The Hungarian method is a combinatorial optimization algorithm developed by Harold Kuhn in 1955, designed to solve assignment problems by assigning jobs via one-to-one matching for the lowest cost solution. The process involves row and column reductions, iteratively modifying a cost matrix until an optimal assignment can be made, with the output determining the best matches for resources like cranes to construction sites based on minimizing transfer distances. Ultimately, the methodology allows for efficient job assignments in various operational contexts.