The principle that guides the hierarchy of management for decision making is known as?

Study for the Management Analyst Test. Enhance your skills with flashcards and multiple-choice questions, each question comes with hints and explanations. Get exam-ready!

The principle that guides the hierarchy of management for decision-making is known as the chain of command. This concept establishes a clear line of authority within an organization, indicating who is responsible for decision-making at different levels. The chain of command delineates the relationships between various roles in the management structure, ensuring that decisions flow in an organized manner from higher management to lower levels and vice versa.

In practical terms, the chain of command helps to clarify who reports to whom, which is essential for maintaining order and accountability within an organization. Each level in the hierarchy is empowered to make decisions relevant to their area of responsibility while remaining aligned with the overall goals of the organization. Understanding this principle is crucial for effective management as it facilitates communication, enhances organizational efficiency, and supports strategic decision-making.

Other options may highlight important aspects of management, such as accountability, leadership, or the process of delegating authority, but they do not specifically address the structured command relationship that guides decision-making as effectively as the chain of command does.

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