Adam Smith’s The Wealth of Nations discusses the optimal organization of a pin factory; this becomes the most famous and influential statement of the economic rationale of the factory system and the division of labor.
Major works of Adam Smith
The Theory of Moral Sentiments (1759)
An Inquiry Into the Nature and Causes of the Wealth of Nations (1776) Essays on Philosophical Subjects (published posthumously 1795)
Lectures on Jurisprudence (published posthumously 1776)
Lectures on Rhetoric and Belles Lettres
Frederick W. Taylor sometimes called “the father of scientific management.” He was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. The Principles of Scientific Management, published in 1911. His approach is also often referred to, as Taylor’s Principles, or frequently disparagingly, as Taylorism. Taylor’s scientific management consisted of four principles: 1.Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
2.Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. 3.Provide “Detailed instruction and supervision of each worker in the performance of that worker’s discrete task” (Montgomery 1997: 250). 4.Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks Taylor’s contribution to organizational theory
This required an organization theory similar for all practical purposes to that advocated by those organizational theorists who followed. These theorists developed principles of management, which included much of Taylor’s philosophy His framework for organization was:
•clear delineation of authority
•separation of planning from operations
•incentive schemes for workers
•management by exception
Max Weber is best known as one of the leading scholars and founders of modern sociology, but Weber also accomplished much economic work in the style of the “youngest” German Historical School. Eliminate the human intervention during the business process. Weber’s bureaucratic management consisted of 6 principles:
1-Roles and regulation should be written.
3-Division of labor.
5- Authority structure.
Henri Fayol was one of the most influential contributors to modern concepts of management, having proposed that there are five primary functions of management:
(4) Coordinating, and