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AuthorityAuthority Formal and legitimate right of a manager Formal and legitimate right of a manager

to make decisions and issue ordersto make decisions and issue orders Allocate resources to achieve Allocate resources to achieve

organizationally desired outcomesorganizationally desired outcomes Authority is distinguished by three Authority is distinguished by three

characteristicscharacteristics Authority is vested in organizational Authority is vested in organizational

positions, not peoplepositions, not people Authority is accepted by subordinates Authority is accepted by subordinates Authority flows down the vertical hierarchyAuthority flows down the vertical hierarchy

Formal and legitimate right of a manager Formal and legitimate right of a manager to make decisions and issue ordersto make decisions and issue orders

Allocate resources to achieve Allocate resources to achieve organizationally desired outcomesorganizationally desired outcomes

Authority is distinguished by three Authority is distinguished by three characteristicscharacteristics Authority is vested in organizational Authority is vested in organizational

positions, not peoplepositions, not people Authority is accepted by subordinates Authority is accepted by subordinates Authority flows down the vertical hierarchyAuthority flows down the vertical hierarchy

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Sources of authorityFormal authority- flow of authority is top-down authority

Acceptance theory- Authority exists when subordinates are willing to be accepted because they virtualize the following advantages

Receipt of financial incentivesContribution in attaining objectives of the organizationFulfillment of responsibility.Appreciation from colleagues.

Authority flows from bottom to top.

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Competence theoryIndividual derives authority because of his

personal qualities & technical competence.

PowerRefers to capacity that A has to influence the behavior of B , so that B does something which he or she would not otherwise do.

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AUTHORITY POWER

Right to command capacity to influence others

Mostly with managers with leadersNarrow-may have Broad –includes

considerable authorityauthority but powerlessFlows in one direction Flows in all

directions

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Responsibility

Duty by which a person is bound by reason of his status or task. Such responsibility implies compliance with directives of the person making initial delegation.

An obligation of an individual to carry out assigned activities to the best of his ability.

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Managers are assigned authority Managers are assigned authority commensurate with responsibilitycommensurate with responsibility

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AccountabilityAccountability

● Mechanism through which authority and Mechanism through which authority and responsibility are brought into alignmentresponsibility are brought into alignment

● People are subject to reporting and justifying People are subject to reporting and justifying task outcomes to those above them in the chain task outcomes to those above them in the chain of commandof command

● Can be built into the organization structureCan be built into the organization structure

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Delegation

To delegate means to grant or confer; hence the manager grants or confers on others certain duties in the form of work and authority. The delegation of authority is the delivery by one individual to another of the right to act, to make decisions, to requisite resources and to perform other tasks in order to fulfill job responsibilities.

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Some of the important features of delegation : Two-sided relationship Act of trust Freedom to think and act A challenging task Forward-thinking principle

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What Delegation is Not?

Delegation is not abandonment

Delegation does not mean that the

manager loses control and power

Delegation does not mean avoiding

decisions

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The delegation process essentially consists of

three related steps:

(i) the assignment of work to people;

(ii) the granting of authority to utilize resources;

(iii) the creation of an obligation to perform.

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Principles of Delegation

Principle of delegation by results expected

Principle of parity of authority and responsibility

Principle of absoluteness of responsibility

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Advantages of Delegation

Superior related advantages

Subordinate related advantages

Improves behavioral climate

Advantages to organization

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Important Decisions in Delegation

To delegate wisely, a manager must decide the following two questions carefully:

1. What to delegate and what not to delegate?

2. To whom should authority be delegated?

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Delegation Problems Reluctance to delegate

Better performance. I can do it better myself No trust. I cannot trust others to do the job Subordinate may get credit. I’ll lose importance if I let others do the job Continuous guidance difficult. I cannot coach everything Who will face the music?

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Reluctance to accept delegation

Easy to ask. It is easier to ask the boss. Fear of criticism. Why should I stick my neck out for that guy? Lack of information resources. Nobody tells me anything Too heavy. I am already overburdened Lack of self-confidence. I don’t have the psychological make-up to shoulder .

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How to Delegate Effectively?

Establish goals

Define responsibility and authority

Motivate subordinate

Require completed work

Provide training

Establish adequate controls