Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following case study and answer the question.

Mr. Anil is working in an MNC as a production manager. Mr. Rajat is working under him who is responsible for ordering raw material for the firm. Mr. Anil always take care of his subordinates, but gives priority to organisational objectives. All the subordinates obey the orders of Mr. Anil. They are self-motivated to take steps.

Identify the Principle of management that represents the formal lines of authority between Mr. Anil and Mr. Rajat.

Options:

Equity

Scalar Chain

Subordination of individual interests to general interest

Gang Plank

Correct Answer:

Scalar Chain

Explanation:

The correct answer is option (2) : Scalar Chain.

The Principle of management that represents the formal lines of authority between Mr. Anil and Mr. Rajat is "Scalar Chain." The scalar chain principle establishes a clear line of authority from the top of the organization to the bottom, ensuring that each subordinate knows who they report to and who they are responsible for. In this case, Mr. Anil, as the production manager, holds authority over Mr. Rajat, who works under him and is responsible for ordering raw materials. This formal line of authority is represented by the scalar chain principle.

* Scalar Chain: An organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as 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.