Question

Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R) Read the statements and choose the correct answer using the code given below.

Assertion (A): Technological change and skill requirements have been made a subject of investigation in an organization

Reason(R): The neo-classical economic theory stated technological changes require a broader variety of skills and higher average skills from the workers.

1.

Both (A) and (R) are correct and (R) is the right explanation (A)

2.

Both (A) and (R) are correct but (R) is not the right explanation of (A)

3.

Both (A) and (R) are incorrect

4.

(A) Is correct but (R) is incorrect 

Answer 1

Correct Answer - Option 1 :

Both (A) and (R) are correct and (R) is the right explanation (A)

Assertion (A): Technological change and skill requirements have been made a subject of investigation in an organization.

Explanation: 

1. Technological change requires a complete makeover for the company.
2. It has a long-term impact on the working of the firm and its result can't be reversed easily.
3. Thus, factors such as adaption, the skill of employees, the confidence of management, finance, training needs, etc. need to be investigated properly before implementing technological change.

Thus, the assertion is correct.

Reason(R): The neo-classical economic theory stated technological changes require a broader variety of skills and higher average skills from the workers.

​Explanation:

1. Robert Solow and Trevor Swan first introduced the neoclassical growth theory in 1956.
2. The theory states that economic growth is the result of three factors - labor, capital, and technology. 
3. The theory argues that technological change has a major influence on an economy, and economic growth cannot continue without technological advances. 
4. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation.
5. Supporters of theory also see the category of technological changes as a key driver of economic growth which requires management to be equipped with a broader variety of skills and a proper plan. 

​Thus, the reason is correct.

Therefore, Both (A) and (R) are correct and (R) is the right explanation (A).