The Idea in Brief

As labor becomes more knowledge based and communications technology advances, the division of labor accelerates.

The hyperspecialization of workers may be inevitable given the quality, speed, and cost advantages it offers employers—and the power it gives individuals to devote flexible hours to tasks of their choice.

This will force managers to master a new set of skills: dividing work into assignable micro tasks; attracting specialized workers to perform them; ensuring acceptable quality; and integrating many pieces into whole solutions. Firms will learn to rely on a new breed of intermediaries—from small assignment brokers like Amazon’s Mechanical Turk to complex problem posers like InnoCentive.

Hyperspecialization also creates new social challenges, such as the possibility of exploitation as work quickly finds the cheapest takers, and the opportunity for deception when workers can’t see the larger purposes to which they are contributing. New global standards or regulations may be required, while guildlike organizations may address workers’ needs for continuing skill development and a sense of community.

Adam Smith’s Wealth of Nations, published in 1776, famously described what would be one of the central drivers of economic progress for centuries to come: the division of labor.

A version of this article appeared in the July–August 2011 issue of Harvard Business Review.