What is Authority?
Authority is characterized as the institutionalized and legal power inherent in a job role, or position that allows the holder of the job to perform his or her responsibilities effectively. It is assigned officially and legally. Authority means a particular authorization obtained from a person's higher officer and based on which a person is entitled to do the work in an organization. It is important for administrative functions. Without authority, no person can carry out his duties with full responsibility.
This includes the right to monitor a situation, commit funds, issue orders, and demand them to be obeyed. It is followed by accountability for one's acts and failures to execute actions. Additionally, true authority often means that the authority is recognized by the aim.
Concept of Authority
The secret to managerial employment is authority. Authority is the cornerstone of the organization to the degree that an organization is defined as a system of relationships between authorities. Authority has a variety of meanings in daily life; it may refer to an individual with superior expertise and skills in a specific field; it may apply to certain officials such as a police commissioner, a university vice-chancellor, or a company's managing director; the word 'registered dealer' also has a different connotation, that of a legally-constituted relationship. However, for management purposes, these definitions of authority are not sufficient. The Authority shall be allowed to make a decision on a matter given or assigned by the superiors. Taking decisions is not sufficient. The decisions are made by those given the responsibility of enforcing the said decision. Authority here becomes a right to order and even to execute the decision.
In short, the Authority can be defined as:
A legitimate right to a decision that may be given or assigned,
Entitlement to command,
The right to see that the decision is implemented properly and honestly
Characteristics of Authority
Basis of Getting Things Done: Authority grants the right to do something in an organization and to control the actions of the other employees of the organization. It immediately contributes to the completion of certain activities for the achievement of the stated goals.
Legitimacy: Authority means a legal right open to superiors (within the company itself). This type of right exists because of the practice of authenticity, custom, or norms agreed upon in an institution. Based on an organizational hierarchy, the right of a manager to influence the behavior of his subordinates is granted to him.
Decision Making: A prerequisite of authority is decision-making. The manager may order his subordinates to behave or not to act. The manager makes this form of decision concerning the operation of an office.
Implementation: Implementation affects the manager's personality. The subordinates or group of subordinates should obey the manager's orders as to the execution of decisions. One manager's personality factor may vary from another manager.
Features of Authority:
It is an individual's legitimate right.
It enables staff to be determined by the placeholder.
This means the right to seek compliance.
It is practiced in a certain manner to control the actions of subordinates.
It moves within the organization from top to bottom.
It is the ultimate organizing power, and it unites the various individuals who work in the company.
It is used to accomplish organizational goals.
Differentiating authority from power. Power is referred to as the ability to influence the attitude and behavior of an individual whereas authority is particular authorization obtained from the higher end.
Elements of Authority
There are 5 elements of authority which are explained below.
Usage of Power: In other words, there is a power where there is an authority based on which the authorized person gives orders and instructions to other persons under his/her jurisdiction.
Influential Personality: If the power is assigned to a person of influential personality, he can make successful use of these powers, easily because his orders are readily accepted by the subordinates.
Performance: An essential aspect of authority is the need for the exercise of authority control. Such success can take place in various ways, such as with the application and issuing orders in writing, etc.
Effective Leadership: The individual with authority must be an effective leader so that his subordinates can be guided and his subordinates can obey his instructions in turn.
To Influence the Subordinates: The person having authority must have a quality impact on his subordinates for the successful exercise of authority to be able to recognize and comply with his orders
Relationship Between Authority and Responsibility
Authority can be defined as the legal right of a person or superior to command his subordinates. On the other hand, accountability refers to the duty of an individual to carry out his performance as per the company standards. The direction of the flow of authority is from the superiors to subordinates. During this flow of authority, subordinates receive orders and instructions from their superiors on the nature and time frame to complete the task. It is only by the use of the authority that a manager exercises control and demands accountability from his subordinates.
For example, it is the marketing manager who directs the sales supervisor for the sale of a specified number of units within a pre-scheduled deadline (such as in a month/ yearly goals). If the set standards are not satisfactorily accomplished, it is the marketing manager who will be accountable to the chief executive officer. This example illustrates how authority flows from top to bottom and why responsibility flows from bottom to top. Accountability is a result of responsibility and responsibility in turn is achieved through authority. Therefore, authority and accountability always go hand in hand.
Importance of Delegation
In a practical sense, we know that a manager alone cannot perform all the tasks assigned to him. If he wishes to achieve his targets, it is unavoidable that he delegates his authority. Delegation of authority here means division of authority and powers downwards to the subordinate and workers down the power structure. Delegation basically involves sharing work with someone else, usually a group of people to do parts of the manager's job.
Delegation of authority is a structural way of relieving the managerial position of work beyond his capacity and hence becomes an important tool in organization function. If one looks close enough, it is through delegation that a manager/ superior multiplies himself by dividing/multiplying his work with the subordinates.
FAQs on Authority in Business: Concept Explained
1. What is the concept of authority in business management?
In business management, authority is the formal and legitimate right of a manager to make decisions, issue commands, and allocate resources to achieve organisational goals. This right is granted to an individual based on their position or role within the company's hierarchy. It empowers them to direct the work of others and ensure that tasks are completed effectively.
2. Why is authority important for the smooth functioning of a business?
Authority is crucial for a business because it establishes a clear structure for decision-making and accountability. It prevents chaos by defining who is responsible for specific tasks and who has the power to give instructions. This clarity ensures coordinated effort, quick decision-making, and disciplined execution of plans, leading to overall organisational efficiency and goal achievement.
3. Can you provide a real-world example of authority in a business setting?
A simple example of authority is a Marketing Manager in a company. They have the authority to assign tasks to their team members, such as creating a new advertising campaign. They can approve the final ad copy, set deadlines, and allocate the budget for the campaign. Their subordinates, like marketing executives, recognise this authority and follow their instructions to complete the assigned work.
4. What are the main characteristics of authority?
The main characteristics of authority in an organisation include:
- Legitimacy: It is a formal right granted by the organisation and is associated with a specific position, not the person.
- Decision-Making Power: It gives the holder the right to make decisions that affect others.
- Implementation Power: It includes the power to enforce decisions and ensure compliance from subordinates.
- Hierarchy-Based: Authority flows downwards through the organisational structure, from higher levels to lower levels.
5. What is the relationship between authority and responsibility?
Authority and responsibility are two sides of the same coin and must be balanced. Authority is the right to give orders, while responsibility is the obligation to perform the assigned duties. For an employee to be effective, they must be given enough authority to carry out their responsibilities. Granting responsibility without adequate authority leads to frustration and failure, whereas granting authority without corresponding responsibility can lead to misuse of power. Ideally, authority should be equal to responsibility.
6. What happens if a manager delegates responsibility without granting enough authority?
If a manager assigns responsibility to a subordinate without delegating the necessary authority, the subordinate will be unable to perform the task effectively. For example, if a sales executive is made responsible for increasing sales by 20% but is not given the authority to offer discounts or approve marketing materials, they are set up for failure. This imbalance leads to employee demotivation, delays in work, and an inability to hold the person truly accountable for the results, as they lacked the power to make necessary decisions.
7. What are the three essential elements involved in the delegation of authority?
Delegation is a process built on three essential elements:
- Authority: The power and right of a person to use and allocate resources, make decisions, and give orders.
- Responsibility: The obligation of a subordinate to properly perform the assigned duty.
- Accountability: The answerability for the final outcome of the assigned task. It cannot be delegated and flows upwards from subordinate to superior.
8. How is authority different from power in an organisational context?
While often used interchangeably, authority and power are distinct concepts. Authority is the formal, legitimate right to command, which comes with a managerial position. It is legal and formal. Power, on the other hand, is a broader concept referring to an individual's ability to influence the behaviour of others, which may or may not be formal. For example, an influential team member with great expertise may have the power to sway decisions, even without formal authority. Authority is a form of power, but not all power comes from formal authority.
9. Why is it said that accountability cannot be delegated?
Accountability is the ultimate answerability for the successful completion of a task. While a manager can delegate authority and responsibility to a subordinate, they remain accountable to their own superior for the outcome. For instance, if a CEO delegates a project to a manager, and the manager delegates parts of it to a team, the CEO will still hold the manager accountable for the project's success or failure. The manager cannot escape their accountability by blaming their team. This principle ensures that there is always a final point of responsibility in the hierarchy.
10. What are the different types of authority found in organisations?
In most business organisations, authority can be classified into three main types:
- Line Authority: The direct authority that a manager has over their subordinates, following the chain of command. For example, a Production Manager has line authority over a shift supervisor.
- Staff Authority: The right to advise or assist those with line authority. Staff specialists (e.g., in HR or Legal departments) provide expert advice but do not have direct command over line departments.
- Functional Authority: The authority given to a specialist over specific processes or tasks in departments other than their own. For example, a Finance Manager may have functional authority to enforce a specific budgeting process across all departments.
