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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

Which one of the following statements correctly distinguishes the neo-classical approach from the classical approach to management?

The neo-classical approach stresses human behaviour, informal groups and social needs, whereas the classical approach concentrates on formal structure, task efficiency and universal principles. Neo-classical thought modified classical ideas by adding the human element rather than rejecting structure, and mathematical modelling belongs to the quantitative approach.

  1. ANeo-classical stresses human behaviour and group dynamics, while classical stresses structure, tasks and formal principlesCorrect
  2. BNeo-classical rejects the need for any organisational structure, while classical accepts it
  3. CNeo-classical relies mainly on mathematical models and computers, while classical relies on behavioural studies
  4. DNeo-classical treats the organisation as purely a machine, while classical treats it as a social system

Explanation

Classical writers such as Taylor, Fayol and Weber concentrated on formal structure, tasks and principles. Neo-classical thinkers added the human and social dimension, including informal groups and motivation. The other options reverse the roles, or wrongly say that neo-classical rejects structure, or attribute quantitative methods to the wrong approach.

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