Scientific Management Theory was developed by Frederick Taylor in the early 20th century to improve economic efficiency and productivity. It involved analyzing workflows to optimize tasks and having managers plan and control production while workers specialized in repetitive tasks. The theory aimed to enhance production through cooperation, allow for control and quick decision making, and reduce costs. However, it also had disadvantages like requiring large capital investments, making work inflexible, not working for team environments, reducing worker autonomy, and limiting bargaining over wages.