AUTHORITY FLOWS FROM WHO KNOWS

By: Ramziya Begam

Learning Outcomes

1. Describe the Authority

2. Differentiate authority and power

3. List and briefly explain the types of Authority.

4. Describe Delegation of Authority.

5. Explain what an organization chart is and list different organization charts

Authority

• It is the right given to a manager to command or to give orders to perform a certain task

– The right to make decisions, issue orders, and use resources.

• Authority is given to a manager to achieve the objectives of the organization.

• A manager gets his authority from his position or post. He gets his authority from the higher authorities. The lower and middle-level managers get their authority from the top-level managers. The top-level managers get their authority from the shareholders.

Authority

• Authority always flows downwards. It is delegated from the top to the bottom.

Example

Power

• It is a broader concept than authority. • Power is the ability or potentials of a person to

influence another person or a group to perform an act.

• Legitimate power• Power of expertness• Referent power• Coercive power• Reward power

Power (Cont’d)

• Power can be personal power. A person gets his personal power from his personality or from his expert knowledge. Doctors, Lawyers, Engineers, Programmers, etc. get their power from their expertise and professional knowledge.

• Power can also be legitimate or official power. This power comes from a higher authority

Difference Between Authority and Power

AUTHORITY POWER

•Authority is the formal right given to a manager to make decisions or to command.

•Power is the personal ability to influence others or events

Authority flows downwards in the organization. This is because it is delegated by the superiors to the subordinates.

Power can flow in any direction. Even subordinates have power over their superiors, if they can influence their behavior. So power can flow upwards, downwards or horizontally.

•Authority relationships (superior-subordinate relationships) can be shown in the organization charts.

•Power relationships cannot be shown in organization charts

Authority is always official in nature. So it is legitimate.

•Power need not be official in nature. So it need not be legitimate.

Delegating Authority and Responsibility

• Delegating–Giving another person the authority and

responsibility to carry out a task

 Steps of Delegation of authority

• Step 1 - Determination of expected results• Step 2 - Assignment of job and duties to sub-

ordinates• Step 3 - Delegation of Authority• Step 4 - Fixation of Responsibility• Step 5 - Evaluation of Performance

Centralized and Decentralized Authority

• Centralized Authority– Important decisions are made by top managers.

• Decentralized Authority– Important decisions are made by middle and

first-line managers.

Benefits of Delegating

• A supervisor is evaluated according to the achievements of the whole department.

• Delegating responsibility is the best way to expand your personal authority.

• A supervisor who delegates also has more time for the jobs only a supervisor can do, such as planning and counseling.

• Delegation of work gives employees a chance to develop their skills and their value to the organization.

Organization Chart

Types of Departmentalization

Types of Departmentalization (cont’d)

Matrix Departmentalization