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 shorter chain of command typically results from having fewer levels of hierarchy in an organization, which can be achieved by having fewer subordinates per manager. When each manager oversees fewer subordinates, the organizational structure becomes flatter, leading to a more direct and streamlined hierarchical flow. This flatter hierarchy allows for quicker communication and decision-making, as there are fewer layers of management for information to pass through.

In contrast, increasing the number of levels within an organization would lead to a longer chain of command, making it more complex and slower. Clearer communication channels and reduced decision-making time can also be outcomes of a shorter chain of command but do not inherently lead to it. Therefore, the key reason why having fewer subordinates per manager results in a shorter chain of command is that this structure minimizes the number of hierarchical levels, facilitating more efficient management and operations.

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