The document discusses the concepts of authority, responsibility, and accountability. It defines them as follows: - Authority is the right to give orders or instructions. - Responsibility is the obligation to achieve objectives. - Accountability is the obligation to report to higher authorities on the discharge of responsibilities. It explains that accountability flows upward, while responsibility is assigned downward. Authority and responsibility must be aligned, and accountability relies on the delegation of authority and responsibility.

1. 1
Authority, Responsibility & Accountability
• Authority – The right to give orders or valid
instructions
• Responsibility – This is Obligation to achieve certain
objectives
• Accountability – This is the obligation to report (give
an account) to higher authority for the discharge of
those responsibilities.
• Power – The ability of individuals or groups to
influence the beliefs or actions of other persons or
groups and is more complicated than authority.

2. 2
Relationship
• Accountability flows upwards in an organization,
while responsibility is assigned downwards.
• Responsibility and authority must go hand in hand
• Accountability cannot be expected and flow upwards
unless authority and responsibility have first flowed
down
• Usually subordinates are given responsibility for the
duties assigned to them by their manager and are
accountable to him for their performance

3. Definition of Responsibility
As per Davis, “Responsibility is an obligation of an individual to
perform assigned duties to the best of his ability under the
direction of his leader.” In the words of Theo Haimann,
“Responsibility is the obligation of a subordinate to perform the
duty as required by his superior”.
As per McFarland, responsibility means, “the duties and activities
assigned to a position or an executive”.
Characteristics
Its importance lies in the creation of the obligation to perform
the work.
It arises from the superior-subordinate relationship.
Unlike Authority, it flows from bottom to top.
It is always in the form of a continuing obligation.
No one can delegate responsibility.

4. Accountability
• It is nothing but the liability created for the transfer of authority.
Accountability creates the obligation of the subordinate and makes
him answerable for the work done by him/her.
• Hence, it is the answerability for the performance of the assigned
duties. Once a person accepts authority, he deems to accept
Responsibility and Accountability at that time only.
• Definition of Accountability
• As per McFarland, “accountability is the obligation of an individual
to report formally to his superior about the work he has done to
discharge the responsibility.”

5. Question: How are Authority, Responsibility and
Accountability are inter-related?
• Answer: All of the 3 elements are very much
related to each other as the creation of one leads
to the creation of another two at a similar point of
time. None of the elements can exist in isolation.
That’s why the top management needs a lot of
consideration before deciding the flow of authority.
Once authority to take any action for the
accomplishment of any objective is given, the
remaining 2 elements viz, Responsibility and
Accountability emerges automatically.

6. Difference b/w

7. 7
Centralization & Decentralization
• Centralization is characterized by decision making
being undertaken at the top levels, while actual work
is carried out at the lower levels.
• Decentralization refers to the systematic devolution
(transference of power) of responsibility and
authority within the structure of an organization.

8. 8
• By centralization or decentralization it does not mean
the division of organization into departments or
sections
• It is where decisions are made that determines the
degree of centralization, and it is quite possible for
an organization to have many divisions, all of which
are strictly controlled from a single central source of
authority
• Organizations cannot be totally centralized or
decentralized.

9. 9
Advantages of Centralization?
• Central authority ensures corporate integrity to the organization and preventing
excessive departmentalism.
• Senior management needs to be seen as providing leadership for the organization
as a whole, ensuring that the various parts perform as a team within corporate
objectives.
• In the event of disputes between departments or division, or between
departments and the corporate whole, central authority takes on the role of
referee in the resolution of conflict.
• Centralized authority is necessary for the making of corporate policy and
determining strategic plans across the whole organization.
• It also fulfills other functions such as standardizing procedure and approaches
which are defining and promoting a unity and style and purpose in respect of issue
and practices across the organization such as equal responsibilities practice.
• It also fulfills the purposes of crisis management which is the determination of
action which can be effective across the whole organization in response in serious
emergencies.

10. 10
Advantages of decentralization?
• Decentralization aims to place the authority to make decisions at points as near as
possible to where there are relevant activities take place.
• It utilizes local and immediate knowledge of situations in order to make the timely and
effective decisions within the defined spare of action.
• This is in contrast to centralized decision making which is remote from the point of
impact.
• There is, therefore a clear potential gain in the quality of decision making, but it must
be confined to those situations which do not have wider impact that the area of
responsibility of the decision maker.
• It encourages initiative, stimulates job satisfaction and includes moral by providing
individuals with more control over their work and involvement with the objectives of
the organization.
• It fosters the development of managerial ability at lower levels.

11. 11
Disadvantages of decentralization?
• The principal problem is one of the autonomy of decentralized units, where
independence from the centre can lead to working against corporate policy.
• Centralized authority can lose touch with the details of operations in decentralized
parts of the organization, and the decentralized unit can lose touch with its role as
parts of the whole.
• It is a disadvantage because of the possibility that decision making is very close to
an often involves the affected parties, it can actually turn out to be relatively slow
and represent a compromise based on the need for acceptance.
• Decentralization depends on effective management at the lower levels, and this is
likely to require extensive training which will be costly to the organization.
• Decentralized operations may lead to the duplication of work which will be again a
cost.

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So, When do we need
DECENTRALIZATION ?
Decentralization will be needed when the
organization is in the process of growing
in the size, as well as when it wants to
increase the need for flexibility and
responsiveness in its operations.

13. 13
What is it called if u start
DECENTRALIZING?
DELEGATION
Delegation is the passing of responsibility
of one level of management to a lower
level.

14. 14
Why do managers refrain from delegating?
• It takes more time to explain what to do than to do
the work oneself.
• Subordinates lack the knowledge, skills and
experience necessary – if you want something done
properly the only way is to do it yourself – attitude.
• Lack of trust in subordinates
• Subordinates do not want additional responsibility,
especially without additional pay or reward.
• Sometimes managers are scared to delegate because
they are afraid to lose their job of their subordinates
performs better than them.

15. 15
BHAI ….. I Have Delegated My WORK…..
SO, can I take REST ?
• When a manager delegates responsibility to another, he
still is accountable to another senior manager regarding the
delegated matter.
• When a manager delegates he should be prepared to live
with the problems and consequences which will arise out
of the delegated work.
• Subordinate’s performance should be judged against the
objectives and standards associated with the responsibility,
not against how the manager would do it.

16. 16
Empowerment
Empowerment is a development from delegation. When delegation
is integrated into the organization, employees are given increased
responsibility for their own work and are allowed to work with
more independence, they become “empowered” and relieved of
detailed instructions and controls.
• Empowerment is a process to increase efficiency and make greater
use of each individuals contribution.
It implies synergy – the total is greater than the sum of the parts
added.
• Empowerment is also about ownership, it is a way involving
people in the operations of the organization, so that they feel
personal responsibility for their actions.