Adam Smith's Influence On Modern Management

Modern management was greatly influenced by researchers such as: Adam Smith, Frederick Taylor, Elton Mayo, Abraham Manslow, Douglas McGregor and Rensin Likert. There are many different management approaches today and they all have evolved from the styles of the past. During my research of these individuals I learned how each of them played an important role in molding of modern management styles. I will describe in detail how each of these great researchers contributed to modern day management styles.

One of the great influences on modern day management is Adam Smith.
“Adam Smith is considered the father of ‘classical’ economics” He is recognized for “the Wealth of Nations” which is a series of five books based on economics (McCreadie). Adam

Scientific management as defined in businessdictionary.com laid down the fundamental principles of large-scale manufacturing through assembly-line factories. It emphasizes rationalization and standardization of work through division of labor, time and motion studies, work measurement, and piece-rate

It became evident that “worker productivity and organizational success are based on more than the satisfaction of economic or social need” (bateman, sneel p41). This recognition developed the organizational behavior approach which was influenced by Douglas McGregor and his Theories X & Y. Theory X managers tend to micromanage their employees because they believe the average worker is lazy and tends need more supervision and motivation. The methods they use to motivate employees are usually reward and punishment. Theory Y tends to motivate by Maslow hierarchy of needs and believes in challenging employees (Hindle