# inspection and direction labour

**Definition**  
Inspection and direction labour denotes the managerial activity of supervising, inspecting, and directing the work of other labourers. It is a specialized form of labour that adds value through organization, quality control, and coordination, distinct from the manual labour of production.

**Source Chapter**  
*The Wealth of Nations*, Book 1, Chapter 6.

**Context**  
Smith treats inspection and direction as a “particular sort of labour” whose wages are separate from the profit of stock. He argues that its value is not proportional to the amount of stock but is regulated by the stock’s value.

**Economic Domain**  
Production

**Smith’s Original Wording**  
> “The profits of stock … are only a different name for the wages of a particular sort of labour, the labour of inspection and direction.”

**Modern Interpretation**  
This concept parallels modern managerial or supervisory labour, which is compensated through managerial salaries and is essential for efficient production processes.
