Authority, Centralization & Decentralization. Providing you can clear idea about all these topics would help you out in understanding better. Happy learning

1. Meaning of authority
It is the power to command others to
do or not do certain things necessary
to realize the objectives of the
enterprise.

2. Concept of authority
Formal authority theory
Acceptance theory of authority
Competency theory

3. Acceptance theory of authority
Subjective- the personnel, the
accepting of the communication.
Objective aspect- the character in
the communication by virtue of which
it is accepted

4. Competency theory
There is a belief that authority is generated
by the personal qualities of the individual.
They may have no actual authority, yet their
advice may be so eagerly sought.

5. Responsibility
It is the obligation of the subordinate
to whom a duty has been assigned, to
perform the duty.
ACCOUNTABILITY
Accountability indicates liability for
the proper discharge of duties by the
subordinate.

6. Centralisation
It refers to a systematic reservation of authority
at central points within the organisation.

7. Advantages
• It facilitates personal leadership
• It provides for integration
• It promoted uniformity of action
• It makes possible successful
handling of emergencies

8. disadvantage
• Heavy burden
• Organisation growth retarded
• Lower status of lower level
managers
• Autocratic management
• Initiative discouraged
• Delayed decision making
• Managerial development retarded
• Egoistic planning

9. DECENTRALISATION
It is the tendency to delegate authority to
lower level.

10. ADVANTAGE
Lessens top management burden
Makes diversification easy
Facilitates effective control and quick
decison
Maintains secrecy
Better co-ordination

11. Disadvantages
• Lack of consistency
• Weak top management
• Cost burden
• Conflict
• Loss of control
• No uniform action