Nevertheless, as soon as the producers were gathered together, the problem
of management arose in rudimentary form. In the first place, functions
of management were brought into being by the very practice of cooperative
labor. Even an assemblage of interdependently practicing artisans
requires coordination, if one considers the need for the provision of a
workplace and the ordering of processes within it, the centralization of
the supply of materials, even the most elementary scheduling of priorities
and assignments, the maintenance of records of costs, payrolls, materials,
finished products, sales, credit, and the calculation of profit and loss.
Second, assembly trades like shipbuilding and coach making required the
relatively sophisticated meshing of different kinds of labor, as did civil
engineering works, etc. Again, it was not long before new industries arose
which had little prior handicraft background, among them sugar refining,
soap boiling, and distilling….All of these required conceptual and coordination
functions which in capitalist industry took the form of management (41).