Explanation:

Communication is a crucial aspect of any organisation and the principle of scalar chain revolves around the flow of communication from management to the lowest rank in the company. Scalar chain is a chain of all supervisors from the top management to the person working in the lowest rank.
A clear line of communication is very important for any organisation to achieve its objectives. The communication has to flow in an order for it to be effective. Scale chain identifies that path. According to the principle, any information should follow a pre-defined path, which is from the supervisor to the one in lowest position, to avoid any ambiguity.

This chain pattern should be followed at every department of the organisation to be effective and the process should not be tinkered with for it to remain effective. Let's understand it with the help of an example. Suppose your company has 10 employees.