Delegation of authority establishes relationships. Vertical delegation of authority determines relationship between a boss and his subordinate and the horizontal division of authority determines the degree of decentralisation. Responsibility is the obligation of a subordinate to perform a duty, which has been assigned to him by his superior. ‘Formal’, ‘Traditional’ or ‘Top-Down’ theory. The extent of delegation of authority also restricts the authority of a manager. A person will be accountable only when he has been assigned any task or responsibility by the person who commands authority over him. It ignores the organisational situation of the possessor of the authority. This shows that the obligation is the essence of responsibility. G. R. Terry observes “In almost every enterprise, emergency and unusual events accrue which are not provided for in the organisational set-up. The essence of the theory is that any authority is as effective or inef­fective as the willingness or unwillingness of subordinates to accept it. For practical purposes, the term authority can be defined as the legal and rightful power to command or to extract action from others. In an enterprise responsibility is accepted by a subordinate due to contractual relationship and in turn, he gets monetary or other rewards. authority should be commensurate with responsibility. – Henry Fayol, “Authority is the official and the legal right to command action by others and to enforce compliance. • Responsibility cannot be delegated. The competition in prices of the product and other economic factors also affect the authority. For example, shareholders of a company are the source of all legal authority to con­trol and manage its affairs. Authority flows downward, i.e. It may continue or cease with the accomplishment of the desired objective. 1. Unlimited authority always tends to be an instrument of corruption, It should therefore, have arid generally does have some limitations, which may be express and implied. The relationship between CEO and the production manager of a company is a case of continuing responsibility – the production manager must keep performing his task or responsi­bility so long as he is in the employment of the company. Every manager at any level in the organisation, must respect the laws, traditions and restrictions etc. Authority Responsibility; An authority is a power or right that a person gets because of his designation, role, or job. Under the acceptance theory, it is believed that authority comes to the manager by the acceptance of power to make and enforce decisions through his subordinates. In a business organization a manager is vested with official and legal authority which empowers him to assign tasks and responsibility to his subordinates and demand accountability from them in respect of performance of those tasks and responsibility. The flow of legal authority is top-down at each level. I would think that responsibility is the duty or role delegated according to your scope of work. Responsibility is in the form of a continuing obligation. – George R. Terry, “Authority means the Power to command others- to act or not to act in a manner deemed fit by the possessor of the authority and is exercised in furtherance of the enterprise or departmental purpose”. If the marketing manager directs the sales sup… Accountability will shrink or expand with the nature of responsibility assigned. There are any limitations to the concept of authority. But compliance of actions and carrying out of instructions by subordinates cannot always be assured merely because the authority is customarily accepted. There are two versions of theory of authority. People who are in an authoritarian position have more responsibilities which come with the power of authority. Only a per­son holding authority—legal, traditional or competence—can assign task or responsibility. Formal and legal authority would empower him to secure performance from his subordinates through adoption of the ‘carrot and stick’ policy—reward to subordinate if the task or responsibility assigned to him is performed to the satisfaction of the manager, and punishment if it is not. A person with extraor­dinary characteristics (charisma) exercises authority over his followers, even though the followers are neither bound by any law or tradition to do so. Authority can be designated, but responsibility cannot be designated. So a manager while using authority, must keep in his mind, the reaction of his orders on employees, shareholders and customers etc. Responsibility arises from superior subordinate relationships. The superior frames and transmits decisions, with the expectation that the subordinates will accept and comply with them. 3. In a more comprehensive sense responsibility can be defined as an obligation of a subordinate to perform the duties assigned to him. Laws, trade practices etc. Hence, it includes the powers to assign duties to the subordinates and make them accept and follow it. But if he is assigned the task of producing 100 units daily on the machine, his responsibility is expressed in terms of a quantitative target. Characteristics of Responsibility. The whole organisational structure is based on the concept of authority without use of authority, anarchy and utter confusion will prevail all around the enterprise Authority is usually respected, recognised and followed in the organisation as a matter of course. Authority refers to the legal right to relinquish command, influence or compel someone, while responsibility comes after authority. Top managers appoint senior and junior level managers and assign tasks and responsibility to them to perform and dele­gate them appropriate authority to operate and control the resources placed under their control. Failure to observe these elements may call for a penalty, punishment or disciplinary action against the erring subordinate. It is only through authority, a manager exercises control. (a) The subjective aspect that is the personal aspect of accepting a communication or order as authoritative; and. Explain the scope of practice and roles of RNs, LPNs, and UAP, including credible sources of information. It always originates from the superior-subordinate relationship. In general, in business organizations, the authority is a result of the contractual agreement, under which the subordinate have agreed to perform certain services in return of monitory benefit. Another way to define authority is to emphasize that those in power hold people accountable for the responsibilities delegated. The term responsibility has been interpreted in two different ways. A responsibility is the outcome of a superior-subordinate relationship. Normally subordinates recognize authority of those occupying higher hierarchical positions. The subordinate expects such decisions, and his behaviour is determined by them. It is also the right of the manager to make decisions. Therefore responsibility cannot be delegated. Duty or responsibility may be in terms of functions, targets or goals. In a way through exercising the control the superior is demanding accountability from subordinates. A sub­ordinates may accept the authority of the manager because – (i) he wants to contribute to the accomplishment of organisational objective (ii) he wants to obtain some reward by accepting it. Also, to act or not to act depends on how he perceives the objectives of the organization. According to some writers all authority is formal. A few definitions of the term “authority” are given below: “Authority is the right to give orders and the power to obedience”. It is the power of the superior to make decisions which guides the actions of his subordinates. – Keith Davis, Responsibility is the obligation of a subordinate to perform his duty as required by his superior – Theo Haiman. The managerial authority is a rightful permission to act for the enterprise instruct the subordinates, impose penalty for wrong doings, use company property or to speak or act as a representatives of the enterprise. Authority is never absolute like responsibility. In a business organization, which is authoritarian in nature, the word authority refers to the power of an individuals to direct others by giving orders. Establishing vertical and horizontal relationships can do this more effectively through the sharing of authority effected by delegation. But his decision to do so is often influenced by his personal likes and dislikes and socio-economic, educational and cultural background. If the subordinate ably and willingly accept to perform the assigned tasks or responsibility, and performs it in the manner desired by the manager, he can rest content that his authority enjoys acceptance. According to Koontz and O’Donnell “the obligation of a subordinate to whom a duty has been assigned to perform the duty”. However, delegation of authority does not diminish the authority and responsibility of the manager- he continues to be the source of authority vested in him and also continues to be responsible for per­formance of the assigned task by him and/or his subordinate(s). Non-living inanimate beings – machine, tool, capital – cannot be assigned task or responsibility. Likewise, only a person who is subordinate to the authority-holding person can be assigned task or responsibil­ity. A manager’s authority is restricted by the enterprise goals, objectives, politics, programmes and procedures etc. Welcome to EconomicsDiscussion.net! 0405-luby - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Al 2010).This essay will explain all the important aspects related to decision making and impact of power and authority on its effectiveness and there it will also defined the relationship between power and authority in decision making context and the way they overlap each other or differ from each other will be explained in this study. Also, all authority is formal. Authority is a formal or institutionalized form of power vested in a position or office. According to Barnard, “an individual will accept the exercise of authority by his superior if the advantages to him from accepting the authority and the disadvantages from not accepting the authority are greater than the advantages from not accepting and the disadvantages from accepting; conversely, he will not accept the exercise of authority if the latter factors are greater than the former.”. And group behaviour of the authority to a person who commands authority over him latter becomes responsible for job. 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