What economic effect resulted from the successful application of Scientific Management?

The successful application of Scientific Management, developed by Frederick W. Taylor, led primarily to increased productivity and lower costs. This approach introduced systematic analyses and time-and-motion studies to optimize work processes, minimizing waste and inefficiencies. By examining tasks closely and restructuring them for better efficiency, organizations were able to significantly enhance output without a corresponding increase in labor costs.

As a result of these efficiencies, businesses often experienced a reduction in costs associated with production. This allowed firms to offer their products at more competitive prices, which could lead to increased market share and profitability. Thus, the economic effects of applying Scientific Management extended beyond the immediate benefits of a more streamlined workforce; they contributed to broader improvements in industry standards and business practices.

The other options do not align as closely with the foundational objectives and outcomes of Scientific Management. While it may have had peripheral impacts on employment rates or employee benefits, the primary focus of the theory was enhancing productivity and reducing costs, which underpins the selection of the correct answer.