What is chain of command?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

What is chain of command?

Explanation:
Chain of command is the formal line of authority in an organisation, showing who has the power to make decisions and who reports to whom. This structure keeps decisions moving in the right direction and makes it clear who is responsible for what, so tasks are coordinated smoothly. In practice, authority flows from the top down and accountability goes up. For example, a CEO might delegate to department heads, who then direct team leaders and supervisors, who in turn oversee workers. This clear chain ensures orders reach the people who carry them out and that those at higher levels receive the necessary information and feedback. Other options don’t capture this reporting relationship. A list of all employees shows positions, not who has authority over whom. Making decisions through committees describes how decisions are reached, not the formal reporting lines. A sequence of steps to complete a project describes a workflow, not the authority structure.

Chain of command is the formal line of authority in an organisation, showing who has the power to make decisions and who reports to whom. This structure keeps decisions moving in the right direction and makes it clear who is responsible for what, so tasks are coordinated smoothly.

In practice, authority flows from the top down and accountability goes up. For example, a CEO might delegate to department heads, who then direct team leaders and supervisors, who in turn oversee workers. This clear chain ensures orders reach the people who carry them out and that those at higher levels receive the necessary information and feedback.

Other options don’t capture this reporting relationship. A list of all employees shows positions, not who has authority over whom. Making decisions through committees describes how decisions are reached, not the formal reporting lines. A sequence of steps to complete a project describes a workflow, not the authority structure.

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