Chain of Command

The chain of command or the scalar chain, is the formal line of authority, communication, and responsibility within an organization. It is usually depicted on an organizational chart, which identifies the superior and subordinate relationships. The organizational chart helps to identify the lines of authority and communication and ensures clear assignment of duties and responsibilities. Unity of command means that each subordinate reports to one and only one superior.

chain of command

The order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization. Instructions flow downward along the chain of command and accountability flows upward. According to its proponent Henri Fayol (1841-1925), the more clear cut the chain of command, the more effective the decision making process and greater the efficiency. Military forces are an example of straight chain of command that extends in unbroken line from the top brass to ranks. Also called line of command.

Fayol's principle of the unity of command holds that a subordinate should report to one and only one supervisor. Fayol believed that this was necessary to provide the supervisor with clear position authority, and to prevent a subordinate from receiving conflicting orders. Fayol's scalar chain principle states that authority and responsibility flow, one level at a time, in a vertical line from the highest level in an organization to its lowest level. This line of authority establishes an organization's hierarchy.

A problem in the chain of command occurs when a subordinate bypasses a manager in giving of information or requesting of a decision. This act undermines the authority and position of the manager. If this practice is allowed to continue in a bureaucratically-organized company, morale of the managers will decline. With the rapidly-changing environment and increasing uncertainty that organizations face, some adopt structures that emphasize flexibility and quick response to change. These types of organizations attempt to place decisionmaking authority in the organizational structure with those who can most effectively and efficiently respond to environmental imperatives.

Organizations may have flatter hierarchies and communication and decision-making patterns that do not fully adhere to the chain of command or unity of command principles. In matrix organizations, employees frequently have two managers to report to , violating the unity of command and chain of command principles. To be effective, individuals working in these organizations learn to share power, use open confrontation to resolve issues, and to utilize all directions in the organization to disseminate information.

HENRI FAYOLS 14 Principles of Management

DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

UNITY OF COMMAND: Workers should receive orders from only one manager. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.

REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay.

CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

EQUITY: All employees should be treated as equally as possible. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.