What theory emphasizes the observation and analysis of work methods to optimize management practices?

The correct choice is the theory of Scientific Management. This theory, developed by Frederick Winslow Taylor in the early 20th century, emphasizes the systematic observation and analysis of work methods to enhance efficiency and productivity in the workplace. The core idea is that by carefully studying tasks and breaking them down into their simplest components, managers can identify the most effective methods of labor and establish standardized procedures.

Scientific Management involves measuring performance, optimizing workflows, and utilizing data to make informed decisions on resource allocation and workforce management. The approach is grounded in the belief that human labor can be treated as a mechanical process, aiming to increase productivity through scientific approaches rather than relying on vague notions of 'better work methods.'

While other management theories, such as Behavioral Management, focus on the human aspects of work, such as motivation and team dynamics, Scientific Management takes a more technical and analytical stance. This fundamental difference underscores why Scientific Management is distinct in its prioritization of observation and measurement in optimizing management practices.