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According to which principle of management, "Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates."

Solution

Correct Option: 3

Scalar Chain refers to the formal line of authority running from top to bottom of the organisation. According to Fayol, this chain must be followed for communication. An exception is the Gang Plank, which allows direct communication between employees of the same level.

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