CLEP Principles of Management 1

103 ai types of authority and responsibility

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103. a.i. TYPES OF AUTHORITY (and responsibility) Authority - legitimate power determined by the organizational structure. Authority involves rules, roles, and relations. Rules legitimize authority. Role is position or office with authority inherent in the position, not in the person. Relations are related to credibility, obtained through experience. Line authority managers have the formal power to direct and control immediate subordinates. The superior issues orders and is responsible for the result—the subordinate obeys and is responsible only for executing the order according to instructions. Functional authority is where managers have formal power over a specific subset of activities. For instance, the Production Manager may have the line authority to decide whether and when a new machine is needed but the Controller demands that a Capital Expenditure Proposal is submitted first, showing that the investment will have a yield of at least x%; or, a legal department may have functional authority to interfere in any activity that could have legal consequences. This authority would not be functional but it would rather be staff authority if such interference is "advice" rather than "order". Staff authority is granted to staff specialists in their areas of expertise. It is not a real authority in the sense that a staff manager does not order or instruct but simply advises, recommends, and counsels in the staff specialists' area of expertise and is responsible only for the quality of the advice (to be in line with the respective professional standards etc.) It is a communication relationship with management . It has an influence that derives indirectly from line authority at a higher level. Organizational authority flows down the vertical hierarchy from top to bottom as managers at the top of the hierarchy possess more formal power than those at the bottom of the hierarchy. Since organizational authority is based on one's position, it stands to reason that all those in the same position have the same authority. Subordinates accept organizational authority because they believe that managers have legitimate rights to issue orders a.ii. 104. Front Line vs Staff -- Front line authority gives managers the formal power to direct & control immediate subordinates and the person issuing the orders is responsible for the result. Staff Authority is granted to staff specialists in their areas of expertise. Not real authority in the sense that a staff manager does not order or instruct but simply advises, recommends, and counsels in their area of expertise and is responsible only for the quality of the advice 105. 106. Chain of Command –a type of organization chart which shows the authority- responsibility relationships.
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