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The chain of command in an organization makes clear what?
AHow much each grade of employee will be paid
BWhich products each division is meant to sell
CWho reports to whom from the top to the bottom
DWhen the annual performance review will be held
Answer & Solution
Correct answer: C. Who reports to whom from the top to the bottom
1. A well-defined hierarchy has a clear chain of command.
2. The chain of command is the line of authority extending from one level to the next, from top to bottom.
3. It makes clear who reports to whom, and can be traced on the organization chart from the chief executive down to the employees producing goods and services.
4. Pay, product allocation, and review timing are separate management decisions.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.4 Managerial Hierarchy_
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