---
entity_slug: labour_of_inspection_and_direction
evaluator: null
evaluated_at: '2026-02-23T05:39:28.688952'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes supervisory labor from manual production
    labor and specifies its compensation mechanism (profits vs wages). It captures
    a distinct concept, though it could be slightly more precise about what constitutes
    "inspection and direction" activities.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text from Book I, Chapter
    6, where he explicitly discusses the labor of inspection and direction as distinct
    from profits of stock. The manufacturing scale examples mentioned are authentic
    to Smith's argument.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Production" is the correct domain placement since this concept deals
    with the organization and oversight of productive processes. It fits naturally
    within production theory rather than exchange, distribution, or other economic
    domains.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to VSM System 3 (internal regulation/audit) and
    potentially System 2 (coordination), as it involves overseeing operations and
    coordinating production activities. It has clear structural relevance to organizational
    cybernetics.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity illuminates an important structural distinction in Smith's
    theory between different types of economic activity and their compensation mechanisms.
    It helps explain how production is organized and controlled, revealing underlying
    economic relationships rather than just naming a surface phenomenon.
---

# Evaluation: Labour Of Inspection And Direction

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes supervisory labor from manual production labor and specifies its compensation mechanism (profits vs wages). It captures a distinct concept, though it could be slightly more precise about what constitutes "inspection and direction" activities.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text from Book I, Chapter 6, where he explicitly discusses the labor of inspection and direction as distinct from profits of stock. The manufacturing scale examples mentioned are authentic to Smith's argument.

## domain_placement — 5.0 / 5.0

"Production" is the correct domain placement since this concept deals with the organization and oversight of productive processes. It fits naturally within production theory rather than exchange, distribution, or other economic domains.

## vsm_relevance — 4.0 / 5.0

This entity maps well to VSM System 3 (internal regulation/audit) and potentially System 2 (coordination), as it involves overseeing operations and coordinating production activities. It has clear structural relevance to organizational cybernetics.

## explanatory_value — 4.0 / 5.0

The entity illuminates an important structural distinction in Smith's theory between different types of economic activity and their compensation mechanisms. It helps explain how production is organized and controlled, revealing underlying economic relationships rather than just naming a surface phenomenon.
