Future Business Leaders of America (FBLA) Business Management Practice Test

The principle that states an employee should have only one immediate supervisor is known as what?

1. Peter Principle

2. Unity of command

3. Division of labor

4. Accountability

The correct answer is: Unity of command

The principle that states an employee should have only one immediate supervisor is known as Unity of Command. This principle is vital in organizational structure and management because it helps to establish clear lines of authority and accountability within a team or organization. When an employee reports to a single supervisor, it eliminates confusion regarding who is in charge and ensures that the employee receives consistent direction regarding their tasks and responsibilities. This clarity can enhance communication, reduce conflict, and improve efficiency, as employees are not receiving conflicting instructions from multiple supervisors. The other concepts don't relate directly to the structure of supervisory relationships. For instance, the Peter Principle speaks to the idea that employees tend to rise to their level of incompetence in a hierarchy, which does not address the chain of command. Division of labor refers to the specialization of tasks to increase efficiency, and accountability pertains to the obligation of individuals to report on their activities and outcomes, which is often a result of having a clear supervisory structure rather than a principle in itself.