Read the passage and answer the following questions.

After completing her Bachelor's in Fashion Designing from a well known college in London, Aahana opened a boutique in a posh market in Delhi. She divided the work into smaller units and each employee was well-trained to perform his/her work efficiently. The sales persons are allowed to close a deal with the buyers by giving a maximum of 5% discount. Whereas the decision to give any further discount rests with Aahana as the final authority.

In the earlier period of her business venture, employees were asked to put in extra hours of work. In return, she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honored her commitment by giving a bonus to her employees. She also instructed employees that communication from top to bottom should follow the official lines of command.

However, she tends to be more biased towards her female employees when it comes to resolving conflicts among employees.

"She instructed employees that communication from top to bottom should follow the official lines of command". Identify the Principle of Management here.

Scalar Chain

The correct answer is option 4- Scalar Chain.

Scalar Chain is highlighted in the given lines.

Scalar Chain- According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” According to Fayol, this chain should not be violated in the normal course of formal communication. However, if there is an emergency then direct contact through ‘Gang Plank’. This is a shorter route and has been provided so that communication is not delayed.