Final answer:
The management theory characterized by a formal hierarchy and a clear division between management and workers is Scientific Management (B), which values efficiency and productivity through labor specialization.
Step-by-step explanation:
The management theory identified by a formalized hierarchical structure with a clear division between workers and management is B) Scientific Management. This approach was largely influenced by the work of Frederick Taylor, who is often considered the father of scientific management. Taylor's method, also known as 'stop-watch management', emphasized increasing productivity through the efficiency of labor. His philosophy entailed the meticulous division of work into small, manageable tasks that could be timed and standardized to optimize efficiency and output.
Scientific management is characterized by a hierarchy of authority and a clear distinction between managerial and employee roles, where managers make decisions and workers execute tasks. This division reflects a classic bureaucratic structure detailed by Max Weber, with explicit rules and a chain of command. Managers in this framework typically have a high level of control over the workspace and labor processes, reducing personal interactions in favor of efficiency and profitability.