AUTHORITY

Authority is the legal right to give orders and get order obeyed

 Legal/Formal authority  Traditional authority  Acceptance authority  Competence authority  Charismatic authority Sources of Authorities

Legal Authority According to this theory, Authority is based upon the rank or position of the person and this authority may be given by law or by social rules and regulation protected by law. Example : A law may grant authority to the policeman to arrest a person committing a crime

Traditional Authority Traditional authority has develop from a social order communal relationship in the form of ruling lord and obedient subjects. Example : In a family system father exercises traditional authority over members of the family. It is the father who guides the activity of the family and others obey out of respect and traditions.

Acceptance Authority Chester Bernard was of the view that it is the acceptance of the authority which is more important. If the subordinates do not accept the order of the superior there will be no use of exercising authority. It means that orders flow from bottom to top.

Competence Authority Authority is also generated by personal qualities of a person. The advice of some persons may be accepted even if they don’t have a formal authority. Example : When a doctor advises rest to a patient he accept this advice because of doctor’s knowledge and not of his formal authority.

Charismatic Authority  The Charismatic authority rests on the personal Charisma of a leader who commands the respect of his followers.  The followers become attached to the leader because they feel that he will help them in achieving in their goals.  Example : Film actors, Film actresses, Political leaders

RESPONSIBILITY  Responsibility is the obligation to do something.  It is the duty that one has to perform in organizational task, functions or assignments.  According to George Terry defines responsibility as, “Responsibility is the obligation to carry out assigned activities to the best of his abilities.

Features of Responsibility  Responsibility arises from superior subordinates relationship.  It always flow upward from juniors to seniors.  It arises from the duty assigned.  It is the obligation to complete the job as per instructions.

WHAT IS ACCOUNTABILITY???????????  Accountability is the obligation of an individual to formally report to his superior about the work he has done to discharge his responsibility.

Nature of Accountability  Can’t be delegated  Always upward  Unitary  Accountability standards

DIFFERENCE BasisAuthorityResponsibilityAccountability MeaningRight to commandObligation to Perform an assigned task. Answerability for outcome of the assigned task. DelegationCan be delegatedCannot be entirely delegated Cannot be delegated at all FlowFlows downward from superior to subordinate Flows upward from subordinate to superior

Legitimate Power Legitimate Power is when a person is lawfully entitled to exercise power over the other Constructive vs. Destructive

14-25 Power: The Key to Leadership Reward Power – The ability of a manager to give or withhold tangible and intangible rewards. – Effective managers use reward power to signal to employees that they are doing a good job.

14-27 Power: The Key to Leadership Coercive Power – The ability of a manager to punish others. Examples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects.

Expert Power Expert Power involves valued knowledge or information which gives that particular individual an advantage in power. In this a person has some kind of expert knowledge or he is specialist in a particular case.

Referent Power Referent Power comes about when one’s personality becomes the reason with compliance. This is commonly seen in role models. Referent Power

 Refers to the power to make decisions  Right to command  Exercised because of position  It flows from top to bottom in managerial hierarchy  Delegated to lower levels from higher levels  Refers to capacity to influence others  Capacity to command  Exercised because of persons  It can flow in any direction from top to bottom or bottom to top  Acquired by different means

 Managers fear loss of power, authority and control  Employees are not able to make responsible decisions.  Sharing information means leaking ideas, plans, and knowledge.  Not everyone wants to be empowered

Allen, “The entrustment of a part of the work,or responsibility and authority to another, and the creation of accountability for performance “

Elements 1.Assignment of responsibility 2. Grant of authority 3. Creation of accountability

1.Principle of functional definition 2. Principle of unity of command 3. Delegation results expected 4. Absoluteness of responsibility 5. Parity of authority and responsibility 6. Authority level principle 7. The scalar principle

 General or specific delegation  Formal or informal delegation  Lateral delegation  Reserved authority and delegated authority

 Willingness to delegate  Climate of trust and confidence  Faith in subordinates  Fear of supervision

1.Over confidence of superior 2. Lack of confidence in subordinates 3. Lack of ability in superior 4. Lack of proper controls 5. Lack of proper temperament of superior 6. Instability of subordinates

Factors affecting degree of delegation 1. company’s history 2. Availability of capable persons 3.Importance and costliness of decisions 4. Size of the enterprise 5. Available controls 6. Types of enterprise 7. Environmental factors

1. Defining of assignments 2. Proper selection of persons 3. Proper communication 4. Establishing proper controls 5. Rewords for proper implementation

Centralization is the process where the authority and power of an organization is in the hands of only a few. This power includes activities such as planning, decision-making and delegating authority. The top management takes all the important decisions if an organization is centralized. These decisions are then enforced on the lower tiers of the organization. organization

Factors determining centralisation of authority  Achieving uniformity of action  Facilitating integration  Promoting personal leadership  Handling emergencies

Disadvantages  Destroys individual initiative  Over burden of few  Slows down the operations  Distance from customers  No scope of specialisation

Decentralisation implies the dispersal of decisions – making power at lower level. As organizations grow bigger these days, the power is distributed at different levels to be able run the organization more efficiently. This is called decentralization. Thus, decentralization can be defined as the delegation of authority at all levels of an organization.organization

 Size and complexity of organisation  Communication system  Degree of standardisation  Spread of activities

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