According to Henry Fayol, “Authority isthe right to give orders and power to exactobedience”.According to Weihrich and Koontz,“Authority in organization is the right in aposition( and, through it, the right of theperson occupying the position) to exercisediscretion in making decisions affectingothers.”
CHARACTeRIsTICs Of AUTHORITY1. A Right:2. Positional Right:3. Formal:4. Flow of Authority: flows from the Top to the Bottom of the managerial hierarchy.5. Forms of Authority: (a) Decision making (b) Issuing orders (c) Taking actions (d) Performing Duties (e) Mobilsing and Utilizing resources
6. Relationship: Establishes Right dutyrelationship between Superior andSubordinate.7. Guide and Influence:8. Goal Achievement:9. Limited: The limit on authority is specifiedby the duties, responsibilities, rules ,regulations, policies, procedures, budgets etc.10. Objective: Authority in itself is objective bynature but its exercise may besubjective(influenced by many factors).11. Abuse or Misuse:
POweR“Power is the ability of a person toinfluence the behavior of others or thecapacity to affect a situation.” Whereas, Authority is theformal right to command subordinatesand ensure confirmity.
Distinction between Authority Power1. It is the formal right 1. It is the ability to vested in managerial influence others. It is position to decide. neither formal nor2. It is impersonal and informal objective. 2. It is personal and3. It vests only in subjective. organizational 3. It is all pervasive. positions. 4. It can flow in any4. It flows from top to direction from top to bottom in managerial bottom or bottom to hierarchy top.
According to Haimann , “ Responsibility isthe obligation of a subordinate to performthe duty as required by his superior.” In words of McFarland, “Responsibiltyis the duties and activities assigned to aposition or an executive.”Thus, Responsibility is an obligation of aperson to perform tasks, functions andactivities assigned to him.
According to Mondy etal, “ Accountabilityis any means of ensuring that the personwho is supposed to do a task actuallyperforms it and do so correctly.”In simple words, Accountability is theobligation of a person to report to hisSuperior for the actions and decisionstaken or for the results achieved by him.Thus , accountability arises when aperson assumes responsibilities.
THIS SHOULD NOT BEDONE ELSE YOU WILL BEKICK OUT FROM THESYSTEM/ORGANISATION.
DIFFERNCES BETWEENRESPONSIBILITY ACCOUNTABILTY• Responsibility is a • Accountability is the personal duty felt by a demand of a manager on subordinate. his subordinates.• Responsibility is the • It is the duty of a person duties and activities to give accounts for the assigned to a position or acts done, decisions to an executives. made or results achieved by him to his superior.
DECENTRALISATIONAccording to Henri Fayol, “ Everythingthat goes to increase the importance ofthe subordinate’s role is decentralization.”In simple words , Decentralization ofauthority refers to the extent to whichdecision-making authority is widelydispersed within the organization. Here ,top management retains authority tomake certain important decisions likesetting obj., strategic planning, policyformulation etc.
CHARACTERISTICS1.Dispersal (freedom at their own) of decision making.2.Operating and routine decisions is delegated at the points where actions take place.3.Power relating to functional areas are delegated to middle and lower-level managers.
Contd.4. Middle and Lower levels have discretion in specific operational areas.5. Decentralization is more than mere delegation of authority.6. It is impossible to achieve absolute decentralization of authority.
Advantages:1. Reduces burden on top Mgt. :2. Quick decisions:3. Better Decisions: why because decisions are made by the persons closest to situation.4. Better communication:5. Training and Development:6. Democratic atmosphere:7. Improves Motivation and Morale
Disadvantages :1. Loss of control :2. Difficulty in coordination : It may crate prob. in developing coordination among the different dept. of the organization.3. Lack of uniformity :4. High cost :5. Duplication of work :6. Competition among departments :7. Imbalance
Contd.In the word of Haimmann, “ Delegation ofauthority merely means the granting of authoritysubordinates to operate within the prescribedlimits.”In simple term, Delegation means dispersing orassigning authority from one manager to another.Or we can say sharing authority with another .Thus, delegation is the process by which amanager assigns his authority to hissubordinates to perform certain tasks or activitiesassigned to them.
Characteristics :1. Process of assigning authority.2. Shifting decision making authority.3. Creates link.4. Authorizes subordinates.5. Creates responsibilities.6. Delegation of authority not of responsibility.7. Only to positions.8. Express or implied
Significance :1.Key to managing.2.Basis for organizing process3.Quicker decision and faster decision.4.Better decisions.5.Promotes specialization.6.Relieves managers from operative functions.7.Motivates subordinates.8.Better attitude and morale of employess9.Training and development of subordinates.
DIFFERENCE BETWEEN DELEGATION DECENTRALIZAION• It is a process of • It is an organizational assigning authority from a process by which dispersal superior to his of authority takes place subordinates. throughout the• It is the process of organization. devolution of authority. • It is the end result of the• Here immediate superior process of delegation. has control over the • While here, top managers subordinates. have overall control and• It is must for operating control vests management and key to with the subordinates organization. • It is optional..
Contd.DELEGATION DECENTRALIZATION• In this, both the superior • Here , superior cannot and the subordinate can exercise the decentralized exercise in the same their authority. authority. • while here, subordinates• The superior continues to become liable for their responsible for the decisions and actions to decision and actions of the top managers. his subordinate. • It cannot take place• It can take place even without delegation. without decentralitionation.