Authority
Authority - in context of a business organization,
authority can be defined as the power and right of a person to use
and allocate the resources efficiently, to take decisions and to
give orders so as to achieve the organizational objectives. ... The
top level management has greatest authority.
For example:-
- A manager might have the authority to make a hiring decision,
decide to spend a certain amount of money on something, choose a
supplier, set deadlines and priorities, or sign a purchase
order.
- A secretary might have the authority to sign certain documents,
schedule meeting rooms, or issue purchase orders for routine
restocking of office supplies.
- Salespeople might have the authority to offer certain specific
discounts to customers.
Henri Fayol, who designed the administrative theory of 14
principles of management, defined authority as ‘the right to give
orders and exact obedience‘.He also recognized that any official
authority vested in the job was often ineffective.
Business
level.
- He further added that the presence of leadership qualities and
traits like intelligence, experience, etc., usually, enhance
authority. However, as an important key to the manager’s job,
authority is the power to command others and decide to act or
refrain from acting to achieve the organization’s goals.
- A manager needs authority. It makes his position real and gives
him the power to order his subordinates and get them to comply.
When there is a chain of superior-subordinate relations in an
organization, it is the authority which binds and provides a basis
for responsibility.
- James Mooney specified that coordination is the primary
principle of an organization. Therefore, it must have its own
principle and foundation in Authority or the supreme coordinating
power.
- Coordination is the all-inclusive principle of organization, it
must have its own principle and foundation in Authority or the
supreme coordinating power.
- Always, in every form of organization, this supreme
coordinating authority must rest somewhere, else there would be no
directive for any truly coordinated effort. Without authority,
there will be no relations between subordinates and superiors and
the organization will be in chaos
Personal
level
- The authority that a manager enjoys due to his position is the
official authority or authority of position. Apart from the
official authority, a manager might influence the behavior of other
people in the organization.
- It doesn't necessarily travel in the halls of power, although
it might.
- Personal authority is the trust and earned right to speak into
someone's life. Positional authority may get results in the short
run, but only personal authority will create trust, loyalty, and a
deep connection to your vision and values.
- EXAMPLE:-When I was in the
Army, I learned this is even true in the military where members
literally wear their rank on their sleeve. I showed up in the Army
as a 26 year-old Captain/psychologist in charge of the mental
health clinic. I had 5 enlisted soldiers reporting to me, most of
whom were older than me. They didn’t respect me at first just
because I was a Captain. They respected my rank and position. You
have to salute soldiers who have a higher rank, but you don’t have
to respect them as people just because of their rank. Sure, they
saluted me and did what they were supposed to do for the most
part.
This is the personal authority of the manager. A manager with
both official and personal authority is very effective. Authority
is not unlimited power and consists of specific rights and
permissions to act for the organization in specified areas.