(1) Exercise of authority drives staff of the organization to perform the tasks and responsibility assigned to them: Authority means the right to influence the behavior of others. But as per Koontz O’ Donnel source of authority is discussed under three headings: The people who have belief in his theory, accept the basis that the ultimate source of authority in a business firm is embedded in the institution of private property, which is interested in a; person power over material resources. How to survive when your role is soon to be eliminated ? A manager can delegate his authority to his subordinate, but responsibility cannot be delegated. It will inspire the worker to achieve the target and he will experience a sense of fulfilment if he attains the target. A formal organization is a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. How to create a perfect profile to land the dream job, Gambling Versus Investing – The Ins And Outs, Why Training Programs don’t impact Business Objectives? Thus, authority and responsibility are not only interlinked but equal in equation like rights and duties, liberty and equality. 3. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. G. R. Terry observes “In almost every enterprise, emergency and unusual events accrue which are not provided for in the organisational set-up. Such an authority exists only till emergency lasts”. The relationship between a president and his sales managers is typical of the continuing type of obligation. Responsibility arises from superior subordinate relationships. According to some writers all authority is formal. Authority should be adequate and should not only match the duties to be performed but also the personal capabilities of the subordinate. This will better the performance of the organization to deliver goods to the public. In addition, authority and responsibility should be clearly defined for all positions. 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. They do so also because they trust his extraordinary technical, social and human qualities. How to build a team after all your employees leave? Therefore, it becomes important that with every authority position an equal and opposite responsibility should be attached. It seems logical and obvious that employees should always have the authority to act. Authority is one of the important considerations in the process of management. If bank officers decide to meet every Saturday evening for two hours and form a recreation club to play games outside the bank, they are meeting in an informal organization. To sum up in literal terms if authority is a body then power is the means and responsibility is the state of handeling the power The Second Tradition is the source of all of the authority which, as you know, lies in the … There are any limitations to the concept of authority. Many academic theorists of the formal authority view the legal aspects of private property as the source of authority. It’s equally important to make the distinction early on in the project regarding authority and responsibility. Therefore, it is said that authority is delegated, responsibility is created and accountability is imposed. Responsibility has no meaning except as applied to a promotion. The relationships that exist in an organization may be formal and/or informalâ€?. ‘So therefore, we have to take responsibility for controlling those powers we develop.’. 6. Greater authority comes with greater responsibility. Compliance is obtained in a number of ways trough persuasion, sanctions, request, coercion, constraint or force”. Conclusion – Authority and Responsibility. ‘Competence’ or ‘Personal Authority’ theory. Shravan Kumar spent his youth carrying parents on his shoulders to pilgrim centers. Authority flows from superior to the subordinate manager to whom certain duties are assigned and responsibility is the obligation of the subordinate to accomplish these duties. This happens when he enjoys support and confidence of his followers because they see him as personification of their urges and aspirations. No subordinate can be ordered to do a job which is impossible to be performed due to biological limitations. Authority comes from the top (managers and executives) and trickles down. Authority: Chester Barnard has defined authority as a character of “an order in the informal organisation by virtue of which … Absence of overlapping responsibilities i.e. Authority may be subject to the social beliefs, codes, creeds and habits of the group over which it has to be exercised. This is example of traditional authority. Koontz and O’ Donnel define it as the obligation of a subordinate, to whom a superior has assigned a task and dele­gated authority, to perform the task as required. The degree of a manager’s authority varies from company to company. It means the person who has been assigned a task or responsibility has a duty or obligation to perform it. “Authority is the character of a communication (order) in a formal organization, by virtue of which it is accepted by a contributor to, or member of, the organization as governing the action he contributes; that is, as governing or determining what he does or not do, so far as the orga­nization is concerned.”, “Viewed internally with respect to the enterprise, responsibility may be defined as the obligation of a subordinate, to whom a superior has assigned a duty to perform a service required. • Why is delegation of “authority… A few definitions of the term “authority” are given below: “Authority is the right to give orders and the power to obedience”. Responsibility is also an important concept and has been defined as follows: Responsibility is an obligation of the individual to perform assigned duties to the best of his ability under the direction of his executive leader. The manager describes organizational relationships in a written and graphic manner. A manager is responsible for the performance of the duties even though he may delegate to a subordinate authority to accomplish a service and the subordinate also in his turn may delegate a part of his authority received by him. The essence of responsibility is obligation to perform the assigned duty or task. The important principles which could be observed in delegating responsibility are: 1. This principle avoids misuse of authority and at the same time helps in proper discharge of responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. The subordinate will accept the authority of a command, understand it, believe it and follow it in the interest of the organization. The platform of position (authority) should supplement and correspond to the in-charge persons for dispensing responsibility. The process of organization brings relationships among employees at different levels, materials, money and machines. Parents ask or order children to do or not to do anything. The responsibility expected for a position should be commensurate with the authority delegated to that position, and vice-versa. Authority is the legal right of a superior to command his subordinates. Though a certain part of the responsibility is delegated to the subordinate the original and entire amount of the responsibility still rests with the superior. Share Your PPT File, Authority and Responsibility in Management – Meaning, Definition and Characteristics of Authority and Responsibility in Management, Authority and Responsibility in Management – Nature, Definition and Source, Authority and Responsibility in Management – Concept and Relationship between Authority and Responsibility in Management. But one must understand that the fact that the fundamental source of authority is formal authority emanating from an institutional framework or from an organizational structure. While the authority flows from a superior to a subordinate when assignment of duty is made, the responsibility flows from a subordinate to his superior when former undertakes the obligation of accomplishing the duties assigned to him. Vertical delegation of authority determines relationship between a boss and his subordinate and the horizontal division of authority determines the degree of decentralisation. Securing compliance or obedience is the main objective behind the whole concept of authority. However, when the same group meets to discuss about bank recovery for the next two months, it is in the context of a formal organization. In fact, authority comes only after a leader demonstrates responsibility. Physical limitations such as climate, geography, chemical elements and so on, have their limiting effect on authority. Authority is the only cohesive force that sets in motion the integrated activities of sub-ordinates in an enterprise. It entails the obligation of the subordinate, who has been assigned the duty by his superior. The reasons for these commands are fascinating, and not based in time or culture. In order to ensure that authority and responsibility are co-equal, a correlative action may be resorted to. Authority, Responsibility and Accountability are Inter-related. It will help him in successful utilization of his authority. The extent of delegation of authority also restricts the authority of a manager. A building, a machine or an animal cannot be held responsible. It is common to hear about delegating responsibilities, holding a person responsible, discharging responsibilities and carrying out a responsibility. Through legal process, they delegate this authority to Board of directors elected/selected by them. A manager who started working decades ago on a three-digit salary might have butterflies in stomach when he appoints staff on a salary many times exceeding his own when he had jointed the organization. Privacy Policy3. Responsibility is a personal attribute and it cannot be deleted. One authority can give a person or a body power and then that person or body holds authority which it must exercise responsibly. may also impose certain limitations on the use of authority. Functional similarity which facilitates specialization should be taken into consideration while delegating responsibility. – 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”. Henry Fayol defines authority as “the right to give orders and the power to extract the obedience.”. The important principle of authority is: Authority and responsibility should be equal. Delegation of authority to a subordinate will not relieve a manager from responsibility to perform his duties. Responsibility is closely related to authority. Principle of Parity of Authority and Responsibility: Authority and responsibility must be co-extensive. It may continue or cease with the accomplishment of the desired objective. Until and unless any performance is technically possible an order to do any such work would be unworthy. The term Responsibility is, most of the times, used to mean duty, activity, liability, accountability or even authority. Authority is the right to give orders and the power to exact obedience. ‘Formal’, ‘Traditional’ or ‘Top-Down’ theory. This theory believes that the technical competence and personal competence are the basis of authority. It is the power or the right to act, to command or to extract action by others. 2. Accountability arises out of responsibility and responsibility arises out of authority. It ignores the organisational situation of the possessor of the authority. Authority and right to command helps the manager get work done by others in the organization and the degree of authority goes on descending down the line. Some writers define as a duty while others call it an obligation. Accountability means an obligation on the part of a person to account for, or explain, why the task or responsibility assigned to him has not been performed as desired. 1. There are various theories to explain the sources of authority, important among them are as follows: 1. The essence of responsibility is then, obligation.”. The right may flow from a legal-institutional framework (a law governing the organization, or a manual, or guidelines framed by the organi­zation). 20 No. By Bill W. The Tradition of Alcoholics Anonymous in its present short form suggests that AA shall forever remain unorganized, that we may create special boards or committees to serve us -- never governmental in character. Without authority, the executive cannot secure compliance of his orders from his subordinates. In an organisation responsibility is the obligation of a subordinate to perform his duty as required by his superior. He tells the participants to do certain things in a specified manner, to obey orders from designated individuals, and to work co-operatively with others. So a manager while using authority, must keep in his mind, the reaction of his orders on employees, shareholders and customers etc. What happens when HR makes you declare fake experience in writing. He does this because he has made decision about the work behavior of his subordinates. Giving employees greater responsibilities without the authority to meet them is a recipe for managerial disaster. For example, when a worker is assigned the task of operating a machine, his responsibility is to ensure that the machine is opera­tionally fit. Authority flows downward from superior to a subordinate. Whenever authority is used, responsibility ensues. Responsibility is the most misunderstood term in the literature of management. The word authority is used with different meanings as: A person with superior knowledge and skill is described as an authority in the sense of an expert. The task or responsibility to produce minimum 100 units per day is a task or responsibility expressed in quantitative terms. SAFETY OFFICER. Thus, while the informal organization is spontaneous, the formal organization is the result is the result of a deliberate and planned effort to pattern activities and relationships in a specified way to facilitate the achievement of goals in a smooth manner. Accordingly manager has no authority until it is conferred upon him by his sub-ordinates. It is the power of the superior to make decisions which guides the actions of his subordinates. Assignment of tasks and responsibility will be meaningful only when it is accompanied by delegation of necessary authority to perform the assigned tasks and responsibility. 4. But the acceptance theory has been criticised on the grounds that: ii. 4 “Service: Responsibility and Authority“ This is one of the most powerful Concepts. As per this definition, there are two aspects involved in the concept of authority. The right to give orders should not be considered without reference to responsibility. Responsibility results from a superior subordinate relationship. 1. Thus, the concept of authority arises from the chain, which ties together the sections emanating from different persons in the organization. These are the main characteristics of the responsibility: 1. Responsibility is the obligation of a subordinate to perform a duty, which has been assigned to him by his superior. As … Thus, union leaders of an organization may select a relatively junior worker to present their case before the top management for increase in salaries because they feel he is forceful and logical in arguing the case and has at his command well-documented evidence to support his viewpoint. (c) If the consequences of not accepting the authority would damage his career prospects in the organization, including perhaps loss of job. ... each able to act directly on behalf of the people with the authority granted to it. The important principle of authority is: Authority and responsibility should be equal. If the subordinates do not accept the authority of manager, they may not willingly comply with his decisions and orders – they may even defy them. 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. 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.”. To sum up, the ultimate source of authority rests equally on legal, social and cultural norms that fulfill the test of validity and voluntary acceptance of authority by subordinates. Generally authority and responsibility are highly interconnected. Tradition-centric authority has a lot to commend itself, only it should not become a tool to exploit people who respect it. 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. 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. The superior frames and transmits decisions, with the expectation that the subordinates will accept and comply with them. 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. 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. Authority is a formal or institutionalized form of power vested in a position or office. The other means, that it can help in making authority more effective and may include the backing and support to lower executives, from the top executives, due attention to their advice, usually confirming their decisions, permitting command to flow through proper channels and supplying adequate information and materials to them. cannot be held responsible. Accountability still rest with the person having the utmost authority. We'll show you how to strike the right balance of responsibility and authority. For example, one can hardly order a person to walk up to side of a building or do such impossible things. Senior citizens are willingly offered seats in crowded buses and trains; no one minds their jump­ing the queue to visit a doctor, or to withdraw money from bank. Responsibility cannot be … The right may also be rooted in tradition, or the charisma of a person. 3. Delegation, authority, and responsibility: A reconfiguration of an old paradigm Management is often defined in simple terms as getting things accomplished through people. However, relationship between CEO and an auditor who is appointed annually to conduct audit of the company accounts is a specific duration task or responsibility. But compliance of actions and carrying out of instructions by subordinates cannot always be assured merely because the authority is customarily accepted. To run the organization towards its goal and objectives the authority of the executive has to be re-delegated to the managers down the line to reach the bottom line managers. Some state constitutions explicitly guarantee equal rights for men and women. (2) Only person holding authority can make decisions: Decision-making is the main feature of authority. Business Management, Functions, Directing, Authority. Non-living inanimate beings – machine, tool, capital – cannot be assigned task or responsibility. Authority and Responsibility in Management – Meaning, Definition, Concept, Characteristics and Relationship, According to Barnard, “Authority is the character of a communication (order) in a formal organization, by virtue of which it is accepted by a contributor to, or member of, the organization as governing the action he contributes; that is, as governing or determining what he does or not do, so far as the orga­nization is concerned.”. He also recognized that any official authority vested in the job was often ineffecti… Everything you need to know about authority and responsibility in management. 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