CSEET · Business Communication · Common Business Terminologies
The 'chain of command' in an organisation is best described as:
Chain of command is the formal line of authority and responsibility that runs from top management down to the lowest level of the organisation. Instructions flow downward and accountability flows upward. Informal friendships form the grapevine, not the chain of command.
- AThe informal network of friendships among employees
- BThe sequence of financial approvals needed for a loan
- CThe line of authority and responsibility running from top management down to the lowest levelCorrect
- DThe list of customers served by each department in turn
Explanation
Chain of command is the formal hierarchy of authority through which orders pass downward and accountability passes upward. The informal network is called the grapevine or informal organisation, so the first option is wrong.
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