The search to find the one best way to lead an organization is ongoing. During the early 1900s, Frederick Taylor's classic work on scientific management introduced time and motion studies, employee performance standards, and job training methods. Taylor's goal was to eradicate wasted time and motion and to determine how workers could best be selected, trained, paid, and supervised. The leadership that resulted has been described as authoritarian and insensitive to human needs.

Promoting organizational effectiveness was the concern of Max Weber, whose ideal organization was a bureaucracy. The classical bureaucratic model provided hierarchical structure to guide activities within a complex organization. Human relations theories began with the work of Elton Mayo in the early 1930s. Here informal social organizations in the workplace affects production more than demands from management or the physical environment of the workplace. The psychologist Kurt Lewin’s research into group dynamics found that a democratic leadership style has a direct effect on organizational life and provides higher morale, greater cooperation, and higher work quality.

The human relations movement provided insight into the complexities of organizational life and the realization that employees had multiple needs that had to be addressed if harmony and production were to be maximized. Behavioral scientists sought a more complete picture of organizational life, focused on the individual's reaction to organizational structure, and investigated the relationship between employee motivation and production outcomes. Frederick Herzberg maintained that people hold positive and negative attitudes toward work and that the work environment promotes them. Recognition, personal achievement, and development are motivating factors.