2. Content of presentation
 What is authority ?
 Characteristics and sources of authority
 Its theories
 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

3. Authority
 Authority is the right to act and the power to
make decisions
 Authority resides in positions rather than in
people
 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
authority:
 It is legitimate right to command and control
subordinates.
 Authority is granted to achieve the
predetermined goal of the enterprise.
 Authority is right to direct others to get things
done.
 Authority is delegated downwards.

5. Authority is delegated
downwards:
Top level
Middle level
Low level
Workers
Authority

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
General Manager
Sales manager
Sales Representative
Worker

8. Acceptance theory of
Authority
 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
out.
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
Authority
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
intelligence.

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.
Limits of
authority
Extent of authority
Highest level
Lowest level

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
authority.

12. Responsibility
Definition:
“Responsibility is defined as the obligation of a
subordinate to whom a duty has been assigned to
perform.”
-Koontz Donnel
OR
“ 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
seniors
 Responsibility is result of duty assigned
 Responsibility is the obligation to complete the job as
per instructions
 Responsibility can never be delegated. It is the
personal obligation ,and absolute also.

14. Difference between
Authority and Responsibility
Basic of
distinction
Authority Responsibility
Meaning
The power or right of a
superior to give order to
others
It is an obligation to
perform the assigned duty
or order
Sources of
origin
It emerges from a formal
position in the organisation
It emerges from superior
subordinate relationship
Direction of
flow
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
executed
Its purpose is to execute
the duties assigned by the
superior.

15. Top level
Middle level
Low level
Workers
Authority
Responsibility

16. Accountability
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
accordingly.
Accountability is the liability created for the use of
authority.
It is the answerability for performance of the assigned
duties.
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
responsibility.

17. Difference between
Responsibility and Accountability
Basis of distinction Responsibility Accountability
Meaning
It is an obligation by an
employee to perform
certain duties or to make
sure that they are
completed
It is the obligation
created by accepting
duties and
responsibilities from
higher management.
NATURE It flows downwards It flows upwards
DELEGATION
It can be delegated but not
entirely
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
Authority
 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
posses.
 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
delegate tasks.
 Efficiency
 Development
 Saves Time

24. What to Delegate
 Things subordinate can do better.
 Things subordinate needs to do for growth.
 Operational work
 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
 Management decisions
 Personal Accountability

26. Delegation Process

27. Types of Delegation
 Upward Delegation
 Downward Delegation
 Sidewise Delegation

29. Disadvantages of delegation
 Misuse of power
 Failure to fulfill the task
 Delay
 Impact on quality of work
 Non-delegable duties
 Burden on employees

30. And, finally.......
“The secret of success is not in doing your own
work but in recognizing the right [person]
to do it.”
~Andrew Carnegie