The Hidden Reason Why the First World War Matters Today: The Development and Spread of Modern Management

Abstract

The extreme, almost unprecedented demands of the First World War pushed management practitioners, firms, and governments to aggressively collaborate to introduce scientific management and related techniques to industry. While the economic growth and improved living standards that followed in the 20th century were due in part to the introduction of new technologies such as improved transportation, communication, power generation, and other key innovations, also essential was the refinement and wider diffusion of modern management techniques in terms of production, marketing, organization structure and human resources -- innovations that in part came out of (or were significantly refined in) the First World War.

Keywords: First World War, scientific management, modern management, human relations, economic growth

JEL Classification: B30, L23, M10, M11, N00, N44