🔄 YESTERDAY RE-KNOCK: Money and Power
Yesterday, we navigated the critical mechanics of managerial motivation and authority. We learned that Remuneration must be a fair balance between the employee's standard of living and the firm's paying capacity. We also discussed the equilibrium of Centralisation and Decentralisation, where we found that a successful organisation concentrations strategic decisions at the top while dispersing operational power to the levels that need it most. Today, we move into the structural framework of communication and resource management: Scalar Chain and Order.
Principle 9: Scalar Chain
According to Henri Fayol, an organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as the Scalar Chain. This principle states that every communication must follow a established chain of command and should not be violated in normal circumstances.
In my experience, the Scalar Chain is the backbone of organizational discipline. It ensures that every manager knows who they report to and who reports to them. If a junior clerk directly contacts the CEO, it bypasses several levels of management, often leading to a loss of control and misinformation. However, Fayol was a practical man. He knew that in a real business world, following a long chain for a simple emergency could be fatal.
The Concept of "Gang Plank"To prevent delays during emergencies, Fayol introduced the Gang Plank. This allows two employees of the same level to communicate directly with each other, provided they inform their immediate superiors.
Example: In a manufacturing plant in Bokaro, if the Production Head (Level D) needs urgent raw materials from the Purchase Head (Level G), they can use a Gang Plank to communicate directly rather than sending a file all the way up to the Managing Director and back down again.
- Systematic Flow: Information travels in a clear, logical order.
- Accountability: Every level is responsible for the information passing through them.
- Speed in Emergencies: Gang Plank provides a shortcut for urgent matters.
- Communication gap between levels.
- Difficulty in fixing responsibility.
- Delayed decisions if Gang Plank is not used when necessary.
Principle 10: Order
The principle of order is not about giving "orders" (commands). Instead, it is about Organisation. Fayol stated that there should be "a place for everything (everyone) and everything (everyone) in its (his/her) place." This principle ensures maximum efficiency with zero wastage of time in searching.
Fayol divided this into two parts:
- Material Order: Every physical resource (raw materials, tools, files) should have a designated place.
- Social Order: Every person (human resource) should have a designated post or cabin.
In my experience, a lack of 'Order' is the biggest silent killer of productivity. Think of a busy hospital in Ranchi. If a surgeon has to search for a scalpel or a nurse doesn't know where the oxygen cylinders are kept, lives are at risk. Similarly, if a patient doesn't know which room the doctor is in (Social Order), the entire system collapses into chaos.
In a well-managed school in Ranchi, the library is the perfect example of 'Order'. Material Order: Every book is categorized and has a specific shelf. Social Order: The Librarian has a fixed desk where they can always be found. This ensures that students don't waste 30 minutes of their 40-minute library period just searching for a book or the librarian.
- No wastage of time in search of men or materials.
- Smooth and continuous workflow.
- Increased productivity and discipline.
- Wastage of resources and time.
- Clutter and confusion in the workplace.
- Frustration among employees due to delays.
NCERT Expert Comparison
| Principle | Primary Focus | Key Term to Remember |
|---|---|---|
| Scalar Chain | Communication and Authority | "Formal Line" & "Gang Plank" |
| Order | Resource Placement | "A place for everything" |
📝 Day 17: Communication & Order Check
1. The formal line of authority from highest to lowest rank is called:
a) Scalar Chain
b) Gang Plank
c) Unity of Command
d) Span of Management
Click to view Answer
Correct Answer: (a) Scalar Chain.
Logic: This is the official ladder of authority defined by Fayol for communication.
2. "Social Order" in management refers to:
a) Keeping raw materials in a safe place.
b) Maintaining a polite tone in the office.
c) Having a designated post/place for every employee.
d) Organising office parties.
Click to view Answer
Correct Answer: (c).
Logic: Social order ensures that human resources are correctly placed so they can be easily located.
3. THE CASE STUDY:
(a) Principle Followed: Scalar Chain (The engineer was following the formal line of authority).
"Speed-Tech Ltd." is an IT firm in **Siliguri**. During a server crash, the Junior Engineer (Level E) tried to contact the IT Director (Level B) to get a password. However, he was told he must first talk to his Senior (Level D), who then talks to the Manager (Level C), who then talks to the Director. By the time the password arrived, the company lost data worth lakhs.
(a) Which principle was the engineer trying to follow initially?
(b) Which concept of Fayol should have been used here to avoid the loss? Explain.
Click to view Master Solution
(b) Concept to be used: **Gang Plank**. In an emergency like a server crash, Fayol permits direct communication (Gang Plank) between different levels or same-level employees to avoid delay and loss, provided the immediate superiors are informed. This would have saved the data by bypassing the long chain.
Further Reading
- STUDY NOTE: Unit 2: Principles of Management - Detailed Note
- DIRECT QUESTIONS: Unit 2: Important Direct Questions & Answers
- MCQs: Unit 2: Chapter-wise MCQs for Practice
Teaser for Tomorrow: We have organized the people and the communication. But how do we treat the people? Tomorrow, we explore the heart of human management: Equity, Stability of Personnel, and the "Brain" of the worker—Initiative. We'll see how these keep the teams in Patna and Siliguri inspired!
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