Vibhu joined as .a Chief Exeeutive’ Officer (CHO) of ‘Meza Marut Ltd.’ firm manufacturing cars. On the first)day he addressed his ca nates S Saying that organisations…………………

Class 12th BUSINESS STUDIES, Question Paper 2023:Vibhu joined as .a Chief Exeeutive’ Officer (CHO) of ‘Meza Marut Ltd.’ firm manufacturing cars. On the first)day he addressed his ca nates S 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 4% worker can fot directly contact the"CEO but in an emergency he/she may Contact, directly. Vibhu discussed an important principle of management. Identity snl explain the principle with the help of an example.

Question :Vibhu joined as .a Chief Exeeutive’ Officer (CHO) of ‘Meza Marut Ltd.’
firm manufacturing cars. On the first)day he addressed his ca nates S
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 4%
worker can fot directly contact the”CEO but in an emergency he/she may
Contact, directly.
Vibhu discussed an important principle of management. Identity snl
explain the principle with the help of an example.

The correct answer is -The principle of management discussed by Vibhu is the Principle of Scalar Chain. According to this principle, an organization should have a clear chain of authority and communication that runs from the highest level of management to the lowest level of management. It means that every employee in the organization should know who their immediate superior is, and they should communicate with their immediate superior for any official matter.

For example, in a manufacturing company, if an operator in the production department has a problem with a machine, he should report the problem to his supervisor. The supervisor, in turn, will report the issue to the production manager, who will communicate the problem to the Chief Executive Officer. If the operator directly reports the problem to the CEO, it will disrupt the chain of command and create confusion in the organization.

However, the principle of scalar chain also allows for direct communication between employees in emergencies. For instance, if there is a fire in the building, an employee can directly contact the CEO to inform him of the emergency.