Question

What is authority? What is the difference between formal and informal authority? What is the difference between centralized and decentralized authority? Give an example of how authority works in an organization with which you are familiar, and explain whether or not it is effective.

Answer 1

Authority is nothing but Power to perform some work, generally leaders,higher authorities have such power.There are two types of authority formal and informal authorities

Formal authoruity come with a specified role when any person is given a higher position in any organization he incurs power and authority to make some necessary changes in their respective fields. ex: Polices authorized to enforce the law, CEO of the company can authorize their subordinates, not only the top most have the authority even TL for group has an authority to take necessary steps in their team project.

Informal authority:It comes without formality and a specific role or a title they are conferred to your personal choices one may be more authorizing in a group without any higher role It is offered , and can be accepted or not.

Centralized authority :

The retention of powers and authority to planning and decisions, with the top management,it involves systematic and consistent reservation and has vertical communication, the desicion making is slow and bet suited in small scale organization, formal communication exsist,When the firm has inadequate control over the management, this is implemented.

Decentralized authority :

The dissemination of authority, responsibility and accountability to the various management levels, it is systematic dispersal of authority, it is best suited for large firms, they can stretch all the ways the communication is open and free,they have good control over the firm.