Which classical principle establishes the hierarchical structure of the organization, commonly called the "chain of command"?

• A. Scalar principle
• B. Systems school
• C. Planning
• D. Budget

Answer: (A)

The scalar principle is about a clear, continuous line of authority from the top of the organization down to the lowest level. This creates the chain of command, where each person knows who they report to and through whom orders and information should flow. That explicit hierarchy helps maintain order, accountability, and coordinated action, and it prevents confusion from multiple or informal reporting channels.

The systems approach looks at the organization as a whole, with interrelated parts and feedback loops, rather than a formal vertical hierarchy. Planning is a management function focused on setting goals and methods, not the reporting structure. Budget deals with financial resources and allocations, not how authority and communication flow through the organization.