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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.

  1. AMatrix reporting
  2. BScalar chainCorrect
  3. 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.

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