INTRODUCTION

Although modern management theory dates primarily from the early twentieth century, there was serious thinking and theorizing about managing many years before. Two events are especially significant to management history. First, in 1776, Adams Smith published The Wealth of Nations, in which he argued the economic advantages that organizations and society would gain from the division of labor (or job specialization). The second important event is the industrial revolution. Starting in the late eighteenth century when machine power was substituted for human power, it became more economical to manufacture goods in factories than at home. These large, efficient factories needed someone to forecast demand, ensure that enough material was on hand to make products, assign task to people, direct daily activities, and so fort. That “someone” was managers, and these managers would need formal theories to guide them in running these large organizations. It wasn’t until the early 1900s, however, that the first steps were taken toward developing such theories. The evolution of modern management thinking begins in the nineteenth century and flourished during the twentieth.

EVOLUTION OF MANAGEMENT THOUGHT

Today's management theory is the result of the interdisciplinary efforts of many people.

THE FOUNDERS

The beginning of the modern organization occurred primarily during the middle of the nineteenth century with the rise of the factory system, principally in the textile industry, where automation and mass production became the cornerstone of productivity. Management thinking, however, was slow to evolve during the century. The need existed to define what management was in the first instance as well as to operationalize it in meaningful terms for an organization. During this period two principal management theorists took up this challenge and