John R. Commons in accordance with the distinction between classical economics, the concept of value and capital to go through three stages of the evolution of history. The results of these three stages can be referred to as 'engineering economics' stage, 'national economics' stage and 'Institutional Economics' stage. The contents of these three stages were to be discussed, arising out of modern management.
  The concept of value and capital have been three historical stages, we can at each stage in accordance with the left today, the actual results and referred to as 'engineering economics' stage, 'national economics' stage and 'Institutional Economics' stage . 'Engineering economics' in the founding stage of Ricardo (David Ricardo), completed in Marx (Karl Marx), the last by Taylor (Frederick Taylor) be included in the 'scientific management' are. Peter F. Drucker, in his book that the concept of scientific management for the modern 'management' from the source.
  In this context the use of economics in the 'value' and 'capital' is the concept of 'value' or that the process of goods and services quality, their value per unit is not necessary or because of changes in supply by reduction, which is working with the quantity and value have the skills necessary to increase, with the depreciation, wear or consumption and to reduce the amount. 'Value' because of the evolution of culture and high, such as the bow and arrow from the invention of gunpowder or explosives and to give way, or with a hoop skirt circle as a result of old fashion style like useless. It is precisely because of this type of invention or changes in fashion, so value can be referred to as 'cultural values' in the abandoned and the invention of these two cases the value of. If the value stored up for future use in further production, the value of such storage is in accordance with the classical meaning of the so-called 'capital.' We call it a 'process of capital'; Department is the nature of a class of value. 'Value' or 'process capital' generated by the work - this is the Marx of 'socially necessary labor' brought up the name of the 'manual labor', 'mental labor', 'management of labor' of the collection. If the measure of its simplified, and this becomes the standard of science. This measure is the success of Taylor, the engineer, he and his disciples to have a value necessary to be a systematic measurement of three substances: first, the number of substances, such as 'bushel' or 'tons'; the second the quality of material, such as 'first class' or 'second class'; the third is needed for the production of value 'number of hours of work per unit' (man-hours per unit). Engineering economics in the working hours of this compound under the adopted name of the time factor, their results are 'efficiency' concept, in the modern College of Engineering and Agriculture, the 'efficiency' the science has become specialized. 'Value', in 'The Wealth of Nations' in his book, Adam Smith pointed out that the value is divided into 'value' and 'exchange value', 'value' is the effectiveness of 'exchange value' is the price. However, the effectiveness of the classical school of thought referred to, in fact, only 'general utility' concept, but not the concept of marginal utility. Thus the classical school of thought have not been able to successfully use value and exchange value will be linked. The contradiction between water and diamonds: the high value of water, but its price (exchange value) is very low.

  The past hundred and fifty years of economic theory on how to give appropriate status to the personal service has always been puzzled by this problem. If this service is useful, then in addition to calculating the outer circle with gold, how can we measure it? ... ... This is a century and a half cited a variety of theoretical concepts and design, hoping to effect personal service with the 'production' of the effectiveness of labor in the value of the general concept of assimilation. There is a concept of 'average number of man-hours' (average-man-hours), this is put forward by Marx in the theory of scientific management to achieve the degree of precision. Another concept is based on the number of hours manually calculating the 'indirect' labor (overhead labor). Saying this is that white 'How to equal pay for equal work?' The book was completed in roughly the 1920s, but even so, 80 years later, these words still apply, as management scholars are still puzzled about this. For manual workers, working hours can be simply calculated by the number of personnel as reward, but for technical workers, managerial workers or knowledge workers, how to measure it?
  Marx to John Locke and Adam Smith to the elucidation of the labor force implied that it is manual, and management of mental strength. If the power to speak more accurately, we can resolve for the actions of its terms, case, manual refers to the use of force in nerve, muscle and bone of a human body or other objects that in terms of body strength. Even more appropriate to some, this is the strength of the material, rather than 'manual' force. This is the direct impact to move things, self or others as a material force. But the mental strength is the movement of certain objects directly to the material itself, forced the use of force, and indirectly in a distant future of space or time to move the power of other things. Tools, machinery, prime mover, the aircraft are due to mental strength. If the management of forces also used the term action, this is the use of mobile people and their physical, mental, and its own forces to move their things in a force or person. Together, the three forces can be more appropriately referred to as human, in fact, this is John Locke, Adam Smith and Marx used the term the meaning of work. Only to enhance the value of human wealth and national wealth. However, this maximum capacity of human resources is the cause of the 'division of labor', the division will allow specialization, and division of labor must be exchanged. All the works of Adam Smith discussed the division of labor is based on a variety of enhanced productivity, the division started from the factory, the evolution of the industrial, regional and international division of labor, all the need for the exchange of products. 'Labor' labor / labour, in economics, the meaning of the word in a broad sense of labor, not just muscle. Only recently has been mostly labor equates with muscle; will be narrowly defined as labor error muscle, may be proof this sentence: 'We have to employ your muscles, but do not employ your brain.' In order to facilitate the understanding of most recent work-force to replace the word labor.