5. Authority, Responsibility and Accountability ISC class 11 Business Studles Syllabus for the year 2023-2024

5.Authority, Responsibility and Accountability

CHAPTER OUTLINE

5.1 Meaning and Definition of Authority

5.2 Sources of Authority

5.3 Meaning and Definition of Responsibility 5.4 Difference between Authority and Responsibility

5.5 Meaning and Definition of Accountability

5.6 Interrelationship between Authority, Responsibility and Accountability 5.7 Meaning and Definition of Delegation of Authority

5.8 What can be Delegated or can Responsibility and Accountability be delegated?

5.9 Importance of Delegation of Authority 5.10 Elements of Delegation of Authority

5.11 Principles of Delegation of Authority 5.12 Meaning of Centralisation and Decentralisation of Authority

5.13 Distinction between Delegation and Decentralisation • 

Exercises

♦ Summary

Question Bank

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According to Louis Allen, delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance. A detailed analysis of Louis Allen's definition brings to light the following essential elements of delegation:

Elements of Delegation

Authority

Responsibility

Accountability

5.1 MEANING AND DEFINITION OF AUTHORITY

The term 'authority' implies the right of an individual to take decisions and to command his subordinates. It is the sum rights and powers entrusted to a person to enable him to perform the assigned tasks. In simple words, authority is the power to make decisions which guides the actions of others. In other words, authority is a right and power to influence the behaviour of efforts of other persons. Here are some specific definitions of authority.

"Authority is the power to command others to act or not to act in a manner deemed by the possessor of authority to further enterprise or departmental purpose."

Koontz and O' Donnell

"Authority is the right that a manager has to request a subordinate to do something to

accomplish organisation goals." "Authority is the right to give orders and the power to exact obedience." Henry Fayol

Herbert G. Hicks

"Authority is the right to decide what should be done and the right to do it or to require someone else to do it" - Edwin B. Flippo Thus, authority involves these three elements-power to use discretions and make decisions, the right to compel for its obedience, and the power to influence the behaviour of actions

of the subordinates,

Features/characteristics

From the definition given by eminent thinkers, certain distinguishing features of authority can

be derived. These are as follows:

 (0) It is the legitimate right of an individual.

(ii) It is the right to command and control others.

(ii) It is bound by certain limits. In addition to the limits implied in the position occupied by an individual, there are legal, social and biological limits to his authority.

(iv) It is used to achieve organisational objectives. It is needed to perform the assigned task.

 (V) Authority determines the superior-subordinate relationship and helps to maintain order

in the organisation. 

(vi) Authority is the key to the manager's job. A person cannot be a manager without having

some authority. In order to get things done through others, an individual must have the right to direct others. Authority is the supreme coordinating force. It binds together different individuals working in the enterprise.

(vii) Authority can be delegated by a manager to his subordinates.

(vii) Authority is different from power. Power is the capacity to influence others while authority is the right to influence others. Power is personal while authority is associated with the official position or rank. Authority can be delegated but power cannot be delegated.

 (ix) In the formal organisation, authority of a person depends on his position. It is highest at the top level and reduces successively down the chain of command. Thus, authority flows from top to bottom. Authority is restricted by rules and regulations of the organisation, which limits its scope. However, as we move up in the management hierarchy, the scope of authority increases.

Table 5.1: Authority and Power-A Comparison

Authority

Power

1. Right to do something

1.Ability to do something

2. Derived from organisation

3. Always flows downward can delegated

2. from many sources-personal Flows in all directions-cannot be May be illegitimate.

 5. Broad concept-can achieve results when

4. Legitimate resides in the position 

5. Narrow term- one source or subset

power.

6. Visible from chart. It is institutionalised power.

6.authority fails Not visible from organisation chart.

5.2 SOURCES OF AUTHORITY

SOURCES OF AUTHORITY

Formal Authority Theory

Acceptance Authority Theory

Competence Authority Theory

Fig. 5.1: Sources of Authority

There are three sources from which a manager can derive his authority. 1. Formal Authority Theory: According to this theory, authority originates at the top of an organisation and flows downward through the process of delegation. The ultimate source of authority in a company lies with the shareholders due to the institution of private property. The shareholders entrust the management of the company to the Board of Directors and delegate most of their authority to it. The Board of Directors delegates authority to the Chief Executive who in turn delegates it to departmental heads, and so on. Every manager in the organisation has only that much authority which has been delegated to him by his superior. He derives his authority from his formal position the organisation. Therefore, the authority is known as formal authority. Such authority may be called traditional and legitimate. It is legal and rational.

2. Acceptance Authority Theory: Formal authority has no significance unless it is accepted by the subordinates. The degree of effective authority possessed by a manager is measured by the willingness of subordinates to accept it. The right to command depends upon whether or not the subordinates obey. The manager can use punishment to secure acceptance. But the subordinates may decide to endure the punishment or quit the organisation rather than accept the order. According to Chester Barnard, "An individual will accept an exercise of authority if the advantages accruing to him from accepting plus the disadvantages accruing to him from not accepting exceed the advantages accruing to him from not accepting plus the disadvantages accruing to him from accepting, and conversely, he will not accept an exercise of authority if the latter factors exceed the former." Thus, the positive and negative consequences determine the acceptability of an order. Some orders may be fully acceptable, others partially acceptable and still others fully unacceptable. Barnard suggests that a subordinate will accept an order if he understands it well, if he believes it is consistent with the organisational objectives and compatible with his personal interests and if he is able both mentally and physically to comply with it.

The acceptance theory of authority maintains that a manager has authority if he ges obedience from the subordinates. But a manager is not able to know whether his order will be obeyed by his subordinates unless the order is carried out or disobeyed by the Acceptance authority flows upwards from lower to upper levels.

3. Competence Authority Theory: According to this theory, an individual derives authority from his personal competence and charisma. According to Urwick, formal authority is conferred by organisation, technical authority is implicit in special knowledge or skill whereas personal authority is conferred by superiority or popularity. Thus, a person may get his order accepted not because he is having any formal authority, but because of his personal qualities. These qualities include technical competence and social prestige in the organisation. For example if a person is expert in a particular field of knowledge other people seek his guidance and follow his advice as if that were an order. Similarly, in other social groups people with charisma have the same authority. All the three theories have their utility, Formal authority is basic to managerial job Acceptance authority and competence authority are the products of leadership. Thus, authority is generated from all sources.

5.3 MEANING AND DEFINITION OF RESPONSIBILITY

Responsibility means the obligation to perform the assigned tasks or duties to the best of one's ability. It also includes the obligation to use the authority and resources in the manner as desired by the superior. Responsibility may be defined as the obligation of a subordinate to perform assigned duties. It arises from the superior subordinate relationship in the organisation. When a superior, by virtue

of his authority, assigns some work to any subordinate, it becomes his responsibility to perform

it and he becomes accountable for it. Here are some specific definitions of responsibility. "Responsibility is that for which one is responsible or accountable." Webster "Responsibility is the obligation to carry out assigned activities to the best of one's

abilities." G. R. Terry "Responsibility is the obligation of a subordinate to whom a duty has been assigned to

perform the duty," - Koontz and O'Donnell "Responsibility is one's obligation to perform the functions assigned to the best of one's

ability in accordance with directions received" Edwin B. Flippo "Responsibility is the obligation of a subordinate to perform the duty as required by his superior." Theo Haimann

Features/characteristics

The main features of responsibility are as follows:

(i) It is the obligation of an individual.

(ii) It is the obligation to perform the assigned duties or tasks.

(iii) It arises from the authority given to an individual.

(iv) It always flows from lower levels to higher levels. Responsibility is always in relation to human beings as non-living things cannot be assigned a duty. Responsibility is of a person, not a machine. It always flows upwards from a subordinate to a superior. Responsibility arises only when a duty has been assigned by a superior to a subordinate. The essence of responsibility is the obligation to complete the job or to meet certain minimum level of performance.

Responsibility may be continuing obligation or confined to the performance of a single function. It is a personal obligation and it is absolute, i.e., it can never be delegated. Responsibility is the obligation which a subordinate owes to his superior and he cannot reduce it by delegating his authority further to perform the assigned duty. Responsibility should be unitary which means an employee should be responsible to only one superior at a given time for a certain duty or work.

Authority granted must be equal to Responsibility assigned For effective delegation, the authority granted must commensurate with the assigned responsibility.

If authority granted is more than responsibility, it may lead to misuse of authority.

If responsibility assigned is more than authority, it may make a person ineffective.

5.4 DIFFERENCE BETWEEN AUTHORITY AND RESPONSIBILITY Authority and responsibility are closely interrelated but they differ from each other in the

following respects. 1. Meaning: Authority is the legal right of the superior to command his subordinates while responsibility is the obligation of a to perform the duties assigned to him by his superior.

2. Origin: Authority arises either from a formal contract or from legal provisions. It i attached to a particular position, and tends, therefore, to be impersonalised. On the other hand, responsibility arises from a superior-subordinate relationship. When a subordinate receives authority from his superior, he becomes responsible to the latter. Responsibility is attached to a particular person and it is, therefore, personalised

The flow of authority and responsibility is shown in Fig. 5.2

Sales Manager

Authority

Branch Manager

Responsibility

Sales Officer

Salesmen

Fig. 5.2: Flow of Authority and Responsibility

3. Delegation: Authority can be delegated by a superior to his subordinate. But responsibility is absolute and can never be delegated. When a superior delegates his authority to a subordinate, he continues to be responsible to his own superior. 4. Direction or flow: Authority always flows downwards, i.e., from a superior to his

subordinate. But the flow of responsibility is upward. A subordinate is responsible for his acts to his superior.

5. Continuity Authority usually has a longer life than responsibility. Responsibility

generally comes to an end after the assigned duty is performed.

6. Termination: Authority may be terminated by a notice. Responsibility cannot, however, be so terminated. Despite the above differences, authority and responsibility are closely interrelated. They are the two wheels of the management cycle and management cannot be successfal unless both move together.

5.5 MEANING AND DEFINITION OF ACCOUNTABILITY

Accountability means to be responsible for providing explanation to any superior. When subordinate works under a boss and he is assigned some duties he will be accountable for doing or not doing that work. In the Management Guide of the Standard Oil Company, California (USA), 'accountability' has been defined as: "The obligation of an individual to render at account of the fulfilment of his responsibilities to the principal to whom he reports." There are certain other definitions given by renowned thinkers - "Accountability is the obligation of an individual to report formally to his superior about the work he has done to discharge the responsibility" "Accountability is the requirement of answerability for one's performance.

-MC Farland

Edwin B. Flippo

"Accountability is the obligation to carry out responsibility and exercise authority in terms of performance standards established." Accountability should not be confused with responsibility. While responsibility is the obligation to accomplish a task, accountability is the obligation to report regarding the performance and exercise of the authority. Authority can be delegated but accountability cannot.

-Louis Allen

Features/Characteristics

The basic features of accountability are as follows. (i) Accountability is the obligation to carry out responsibility and exercise authority

in terms

of established standards of performance. (1) The extent of accountability depends upon the extent of authority and responsibility. A

person cannot be held answerable for the tasks not assigned to him. (iii) Accountability always moves upward from a subordinate to a superior. (iv) Accountability cannot be delegated. A person is accountable only for the work assigned to him. The manager delegating authority remains accountable to his superior for hus

own work as well as the work of his subordinates. (v) Accountability requires a formal report by a subordinate to his superior. (vi)

Accountability is different from responsibility. Responsibility is the work to be done while accountability is the obligation to do it satisfactorily.

(vii) Accountability is necessary because a superior must know if he was justified in delegation of authority or not. Delegation will not serve its purpose if the subordinate is not made answerable to the superior.

(viii) Just as responsibility is a derivative of authority, accountability is a derivative of responsibility.

authority is delegated, responsibility is assumed and accountability is imposed. Responsibility arises out of authority and accountability arises out of responsibility. Authority flows downwards whereas responsibility and accountability flow upwards. For example, when the managing director authorises the departmental heads to manage their respective departments. the departmental managers become responsible to the managing director for due performance of assigned jobs. They are also accountable for the results of their departments.

To Conclude Authority Refers to the right of an individual to command his subordinates and to take action

within the scope of his position.

Responsibility is the obligation of a subrodinate to properly perform the assigned duty. Accountability means being answerable for the final outcome of the assigned task. AUTHORITY, RESPONSIBILITY

5.6 INTER-RELATIONSHIP BETWEEN AND ACCOUNTABILITY

There is a close interrelationship between authority, responsibility and accountability. Responsibility is a derivative of authority. Whenever authority is delegated, the subordinate becomes responsible to the superior. For example, a factory manager authorises the factory supervisors to decide who is to do what. As a consequence factory supervisors become responsible to the factory manager to ensure quality and quantity of output in the factory are desirable.

Similarly, accountability is a derivative of responsibility. Whoever is responsible is accountable. For example, factory supervisors must given an account of (submit a report on) the amount and quality of production in the factory to the factory manager.

Table 5.2: Authority, Responsibility and Accountability at a Glance

Basis

Authority

1. Meaning

to command

2. Delegation Can be delegated

3. Origin

4. Flow

5. Essence

Arises from formal

position

Always flows downward

The essence of authority is to get decisions implemented.

Responsibility

Obligation to perform

the assigned task

Cannot be fully delegated

Answerability for outcome of the assigned task

Cannot be delegated at all

Arises from delegated authority

Arises from responsibility

Always flows upward

Always flows upward

Accountability

The essence of responsibility Answerability of the

is to obey the duties.

subordinates to his superior for his work performance.

In conclusion, it can be stated that while authority is delegated, responsibility is assumed, accountability is imposed. Responsibility is derived from authority and accountability is derived from responsibility.

5.7 MEANING AND DEFINITION OF DELEGATION OF AUTHORITY

Delegation of Authority: Meaning and Concept

Just as no one person in an enterprise can do all the tasks necessary for the accomplishment of goals, so also it is impossible, as an enterprise grows, for one person to exercise all the authority for making decisions. There is a limit to the number of managers can effectively supervise and for whom they can make decisions. Once this limit is crossed, must be delegated to subordinates, who will make decisions within the area of their assigned duties. Then the question is how authority is delegated when decision-making power is vested in a subordinate by his superior. Clearly, superiors cannot delegate authority they do not have. It is equally clear that superiors cannot delegate their authority without, in effect, transferring their position to their subordinates.

The entire process of delegation involves four steps. They are:

(1) The determination of results expected from persons in a position; (ii) The assignment of tasks to persons;

 (iii) The delegation of authority for accomplishing these tasks; and

 (iv) The holding of responsible for the accomplishment of these tasks.

Thus, delegation is the process that a manager follows in dividing the work assigned to him so that he performs that part, which, because of his position, he can perform effectively.

Definition of Delegation of Authority

The following are the important definitions of delegation of authority "Delegation of authority means assigning work to others and giving them

do it."

authority to -EG. Moore

"Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits." Theo Haimann 

"Delegation is in a way an elementary of managing

-Koontz and O'Donnell

"Delegation means, in brief, the passing on to others, of a share in the four elements of the management process -EEL Brech

Features/characteristics

(ii) Delegation of authority is based on the elementary principle of division of work. No

manager can perform the entire work assigned to him. He gets part of his work carried

out by his subordinates. In fact, getting things done by subordinates is an essential aspect

of a manager's job.

(i) Delegation is always done within certain limits. While delegating authority, a thanager

defines the limits within which subordinates can exercise their authority.

These definitions reveal the following important characteristics of delegation of authority. (0) Delegation involves sharing of work and authority with others. A manager does not pass on his entire work and authority to his subordinates. If he does so, his managerial position becomes empty with no work and no authority. He always retains some authority which he exercises himself. He retains the authority to take important decisions and the authority to supervise and control the activities of his subordinates.

(iv) Delegation never means abdication of responsibility. After delegating authority, a manager remains responsible for the work which he has assigned to the subordinates. (v) Delegation does not imply reduction in the authority of the superior. He can, at any time. take back or reduce the delegated authority. (vi) A superior exercises control to ensure that the subordinates are using their authority in the proper manner.

(vii) A perons can delegate authority only when he himself has the authority

(viii) Delegation does not mean avoiding decisions. A manager delegates authority for routine

matters so that he can concentrate on more important matters.

(ix) Delegation of authority is a systematic process rather than an arbitrary or ad hoc exercise.

A hierarchy of managerial positions is created when authority is delegated systematically from higher to lower levels. (x) Delegation of authority is an essential part of organising and managing. A manager manages by guiding and coordinating the activities of his subordinates. This presupposes

delegation of tasks and authority. Managers have no alternative but to delegate.

(xi) Delegation involves downward transfer of authority from a superior to a subordinate Delegation of authority takes place when a manager assigns a part of his work to others and gives them the authority to perform the assigned tasks. The manager who delegates authority holds his subordinates responsible for proper performance of the assigned tasks. Thus, the process of delegation involves assigning duties, entrusting authority and imposing responsibility on subordinates

5.8 WHAT CAN BE DELEGATED? OR

CAN RESPONSIBILITY OR ACCOUNTABILITY BE DELEGATED? A manager cannot delegate all his authority. For the purpose of delegation, the authority of a

manager can be divided into three broad categories: (a) Authority which must be delegated as authority to take routine decisions for the accomplishment of tasks; (b) Authority which can be delegated as administration of policies, and (c) Authority which cannot be delegated at all as authority to take policy decisions. A successful manager is one who can delegate his authority successfully. He must delegate the

authority to do work of routine and subsidiary nature. For instance, the marketing manager of  a business enterprise is responsible for many operations like conducting marketing research development of means of sales promotion, management of advertising, employment and training of sales forces, etc. The marketing manager cannot look after all these operations. He can entru the responsibility of the performance of some of these operations to his subordinates. However, he cannot delegate the authority to take policy decisions and to co-ordinate and control the affairs of his department. He must reserve this authority with himself so that he can get better performance from his subordinates and is able to keep the activities of his department well under his control.

5.9 IMPORTANCE OF DELEGATION OF AUTHORITY

When the size of an organisation expands, a manager alone cannot do all the work himself. He has to share his work and authority with others. An executive can extend his personal capacity through delegation of authority. Delegation is the means by which a manager can get results through others. Failure to delegate reduces the efficiency of the individual and blocks the development of his juniors. How one delegates determines how one manages. Just as authority is the key to the manager's job, delegation is the key to organisation.

Relief to Top Executives

Growth and Diversification

Scalar Chain

Importance of Delegation of Authority

Executive Development

Specialisation

Quick Decisions

Motivation of Subordinate

Fig. 5.3: Importance of Delegation of Authority

The main advantages of delegation are as follows.

1. Relief to Top Executives: Delegation of authority enables a manager to share his

workload with his subordinates. It reduces the burden of work on senior executives. By transferring routine work to subordinates, a manager can concentrate on important policy matters, He can, therefore, make better use of his valuable time and ability. The manager who delegates authority can achieve better results than the one who does not

2. Scalar Chain: Delegation of authority creates a chain of superior-subordinate relationships among managers. It provides meaning and content to managerial jobs. It also directs and regulates the flow of authority from top to the bottom of organisation It serves as a basis of management hierarchy.

3. Specialisation: Through delegation, an executive can assign jobs to his subordinates according to their abilities and experience. Delegation leads to division of work which results in better utilisation of human and material resources. It improves the competitive strength of the organisation. 4. Quick Decisions: When authority is delegated, lower level employees can take decisions quickly without consulting senior executives. Subordinates are better in touch with local

conditions and can take more practicable decisions within the policy framework laid

down by top management.

5. Motivation of Subordinate: Delegation provides a feeling of status and recognition to subordinates. Their independence and job satisfaction increases due to the authority they enjoy and the rewards they get for good performance. Responsibility for work improves self-esteem and confidence of employees. Thus, delegation promotes a sense of initiative and responsibility among employees. It inspires employees to make full use of their skills

6. Executive Development: Delegation gives an opportunity to employees to learn decision-making and leadership skills by exercising authority. It helps to improve the quality of personnel at lower levels because they are required to handle situations and solve managerial problems. They acquire competence and experience and can take up higher responsiblities in course of time. In this way, delegation of authority is a means of developing future managers. 7. Growth and Diversification: Delegation of authority at all levels facilitates expansion

and growth of organisation. As the quality of managerial talent at all levels improves,

the organisation can face the future challenges better. It can grow and expand to a bigger

size. It can also undertake new types of business activities.

Thus, delegation of authority is a key element of effective organisation.

Why Delegation of Authority?

• Reduction of Burden of higher level executives. •Ensuring, quick decision-making. • Motivation, Training and Development of Sub-ordinates.

• Enhancement of managerial effectiveness.

Achieving better human relations. 5.10 ELEMENTS OF DELEGATION OF AUTHORITY

OR

PROCESS OF DELEGATION OF AUTHORITY

The process of delegation of authority consists of three interrelated elements which are as follows.

Assignment of Tasks and Duties

Granting of Authority

Creation of Responsibility and Accountability

1. of Tasks and Duties: First of all, a manager defines the duties or jobs to

be performed by his subordinates. It is like asking the subordinate to act on behalf of the manager. The results expected from each subordinate are also specified. Duty of a subordinate may be defined in terms of tasks to be performed or goals to be achieved. When it is stated in terms of tasks or functions, the subordinate is required to perform the task to the best of his ability. When the duty is defined in terms of a goal or target, the subordinate is expected to achieve the target. For example, a worker may be assigned the duty of producing 100 units per day. As far as possible, duty should be stated in terms of targets because it provides a feeling of satisfaction to the subordinate

2. Grant of Authority: Granting authority means giving the right to subordinates to decide and act, to use necessary resources and to represent the superior. The subordinates to whom authority is granted are empowered to decide and act on behalf of the manager in respect of assigned tasks. It is meaningless to ask a subordinate to perform some tasks without giving him the right to do so. Every subordinate needs authority to carry out the tasks and perform the duties assigned to him. Therefore, subordinates should be authorised to use resources and take actions required for the performance of tasks assigned to them. The limits of their authority should also be clearly defined.

3. Creation of Responsibility and Accountability: Once duties are assigned and authority is granted, subordinates are made responsible for carrying out the duties assigned to them. Responsibility is the obligation of a subordinate to whom a duty is assigned to perform the duty in the desired manner. Certain standards are laid down to ensure that the subordinate is doing the work according to the manager's expectations. Subordinates are also required to give an account of the results achieved by them. The responsibility of subordinates to the superior is absolute. It cannot be delegated or shifted. Arising out of this responsibility, a subordinate is accountable or answerable for the performance of his tasks and duties.

nciples of Delegation of Authority

Thus, authority, responsibility and accountability are the three basic elements of delegation of authority. These elements are like a three-legged stool each depending upon the others to support the stool and no two alone can make it stand. 5.11 PRINCIPLES OF DELEGATION OF AUTHORITY

Reward

Delegation is one of the most important elements in the organising process. It is delegation that inter-relationships are established in any organisation. There are certain principles which may be followed as guidelines for effective delegation. These principles are:

Effective Control

Competence

Delegation by Results

dequate Communication

Unity of Command

Absolute Responsibility

arity between Authority and Responsibility

Trust and Confidence

Receptiveness

: Principles of Delegation

1. Principle of Reward: Effective delegation and proper exercise of authority should be rewarded. A rational system of reward would act as an incentive subordinates to willingly take on the responsibility.

2. Principle of Effective Control: As the delegator delegates his authority

but not the responsibility, he should ensure that the authority delegated is properly used. 3. Principle of Competence: The person selected as a delegatee should be competent for the task assigned to him.

4. Principle of Delegation by Results: The purpose of delegation is to get work done by another more effectively and efficiently than it may be accomplished by the delegator himself in a given situation. is, therefore, essential that the assignment of task or duty and the entrustment of authority should be done keeping in view the results expected.

5. Principle of Adequate Communication: There should be free flow of information between superior and the subordinate to enable the latter to take decisions and interpret correctly the nature of the task to be completed.

6. Principle of Unity of Command: The principle of unity of command describes the

authority-responsibility relationship. The principle stresses that each subordinate should have only one boss to whom he should be accountable to avoid confusion and conflict. 7. Principle of Absolute Responsibility: Responsibility is an obligation which can neither be delegated nor be temporarily shifted. No superior can escape the responsibility for the activities of his subordinates through delegation. Similarly, the responsibility of the subordinate to his superior for performance of the delegated duties is absolute and cannot

be shifted.

8. Principle of Parity between Authority and Responsibility : Authority delegated should match with the responsibility. It is logical that the responsibility for actions cannot be greater than the authority delegated, nor should it be less.

9. Principle of Trust and Confidence: It is necessary that there is an atmosphere of trust

and confidence in the organisation as a whole. There should be a feeling of trust between

the delegator and the delegatee also.

10. Principle of Receptiveness: Delegation needs and it also creates an understanding between the superior and the subordinate. Decision-making involves some discretion. It is, therefore, necessary that the superior who delegates authority accommodates the ideas of his subordinates.

5.12 MEANING OF CENTRALISATION AND DECENTRALISATION OF AUTHORITY

Centralisation means concentration or retention of authority for decision-making at top level in

the organisation while as decentralisation refers to systematic delegation of authority through

all the levels of management and in all department except that which can be exercised only at

central points.

The concepts of centralisation and decentralisation are related to the concept of delegation of authority. Centralisation and decentralisation represent the pattern of distribution of authority among managers at different levels.

Centralisation

Centralisation of refers to systematic and consistent retention or concentration of authority for decision making at top or higher levels of management. An organisation is said to be centralised when top management retains absolute authority for making almost all decisions on the functioning of the organisation. In a centralised organisation, all decisions on specific matters are taken by one or a few managers at the top level. In such an organisation, very little authority is to managers at middle and lower levels. They have to depend on the top management for instruction and guidance in their day-to-day activities. They are expected to show no initiative and freedom in their day-to-day activities. The top management exercise strict supervision and control over all the activities in the organisation.

For example, let us take the case of a medium size stationery manufacturing firm. The owner along with his two sons manages the whole business. He has established separate departments for production, purchasing, stores, marketing and accounts. Each department is under the charge of a qualified manager. However, all decisions on purchase of materials, production of ball pens and on their marketing are made by the owner and his sons. They also supervise the activities of various departments. The managers of various departments are required to carry out the decisions and instructions. This is how a centralised organisation works. 

Definitions

"Everything which goes to reduce the importance of the subordinates role is centralisation

Henry Fayol

"Centralisation is systematic and consistent reservation of authority at central points

within an organisation." Thus centralisation refers to the concentration of authority or decision-making power in few -Louis A. Allen

hands at the top level. The decisions are taken at the top level and subordinates have no authority to change them.

Characteristics of centralisation

The following are the chief characteristics of centralisation:

(i) It is a system in which top level management retains the important decision-making authority and routine authority is shared with the other levels.

(ii) It is more commonly found in small-scale enterprises. (iii) It requires the issue of instructions and guidelines to the subordinates.

(iv) It requires considerable supervision to ensure that the work is done in accordance with

the instructions of the top level.

(v) It lowers employees morale since employees are treated as people without brain to take

their own decisions.

Decentralisation

Decentralisation of authority means systematic dispersal of authority in all departments and at all levels of management for taking decisions and actions appropriate at the respective levels. According to Louis Allen, decentralisation is: "The systematic effort to delegate to the lowest levels all authority, except that which can be exercised at central points." An organisation is said to be decentralised when managers at middle and lower levels are given the authority to take decisions and actions on matters relating to their respective areas of work. The top management retains the authority for taking major decisions and formulating policies for the organisation as a whole. Top management also retains authority for overall coordination and control of the organisation. Decentralisation is much more than a mere transfer of authority to lower levels. It is a philosophy involving selective dispersal of authority.

For example, let us take the case of a large steel manufacturing company. The board of directors and managing director of the company lay down overall objectives and policies of the enterprise Major decisions on product lines, capital investment, marketing methods are taken by the respective heads of departments. The marketing manager, for instance, is authorised to decide the quality and prices of products, channels of distribution, advertising with his authority. However. departmental managers are required to keep in view the overall policies of the company while making decisions on matters within their authority. This is how a decentralised organisation works.

Definitions

• "Everything that goes to increase the importance of the subordinates role is decentralisation and everything which goes to reduce it is centralisation." Henry Fayol

• "Decentralisation is the pattern of responsibility resulting from delegation."--E.FL. Brech "Decentralisation of authority is a fundamental phase of delegation."

On the basis of definitions given above it can be said that the importance of subordinates can be increased by delegating authority to the lowest possible level in an organisation.

Conclusion: Everything that goes to increase the importance of the subordinates role is decentralisation.

Characteristics of Decentralisation

The following are the chief characteristics of decentralisation: (i) It is an extended form of delegation: (n) It gives importance to the role of sub-ordinates;

(i) It reduces the work-load of the managers in the top hierarchy; (iv) It is a process applicable to the centre organisation; (v) Under it decisions are taken by those employees who implement; and

(vi) Under it alongwith authority, responsibility is also transferred.

Centralisation and Decentralisation

Centralisation and decentralisation are opposite terms. They should not be confused with location of work. An organisation having branches in different cities may be centralised. Similarly, a company may be decentralised even though all its offices are located in one building. Centralisation and decentralisation are relative terms. No organisation can be completely centralised or completely decentralised. They exist together and there is need for a balance between the two. For example, even in a decentralised organisation the top management retains the authority for overall policy decisions to ensure coordination and control. The degree of centralisation and decentralisation differs from one organisation to another. According to Henri Fayol, "Everything which goes to increase the subordinate's role is decentralisation; everything which goes to decrease it is centralisation."

5.13 DISTINCTION BETWEEN DELEGATION AND DECENTRALISATION

1. Centralization is a system in which top-level management retains the important decision- making authority and routine authority is shared with the other levels. In a decentralised system, there is large scale sharing of decision-making authority between the various levels of management.

2. Centralisation is more commonly found in small-scale organisations while decentralisation is more common in large-scale organisations.

3. Centralisation requires the issue of instructions and guidelines to the subordinates while decentralisation requires the making of decisions relating to matters that affect any level in a business, by that level itself. 4. Centralisation requires considerable supervision to ensure that the work is done in

accordance with the instructions of the top boss while the supervision costs are

considerably reduced in the case of decentralisation since people work on their own.

5. Centralisation lowers employee morale since employees are treated as people without any brains to take their own decisions. Therefore, subordinates generally lack in creativity, initiative and the risk bearing ability that is so essential in order to make an organisation prosper. Decentralisation is supposed to improve the employee morale since taking decisions can make people understand themselves better.

words decentralisation and delegation appear to be interchangeable but it is not so. Even though both involve dispersal of authority but decentralisation is an extension of delegation.

Following are the points of distinction between the two:

Sr. No.

Basis

Delegation

Decentralisation

Decentralisation is totalistic in nature. It involves delegation from top management to the department or divisional level.

Decentralisation is optional because it is the philosophy of management. Top management may or may not disperse

authority.

1.

Nature

2.

Need

Delegation is individualistic. It involves two persons, superiors and subordinates,

Delegation is essential to get things done by others. Unless otherwise authority is delegated it will difficult to assign responsibility.

3.

Significance

Delegation is required as a routine act of managing. Work is delegated to subordinates as a measure to reduce burden on the head of the unit.

Decentralisation is a vital decision to prepare organisation for handling major expansion plans. It is also essential to cope with the complexities of change: in technological, competitive and other

4.0

Control

Control rests with the delegator or

conditions in the environment. In this system top management exercises minimum control. All powers are given to

concerned departments or divisions. Delegation is essential for decentralisation. Decentralisation is dependent on delegation.

superior.

5.

Dependence

Responsibility

6.

Decentralisation is not essential for delegation.

In delegation, responsibility remains with the delegator. He can delegate authority and not responsibility.

In Decentralisation, head of the department is responsible for all activities under him. He is required to show better performance

of the whole department. In Decentralisation system, managers have greater freedom of action. They are not kept under close watch by superiors. They are required to manage as per the

7.

Freedom of Action

A delegator continues to supervise the activities of subordinates even after delegation of authority. He exercises control over the behaviour and performance of his subordinates. guidelines.

8.

Feature

Delegation is an essential aspect of Decentralisation may not be an essential managing and organising. An organisation feature of managing and organising. An cannot be functional without delegation. organisation may be working without decentralisation.

9.

Scope

Delegation may be a limited transfer of Decentralisation shows a wide distribution authority and hence its scope is limited. of authority, therefore the scope is wide.

10.

Permanence

Delegation of authority may be temporary. It may be taken back at a later date.

Under decentralisation authority is give

permanently.

To conclude, in the words of Louis A. Alien, "When a person hands over his work to other it is known as delegation but it will be known as decentralisation only when the authority to complete the entire work is handed over to them."

SUMMARY

Authority: The right to give orders and to get them executed.

Sources of Authority: Formal, Acceptance and Competence. Responsibility: The obligation to perform the assigned duties. Accountability: Answerability for

the performance of duties Interrelationship: Authority gives rise to responsibility which in turn creates accountability.

Delegation: The process by which a manager shares his authority with his subordinates. Elements of Delegation: (i) Assignment of duties (i) Grant of authority () What can be Delegated? A manager can not delegate all

Creation of responsibility.

his authority.

Importance of Delegation: Reduction in the burden of top manager, creation of chain of command, specialisation, quick decisions, motivation and development of subordinates, growth and diversification.

Principles of Delegation: () Reward; (i) Effective control, (m) Competence (iv) Delegation by results (v) Communication; (vi) Unity of command; (vii) Absoluteness of responsibility (vii) Parity between authority and

Adequate

responsibility (ix) Trust and Confidence (x) Receptiveness. Centralisation: Systematic and consistent retention of authority at top level of management. Decentralisation: Systematic and consistent dispersal of authority at all levels of management

Distinction between Centralisation and Decentralisation: Centralisation and Decentralisation are opposite to Distinction between Delegation and Decentralisation: (1) Nature (1) Need (m) Significance (Control (V) Dependence (vi) Responsibility (vil) Freedom of Action (vii) Feature (0) Scope (x) Permanence

one another.

EXERCISES

1. Multiple Choice Questions (Select the best answer)

1. Management itself expands:

(a) Through delegation

(b) Through centralisation

(c) Through decentralisation (d) Through all

2. In a large sized enterprise delegation is:

(a) Voluntary

(b) Necessary

(c) Compulsory

(d) None of these

3. For delegation to be effective, it is essential that responsibility is accompanied with necessary:

(a) Authority

(b) Man-power

(c) Incentives

(d) Promotions

4. Delegation of authority means delegation to

subordinates of:

(a) Responsibility

(b) Accountability

(c) Work

(d) Work and related authority

5. For effective delegation, it is necessary to have: (a) Facility to contact

(b) Atmosphere of co-operation and co-ordination

(c) Clear explanation of authorities

(d) All of these

6. Delegation can be done by :

(c) Accountability

(d) None of these

(a) Authority

(b) Responsibility

7.

Authority cannot be

delegated of:

(c) Ordinary work (d) Easy work

(a) Routine work 8. Responsibility is of:

(b) Secret work

(c) Both (a) and (b)

(d) None of these

(a) Subordinate

(b) Officer

3. Centralation refers to

YHAMMU

Retention of decision making authority

(b) Dispersal of decision-making authority (d) Opening new centres or branches

kd Creating divisions as profit centers

10. Which of the following is not an element of delegation?

[x Accountability

(b) Authority

(c) Responsibility

(d) informal organica

11. Authority conferred by superiority or popularity is called as :

(a) Personal authority

(b) Technical authority

Id Formal authority

(d) informal authority 12. Authority which is implicit in special knowledge or skill is called as

:

(a) Personal authority (b) Technical authority

(c) Formal authority

(d) Informal author

13. Authority which is conferred by organisation is called as:

(4) Personal authority (b) Technical authority (c) Formal authority (d) Informal author

14. The obligation to perform the assigned tasks or duties to the best of ones' ability (c) accountability

is called:

Tal Responsibility 15. Systematic and consistent retention or concentration of authority for decision making at top or higher

(b) authority

(d) task

management is called:

(a) Authority 16. Delegation is

(b) Decentralisation

(c) Centralisation

(d) Accountability

(a) Compulsory act (b) Optional policy (c) Both (a) & (b)

(d) none of the abo

17. Authority gives rise to responsibility which in turn creates : (b) Power

(a) Accountability 18. Identify sources of authority

(c) Responsibility

(d) Organisation

(a) Acceptance 19. Responsibility flows from:

(b) Formal

(c) Competence

(d) All of the above

Lower level to higher level

(b) Higher level to lower level (d) No direction

(c) Every direction

20. Elements of delegation (a) Authority

include:

(b) Responsibility

(c) Accountability

(d) All of the above

1. (a) 11. (a)

2 (c)

3. (a)

4. (d) 12. (b) 13. 14. (a) 15. (c) 16. (a) 17. (a) 18 (b) 19. (a) 20. (d)

5. (d)

6. (a)

7. (b)

8. (b)

9. (a)

10. (d)

H. Fill in the blanks.

1. Authority gives the right to give,

to its subordinates.

2. is the obligation of a subordinate to perform the duty as required by his superior

3. If responsibility assigned is more than authority, it may make a person

4. Authority is delegated, responsibility is assumed and accountability is

5. 6. The best way to reduce the burden of senior executives from day-to-day work load is

cannot be delegated at all.

7. In system, managers at and lower level have to depend on the top managemen instructions and guidance in their day-to-day activities.

8. In a

system, there is large scale sharing of decision-making authority between the va

levels of management. Ans. 1. orders

2. Responsibility

3. ineffective

4. imposed

5. Accountability

6. delegation of authority 7. centralisation

8. decentralization

Ill. Short Answer Type Questions

1. Define the term 'Authority'.

2. Define the term 'Responsibility

3. Define the term 'Accountability

4. Define Delegation of Authority.

5. Define Centralisation

6 Define "Decentralisation 7. Name the two principles of delegation

8. Distinguish between Centralisation and Decentralisation.

9. Write a note on centralisation and decentralisation. 10. What are the characteristics of Centralisation?

11. What are the characteristics of Decentralisation? 12. Can Responsibility or Accountability be delegated?

13. Why delegation of Authority is necessary? 14. What can be delegated?

15. Write a note on Authority granted must be equal to Responsibility assigned. IV Long Answer Type Questions

1. What is Authority? Distinguish between Authority and Power. 2. What is Responsibility? Distinguish between Authority and Responsibility:

3. Explain various sources of authority

4. What is Accountability? Describe the interrelationship between Authority, Responsibility and Accountability. 5. What is Delegation of Authority? Explain its importance.

6. Explain the elements of Delegation of Authority. 7. Distinguish between Delegation and Decentralisation of

Authority. 8. Explain the principles of Delegation of Authority.

QUESTION BANK

1. Very Short Answer Questions

1. Give the meaning of 'Authority' as an element of delegation.

Ans. Authority is the right of an officer to command his subordinates

2. Delegation is not abdication. Explain briefly.

Ans. After delegation the manager still continues to be responsible. So it is not abdication 3. What is the direction of movement of responsibility and accountability?

Ans. Both responsibility and accountability move upward from the subordinate to the superior

4. Whether decentralisation increase the importance of subordinates or reduce it?

Ans. It increases the importance of subordinates by giving them authority.

5. Is it essential for decentralisation that authority is delegated to every departmental/divisional manager? Ans. No, not at all.

6. Should a growing company adopt a centralised or decentralised policy? Ans. Decentralised.

7. "An organisation may work without decentralisation but not without delegation". Is it true?

Ans. it is true because delegation of authority is a must in every organisation, whereas decentralisation is not essential.

8. What is the objective of decentralisation?

Ans.To disperse authority to the lowest level.

9. Define 'Authority' as an element of 'Delegation'.

Ans. Authority refers to the right of an individual to command his subordinates and to take an action within the scope of his position.

10. Define 'Responsibility as an element of 'Delegation'. Ans. Responsibility is the obligation of a subordinate to properly perform the assigned duty.

11. Is there any difference between decentralisation and delegation authority?

Ans. Yes, there is difference between decentralisation and delegation of authority as decentralisation is an

of delegation of authority. 12. State any two advantages of delegation of authority.

Ans. (1) Reduction in load on administration, (u) Improves managerial effectiveness.

13. Can accountability be delegated?

Ans. No, can not be delegated. 14. What can be delegated?

Ans. Authority

15. What can not be delegated? Ans. Responsibility.

16. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs its market share is declining. To cope up with the situation CEO starts delegating some of his authority to the General Manager who also felt himself overburdened and with the approval CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.

Ans. Decentralisation. 17. Give the meaning of 'Delegation."

Ans. Delegation of authority means the granting of authority to subordinates to operate within the prescribed limit In simple words, it refers to transfer of authority superiors to a subordinate. 18. Distinguish between Delegation and Decentralization on the basis of freedom of action.

Ans.

Basis

Delegation

Decentralisation

Freedom action More control by superiors hence less freedom to take own decision.

19. Distinguish between Authority and Responsibility on the basis of origin.

Less control over executives hence greater freedom of action.

Ans.

Basis

Authority

Responsibility

Arises from delegated authority

Ans

5.

Ans

extensi

An

Origin

Arises from formal position

II. Short Answer Questions

1. "Authority can be delegated but responsibility cannot be delegated." Comment. Ans. Authority means the right to decide and act. A manager may exercise this right himself or delegate it to ha subordinates. On the other hand, responsibility is a personal obligation and cannot be shared. Therefore, authority can be delegated but responsibility cannot be delegated.

2. "Authority flows downwards whereas responsibility and accountability flow upwards." Comment. Ans. Authority is delegated by a higher authority to a lower authority. Therefore, authority flows downwards Responsibility and accountability flow from a lower authority to a higher authority. Therefore, these always flow upwards.

3. "Delegation of authority has three legs authority, responsibility and accountability." Elucidate. Ans. Delegation of authority is like a three legged stool. These three legs are authority, responsibility and accountability.

These three are the elements in the process of delegation of authority. 4. "For effective delegation the authority must be commensurate with responsibility" Do you agree?

Ans. Yes, I agree because if authority is more than responsibility, it may be misused and if authority is less than

the delegatee will be ineffective.

5. "Delegation of authority is based on the elementary principle of division of work." Explain. Ans. No manager can perform all the work himself. Therefore, he performs more important tasks and gets the other tasks performed by his subordinates. Such division of work requires that the manager delegates some authority to his subordinates. Therefore, delegation of authority is based on the elementary principle of division of work.

6. "If we delegate the authority we multiply by two, if we decentralise it we multiply by many". Explain. Ans. Delegation of authority is confined to a manager and his immediate subordinates in a work unit. It refers to granting authority by one individual to another. It takes place when a manager shares his authority with his subordinates and empowers them to decide and act on his behalf in respect of the tasks assigned to them. On the other hand, decentralisation involves systematic dispersal of authority at all levels and in all functions of the organisation. It is an extension of delegation to the lowest level. Delegation creates a relationship between two individuals while decentralisation creates a relationship between top management and the rest of the organisation. Thus, decentralisation is wider in scope and consequence than delegation

7. "Centralisation and decentralisation are relative terms". Explain in brief. Ans. Centralisation and decentralisation are relative terms as an organisation uses both the policies. An organisation is centralised when decision-making authority is retained by higher management levels wheras it is decentralised when such authority is delegated. An organisation can never be completely centralised or decentralised. Hence, there is a need for a balance between these co-existing forces. Thus, it can be said that every organisation will

be characterised by both centralisation and decentralisation. 8. Distinguish between centralisation and decentralization on any two basis. Ans. (i) Centralisation is a system in which top-level management retains the important decision-making authority

and routine authority is shared with the other levels. In a decentralised system, there is large scale sharing of decision-making authority between the various levels of management. (i) Centralisation is more commonly found in small-scale organisations while decentralisation is more common

in large-scale organisations:

9. Distinguish between delegation and decentralisation on any two basis.

Ans.

Basis

Delegation

Decentralisation

Sr. No.

Nature

Delegation is individualistic. It involves

two Decentralisation is totalistic in nature. It involves delegation from top management to the department or divisional level.

1.

persons, superiors and subordinates.

Need

of

of

Delegation is essential to get things done by others. Unless otherwise authority is delegated it will difficult to assign responsibility.

Decentralisation is optional because it is the philosophy of management. Top management may or may not disperse authority.

III. Long Answer Questions

1. "Delegation of authority is the Key to organisation". Why?

OR

"Delegation provides the means whereby a manager multiplies himself".

Ans. The main advantages of delegation are as follows:

(1) Relief to Top Executives: Delegation of authority enables a manager to share his workload with subordinates. It reduces the burden of work on senior executives. By transferring routine work to subordinates a manager can concentrate on important policy matters. He can, therefore, make better use of his valuable time and ability. The manager who delegates authority can achieve better results than the one who does not

(ii) Scalar Chain : Delegation of authority creates a chain of superior-subordinate relationships among managers

It provides meaning and content to managerial jobs. It also directs and regulates the flow of authority from top to the bottom of organisation. It serves as a basis of management hierarchy, (i) Specialisation: Through delegation, an executive can assign jobs to his subordinates according to the abilities and experience. Delegation leads to division of work which results in better utilisation of human and material resources. It improves the competitive strength of the organisation,

(iv) Quick Decisions: When authority is delegated, lower level employees can take decisions quickly without

consulting senior executives Subordinates are better in touch with local conditions and can take more

practicable decisions within the policy framework laid down by top management. 

(v) Motivation of Subordinate: Delegation provides a feeling of status and recognition to subordinates. Their independence and job satisfaction increases due to the authority they enjoy and the rewards they get for good performance. Responsibility for work improves self-esteem and confidence of employees. Thus, delegation promotes a sense of initiative and responsibility among employees. It inspires employees to make full use of their skills.

2. "Delegation of authority is wider in scope than decentralisation." Comment.

OR

"Delegation is the process, decentralisation is the result." Explain.

OR

"Decentralisation is an extension of delegation of authority." Elucidate.

OR

"If we delegate authority, we multiply by two, if we decentralise it, we multiply it by

OR

"The concept of decentralisation is related to the concept of delegation." Explain.

Ans.

Basis

1. Nature

Delegation

Delegation is a compulsory act as no manager

Decentralisation

Decentralisation is an optional policy-decision at the discretion of the top management

2. Purpose

can perform all tasks on his To reduce the burden of the manager

3. Scope

Its scope is narrow as it is confined to a superior and his immediate subordinate

To increase the role and autonomy of lower

level managers

Its scope is wide as it involves extension of delegation to the lowest level of management

4. Status It is a process of sharing tasks and authority

It is the result of the policy decision taken by the top management many." Discuss.

5. Freedom of action

There is less freedom to take decisions due to more control by the superior

There is more freedom of action due to less

control by the top management

3. Distinguish between Authority and Power.

Ans.

Authority

Power

1. Right to do something

1.

Ability to do something

2. 3.

4.

5.

Derived from organisation

Always flows downward-can be delegated

2. Derived from many sources-personal 3. Flows in all directions-cannot be delegated

Legitimate-resides in the position

4. May be illegitimate

Narrow term-one source or subset of power

5.

Broad concept-can authority fails

achieve

results

Visible from organisation chart. It is institutionalised power.

6.

Not visible from organisation chart

when

4. Delegation of Authority is based on the Elementary Principle of Division of Work. Illucidate.

Ans. Delegation of Authority is based on the Elementary Principle of 'Division of Work'.

In division of work, the work is divided in to small tasks. Same way in delegation, the manager divides some of work and authority among his subordinates. No manager can perform all the functions himself. To get the work done efficiently and also in a specialised manner, the manager divides the work among his subordinates according to their qualification and capability. Division of work-Work is divided into small tasks.

Delegation of Authority-Work is divided between a superior and his subordinates.

Conclusion: Authority comes into picture after division of labour. Without assigning duties, authority is non-existent.

Thus it can be concluded that delegation of authority is based on division of labour.

5. Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance. In the light of this statement identify and explain the essential elements of delegation. 

Ans. Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance. The essential elements of delegation are:

(1) Authority:

It refers to the right of an individual to command his subordinates and to take action within

his position.

the scope of

• It arises from the established scalar chain which links the various job positions and levels of an organisation. 

• Authority flows from top to bottom.

(ii) Responsibility:

It is the obligation of a subordinate to properly perform the assigned duty. • It arises from a superior-subordinate, relationship.

It flows upwards.

(iii) Accountability:

It implies being answerable for the final outcome.

It cannot be delegated.

It flows upwards.

(iv) It requires considerable supervision to ensure that the work in done is accordance with the instructions

6. What are the various features of centralisation?

Ans. The following are the chief characteristics of centralisation: (i) It is a system in which top level management retains the important decision-making authority and routine

is shared with the other levels.

(ii) It is more commonly found in small-scale enterprises. (ii) It requires the issue of instructions and guidelines to the subordinates,

the top level.

(v) It lowers employees morale since employees are treated as people without brain to take their own decisions.

7. What are the features of decentralisation?

Ans. The following are the chief characteristics of

decentralisation:

(i) it is an extended form of delegation. (i) It gives importance to the role of subordinates.

(iii) It reduces the work-load of managers in the top hierarchy.

(iv) It is a process applicable to the centre organisation. (v) Under it decisions are taken by those employees who implement.

(vi) Under it alongwith authority, responsibility is also transferred.

8. What are the features of Authority? Ans. The following are the important features

of authority:

Ans. (1) It is the legitimate right of an individual.

(i) It is the right to command and control others.

(i) It is bound by certain limits. In addition to the limits implied in the position occupied by an individual,

there are legal, social and biological limits to his authority. (iv) It is used to achieve organisational objectives. It is needed to perform the assigned task.

(v) Authority determines the superior-subordinate relationship and helps to maintain order in the organisation

9. What are the important features of Responsibility?

Ans. The following are the important features of Responsibility:

(i) Responsibility flows from bottom to top.

(ii) is assigned; it does not arise automatically.

(i) Authority and responsibility go hand in hand.

(iv) Responsibility may be confined to a specific task.

(v) Since responsibility is an obligation for performing an assignment, it cannot be delegated to subordinates even if the work has to be done by them, 

(vi) Responsibility is in relation to human beings.

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