Faculty of ICT

COURSE: Principle of Management

Semester Three

assignment

Name: Rahma Abokor Mahamed

ID: 5715

2021 –Septenber -20

Monday
1) Authority’ stands for power or rights assigned to an individual to make decision authority’ stands
for power or rights assigned to an individual to make decisions while responsibility’ is a duty to
maintain and manage the assigned authority.

2) Advantages of Decentralization:
 Facilitates Diversification: Diversification of products or markets is possible only by
departmentalization. Without decentralization, departmentalization is meaningless and
practically impossible.:

 Development of the Managerial Personnel.

 4. Improvement of morale: Decentralization helps improvement of managerial ability which

leads to an increase in their morale and this results in a higher productivity.

 Develops the Quality of Managers: The executives will get training and also opportunities to
develop their talents.

A. Disadvantages of Decentralization:
 Decentralization makes the utilization of the services of exceptionally talented people.
Because of weak financial resources, appointment of such persons may not be possible.

 Decentralization increases the problems of coordination among the various units.

 It increases the administrative expenses because highly-paid managers have to be

appointed.

b) Advantages of Centralization:
 A clear chain of command: A centralized organization benefits from a clear chain of
command because every person within the organization knows who to report to. Junior
employees know who to approach whenever they have concerns about the organization .

 Focused vision: When an organization follows a centralized management structure, it can

focus on the fulfillment of its vision with ease. There are clear lines of communication and the
senior executive can communicate the organization’s vision to employees and guide them
toward the achievement of the vision.

c) Disadvantages of Centralization:

 Remote control: The organization’s executives are under tremendous pressure to

formulate decisions for the organization, and they lack control over the implementation
 desks. The executives suffer from a lack of time to supervise the implementation of the
decisions.

 Delays in work :Centralization results in delays in work as records are sent to and from the
head office. Employees rely on the information communicated to them from the top, and there
will be a loss in man-hours if there are delays in relaying the records. This means that the
employees will be less productive if they need to wait long periods to get guidance on their next
projects.

3) Responsibility is defined as an obligation to perform or complete the assigned task. It is the duty of
the subordinate to complete the delegated task adequately. It is generated out of a superior-
subordinate relationship, where the junior is bound to perform the task assigned to him by the senior.
Hence, the flow of responsibility is top-down, as the subordinate is responsible to his/her senior. The
word responsibility describes a person or group who is complete in charge of something and will ensure
the work will be done properly.

The term accountability means a sense of being answerable for the final consequences. When an
authority is delegated, the employee is empowered to perform the task for his superior, but the
superior would still take the ownership of the final result. The flow of accountability is bottom-up, as the
subordinate would be liable to the superior for the task. When a person is accountable for something,
he is supposed to explain the outcomes of his actions, decisions, and omissions. It denotes an individual
or group who are ready to make good or take the blame if the work is not completed properly.

4) Authority is the right or power assigned to an executive or a manager in order to achieve certain
organizational objectives.

A manager will not be able to function efficiently without proper authority. Authority is the genesis of
organizational framework. It is an essential accompaniment of the job of management. Without
authority, a manager ceases to be a manager, because he cannot get his policies carried out through
others. Authority is one of the founding stones of formal and informal organisations. An Organisation
cannot survive without authority. It indicates the right and power of making decisions, giving orders and
instructions to subordinates. Authority is delegated from above but must be accepted from below i.e. by
the subordinates. In other words, authority flows downwards.

In spite of its importance, however, its meaning is not very precise. In everyday life, authority has a
number of meanings; it may mean a person who has superior knowledge and skill in a particular area; it
may refer to some official such as – Commissioner of Police, Vice-Chancellor of a University, or
Managing Director of a Company; the expression “Authorized Dealer” has still a different connotation,
that of a legally- constituted relationship; there is also the concept of the authority of situation in which
it is the circumstances, and not the person, which dictate a decision. These every-day meanings of
authority are not adequate, however, for management purposes.

:
5) The factors for successful use of authority:

 Favorable Atmosphere – The favorable atmosphere is very important criteria for the
successful use of authority. Therefore, it is responsibility of management to create
favorable atmosphere in the organisation so that harmonious human relations may be
established in the organisation.
 Justified Behavior – The second important use for successful implementation of
authority is the justified behavior of the officers towards their subordinates. They must
feel not to treat all the employees on an equal ground.
 (iii) Factual Cooperation – There must be mutual cooperation and trust between officers
and employees to the organisation for the successful use of authority.
 (iv) Interests to Work – The employees must have an interest in the work to which they
are responsible. If they are not interested in their work, it may be very difficult for the
higher officers to implement their authority.
 (v) Respect to Superiors – The employees pay their best regards to their Bosses. If they
do not have a feeling of regard to them, they may riot obey their orders.

6) The source of authority:

 The formal Authority Theory.

 The acceptances theory.

 The competence theory.

7) The concept for acceptance theory:

the source of authority of the manager is the acceptance by his subordinates. This expression of the
source of authority is based on the behavioural approach of management. It shows that the manager
has no real authority until and unless the individual subordinate confers it upon him. Thus, the
acceptance theory permits attention to the legal and social basis for authority. It depends to a large
extent on the personal traits of leadership, ability to persuade others to work well to accomplish
organisation goals.

8) The concept for competence theory:

In this theory a man gets ample authority from his managerial position but in addition to it, it is derived
from the technical competence or personal qualities of a manager too. For example, a person who is a
recognized expert in one particular field is often referred to as an authority on certain problems
of that field.
His authority in accepted not because of any position he holds in the organisation but because
of his authority of knowledge. Thus, this principle is very much akin to the theory acceptance
but here its basis is personal expertise and not the status or position of the person concerned.
Therefore, to become an effective and successful manager, one should develop one’s personal
competence also.

9) different between acceptance and competent theory:

The acceptance theory of authority states that a manager's authority over his/her
subordinates depends on the willingness of the subordinates to accept his/her right to give
orders and comply with them. 

The acceptance theory of authority states that a manager's authority over his/her
subordinates depends on the willingness of the subordinates to accept his/her right to give
orders and comply with them

10) Relationship between Authority and Responsbility:

 The authority has the power to give orders and instructions to its subordinates that they may
work. Responsibility means duties entrusted to a person at the time of delegation of authority.
 Authority may be delegated. Responsibility cannot be delegated.
 A superior can always share his authority with his subordinate. But a superior cannot delegate
his responsibility or obligation to a subordinate to perform his duty.
 Responsibility is accounted to a person. Therefore, no subordinate can escape his responsibility
by delegating certain rights to his subordinate. Responsibility always moves upwards and
therefore cannot be delegated.
 Authority and responsibility are closely related. There should be parity between the two. The
subordinate shall be accountable for the authority entrusted to him and not beyond.