People in authority and leadership condition can give reward and advantages to the group members. Hence delegation in a way keep the lower level employees happy by giving them some responsibility through delegation which in turn make them more attached and help align their personal goals and objectives with … Decentralization of authority has certain advantages, such as: ... who feel their responsibility towards company’s work. Authority is attached to the position of a superior in concern. The advantages and disadvantages of Business Social Responsibility Wednesday, 10 August 2016 | Admin The following are a number of reasons why businesses, regardless of their size, would be interested in implementing a BSR initiative into their daily practice: It is the process of distributing and entrusting work to another person. Delegative leadership is a management strategy geared toward sharing knowledge and responsibility across many levels of an organization. The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. The authority and the responsibility both go hand in hand so when there is authority given to the employee it is equally important to assign the responsibility. Thus, managers are relieved of routine work and they can concentrate on higher functions of management like planning , organising, controlling, etc. Since authority is the discretionary right to carry out assignments and responsibility is the obligation to accomplish them, it logically follows that authority should correspond to responsibility. A large dairy can have several layers of employees based on experience and ability. In business, authority and responsibility need to be aligned appropriately, with the person responsible for certain outcomes having the authority to make them happen. Authority, Responsibility and Accountability In Management It is necessary to have brief understanding of three terms intimately connected with the concept and process of delegation. Delegation refers to assigning of responsibility or authority to a subordinate by a manager to carry out specific tasks. authority is to be seen legitimate, the relation between authority and followers must be balanced, so that the authority relation is accepted by the followers. Authority – Formal organisation is an official hierarchy of relations. In the process of delegation, the superior transfers his duties/responsibilities to his subordinate and also give necessary authority for performing the responsibilities assigned. It is the obligation of subordinate to perform the work assigned to him. The … Centralized authority also provides a high degree of accountability because responsibility is clearly set forth in the organization's chain of command. This ability is the fourth kind of the authority and is named as reward authority. This was also seen by Max Weber as a prerequisite for maintaining authority and effective authority relations. Managers have some tasks that they need to do, but their primary job is to make sure that others are doing what they have been assigned to accomplish the mission and goals of the organization. Before delegating roles or authority, it is important to ensure thatthe subordinates understand their duties and all the objectives of the organization. Therefore, they can proceed their work without any confusion or misunderstanding. According to Fayol, there should be a balance between authority and responsibility e.g. Authority that reaches out empowers a team because people and their ideas are valued. Share Tweet. Following are some important advantages of effective delegation: 1. Advantages / Importance of Delegation of Authority Relieves manager for more challenging jobs : Delegation makes it possible for the managers to distribute their workload to others. Best Use of Human Resource –Proper delegation means effective use of work force. Usage: Delegation can be seen in all types of organizations. To Have a Plan – It is important for managers to first plan out roles and chalk out responsibilities and then delegate authority. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Delegation of authority develops among the subordinates a feeling of status and prestige. It refers to the structure of well-defined authority and responsibility relationships. Authority should be used to reach out to the best minds and bring them together to find a solution. Authority, in simple words, is the right way of commanding subordinates, issuing orders and instructions, and exacting obedience from the team. This makes the purpose and process of reaching the goal clear to every individual. Everyone enjoy receiving rewards and Authority: Responsibility: It is the legal right of a person or a superior to command his subordinates. In contrast, informal organisation refers to the personal and group relationships which develop automatically when people work together. The realization that someone, as just one individual, can make a difference is also something that will encourage him to continue helping society. It helps in specifying authority and responsibility of every position. Differences between Authority and Responsibility. Giving Employees More Responsibility Has Both Benefits And Drawbacks. Typically, authority and responsibility move downward through the organization as managers assign activities to, and share decision-making with, their subordinates. This … Quick and wise decision possible. Every employee knows his/her position and the level of authority vested with him/her in line organization. Delegative leadership can take the form of an entirely hands-off approach, giving managers and team … The Partnership Act 1890 sets out that all partners share the responsibility for the business, and for the decisions which affect the business. Content of presentation What is authority ? Authority, Responsibility and Accountability are Inter-related They need proper consideration while introducing delegation of authority within an Organisation. It entails the obligation of the subordinate, who has been assigned the duty by his superior. ... accountability. Delegation is the assignment of authority to another person (normally from a manager to a subordinate) to carry out specific activities. An organization chart is a managerial tool. authority in companies, the aim is to go in depth and study what kind of responsibilities and decision authority managers in one of the low trust countries delegate to their subordinates. Accountability moves upward in the organization as managers in each successively higher level … 7. The Authority aims to ensure honest and fair markets by protecting consumers, protecting the financial markets, and promoting competition. 6. Decentralization is the transfer of decision making power and assignment of accountability and responsibility for all level of management. Authority is the legal right to give the command, order or instruction and compel the subordinates to do a certain act. 6. The relationships among different persons are also established for smooth working of the organization. It may also be used as a device to motivate the subordinate. Teachers can use some effective rewards such as grade, special responsibility, privilege, attention and encourage. 1. Responsibility is a derivative of work to be performed and authority is derived from responsibility, accountability in turn, is a logical derivative of authority. People who are in an authoritarian position have more responsibilities which come with the power of authority. A team leader puts authority to good use when people are recognized for their contributions. A free rein leader completely abdicates his leadership position, to give all responsibility of most of the work entrusted to him to the group which he is supposed to lead, limiting his authority to maintain the contact of the group with persons outside the group. Responsibility vs Authority. Giving employees latitude by delegating authority and decision making can help them feel empowered. Also, they need to have the requisite authority that allows them carry out the assigned duties, i.e. Advantages of Delegation of Authority. Whenever authority is used, responsibility ensues. It helps to improve their working efficiency. Authority means power to take decisions and responsibility means obligation to carry out an assigned job. authority needs to be coextensive with subordinates’ responsibility. It also promotes a sense of initiative and responsibility among them. Types, sources of authority and Power Responsibility and Accountability Relationship between Authority and Responsibility Delegation of Authority Decentralization of Authority 3. Labor | By: Mike Opperman. Lower level managers are endowed with decision-making authority and are given the responsibility to run their own departments or business units. Advantages of Effective Delegation. if any employee has been assigned any responsibility, he must be given sufficient authority to do his job efficiently and vice-versa. Authority, Responsibility and It’s Delegation Tola Kanta Neupane MBA 2. Subordinates usually respond to delegated authority with favourable attitude. 4) Creation of Accountability. On the other hand, Responsibility is the outcome of authority. One of the biggest advantages of having social responsibility is that it gives a person a feeling of satisfaction in knowing that he is helping society. Advantages of Organization Charts: 1. Advantages of Delegation. Responsibility and authority are two things which go hand in hand. All of the following are advantages of a functional structure EXCEPT: excellent coordination between functions. Authority and Responsibility Authority. 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