Scalar chain refers to the line of authority for the chain of superior ranking from the highest to the lowest. Fayol had insisted upon using this chain in every organisation. Every information must pass through every level without skipping any one of them.

In the above figure, A is the head of the organisation with two separate departments. One of the departments consist of B, C, and D, and the other department consists of E, F and G. B and EE are at the same level, followed by C and F, and D and G. If D wanted to contact with G, the line of communication will be D-C-B-A-E-F-G. If this chain of communication is broken, it will lead to a communication gap in the organization.

At times it may cause a lot of delay in passing out of information, which will eventually led to delay in decision making. To resolve this issue, Fayol has suggested a gang plank, which is a short cut chain, in which D can directly contact G.