Final answer:
The correct term for the concept that indicates all workers should know their reporting lines is the 'chain of command'. This hierarchy is essential in defining authority and responsibilities within an organization. However, modern shifts towards flat organizational structures and teamwork are impacting traditional hierarchies.
Step-by-step explanation:
The concept that states all workers should know to whom they report is referred to as the chain of command. This concept is a fundamental principle of organizational structure that defines the hierarchy of authority within an organization. For instance, in a company like Walmart, the chain of command starts with the shift manager who assigns tasks to employees. These shift managers report to store managers, who then report to regional managers, and the sequence continues all the way up to the CEO, who is accountable to the board members and stockholders. This structured line of reporting ensures clarity in roles, responsibilities, and accountability across the different levels of the organization.
However, it's important to note that many contemporary organizations have shifted from traditional hierarchies toward flat organizational structures that promote teamwork and collaboration. In the information age, rigid adherence to the chain of command may in some cases hinder productivity and efficiency. Nevertheless, the bureaucracy's division of labor and hierarchy of authority can provide a level of organization and clarity that is necessary in large-scale operations, such as those during the Industrial Revolution. It is this clear delineation of tasks and authority that supports the efficient functioning of large organizations.