Read the following text and answer the following 5 question on the basis of the same (Q.1 ):
After completing her Bachelors in Fashion Designing from a well-known college in Germany, Ashima has opened a boutique in a posh market in Mumbai. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10 percent discount, whereas the decision to give any further discount rests with Ashima 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 honoured her commitment by giving bonus to her employees. She also instructed her 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 solve the conflicts among employees.
"She also instructed her employees that communication from top to bottom should follow the official lines of command. ". In this context which of the following statement (s) is/are true.

There is Scalar Chain in her organisation.

The Correct Answer is Option 2: There is Scalar Chain in her organization.

The statement "She also instructed her employees that communication from top to bottom should follow the official lines of command" indicates that there is a scalar chain or hierarchy in Ashima's organization, where communication flows in a formal and hierarchical manner from the top (Ashima) to the bottom (employees). However, it does not necessarily imply that Ashima believes in only formal communication in her organization. It is possible that she allows for informal communication in certain situation.

Scalar Chain: This is a principal of Fayol which states that an organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as scalar chain. There are clear instructions of Ashima that the communication will be strictly from top to bottom.