In a modern complex knowledge-based economy, the traditional division of labor may not align well with the need for flexibility, creativity, and innovation. Specialization of tasks may limit individuals' ability to engage in holistic problem-solving and creative thinking, which are often essential in knowledge-based industries. This can hinder organizations from fully leveraging the diverse skills and knowledge of their workforce, potentially impeding their ability to adapt to rapidly changing environments and innovate effectively.
Furthermore, the increasing interdependence and complexity of tasks in a modern economy can raise coordination costs and create challenges in managing the division of labor effectively. Modern work on principal-agent conflicts, free-riding, and the difficulties of communication implies that the cost of coordinating a group of complementary tasks can be substantial, particularly in complex knowledge-based settings.