Before the Industrial Revolution most of the population lived on farms and work on the farm dictated when you got up, ate your meals and went to sleep. No one need a clock.
When the Industrial Revolution came factory owners needed employees to be on time and pushed watch and clock makers to make models everyone could afford.
As far as time itself goes the earliest civilizations had a way to measure it and it's even thought Chimpanzees have an awareness of time. It seems to be a pretty basic thing.