Specialization is a process, which is opposite to generalization, as mentioned above. In specialization, a group of entities is divided into sub-groups based on their characteristics. Take a group Person for example. A person has name, date of birth, gender etc. These properties are common in all persons, human beings. But in a company, a person can be identified as employee, employer, customer or vendor based on what role do they play in company.
Similarly, in a school database, a person can be specialized as teacher, student or staff; based on what role do they play in school as entities.