Saturday, April 12, 2014

Unit 3 (P 27): Organizational Structure and Design: Authority , Power and Responsibility

Authority:

  • It is the right included in managerial position. The right focuses on manager power of make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. Conditions necessary for effective exercise of authority are:
  • It is based on managerial positions and any one in same position has same level of authority.
  • It defines superior – subordinate relationship.
  • It is hierarchical in nature.

Types of authority:
Line authority: 

  • In which individuals in management positions have the formal power to direct and control immediate subordinates. 
  • It consists of the right to make decisions and to give order concerning the production, sales or finance related behavior of subordinates.
  • Line authority pertains to matters directly involving management system production, sales, finance etc., and as a result with the attainment of objectives.
  • For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, and it gives the vice president of finance the right to request a certain report from a department head. Therefore, line authority gives an individual a certain degree of power relating to the performance of an organizational task.

Staff authority :

  • Granted to staff specialists in their areas of expertise.
  •  Narrower than line authority and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise. It is a communication relationship with management.
  •  Staff authority consists of the right to advise or assist those who possess line authority as well as other staff personnel.
  • Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.
  • For example, human resource department employees help other departments by selecting and developing a qualified workforce. A quality control manager aids a production manager by determining the acceptable quality level of products or services at a manufacturing company, initiating quality programs, and carrying out statistical analysis to ensure compliance with quality standards. 

Functional Authority:

  • Functional authority consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.
  • This authority is usually assigned to individuals to complement the line or staff authority they already possess.
  • Functional Authority generally covers only specific task areas and is operational only for designated amounts of time.
  • For example, members of an accounting department might have authority to request documents they need to prepare financial reports, or a human resource manager might have authority to ensure that all departments are complying with equal employment opportunity laws. Functional authority is a special type of authority for staff personnel, which must be designated by top management.


Power:

  • Power is the personal ability of the manager to command and influence subordinates behavior.
  • In the organization, power of a person can be derived from interpersonal, structural and situational bases.
  • Interpersonal power is vested in a person as prescribed by the organization (ie; legitimate, reward and coercive) and by the person’s qualities (ie; expert and referent). While structural and situational powers (ie; resource, decision making and information powers) normally go by the hierarchy of the organization’s structure.
  • Five Sources of Power (French and Raven, 1960): 
    • Referent or Personal Power – The ability of leaders to develop followers from the strength of their own personalities. 
    • Expert Power – the ability to control another’s behavior because of the possession knowledge, experience, or judgment that the other person does not have. 
    • Legitimate or Position Power – stems from an authority's legitimate right to require and demand compliance 
    • Reward Power – the extent to which a manager can use extrinsic and intrinsic rewards to control other people. 
    • Coercive Power – The extents to which a manager can deny desired rewards or administer punishment to control other people.


Responsibility:

  • It refers to the obligation to perform the given work to the best of one’s ability and knowledge.
  • 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.
  • All employees are responsible for the following:
  • Fulfilling the duties and responsibilities established in their job description and meeting applicable performance standards.
  • Monitoring their work to ensure it is being done properly.
  • Correcting errors they identify before work is referred to higher levels for review
  • Taking all reasonable steps to safeguard assets and resources against waste, loss, damage, unauthorized use, or misappropriation.
  • Reporting breakdowns in internal control systems or suggesting improvements to their supervisor.
  • Refraining from using their position to secure unwarranted privileges.
  • Attending education and training programs as appropriate to increase awareness and understanding.


21 comments:

  1. TYPES OF AUTHORITY ARE;
    - line authority
    -staff authority
    -functional authority
    -

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  2. POWER: power is the personal ability of the manager to command and influence sub oridinates behaviour...

    RESPONSIBILITY:responsibility refers to the obligation to perform the given work to the best of one's ability and knowledge..

    ReplyDelete
  3. Meaning of authority

    Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal.


    Meaning of responsibility
    Authentic body of an organization is top level management, top level management direct the subordinates. Departmental managers and other personnel take the direction from top level management to perform the task. Authority is necessary to perform the work .only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility.


    Meaning of accountability
    Subordinates receive the authority from top level of the organization and they also receive the command and direction to perform the work. In other words, they are authorized and responsible for a specific function. Sometimes the task may not be performed effectively the subordinates may not be performed effectively. The subordinates must report to boss about the assigned task. S/he must answer his/her performance which is known as accountability.

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  4. TYPES OF AUTHORITY:

    3 main types of authority can exist within an organization:

    Line Authority
    Staff Authority
    Functional Authority
    Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged.

    LINE AUTHORITY:

    The most fundamental authority within an organization, reflects existing superior-subordinate relationships. It consists of the right to make decisions and to give order concerning the production,sales or finance related behaviour of subordinates.

    In general, line authority pertains to matters directly involving management system production, sales, finance etc., and as a result with the attainment of objectives.

    People directly responsible for these areas within the organization are delegated line authority to assist them in performing their obligatory activities.



    STAFF AUTHORITY:

    Staff authority consists of the right to advise or assist those who possess line authority as well as other staff personnel.

    Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.



    Line and Staff personnel must work together closely to maintain the efficiency and effectiveness of the organization. To ensure that line and staff personnel do work together productively, management must make sure both groups understand the organizational mission, have specific objectives, and realize that they are partners in helping the organization reach its objectives.

    Size is perhaps the most significant factor in determining whether or not an organization will have staff personnel. The larger the organization, the greater the need and ability to employ staff personnel.

    As an organization expands, it usually needs employees with expertise in diversified areas. Although small organizations may also require this kind of diverse expertise, they often find it more practical to hire part time consultants to provide it is as needed rather than to hire full time staff personnel, who may not always be kept busy.



    LINE – STAFF RELATIONSHIPS :

    e.g. A plant manager has line authority over each immediate subordinate, human resource manager, the production manager and the sales manager.

    However, the human resource manager has staff authority in relation to the plant manger, meaning the human resource manager has staff authority in relation to the plant manager, meaning the human resource manager possesses the right to advise the plant manager on human resource matters.

    Still final decisions concerning human resource matters are in the hands of the plant manager, the person holding the line authority.

    ReplyDelete
  5. SOURCES OF POWER

    Legitimate Power
    Legitimate power is also known as positional power. It's derived from the position a person holds in an organization's hierarchy. Job descriptions, for example, require junior workers to report to managers and give managers the power to assign duties to their juniors. For positional power to be exercised effectively, the person wielding it must be deemed to have earned it legitimately. An example of legitimate power is that held by a company's CEO.

    Expert power
    Knowledge is power. Expert power is derived from possessing knowledge or expertise in a particular area. Such people are highly valued by organizations for their problem solving skills. People who have expert power perform critical tasks and are therefore deemed indispensable. The opinions, ideas and decisions of people with expert power are held in high regard by other employees and hence greatly influence their actions. Possession of expert power is normally a stepping stone to other sources of power such as legitimate power. For example, a person who holds expert power can be promoted to senior management, thereby giving him legitimate power.


    Referent Power
    Referent power is derived from the interpersonal relationships that a person cultivates with other people in the organization. People possess reference power when others respect and like them. Referent power arises from charisma, as the charismatic person influences others via the admiration, respect and trust others have for her. Referent power is also derived from personal connections that a person has with key people in the organization's hierarchy, such as the CEO. It's the perception of the personal relationships that she has that generates her power over others.

    Coercive Power
    Coercive power is derived from a person's ability to influence others via threats, punishments or sanctions. A junior staff member may work late to meet a deadline to avoid disciplinary action from his boss. Coercive power is, therefore, a person's ability to punish, fire or reprimand another employee. Coercive power helps control the behavior of employees by ensuring that they adhere to the organization's policies and norms.

    Reward Power
    Reward power arises from the ability of a person to influence the allocation of incentives in an organization. These incentives include salary increments, positive appraisals and promotions. In an organization, people who wield reward power tend to influence the actions of other employees. Reward power, if used well, greatly motivates employees. But if it's applied through favoritism, reward power can greatly demoralize employees and diminish their output.

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  6. Authority is the 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.

    Types of authority are:
    -Line authority:The chain of command within an organization that confers the power to order subordinates to perform a task within their job description. The line of authority within a business establishes who is in charge of giving who orders, and it contributes to the efficient attainment of the company's objectives when property is used.

    -Staff authority:This unit provides counseling on financial matters to the company's management personnel.

    -Functional authority:The ability for subordinate staff to veto suggested management decisions or to propose action based on their superior expertise in a particular area. Many accounting professionals working for the finance department of a business will be granted the functional authority to veto management decisions and initiate action according to their best judgment.

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  7. Power:Ability to cause or prevent an action, make things happen; the discretion to act or not act. Opposite of disability, it differs from a right in that it has no accompanying duties.

    Responsibility: It is the obligation of an individual to achieve the result mutually determined by means of participation by one's superior and himself.

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  8. Authority is the power to manage the sub-ordinates to control them and to instruct them according to the rules norms and standards of the organization. Authority of managers helps to keep the sub-ordinates in obedience.
    According to Henry Fayol, “Authority can be define as the right to give orders and provides to exact obedience.”
    According to THEO HAIMANN, “Authority is the rightful legal power to request subordinates to do a certain thing for refrain from doing so, If he does not follow this instructions, the manager is in opposition, if need be, to take displinery action.”
    In conclusion we can say that authority is a legal power to instruct, order and control the subordinates as desire by the manager under the regulations of organizations and the manager also holds the power to punish the subordinates in case of this obedience.

    types of authority
    1.line authority:reflects existing superior-subordinate relationships
    2.staff authority:consists of the right to advise or assist those who possess line authority as well as other staff personnel.
    3.functional authority:consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.

    power:the ability or right to control people or things

    responsibility:a duty or task that you are required or expected to do

    ReplyDelete
  9. Authority:
    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

    ReplyDelete
  10. TYPES OF AUTHORITY:
    3 main types of authority can exist within an organization:
    *Line Authority
    *Staff Authority
    *Functional Authority
    Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged.

    LINE AUTHORITY:
    The most fundamental authority within an organization, reflects existing superior-subordinate relationships. It consists of the right to make decisions and to give order concerning the production,sales or finance related behaviour of subordinates.

    In general, line authority pertains to matters directly involving management system production, sales, finance etc., and as a result with the attainment of objectives.

    People directly responsible for these areas within the organization are delegated line authority to assist them in performing their obligatory activities.

    STAFF AUTHORITY:
    Staff authority consists of the right to advise or assist those who possess line authority as well as other staff personnel.

    Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.

    Line and Staff personnel must work together closely to maintain the efficiency and effectiveness of the organization. To ensure that line and staff personnel do work together productively, management must make sure both groups understand the organizational mission, have specific objectives, and realize that they are partners in helping the organization reach its objectives.

    Size is perhaps the most significant factor in determining whether or not an organization will have staff personnel. The larger the organization, the greater the need and ability to employ staff personnel.

    As an organization expands, it usually needs employees with expertise in diversified areas. Although small organizations may also require this kind of diverse expertise, they often find it more practical to hire part time consultants to provide it is as needed rather than to hire full time staff personnel, who may not always be kept busy.

    FUNCTIONAL AUTHORITY:
    Functional authority consists of the right to give orders within a segment of the organization in which this right is normally non existent.

    This authority is usually assigned to individuals to complement the line or staff authority they already possess.

    Functional Authority generally covers only specific task areas and is operational only for designated amounts of time. It is given to individuals who, in order to meet responsibilities in their own areas, must be able to exercise some control over organization members in other areas.

    ReplyDelete
  11. Responsibility

    Responsibility indicates the duty assigned to a position. The person holding the position has to perform the duty assigned. It is his responsibility. The term responsibility is often referred to as an obligation to perform a particular task assigned to a subordinate. In an organisation, responsibility is the duty as per the guidelines issued.

    Characteristics of Responsibility

    The essence of responsibility is the obligation of a subordinate to perform the duty assigned.
    It always originates from the superior-subordinate relationship.
    Normally, responsibility moves upwards, whereas authority flows downwards.
    Responsibility is in the form of a continuing obligation.
    Responsibility cannot be delegated.
    The person accepting responsibility is accountable for the performance of assigned duties.
    It is hard to conceive responsibility without authority.

    ReplyDelete
  12. Authority:
    It is right to make decisions, issue orders and allocate resources in a particular position or for the particular job.

    Types of authority:
    Line authority
    Staff authority
    Functional Authority

    Power:
    Power is the personal ability of the manager. The post gives manager to command and influence the subordinates.

    Responsibility:
    It is duty and obligation to perform given work in proper way so that it can reach desired result.

    ReplyDelete
  13. Authority:
    It is right to make decisions, issue orders and allocate resources in a particular position or for the particular job.

    Types of authority:
    Line authority
    Staff authority
    Functional Authority

    ReplyDelete
  14. Authority:
    it is right to act and power to decision making or controlling of subordinates' activities.

    Types of authorities:
    Line authority:-this is direct authority by which superior exercise over the subordinate. it is always moving from top to down. so the managers having such authority are line manger.

    Staff authority:-this type of authority given advice and suggestions to line managers to carryout their jobs effectively. the flow of authority may be any directions as per the needs.

    Functional authority:- this is the authority given to staff or managers or a person to make policy and rules for line mangagers and staff.


    Power:
    it is the skills or attributes by a person to influence over other people.

    Five source of power:
    Legitimate power:-it is the power preserves in superior that explains that superior control subordinates as in authority.

    Reward and punishment:-superior can either offer reward or impose puinishment to the subordinates for their acceptable and unacceptable word behaviors.

    Coercion:-superior physically or by other ways can make subordinates working as he wants and subordinates should obey that as compulsion.

    Referent power:-if subordinates likes and admire superior they may be influenced by what superior says.

    Charismatic power:-if superior can use effective way, work differently, have extra ordinary skills to influence people in different situation that can also develop power in superior. these all helps organize the job between superior and subordinate in organization.


    Responsibility:
    It is the obligation of an individual to achieve the result mutually determined by means of participation by one's superior and himself.

    ReplyDelete
  15. Authority:
    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

    types of authority
    1.line authority:reflects existing superior-subordinate relationships
    2.staff authority:consists of the right to advise or assist those who possess line authority as well as other staff personnel.
    3.functional authority:consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.

    Power:Ability to cause or prevent an action, make things happen; the discretion to act or not act. Opposite of disability, it differs from a right in that it has no accompanying duties.

    Responsibility: It is the obligation of an individual to achieve the result mutually determined by means of participation by one's superior and himself.

    ReplyDelete
  16. Authority is the power to give orders and get it obeyed or in other words it is the power to take decisions.

    Responsibility means state of being accountable or answerable for any obligation, trust, debt or something or in other words it means obligation to complete a job assigned on time and in best way.

    Authority and responsibility are closely related and this principle states that these two must go hand in hand. It means that proper authority should be delegated to meet the responsibilities.

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  17. •Authority: Authority is right vested in a managerial position. It facilitates the manager to occupy managerial position to direct subordinates.

    Types of authority:

    1.Line Authority: T he most fundamental authority within an organization, reflects existing superior-subordinate relationships. It consists of the right to make decisions and to give order concerning the production, sales or finance related behavior of subordinates. In general, line authority pertains to matters directly involving management system production, sales, finance etc., and as a result with the attainment of objectives. People directly responsible for these areas within the organization are delegated line authority to assist them in performing their obligatory activities.

    2. Staff Authority: Staff authority consists of the right to advise or assist those who possess line authority as well as other staff personnel. Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.

    3. Functional authority: The ability for subordinate staff to veto suggested management decisions or to propose action based on their superior expertise in a particular area. Many accounting professionals working for the finance department of a business will be granted the functional authority to veto management decisions and initiate action according to their best judgment.

    •Responsibility: Responsibility refers to the obligation t perform the given work to the best of one’s ability and knowledge. It is a personal obligation and it is absolute. It cannot be delegated to others. It is a obligation that a subordinate has to complete for the achievement of organizational objectives. The common features of responsibility are:
    -it is obligation
    -it is static and absolute
    -it arises due to superior-subordinate relationship etc.

    •Power: Power is the ability to cause or prevent an action, make things happen; the discretion to act or not act. Opposite of disability, it differs from a right in that it has no accompanying duties. Power is the personal ability of the manager. The post gives manager to command and influence the subordinates. It is also the ability to cause or prevent an action, make things happen; the discretion to act or not act.

    ReplyDelete
  18. Authority defines superior – subordinate relationship.
    Types of authority:
    Line authority:Line authority pertains to matters directly involving management system production, sales, finance etc., and as a result with the attainment of objectives.

    Staff authority :Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.

    Functional Authority:This authority is usually assigned to individuals to complement the line or staff authority they already possess.

    Power: Power is the ability to cause or prevent an action, make things happen; the discretion to act or not act. Opposite of disability, it differs from a right in that it has no accompanying duties. Power is the personal ability of the manager.

    Responsibility: Responsibility refers to the obligation t perform the given work to the best of one’s ability and knowledge.

    ReplyDelete
  19. Authority is the right given to a manager to achieve the objectives of the organisation. It is a right to get the things done through others. It is a right to take decisions. It is a right to give orders to the subordinates and to get obedience from them. A manager cannot do his work without authority.

    A manager gets his authority from his position or post. He gets his authority from the higher authorities. The lower and middle-level managers get their authority from the top-level managers. The top-level managers get their authority from the shareholders.

    Authority always flows downwards. It is delegated from the top to the bottom.

    According to Henri Fayol,

    "Authority is the right to give orders and power to exact (get) obedience."

    Power is a broader concept than authority. Power is the ability of a person or a group to influence the beliefs and actions of other people. It is the ability to influence events. Power can be personal power. A person gets his personal power from his personality or from his expert knowledge. Doctors, Lawyers, Engineers, Programmers, etc. get their power from their expertise and professional knowledge. Power can also be legitimate or official power. This power comes from a higher authority.

    ReplyDelete
  20. Authority can be defined as the power to make right decisions, issue orders and allocate resources in a particular position or for the particular job.

    Types of authority:
    Line authority
    Staff authority
    Functional Authority

    ReplyDelete
  21. Authority:
    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

    types of authority
    1.line authority:reflects existing superior-subordinate relationships
    2.staff authority:consists of the right to advise or assist those who possess line authority as well as other staff personnel.
    3.functional authority:consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.

    power:the ability or right to control people or things

    responsibility:a duty or task that you are required or expected to do

    ReplyDelete