CBSE Class 12 Business Studies 2023 Delhi set 1

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Question : 22
Total: 39
Vibhu joined as a Chief Executive Officer (CEO) of 'Mega Marut Ltd.', a firm manufacturing cars. On the first day he addressed his subordinates saying that organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates. He also added that for routine matters a worker can not directly contact the CEO but in an emergency he/she may contact directly.
Vibhu discussed an important principle of management. Identify and explain the principle with the help of an example.
Solution:  
Scalar Chain: This is the principle discussed in the above case study.
The formal lines of authority between superiors and subordinates from the highest to the lowest ranks is 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 subordinates.
This chain should not be violated but in case of urgency, employees at same level can contact through GANG PLANK by informing their immediate superiors.
GANG-PLANK is the term used in concern with the scalar chain. Gang Plank refers to an arrangement in which two managers working at the same level can communicate with each other directly for quick communication.
In the give figure if D wants to communicate with G, usually message will move from D to A via C and B and from A it will come down to G through E and F. But if it is essential to communicate immediately a Gang-Plank (dotted line) may be created between D and G without weakening the chain of command.
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