What impact can a short chain of command have on management?

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Enhance your preparation for the IGCSE Business Studies Test with flashcards and multiple choice questions. Every query is paired with tailored hints and explanations to boost your confidence. Prepare thoroughly for your exam!

A short chain of command refers to a streamlined hierarchy within an organization, where there are fewer levels between staff and management. This structure can significantly enhance the decision-making process. With fewer layers of authority, information and instructions can flow more quickly from top management to employees, allowing decisions to be made and implemented in a timely manner.

This efficiency is beneficial in fast-paced business environments where rapid responses to market changes are crucial. Shortening the chain of command can lead to improved flexibility and agility in operations, enabling teams to act swiftly without navigating through multiple managerial levels for approvals or feedback. This characteristic is especially important in environments that value innovation and responsiveness.

In contrast, other choices reflect scenarios typically associated with longer chains of command, such as increased challenges in delegation, managers being more distanced from staff, and barriers to open communication. These aspects highlight how a shorter chain of command can foster a more connected and responsive organizational culture, enhancing overall effectiveness in management.

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