2. Content of presentation
What is authority ?
Characteristics and sources of authority
Limitations of authority
Responsibility and its characteristics
Relationship between Authority and Responsibility
Delegation, its characteristics
Process of delegation, its types
Benefits and consequences of delegation
Authority is the right to act and the power to
Authority resides in positions rather than in
Authority is seen as the legitimate right of a
person to exercise influence or the legitimate
right to make decisions, to carry out actions,
and to direct others.
4. Characteristics of
It is legitimate right to command and control
Authority is granted to achieve the
predetermined goal of the enterprise.
Authority is right to direct others to get things
Authority is delegated downwards.
6. Theories of Authority
There are three theories which explain the
emergence of authority
Formal theory of Authority
Acceptance theory of Authority
Competence theory of Authority
7. Formal Authority Theory
This theory states that authority flows from the
top to bottom through the structure of
organisation. It means that authority flow from
the top manager to his subordinate and, in turn,
from his subordinate to another working under
him and so on..
Board of Directors
8. Acceptance theory of
This theory states that a manager’s authority rests on
worker’s acceptance of his right to give orders and to
expect compliance. Workers have to believe that a
manager can legitimately give orders and there is a
legitimate expectation that the orders will be carried
Management theorist Barnard believed organizations
need to be both effective and efficient. Effective means
meeting organizational goals in a timely way and
efficient means the degree to which the organization
can satisfy the motives of its employees.
9. Competence theory of
According to this theory, the source of authority is the
competence of the managerial personnel. A manager’s
authority is accepted not because of any position he
holds in the organisation but because of his technical
competence, intelligence, and other personal qualities.
In organisations there are certain persons without any
formal authority, but they command respect and
authority because of their technical competence and
10. Limits of Authority
In an organisation, the quantum of authority decreases
at successively lower levels i.e It is maximum at highest
level and minimum at lowest level
Various limitations are as follows:
Legal Limitations: A managers authority is restricted
by enterprise goals and objectives which are governed by
the articles and memorandum of association.
Extent of authority
11. Limits of Authority
Biological Limitations: A subordinate cannot be
asked to do a job which is impossible to be performed
due to biological constraints.
Physical Limitations: Physical limitations such as
climate, geography, etc. Put limits on authority
Economic Limitations: Sometimes economic factor
such as competitions, prices of product also affect
“Responsibility is defined as the obligation of a
subordinate to whom a duty has been assigned to
“ The obligation of an Individual to carry out assigned
activities of the best of his or her ability.”
-Terry and Franklin
13. Characteristics of responsibility
Responsibility is to assign duty to human beings only.
Responsibility always flows upwards from juniors to
Responsibility is result of duty assigned
Responsibility is the obligation to complete the job as
Responsibility can never be delegated. It is the
personal obligation ,and absolute also.
14. Difference between
Authority and Responsibility
The power or right of a
superior to give order to
It is an obligation to
perform the assigned duty
It emerges from a formal
position in the organisation
It emerges from superior
It flows downwards i.e. From
top to bottom
It flows upwards i.e. From
bottom level to top.
Purpose Its purpose is to make
decisions and get the decisions
Its purpose is to execute
the duties assigned by the
Every employee/manager is accountable for the job
assigned to him. He is supposed to complete the job as
per the expectations and inform his superior
Accountability is the liability created for the use of
It is the answerability for performance of the assigned
Definition: According to McFarland “accountability” is
the obligation of an individual to report formally to his
superior about the work he has done to discharge the
17. Difference between
Responsibility and Accountability
Basis of distinction Responsibility Accountability
It is an obligation by an
employee to perform
certain duties or to make
sure that they are
It is the obligation
created by accepting
NATURE It flows downwards It flows upwards
It can be delegated but not
It cannot be delegated.
19. Delegation of Authority
Delegation is the transfer of authority to
subordinates to enable them to make decisions
and use resources.
Entrusting responsibility and authority to others
who then become responsible to us for their
results but we remain accountable to our boss
what our subordinates do.
20. Characteristics of Delegation of
It enables a manager to function independently within
the broad limits of authority specified by the superior.
The superior does not delegate total authority, but
retains a part of that for himself or herself.
A manager cannot delegate what he or she does not
Delegation does not mean giving away authority.
The superior, who delegates the authority cannot
escape responsibilities for the activities of
subordinates whom authority has been delegated.
21. Why Delegate ?
It takes a strong person and a good leader to effectively
24. What to Delegate
Things subordinate can do better.
Things subordinate needs to do for growth.
Things for which you don’t have time
25. What not to Delegate
What you yourself is not able to do
Work your subordinates cannot perform effectively