Authority ,responsibility and delegation

Smile Ahuja - Detail presentation on authority , responsibility and delegation for management students.

1. Authority , Responsibility and It’s Delegation

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.

18. 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.

19. 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.

20. Why Delegate ? It takes a strong person and a good leader to effectively delegate tasks. Efficiency Development Saves Time

21. 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

22. What not to Delegate What you yourself is not able to do Work your subordinates cannot perform effectively Management decisions Personal Accountability

23. Delegation Process

24. Types of Delegation Upward Delegation Downward Delegation Sidewise Delegation

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

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