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When a particular job is divided in to large number of small tasks to allow specialization to take place. So that each person only performs a specific task(that they are good at) involved in the whole production process.

Example of Specialization:

(To become an expert in what you are doing) like

painting or

putting in tyres

Testing

Example of Division of labour:

A particular job (i.e. Painting a bicycle) can be divided into small tasks (i.e. You can paint the bicycle, your friend can select the colour and your other friend can hold the bicycle) to allow specialization (The reason you are going to paint is because you are good at it or an expert and your friend can select cause he/ she is good with colours and your other friend can hold the bicycle cause he is good at it (guess you can say that).

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