and specialization is a huge part of why we enjoy the standard of living we do.