Concept: Management schools of thought explain how organizations should be managed. The classical school focuses more on structure, authority, rules, division of work and efficiency. The neo-classical school gives importance to human behaviour, motivation, needs, attitudes and informal relationships.
Step 1: Understanding the Classical school.
The classical school of management mainly emphasized formal organization, hierarchy, discipline, planning and scientific management.
\[
\text{Classical School} \Rightarrow \text{Structure + Rules + Efficiency}
\]
It did not focus deeply on emotions, attitudes or individual behaviour.
Step 2: Understanding the Neo-classical school.
The neo-classical school developed as a reaction to the limitations of the classical approach. It emphasized that workers are human beings and their needs, feelings, motivation and behaviour affect organizational performance.
\[
\text{Neo-classical School} \Rightarrow \text{Human needs + Behaviour + Attitudes}
\]
Step 3: Matching with the question.
The question specifically uses the words “needs, behaviours and attitudes of individuals”. These are directly related to the human relations approach, which is part of the neo-classical school.
Therefore, the correct answer is Neo-classical.