In the early 1900s, Max Weber, one of the pioneers of modern sociology, designed a perfectly rational organizational form, called a bureaucracy. Among the characteristics of this "ideal" organization were specialization, division of labor, and a hierarchical organizational design.

Division of labor is a form of specialization in which the production of a product or service is divided into several separate tasks, each performed by one person. According to Weber's design, inherent within the specialization and division of labor is knowledge of the precise limit of each worker's "sphere of competence," and the authority to perform individual tasks without overlapping others.'

Sociology pioneer Max Weber.

Adam Smith, an early economist, suggested that productivity would rise significantly when the division of labor principle was used. Output per worker would be raised while costs per unit produced would be reduced. Division of labor was applied...