What are the weaknesses of Neo-classical theory?

Weakness of Neo-classical theories:

  1. The various structures of organisation provided by the Neo-classical theory cannot be applied to all situations. No particular structure will serve the purposes of all organisations.
  2. Neo-classical theory lacks a unified approach. It is simply a modification of the Classical model. The Neo-classical theory has been called bankrupt.
  3. Many of the assumptions on which Neo-classical theory is based are not true. For instance, the assumption that it is always possible to find out a solution that satisfies everybody is not true.

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