Final answer:
Max Weber laid the foundation for contemporary organization theory and developed the concept of bureaucracy, characterizing it by a hierarchical authority structure, clear division of labor, and explicit rules.
Step-by-step explanation:
The foundation of contemporary organization theory and the concept of bureaucracy was laid down by Max Weber, a German sociologist. Weber characterized a bureaucracy as having a hierarchy of authority, a clear division of labor, explicit rules, and impersonality. His work profoundly influenced the administrative structures of both public and private organizations. While Adam Smith and Frederick Taylor contributed to organizational efficiency and the division of labor, and Karl Marx offered critiques of capitalism and its effects on society, it was Weber who specifically conceptualized bureaucracy as an ideal type of formal organization. Weber's contributions to the understanding of governmental and business operations established crucial frameworks for modern organizational studies.