Chain of command is considered very important in organizations because it enhances the effectiveness of the management. Through chain of command the management increases accountability of the employees. This ultimately enhances the control of the management over the operations of the organizations. The chain of command clearly shows the line of authority and responsibility in the organization, therefore, it really plays an important role in the organizations.
Chain-of-command facilitates the dissemination of information and ensures that accountability rolls upward. It further defines lines of decision making authority within an organization.