1. 1 Authority  Formal and legitimate right of a manager to make decisions and issue orders  Allocate resources to achieve organizationally desired outcomes  Authority is distinguished by three characteristics  Authority is vested in organizational positions, not people  Authority is accepted by subordinates  Authority flows down the vertical hierarchy  Formal and legitimate right of a manager to make decisions and issue orders  Allocate resources to achieve organizationally desired outcomes  Authority is distinguished by three characteristics  Authority is vested in organizational positions, not people  Authority is accepted by subordinates  Authority flows down the vertical hierarchy

2. 10-2 Sources of authority  Formal authority- flow of authority is top-down authority  Acceptance theory- Authority exists when subordinates are willing to be accepted because they virtualize the following advantages  Receipt of financial incentives  Contribution in attaining objectives of the organization  Fulfillment of responsibility.  Appreciation from colleagues. Authority flows from bottom to top.

3. 10-3  Competence theory Individual derives authority because of his personal qualities & technical competence. Power Refers to capacity that A has to influence the behavior of B, so that B does something which he or she would not otherwise do.

4. 10-4 AUTHORITY POWER  Right to commandcapacity to influence others  Mostly with managerswith leaders  Narrow-may have Broad –includes considerable authority authority but powerless  Flows in one directionFlows in all directions

5. 10-5 Responsibility Duty by which a person is bound by reason of his status or task. Such responsibility implies compliance with directives of the person making initial delegation. An obligation of an individual to carry out assigned activities to the best of his ability.

6. 6  Managers are assigned authority commensurate with responsibility

7. 7 Accountability ● Mechanism through which authority and responsibility are brought into alignment ● People are subject to reporting and justifying task outcomes to those above them in the chain of command ● Can be built into the organization structure

8. 10-8 Delegation To delegate means to grant or confer; hence the manager grants or confers on others certain duties in the form of work and authority. The delegation of authority is the delivery by one individual to another of the right to act, to make decisions, to requisite resources and to perform other tasks in order to fulfill job responsibilities.

9. 10-9 Some of the important features of delegation :  Two-sided relationship  Act of trust  Freedom to think and act  A challenging task  Forward-thinking principle

10. 10-10 What Delegation is Not?  Delegation is not abandonment  Delegation does not mean that the manager loses control and power  Delegation does not mean avoiding decisions

11. 10-11 The delegation process essentially consists of three related steps: (i) the assignment of work to people; (ii) the granting of authority to utilize resources; (iii) the creation of an obligation to perform.

12. 10-12 Principles of Delegation  Principle of delegation by results expected  Principle of parity of authority and responsibility  Principle of absoluteness of responsibility

13. 10-13 Advantages of Delegation  Superior related advantages  Subordinate related advantages  Improves behavioral climate  Advantages to organization

14. 10-14 Important Decisions in Delegation To delegate wisely, a manager must decide the following two questions carefully: 1. What to delegate and what not to delegate? 2. To whom should authority be delegated?

15. 10-15 Delegation Problems  Reluctance to delegate  Better performance. I can do it better myself  No trust. I cannot trust others to do the job  Subordinate may get credit. I’ll lose importance if I let others do the job  Continuous guidance difficult. I cannot coach everything  Who will face the music?

16. 10-16 Reluctance to accept delegation  Easy to ask. It is easier to ask the boss.  Fear of criticism. Why should I stick my neck out for that guy?  Lack of information resources. Nobody tells me anything  Too heavy. I am already overburdened  Lack of self-confidence. I don’t have the psychological make-up to shoulder.

17. 10-17 How to Delegate Effectively?  Establish goals  Define responsibility and authority  Motivate subordinate  Require completed work  Provide training  Establish adequate controls