CHAPTER

1 Writings on management and organizations can be traced back to the known origins of
commerce. Much can be learned from the early organizations of the Muslims, Hebrews, Greeks,
and Romans. If we took the time, we could argue that much of what we know about
organizational theory has its origins in ancient and medieval times. After all, it was Aristotle who
first wrote about the importance of culture for systems of government, Ibn Taymiyyah, who used
the scientific method to outline the principles of government within the framework of Islam, and
Machiavelli, who gave his precise analysis of its use to the world. strength.

To provide an indication of the deep roots of organizational theory in earlier times, we present
two examples of ancient wisdom on organizational management. The first of our ancient
examples is from Chapter 18 of Exodus, where Moses' father, Jethro, punished Moses for failing
to set up an organization where he could delegate responsibility for the administration of justice.

“23 If you do this and God commands you to do so, then you can endure, and all these people
will go to their places in peace.” 24 So Moses obeyed his father-in-law and did everything he
said. 25 And Moses chose able men from all Israel, and made them heads of the people, chiefs of
thousands, and chiefs of hundreds, chiefs of the fifty, and chiefs of them. It dominated classical
school organizational theory until the 1930s and remains highly influential today.

Over the years, classical organizational theory has expanded and matured. However, the basic
principles and assumptions that have their roots in the industrial revolution of the 1700s and the
professions of mechanical engineering, industrial engineering and economics have never
changed.

There is a best way to organize production and this way can be found
through the system.

Production is maximized through specialization and division of labour. Individuals and

organizations act according to rational economic principles. The evolution of any theory must be
seen in context. It wasn't until the mid-twentieth century that industrial workers in the United
States and Europe began to enjoy even limited "rights" as organizational citizens.

Workers were seen not as individuals, but as replaceable parts in an industrial machine made
of meat when making it from steel was impractical. The advent of powered machinery, and thus
the modern factory system, gave birth to our current concepts of economic organization and
organization of production.

Smith and James Watt are the two most similar to The Wealth of
Nations.

devotes its first chapter, "Of the Division of Labor", to a discussion of the optimum organization
of a pin factory. Smith's "O of the Division of Labor" was reprinted here because it was the most
famous and influential statement on the economic logic of the factory system, as it came at the
dawn of the industrial revolution. Smith revolutionized thinking about economics and
organizations. Thus, we operationally identified 1776, the year the Wealth of Nations was
published, as the starting point for organizational theory as an applied science and academic
discipline.

McCallum, the forward-thinking general manager of the New York and Erie Railroad, outlined
general organizing principles that "could be considered established and necessary." Its principles
included sharing of responsibilities, power commensurate with responsibilities, and a reporting
 system that allowed managers to immediately know whether responsibilities were "faithfully
fulfilled" and to identify mistakes and "criminal" subordinates.

In the 1800s, two practice managers in the United States independently

pioneered The Cost of Manufactures and the Administration of Workshops, Public and Private,
which claimed a "science of management" and also pioneered the application of "pre-scientific
management" methods to administrative control problems. has also published its
recommendations.

1886 Towne argued that store management was of equal importance to

the engineer man.

His article, «The Engineer as Economist», was published in Transactions of the American
Society of Mechanical Engineers and reprinted here. Historians have often seen this as the first
call of scientific management. Taylor.

Since then, Fayol's theoretical contributions have been widely acknowledged, and his work is
considered as important as Taylor's.

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