In the 1700’s we see Adam Smith emerge with his division of labor theories. Smith determined that by specializing tasks at each job, workers could be utilized to increase productivity and revenue. Adam Smith is considered “the Father of liberal economics”. (Lanier) In 1776 Smith published his Wealth of Nations. In that he argues that “market and competition should be the regulators of economic activity and that tariff policies are destructive.” (Lanier) He determined that to optimize economic activity you need to be able to measure the amount of labor needed to produce a good. By measuring the amount of labor needed and utilizing a division of labor, workers could produce the “labour-capital substitution” (Peter) that he originally saw as “unbridgeable problems in operationalizing the ideas on value into practical measurement operations.” (Peter) Today we can still see the division of labor theories used today in assembly lines across the world. We also see the assembly line spanning continents instead of just departments. The iPad design originated in the US, but the base and parts are assembled in japan, and the screen and final assembly are done in China, a division of labor in the modern age.
James Watt developed the steam engine in 1765 and was considered the father of the industrial revolution. In the 1800’s Watt and M...
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...worker is based on the environment and not by the individual’s skill set. He used psychology techniques to supervise and saw the company as” a large team divided into sub-teams all working on different aspects of the same goal.” (Skymark) Deming believed that by spreading profit “to workers as teams and not individuals” and “to employ sensible methods such as rigorous training programs to stimulate and empower” (Skymark) would allow employees to perform better. From his writings Out of the Crisis comes the 14 points he states management needs to establish to continually improve any company’s growth.
Fig. 2 Deming’s 14 points “Pioneers of Management”
The men listed here are only a few of the people responsible for the theories of management we utilize today in managing business. From factories to financial institutions we can see the past theories being used today.
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