CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management
Fayol's principle of 'scalar chain' refers to which of the following?
Scalar chain means the formal line of authority and communication running from the top management down to the lowest level in the organisation. Fayol said it should normally be followed, though a direct 'gang plank' link between peers may be used in urgent cases to avoid delay.
- AThe line of authority running from the top to the lowest rankCorrect
- BFair payment to employees for their work
- CGrouping of similar work under one specialist
- DStability of tenure of personnel
Explanation
Scalar chain is the formal chain of superiors from the highest to the lowest rank, along which communication normally flows. Fair pay is remuneration, specialisation is division of work, and tenure is stability of personnel.
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