Organizing

Authority and Responsibility

Authority:
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 expectations that these will be accepted by the subordinate. The subordinate executes such decisions and his conduct is determined by

Features of Authority
1. Authority is basically legitimized and

confers a right to the position holder by which he regulates the behavior of his subordinates to act or not to act in certain ways. 2. Authority gives right of decision making. Superior has right to enforce the decisions. 3. Authority is exercised to influence the behaviour of those on whom it has

Features of Authority
4. The authority in itself is an objective because it is given to a position but its exercise may be subjective. The exercise of authority is determined by the personality factors of its possessor.

Authority Vs Power

Authority is the right to command.
Power is the Capacity to Command.

Flow of Authority: Classical Approach

Flow of Authority : top-down Authority

Shareholders

Board of Directors
Chief Executive Officer Departmental Managers

Foremen
Workers

Flow of Authority: Acceptance Theories

Acceptance theories view authority as being present when a directive is legitimized by virtue of its acceptance from below. Therefore in Organization, managers are expected to exercise authority based in the following: 1. Authority of the position, 2. Authority of knowledge and competence,

Responsibility
Responsibility is the duty to which a person is bound by reason of his status or task. Such responsibility implies compliance with directives of the person making the initial delegation. G. R. Terry has defined responsibility as the obligation of an individual to carry out assigned activities to the best of his ability.

Accountability
Authority is the right to act, responsibility is the obligation to carry out delegated authority; Accountability establishes reliability for the proper discharge of the duties delegated to the subordinate. Responsibility and accountability may seem similar but the are different -S P Robbins

“Accountability is reckoning (calculation) of the responsibilities received by delegation of authority” -Hurley Accountability creates the obligation for the maintenance of responsibility by the superior (delegator of authority) and an accompanying insistence that the work performed must meet his expectations.

Subordinates are responsible for completion of the tasks assigned to them and are accountable to their superiors for the satisfactory performance of that work. The concept of comprehensive responsibility includes the concept of accountability also.

DELEGATION OF AUTHOROTY

Delegation of authority is the process by which a manager assigns a portion of his total work load to subordinates

Delegation means conferring authority from one manager or organizational unit to another in order to accomplish particular assignments. By means of delegation, a manager extends his area of operations.

Features of Delegation:
Delegation is authorization to manager to act in a certain manner. Delegation prescribes the limits within which a manager has to decide the things. 2. Delegation has dual characteristics: As a result of delegation, the subordinate receives authority from his superior, but at the same time, his superior still retains all his
1.

3.

Authority once delegated can be enhanced, reduced, or withdrawn depending on the situation and requirement. 4. Delegation of authority is always to the position created through the process of organizing. 5. A manager delegates authority out of the authority vesting in him. He cannot delegate which he himself does not possess.

Steps in Delegation
1. Determination of Results Expected: Authority should be delegated to a position according to the results expected of that position. 2. Assignment of Duties: A man’s duties will be clear to him only when he knows what activities he must undertake and what goals he must fulfill. 3. Authorization for Action: Making commitments, use

Principles of Delegation
1.

2.
3. 4. 5.

6.
7. 8.

Delegation by Results Expected to a Position Coordination with Department Objectives Unity of Direction Clarity of Lines of Authority Level of Authority Unity of Command Parity of Authority and Responsibility Absoluteness of Responsibility:

BLOCKS TO EFFECTIVE DELEGATION

Delegator’s Side
1.

Love for Authority

2.
3. 4.

Maintenance of Tight Control
Fear of Subordinates Growth Fear of Exposure own shortcomings

5.
6.

Attitude Towards Subordinates
Personality of Superior

Subordinate's Side
1.

Lack of talent

2.
3. 4.

Lack of Enthusiasm
Urgency and Criticalness of Task Bad past Experiences

5.
6.

Resistance to take Responsibility
Organization Cultural

Measures for Effective Delegation
1.

2. 3.
4. 5. 6.

Making the Potential Delegator Feel Secure Creating Awareness for Need of Delegation Determining Decisions and Tasks to be Delegated Establishing favorable Climate Choosing the subordinates Wisely. Tying Delegation with Planning

Centralization
Centralization is Systematic and Consistent reservation of authority at central points within an organization. Decentralization applies to the Systematic delegation of authority in an organization-wide context - Louis A. Allen

Centralization refers to the reservation of authority at the top level of the organization and decentralization refers to systematic delegation of authority in the organization. However, there can neither be absolute centralization nor there can be absolute decentralization. The concepts of centralization and decentralization are two extreme points in the matter of distribution of authority in the organization. In between these two extreme points, there may be continuum of authority distribution

Factors Determining Degree of Decentralization

1. 2.

3.
4.

5.
6. 7. 8. 9.

Size of the Organization History of the Organization Management Philosophy Availability of Managers Pattern of Planning Control Techniques Decentralized Activities Rate of Change in Organization Environmental Influence

Departmentation
The process of grouping the activities is commonly known as departmentation. The terms used to denote the departments that result from departmentation vary a great deal. In business organizations, such terms as division, department, and section are used; in government, these are called branch, department, bureau, and

Need and Importance of Departmentation
1.

Advantages of Specialization

2.
3. 4. 5.

Fixation of Responsibility
Development of Managers Facilitate in Appraisal

Feeling of Autonomy

Bases of Departmentation
1.

Function

2.
3. 4. 5.

Product
Territory Process

Customer

Committee

Committee means the group of persons to whom some matter or charge is committed.
Committee can be defined as a body of persons appointed to meet on an organized basis for the discussion and dealing of matters brought before it.

Features of Committee

A committee is a group of persons. There should be at least two persons. The ideal number of maximum persons is seven. There is always one person who is the Chairperson of the committee. 2. A committee can deliberate only on matters that are brought before it. When a committee is constituted, there are strictly defined
1.

3.

Members of committee draw authority through delegation. The authority is usually expressed in terms of one vote. 4. The committee may merely deliberate on the matter without any authority for making or recommending decisions. 5. A committee may be constituted at any level of the organization and its members can be drawn from any

Group Behaviour and Decision in Committee

Chairman-Member Relationship 2. Participation 3. Group Pressure 4. Decision Process
1.
1. 2.

3.

Initial Stage: Pool of Common Information Inferences and evaluation of information to form common opinions in a general way Gets around more specific suggestions and solution to the

Reasons and Use of Committee
1.

2.
3. 4.

5.
6.

Pooling of Knowledge and Experience Facility for Coordination Representation of Interested Groups Fear of Too Much Authority in a Single Person Consolidating Authority Transmission and Sharing Information

Problems in Committee
1. 2.

3.
4.

5.
6.

High Costs Slow Decisions Indecision Minority Domination Splitting the Responsibility Misuse of Committees
1. 2. 3. Waste of Organisational Resources and Time Avoiding task for the time being Imposing own personal decisions

Thank You