Which step in the process of organisation leads to creation of management hierarchy?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Establishment of reporting relationships.
Establishment of reporting relationships is step in the process of organisation leads to creation of management hierarchy.
Establishing authority and reporting relationships: Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable. The establishment of such clear relationships helps to create a hierarchal structure and helps in coordination amongst various departments.