Principle: SCALAR CHAIN

Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.

Fayol emphasized that every information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates. This chain must be strictly followed in the organization. Fayol also stated that there should be no overlapping of steps during the communication process.

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Principle: CENTRALISATION AND DECENTRALISATION

When the power to take decision rests with the top management it is called as ‘Centralisation’.

When the power to take decision is given to the person performing the job it is called as ‘Decentralisation’.

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