Subordinates should observe the formal chain of command unless expressly authorized by their respective superiors to communicate with each other. Fayol called this the scalar chain.

This statement accurately reflects the principle of the scalar chain as proposed by Henri Fayol, who believed that communication within an organization should flow through a clear hierarchy of authority from top to bottom. However, it's worth noting that in modern management theory, there is generally more emphasis on the importance of lateral communication and collaboration between colleagues at all levels of an organization.