Magt 6

PART-III: ORGANIZING
Chapter 6: Authority and Responsibility
6.1 Concept Of Authority, Responsibility

6.2 Delegating Authority
6.3 Measures For Effective Delegation
6.4 Centralization And Decentralization
6.5 Line And Staff Authority
6.6 Line And Staff Conflict
6.7 Conflict Management
6.8 Types Of Coordination
6.9 Techniques for Effective Coordination
1 Management Theories & Practice

By Dr. Asfaw Yilma 1/25/20191
6.1Concept Of Authority, Responsibility
& Accountability
Meaning Of Authority
 1. it is an institutionalized and legal power inherent in a particular job, function, or
position that is meant to enable its holder to successfully carry out his or her
responsibilities.
2. is a Power that is delegated formally. It includes a right to command a situation,
commit resources, give orders and expect them to be obeyed, it is always
accompanied by an equal responsibility for one's actions or a failure to act.
3. is an agency or body created by a government to perform a specific function, such
as environment management, power generation, or tax collection.
 Meaning Of Responsibility
 It is a duty or obligation to satisfactorily perform or complete a task (assigned
by someone, or created by one's own promise or circumstances) that one
must fulfill, and which has a consequent penalty for failure.
 Meaning Of Accountability
 Is the obligation of an individual or organization to account for its activities,
accept responsibility for them, and to disclose the results in a transparent
manner. It also includes the responsibility for money or other entrusted
property.
Management Theories & Practice
SOURCES OF AUTHORITY
 Legal/ formal authority

 Traditional authority
 Acceptance theory
 Competence theory
 Charismatic theory

LIMITS OF AUTHORITY
 Physical limitations
 Economic limitations
 Social limitations
 Legal limitations
 Biological limitations
 Internal constraints
 Limited span of control
DELEGATION
 Delegation is an administrative process of
getting things done by others by giving
them responsibility.
 It refers to a manager’s ability to share his
burden with others.
 It consists of granting authority or the right
to decision making in certain defined areas
& charging subordinates with responsibility for
carrying through an assigned task
ELEMENTS OF DELEGATION
 ASSIGNMENT OF RESPONSIBILITY
 The superior asks the subordinate to perform a particular task
in a given period of time
 GRANT OF AUTHORITY
 It is the power to order or command, delegated from superior,
to enable the subordinate to discharge his responsibility
 CREATION OF ACCOUNTABILITY
 It is the obligation of a subordinate to perform the duties
assigned to him

6.3 Measures For Effective Delegation
Here are five principles that can help you create an effective delegation
process.
 1. Determine what you will delegate. Effective delegation begins with defining your responsibilities.
Write down all of your activities and responsibilities. Review your master list and categorize all of the items into
two secondary lists: things you alone must do and things that others could do or help you complete. Anything
that falls into the second list presents an opportunity for delegation.
 2. Choose the right person to delegate the task to. Andrew Carnegie said, "The secret to success
lies not in doing your own work, but in recognizing the right person to do it." The key to finding the right person
to delegate an assignment to is matching skills and attitude to the task at hand.
 3. Clarify the desired results. When the results are clear, it allows the employee to use his or her own
creativity and resources to accomplish the task. An added benefit of effective delegation is the individual may
find a better and more effective way to accomplish the task or achieve the desired results.
 4. Clearly define the employee's responsibility and authority as it relates to the
delegated task. Clearly communicate the expectation, responsibilities, and timeline. Be sure to ask the
employee to share his or her understanding.
 5. Establish a follow up meeting or touch points. The follow up meetings should be focused on two
things-monitoring progress and determining the need for assistance. The number of follow up meetings will
vary based on the scope of the task or project and whether the employee is new or a long term member of the
department.

6.4 Centralization And Decentralization
Centralization
 The degree to which formal authority is
concentrated in one area or level of an organization.
i.e. Top management makes most of the decisions.
Decentralization
 The process of pushing decision-making authority
down the organizational hierarchy.

6.5 Line And Staff Authority
 Staff And Line are names given to different types of
functions in organizations.
 A "Line Function" is one that directly advances an
organization in its core work.
 This Always Includes Production and Sales, and Sometimes
Also Marketing.
 A "Staff Function" supports the organization with
specialized advisory and support functions.
 For example, Human Resources, Accounting, Public Relations
And The Legal Department are generally considered to be staff
functions.
 Both terms originated in the military

6.5 Line And Staff Authority…
 Line Managers have total

authority over those who report
directly to them, but
 Staff Workers have primarily
advisory authority.

6.5 Line And Staff Authority…
 Staff positions can have Four Kinds Of Authority:

1) Advise Authority - with line managers choosing whether or
not to seek advice from the staff person, and deciding what to
do with the advice once they get it;
2) Compulsory Advice - or "Compulsory Consultation" in
which line managers must consider the staff person's advice,
but can choose not to heed it;
3) Concurrent Authority - in which the line manager cannot
finalize a decision without the agreement of the staff person,
4) Functional Authority - in which the staff person has
complete formal authority over his or her area of specialty
What is Conflict ?
 It is “Any opposition or difference
of wishes, needs, statements,
arguments, actions or principles
between two or more staff members,
or between staff members and the
Organization.”
 It is very common for line and staff workers

to come into conflict.
 Staff specialists say line workers
avoid and ignore them, and line
workers say staff workers lack
expertise in the organization's core
work, distract them, and get in their
way.

6.6 Line And Staff Conflict…
Causes of conflict (8)
Causes of conflict
1. Vertical conflict
 Occurs between hierarchical levels.
2. Horizontal conflict
 Occurs between persons or groups at the same hierarchical
level.
3. Line-staff conflict
 Involves disagreements over who has authority and control
over specific matters.

Causes of conflict…
4. Role ambiguity conflicts

 Occurwhen the communication of task expectations
proves inadequate or upsetting.
5. Workflow interdependencies conflicts
 Occurwhen people or units are required to cooperate
to meet challenging goals.
6. Domain ambiguities conflicts
 Occuras misunderstandings over such things as
customer jurisdiction or scope of authority.
Causes of conflict…
7. Resource scarcity conflicts

 When resources are scarce, working relationships are
likely to suffer.
8. Power or value asymmetries conflicts
 Occur when interdependent people or groups differ
substantially from one another in status and influence
or in values

Stages / Phases of Conflict
 (i)Latent Conflict: Participants not yet aware of conflict- The

first stage of conflict is latent conflict in which the factors that could
become a cause of potential conflict exist. These are the dry
for autonomy, divergence of goals, role conflict and the
competition for scarce resources.
 (ii)Perceived Conflict: Participants aware a conflict exists-

Sometimes a conflict arises even if no latent conflict is present. In this
stage one party perceived the others to be likely to frustrate
his or her goals. The case, in which conflict is perceived when no
latent conflict arises, is used to result from the parties misunderstanding
each other’s true position. Such conflict can be resolved by improving
communication between the groups.

Stages / Phases of Conflict...
 (iii) Felt Conflict: Stress and Anxiety - Felt conflict is the stage
when the conflict is not only perceived but actually felt and
cognized. For example, A may be aware that he is in serious argument with B
over some policy. But this may not make. A tense or anxious and it may have no
effect, whatsoever, on A’s affection towards B. The personalization of conflict is the
mechanism which causes many people to be concerned with dysfunctions of
conflict. In other words, it makes them feel the conflict.
 There are two reasons for the personalization of the conflict:
(1) the inconsistent demands on efficient organization and
individual growth which is caused within the individual. Anxieties may
also result from crisis or from extra-organizational pressures. Individuals need to
vent these anxieties in order to maintain equilibrium.
(2) Conflict becomes personalized when the whole personality of
the individual is involved in the relationship. Hostile feelings are most
common in the intimate relations that characterize various institutions and
residential colleges.
Stages / Phases of Conflict...
 (iv) Manifest Conflict: Conflict is open and can be observed-

Manifest conflict is the stage when the two parties engage in
behavior which evokes response from each other. The most obvious of
these responses are open aggression, apathy, sabotage, withdrawal and perfect
obedience to rules. Except for prison riots, political revolutions and extreme labor
unrest, violence as a form of manifest conflict is rare. The motives towards
violence may remain they tend to be expressed in less violent forms.
 (v) Conflict Aftermath: Outcome of conflict, resolution or
dissolution-The aftermath of a conflict may have positive or
negative repercussion for the organization depending upon the
how conflict is resolved. If the conflict is genuinely resolved to the satisfaction of all
participants, the basis for more cooperative relationship may be laid or the participants in their
drive for a more ordered relationship may focus on latent conflicts not previously perceived and
dealt with. On the other hand, if the conflict is merely suppressed but not resolved, the latent
conditions of conflict may be aggravated and explode in a more serious from until they are
rectified. This conflict episode is called conflict aftermath.

 Conflict Management is the process of

limiting the negative aspects of conflict while
increasing the positive aspects of conflict.
 The aim of conflict management is to
enhance learning and group outcomes, including
effectiveness or performance in an organizational
setting.
 Properly managed conflict can improve group outcomes

 Conflict Resolution involves the reduction, elimination, or termination of
all forms and types of conflict.
 Five Styles For Conflict Management, as identified by Thomas and Kilmann,
are:
1. Competing,
2. Compromising,
3. Collaborating,
4. Avoiding,
5. Accommodating
 Businesses can benefit from appropriate types and levels of conflict. That is the
aim of conflict management, and not the aim of conflict resolution. Conflict
management does not imply conflict resolution.
 Conflict management minimizes the negative outcomes of conflict and
promotes the positive outcomes of conflict with the goal of improving learning
in an organization.

6.7 Conflict Management…
Five Styles For Conflict Management
5. Accommodating 3.Collaborating
2.Compromising
4. Avoiding 1. Competing

Five Styles For Conflict Management…
Cooperative
Accommodating Collaborating
Unassertive Compromise Assertive
Avoiding Competing

Uncooperative
Five Styles For Conflict Management…
 Lose-lose conflict
 Nobody gets what he or she wants; underlying reasons remain unresolved. Strategies
include:
 Avoidance.
 Accommodation- playing down differences.
 Compromise- giving up something valued.
 Win-Lose conflict
 One party achieves its desires at the expense and to the exclusion of the other party’s
desires.
 Competition - force, skill, or domination
 Authoritative command – quick and decisive
 Win-Win conflict
 Achieved by a blend of both high cooperativeness and high assertiveness.
 Collaboration or problem solving
 Stresses gathering and evaluating information in solving disputes and making choices.
6.8 Types Of Coordination
4 Types of Coordination in
Organizations are as follows:
i. Vertical Coordination
ii. Horizontal Coordination
iii. Internal Coordination
iv. External Coordination

6.8 Types Of Coordination…
i. Vertical Coordination:
 Vertical coordination is the coordination between different levels of the
organization to ensure that all levels of organization are in harmony with
the organizational policies and programmes. This is achieved through
delegation of authority by directing and by controlling.
ii. Horizontal Coordination:

Horizontal coordination is the coordination between departments on the same
level of managerial hierarchy. Coordination between production and marketing
departments at the same level or organizational hierarchy is an example of
horizontal coordination. This is achieved by forming cross-functional teams and
self-managed teams.

iii. Internal Coordination:

 Vertical and horizontal types of coordination, if carried
out within an organization, are called internal
coordination. Internal coordination is achieved through
following techniques:
 Coordination through Organizational Process:
 Coordination through Personal Contact:
 Coordination through Effective Communication:
 Coordination by Group Meetings:
 Coordination through Liaison Officers:

iv. External Coordination:

 Success or failure of an organization also depends on number of external forces. No
organization can operate in isolation, it has to continuously interact with dynamic environmental
forces and devise its strategies to respond to such forces to survive.
 External coordination facilitates such process by integrating the organization with the dynamic
external forces. For effective external coordination, an organization at the outset has to know
what the pertinent external forces are.
 After such identification, the organization has to analyse their potential impact and take suitable
remedial to preventive measures to cope with the same. Important external forces may be the
changing expectations of stakeholders (like suppliers, customers, investors, employees or even
the society) or changing competitive situation, technological advancement, changing
government policies and regulations, etc.
 To facilitate external coordination, a number of techniques are adopted by an organization.
New management concepts like, customer relationship management (CRM), which aligns
organization with the customers, supply chain management (SCM), which increases market
share and multiply customer satisfaction, etc., have now been developed for more effective
external coordination.
Management Theories & Practice By

Dr. Asfaw Yilma 1/25/2019
6.9 Techniques for Effective Coordination
 1) Co-ordination through Planning

Planning is thinking before doing activities. It is the determination of the course of action to achieve the desired
result. Planning facilitates coordination through the various plans through mutual discussion, exchange of ideas.
For example coordination between the budget of finance and purchases.
 2) Co-ordination through Organizing
Organizing means a form of human association for the attainment of common objectives.In order to conduct the
activities in the organized form, coordination is important.
 3) Co-ordination through Staffing
Staffing is the process of hiring, positioning and overseeing employees in an organization. A manager should
know that there must be the right number of personnel in various positions with the right type of education. The
coordination ensures right men on the right job with qualified skills.
 4) Co-ordination through Directing
Directing means communicating, supervising, leading, motivating, suggesting e.t.c. The purpose of giving orders,
instructions & guidance to the subordinates can be served only when there is a harmony between superiors &
subordinates.
 5) Co-ordination through Controlling
Controlling is the process of analyzing whether the action is being taken as planned and taking corrective action.
Manager ensures that there must be co-ordination between actual performance and the standard performance in
achieving the organizational goals.

Chapter Activity
Write a Brief Description about the following
Concepts ( Source of Authority)
1) Legal/ formal authority
2) Traditional authority
3) Acceptance theory
4) Competence theory
5) Charismatic theory

Magt 6

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PART-III: ORGANIZING

Chapter 6: Authority and Responsibility

6.1 Concept Of Authority, Responsibility

1 Management Theories & Practice

 Legal/ formal authority

Management Theories & Practice

Management Theories & Practice

Management Theories & Practice

Management Theories & Practice

Management Theories & Practice

 Line Managers have total

Management Theories & Practice

 Staff positions can have Four Kinds Of Authority:

 It is very common for line and staff workers

Management Theories & Practice

Management Theories & Practice

4. Role ambiguity conflicts

7. Resource scarcity conflicts

Management Theories & Practice

 (i)Latent Conflict: Participants not yet aware of conflict- The

 (ii)Perceived Conflict: Participants aware a conflict exists-

Management Theories & Practice

 (iv) Manifest Conflict: Conflict is open and can be observed-

Management Theories & Practice

 Conflict Management is the process of

Management Theories & Practice

Management Theories & Practice

Management Theories & Practice

Unassertive Compromise Assertive

Management Theories & Practice

Management Theories & Practice

ii. Horizontal Coordination:

Management Theories & Practice

iii. Internal Coordination:

Management Theories & Practice

iv. External Coordination:

Management Theories & Practice By

 1) Co-ordination through Planning

Management Theories & Practice

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