ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation
Fayola's department has a clear line of authority from the director down through managers and supervisors to clerks, with each person reporting to one superior. Which term describes this line of authority?
This is the scalar chain, the line of authority running from the top of the hierarchy down through each level, with each person reporting to one superior. Span of control counts direct reports, and matrix reporting involves dual lines of authority.
- AMatrix reporting
- BScalar chainCorrect
- CSpan of control
Explanation
The scalar chain is the line of authority running from the top of the hierarchy to the bottom, with each person answerable to one superior. Matrix reporting involves dual reporting lines. Span of control concerns the number of direct reports, not the chain itself.
Did you get it right without looking?
One question tells you little. A timed set on The formal and informal business organisation shows your real accuracy, how long you take and where you lose marks.
More The formal and informal business organisation questions
- Two companies merge. One has a formal, rules-driven approach, and the other encourages informal, autonomous teamwork. Which of the following…
- A manager at Tolland plc notices that an informal group of long-serving employees has agreed an unofficial output level below what managemen…
- Which of the following is a characteristic of a formal organisation rather than an informal organisation?
- In a long scalar chain, an instruction from the chief executive passes through six management levels before reaching operational staff. Whic…
- Which of the following is most likely to create a barrier when a company tries to change its culture?
- Which of the following is a recognised advantage of a multidivisional structure for a large, diversified group?