i. Meaning of Scalar Chain: It refers to a formal line of authority which moves from highest to the lowest ranks in a straight line.
ii. Fayol’s Opinion: This chain must be followed in a strict manner. It means each communication must move from top to bottom and vice-versa in a straight line. The important condition here is that no step (post) should be overlooked during communication.
iii. Fayol’s Ladder: Fayol has explained this principle with the help of a ladder or double chain as shown in the diagram. For example, in a company the employee ‘F’ wants to have contact with the employee ‘P’. According to the principle of scalar chain ‘F’ shall have to reach ‘A’ through the medium of E, D, C, B and then having contact with L, M, N, O shall reach ‘P’. Thus ‘F’ shall have to take the help of all the nine steps (posts) to have business contact with ‘P’.
iv. Utility: Due to more clear system of authority and communication, problems can be solved faster.
v. Gang Plank: It is the exception of the principle of scalar chain. This concept was developed to establish a direct contact with the employee of equal rank in case of emergency to avoid delay in communication. For example, as shown in the diagram employee ‘F’ can have direct contact with employee ‘P’. But for doing so employees ‘F’ and ‘P’ shall have to seek the prior permission of their immediate bosses ‘E’ and ‘O’. The details of their talk also shall have to be given to them.
