Question

Need arose to change the thoughts of classical theory. Explain.

Answer 1

• By the end of 19th century, formats and size of industries started growing due to industrial revolution.
• The classical theory proved to be less effective on these large industries and so there rose a need for changes in these principles.
  There rose a need of paying importance to financial motivation, less important . to human approach and informal relations, etc.
• Hence, there arose a need to change the thoughts of classical theory.