Authority & Responsibilty

Delegation and its ElementsAccountabilty

Decentralisation

PRESENTED BY

FAKHRUDDIN BADSHAHPRATIK MANDOTAMIT JAINSARAN PALIWAL

AUTHORITY

According to Henry Fayol, “Authority is the right to give orders and power to exact obedience”.According to Weihrich and Koontz, “Authority in organization is the right in a position( and, through it, the right of the person occupying the position) to exercise discretion in making decisions affecting others.”

Characteristics of authority

1.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 duty relationship between Superior and Subordinate.7. Guide and Influence:8. Goal Achievement:9. Limited: The limit on authority is specified by the duties, responsibilities, rules , regulations, policies, procedures, budgets etc.10. Objective: Authority in itself is objective by nature but its exercise may be subjective(influenced by many factors).11. Abuse or Misuse:

Power“Power is the ability of a person to influence the behavior of others or the capacity to affect a situation.”

Whereas, Authority is the formal right to command subordinates and ensure confirmity.

Distinction between

1. It is the formal right vested in managerial position to decide.

2. It is impersonal and objective.

3. It vests only in organizational positions.

4. It flows from top to bottom in managerial hierarchy

1. It is the ability to influence others. It is neither formal nor informal

2. It is personal and subjective.

3. It is all pervasive.

4. It can flow in any direction from top to bottom or bottom to top.

Authority Power

According to Haimann , “ Responsibility is the obligation of a subordinate to perform the duty as required by his superior.”

In words of McFarland, “Responsibilty is the duties and activities assigned to a position or an executive.”

Thus, Responsibility is an obligation of a person to perform tasks, functions and activities assigned to him.

ACCOUNTABLITY

According to Mondy etal, “ Accountability is any means of ensuring that the person who is supposed to do a task actually performs it and do so correctly.”

In simple words, Accountability is the obligation of a person to report to his Superior for the actions and decisions taken or for the results achieved by him. Thus , accountability arises when a person assumes responsibilities.

THIS SHOULD NOT BE DONE ELSE YOU WILL BE KICK OUT FROM THE SYSTEM/ORGANISATION.

DIFFERNCES BETWEEN

RESPONSIBILITY• Responsibility is a

personal duty felt by a subordinate.

• Responsibility is the duties and activities assigned to a position or to an executives.

ACCOUNTABILTY• Accountability is the

demand of a manager on his subordinates.

• It is the duty of a person to give accounts for the acts done, decisions made or results achieved by him to his superior.

DECENTRALISATION

DECENTRALISATIONAccording to Henri Fayol, “ Everything that goes to increase the importance of the subordinate’s role is decentralization.”In simple words , Decentralization of authority refers to the extent to which decision-making authority is widely dispersed within the organization. Here , top management retains authority to make certain important decisions like setting obj., strategic planning, policy formulation 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

DELEGATION

Contd.In the word of Haimmann, “ Delegation of authority merely means the granting of authority subordinates to operate within the prescribed limits.”

In simple term, Delegation means dispersing or assigning authority from one manager to another. Or we can say sharing authority with another.

Thus, delegation is the process by which a manager assigns his authority to his subordinates to perform certain tasks or activities assigned 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

9. Enhanced or withdrawn

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.

Delegation process:

DIFFERENCE BETWEEN

DELEGATION• It is a process of

assigning authority from a superior to his subordinates.

• It is the process of devolution of authority.

• Here immediate superior has control over the subordinates.

• It is must for management and key to organization.

DECENTRALIZAION• It is an organizational

process by which dispersal of authority takes place throughout the organization.

• It is the end result of the process of delegation.

• While here, top managers have overall control and operating control vests with the subordinates

• It is optional..

Contd.

DELEGATION• In this, both the superior

and the subordinate can exercise in the same authority.

• The superior continues to responsible for the decision and actions of his subordinate.

• It can take place even without decentralitionation.

DECENTRALIZATION• Here , superior cannot

exercise the decentralized their authority.

• while here, subordinates become liable for their decisions and actions to the top managers.

• It cannot take place without delegation.