Scalar Chain

Tax Glossary Definition

Scalar Chain

A scalar chain describes the sequential line of authority and communication within an organization. It indicates that each position is connected through a defined reporting structure, where instructions flow downward and feedback moves upward through designated managerial levels. This principle helps maintain discipline, clarity, and coordination between top executives and front-line employees.

Example: When the CEO issues a directive, it is first communicated to department managers, then to team supervisors, and finally to operational staff—illustrating the formal path of communication in the organization.

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