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Question

The production of the new iPhone is split up into many different parts: design, hardware, software, manufacture, marketing, production, and assembly. This way, the company can hire specialised people for each task. Tim Cook is the overall authority over the employees. He is responsible for ensuring that his employees are motivated towards achieving the organisational goal. A hierarchical structure developed by Steve Jobs was modified by Tim Cook so that there is a systematic chain from top to bottom levels of workers at Apple. This hierarchy allows communication even across the departments in the company. There is just one person managing the entire organisation. The company has special recognition for employees, such as the Apple Genius, which offers $45,000/year. Also, they are provided with health benefits, financial and retirement benefits, family and parenting benefits, etc.

Tim Cook modified the hierarchical structure in accordance with Henri Fayol's principle of management.
Identify the principle.

[0.80 marks]

A
Remuneration
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B
Centralisation
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C
Scalar chain
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D
Unity of command
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Solution

The correct option is C Scalar chain
Fayol's principles suggest ways of efficient administration. One of the principles is a scalar chain. Fayol believed that, Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.

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