Final answer:
Theories such as Taylor's scientific management and McGregor's Theory X and Theory Y highlighted the need for managing organizations as interconnected systems, emphasizing efficiency and systematic approaches in both industrial settings and corporate governance.
Step-by-step explanation:
Systematic Approach to Managing Organizations
The theory that highlighted the need for a systematic approach to managing organizations as interconnected systems is rooted in the field of scientific management and human factors psychology. Pioneered by figures like Frederick Winslow Taylor and Douglas McGregor, this approach necessitates understanding organizations from a holistic perspective, where management, work processes, human relations, and systems modeling are all taken into consideration to improve efficiency and effectiveness.
Taylor's scientific management, also known as 'stop-watch management', is particularly significant for introducing the concept of time-motion studies to enhance industrial efficiency. On the other hand, McGregor's Theory X and Theory Y provided insights into leadership behavior, suggesting that management styles can significantly influence employee productivity and organizational culture.
The development of these management theories was driven by various factors including the need for efficiency, the rise of large corporations, and the principles of expertise and specialization. Frederick Taylor's principles were influential during the Progressive Era, reflecting a drive towards efficiency in business practices and governance, with an emphasis on scientifically-backed improvements in human productivity.