Introduction

Underlying the task of management is the concept of organisational authority. Authority is essential to be able to discharge various managerial functions. It is the formal right of the superior to command and compel his subordinates to perform a certain act. Henry Fayol defines authority as "the right to give orders and power to exact obedience".

Koontz and O'Donnell define authority as "the power to command others, to act or not to act in a manner deemed by the possessor of the authority to further enterprise or departmental purpose". Authority may be official or personal. Official authority refers to authority of a superior which he possesses because of his official position and placement in the organisational structure. Subordinates should accept the official authority of the superior because of the propriety and legality of the rules involved. Personal authority, on the other hand, is the authority which a person enjoys because of his popularity, good public relations, excellent charismatic personality, etc.

Meaning

Simon defined authority as "Authority may be defined as the power to make decisions which guide the actions of another. It is a relationship between two individuals, one superior, the other subordinate. The superior frames and transmits decisions with the expectation that these will be accepted by the subordinate. The subordinate executes such decisions and his conduct is determined by them."

Authority is the right to carry out the assigned tasts (responsibilities). To carry out the assigned responsibility, subordinates need to issue directions, spend resources, make decisions, command people, etc. Authority must be delegated to them to do all this and effectively carry out the responsibility (assigned task). In simple terms, authority is the right of a person to give instructions to subordinates.

Authority, according to Koontz and Weihrich, it 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."

Pearce and Robinson define authority as "the organisation's legitimised power that is linked to each position within the organisation. It typically involves the right to command, to perform, to make decisions and to expend resources".

Thus, authority is the power enjoyed by a person to influence his subordinates, to direct them to work. It is derived by virtue of the position he holds in the organisation.

Features Of Authority

The main features of authority are as follows:

1. It is the right of a person to issue orders and instructions to subordinates.

2. It is used to achieve organisational objectives.

3. Authority given to a person is legal and legitimate.

4. It is the legitimate right of an individual.

5. It can be delegated by a manager to his subordinates, but power cannot be delegated.

6. It is related to position that a persons holds in the organisation. 

7. Authority is the right to influence others while power is the capacity to influence others. 

8. It is the right to command and control others.

9. Authority is a relationship between two persons - one supervisor and the other subordinate. 

10. Authority is exercised by making decisions and seeing that they are carried out.

Sources Of Authority

There are three different schools of thought about the sources of authority. These sources are known as theories of authority. They are as follows:

1. Formal Authority Theory

2. Acceptance Authority Theory

3. Competence Authority Theory

1. Formal Authority Theory

In this theory, authority flows from top to bottom through various levels of hierarchy. The ultimate authority in a joint stock company lies with the share-holders. Share holders entrust the management of the company to the Board of Directors and delegate to it most of their authority. The Board of Directors delegates authority to the chief executive and chief executive in turn to the departmental managers and so on. Every manager or executive possesses authority because of his organisation position and this authority is known as FORMAL AUTHORITY. Authority conferred by law is also regarded as formal authority. The formal authority theory further states that the superiors have the right to delegate their authority. Thus, formal authority always flows from top to bottom. Every manager in the organisation has only that much authority which has been delegated to him by his superior. Such authority may be called traditional and legitimate. It is legal and rational.

2. Acceptance Authority Theory

It is also known as bottom-up authority. It is based on the promise that authority does not flow from top to bottom but flows from bottom to top. It implies that superiors can exercise authority only if it is accepted by the subordinates. The flow of authority takes the form of request by top mangers. If this request is accepted by subordinates, managers exercise the authority, and if subordinates do not accept it, no authority is exercised by managers. In other words, it is the authority which an individual gets when others accept or obey his orders and instructions. The subordinates accept the authority which an individual gets when others accept or obey his orders and instructions. The subordinates accept the authority if the advantages to be derived by its acceptance exceed the disadvantages resulting from its refusal.

The positive and negative consequences determine the acceptability of an order. Some orders may be fully acceptable, others partially acceptable and still others fully unacceptable. Barnard suggests that a subordinate will accept an order if he understands it well, if he believes it is consistent with the organisational objectives and compatible with his personal interests and if he is able both mentally and physically to comply with it.

3. Competence Authority Theory

This authority is derived by a person by virtue of his competence, skill and knowledge and not position. People from all departments at all levels approach the person who has competence authority disregarding the official chain of command. According to Urwisk, FORMAL AUTHORITY is conferred by organisation, TECHNICAL AUTHORITY is implicit in special knowledge or skill whereas PERSONAL AUTHORITY is conferred by superiority or popularity. Thus a person may get his order accepted not because he is having any formal authority, but because of his personal qualities. For example, if a person possesses expert knowledge in a particular subject, people will go to him for guidance in that matter even though he has got no formal authority.

Types Of Authority

1. Line Authority

In line authority, a supervisor exercises direct demand over a subordinate. Line authority is represented by the standard chain of command that starts with the board of directors and extends down through the various levels in the hierarchy to the point where the basic activities of the organisation are carried out. Managers exercise line authority by virtue of their position in the hierarchy. It is the right to issue orders, instructions and decisions to be implemented by people down the hierarchy. This authority is exercised to achieve the organisational goals. Though ultimate authority rests with the top managers, it is delegated to middle and lower level managers, thus, forming a formal chain of command or scalar chain. 

2. Staff Authority

The nature of staff authority is merely advisory. A staff officer has the "authority of ideas" only. The information which a staff officer furnishes or the plans he recommends flow upward to his line superior who decides whether they are to be transformed into action. Staff authority involves giving advice and service to line managers on the basis of their specialised knowledge and skills. Staff specialists reduce the burden of line executives. Staff personnel have right to direct or command subordinates within their own departments. But with respect to line personnel they play an advisory or auxiliary role of recommending and assisting. In the words of Henry Fayol, "Staff is an adjunct, reinforment and a sort of extension of the manager's personality."

3. Functional Authority

According to Koontz and O'Donnell, "Functional authority is the right which an individual or department has delegated to it over specialised processes, practices, policies or other matters relating to activities undertaken by personnel in departments other than its own." Functional authority generally relates to laying down systems and procedures. For instance, the personnel manager may lay down the grievance procedure to be followed in all departments.

Line & Staff Conflict

The line and staff departments of an organisation are generally found to be at loggerheads with each other.

The line departments complain that:

1. The staff officers have only theoretical knowledge but not practical knowledge. 

2. They get the credit when the goals are achieved but are not responsible for the failures. 

3. The staff fail to give sound advice.

4. The staff officers unnecessarily increase the paper work of the line officers.  

5. Since the staff officers are not responsible for the results they suggest unfruitful ideas. 

6. Frequently, the staff officers go beyond their sphere of activity and assume that they have line officers authority.

7. Much of the advice given by the staff officers is impractical.

The staff departments complain that:

1. The line officers completely neglect the advice given by the staff officers. 

2. The line officers hesitate to accept new ideas. hot and I

3. The line officers do not follow the advice of staff officers properly. 

4. Some line officer's simply reject the advice without considering its validity. 

5. The line officers do not exploit the full services of the staff officers. 

6. Line people distrust, non-cooperate and even sabotage staff plans.

7. Line people are generally ignorant and bull-headed. They resist new ideas.

Reducing conflicts between line & staff 

The following suggestions are made in order to reduce the conflicts between Line Officers and Staff Officers:

1. The line and staff should understand their proper positions and functions in the organisation. 

2. The staff should render complete advice on the problems concerned; they should present realistic recommendations and solutions based on full consideration of all the pertinent facts.

3. A separate staff member should be appointed to bring about cooperation between the line officers and staff officers.

4. Only qualified persons should be selected and placed as staff officers.

5. A special previlege may be given to the line officers to reject or accept the advice given by the staff people.

6. Some line officers may resist the change, then it is the duty of staff officers to encourage the line officers to participate in the proposed scheme of change.

Limitations Of Authority

Acceptance of authority is not demanded by superiors, rather it is commanded from subordinates. It is evident that managers exercise authority within the limited area of discretion. Various factors limiting this scope of authority are:

1. Capacity

It subordinates cannot do the work due to their physical and mental limitations, managers cannot issue directions to that effect.

2. Organisational Goals

Directions issued by managers against the organisational goals will not be carried out by subordinates.

3. Legal Restrictions

Every organisation is bound by a legal framework of rules and procedures. Any directive issued against the rule shall not be complied with.

4. Social Factors

People collectively work in the organisation and form groups on the basis of their social values and cultures. Orders issued against these values have limited acceptance. 129 30

5. Personal Limitations

Something that a manager cannot do himself, he should not expect from his subordinates also.

Difference between Authority and Responsibility

Authority and responsibility are closely interrelated but they differ from each other with respect to the following:

Responsibility

The term 'responsibility' means the work or duties assigned to a person by virtue of his position in the organisation. The person carrying the responsibility for the performance of a given task has also the authority to perform it. For example, if a project manager is responsible for the constructions of a bridge, he has also the authority to command his subordinates, procure the needed materials, procure personnel and seek assistance from functional departments for the completion of the project. Responsibility should be distinguished from accountability which is the obligation of an individual to render an account of the fulfilment of his responsibility to the superior to whom he reports.

Responsibility refers to the obligation to perform the given task to the best of one's ability. According to Koontz and O'Donnell, responsibility is "the obligation of a subordinate, to whom a duty has been assigned to perform duty". It is "the obligation to carry out duties and achieve goals related to a position. "The responsibility ends when the person has accomplished the assigned task. If a person is held responsible for the assigned task, he will committed to perform it successfully. Responsibility, therefore, must be fixed. It develops the skill, competence, initiative and ability of a person to his fullest.

The following are the concept of responsibility:

1. Responsibility cannot be delegated or transferred.

2. It always flows upwards.

3. It is the obligation to perform the assigned task.

4. It must commensurate with authority.

Accountability

It refers to the obligation of the individual to report formally to his superior for the proper discharge of his responsibilities. It is accountability of the subordinate to render an account of his activities to his superior. The person who accepts responsibility is accountable for the performance of assigned duties. "To be accountable is to be answerable for one's conduct in respect to obligation fulfilled or unfulfilled." Accountability is the obligation of an individual to keep his superior informed of his use of authority and accomplishment of assigned duties.

Louis A. Allen defines accountability as "the obligation to carry out responsibility and exercise authority in terms of performance standards established." It is "the requirement to provide satisfactory reasons for significant deviations from duties or expected results". It is "the obligation to account for an report upon, the discharge of responsibility or use of authority."

Accountability cannot be delegated. They cannot be held liable for the tasks not assigned to subordiantes. While authority flows downwards, from top managers to workers, accountability flows upwards, where each level is accountable to his superior who delegates him the authority.