GENERAL KNOWLEDGE

Detailed explanation-1: -chain of command. The hierarchy of authority is an organization’s chain of command-the relative authority that each manager has-extending from the CEO at the top, down through the middle managers and first-line managers, to the nonmanagerial employees who actually make goods or provide services.

Detailed explanation-2: -The scalar principle, also known as the scalar chain, is a management principle predicated on establishing an unbroken line of authority from the highest levels of management on down. In this model, the person at each management level communicates with only those directly above and below them.

Detailed explanation-3: -When managers organize divisions according to the type of customer they market their products to, they adopt a product structure. The characteristics of an organization’s human resources are an important factor in determining the type of organizational structure.