7/27/2019 Authority and Responsibilty

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40 student accountant March 2006

technical

In the September 2005 issue ofstudent

accountant, an article on the theories of

leadership asked what appears to be a simple

question: what do managers do? Although

there are many possible explanations, the most

widely quoted is that of Henri Fayol, who said

that managers perform five functions: forecast

and plan, organise, command, coordinate, and

control. Managers are ultimately responsible

for the efficient use of their organisations

resources, and are accountable to the

organisations owners or directors.

What many managers do not understandis the important difference between the role

of the manager and that of the supervisor. It

used to be said that managers did their jobs

by getting others to do theirs, but in many

ways this sums up the role of the supervisor.

However, management must ensure that

supervisors understand both organisational

objectives and the powers and limits of their

duties and authority.

Supervision is an important and integral

part of the wider task and process of

management. The role of the supervisor is

critical because it involves direct contact with

the work of others. The supervisor is unique,

providing an interface between managementand the workforce, and a direct link between

the two. The supervisor is in the front line of

management, making sure that others fulfil

their duties, resolving problems first-hand,

directing the work of others and directly

enforcing discipline. In addition, they must

have direct knowledge of health, safety and

employment legislation, and have authority for

negotiation and employee relations within their

department.

The supervisors relationship with both

management and the workforce requires a

management and supervisionrelevant to ACCA Qualification Paper F1 and CAT Paper 5

power to the peopleclear understanding of the various levels ofmanagement. In particular, the supervisor mustunderstand the nature, sources and limitationsof authority, responsibility and delegation all

fundamental management skills.

Responsibility is the liability of a person

to be called to account for their actions, and

is therefore an obligation. Unlike authority,

responsibility cannot be delegated, although

as every task contains an element of

responsibility it is therefore the direction of

responsibility that matters. It is obviously

impossible to exercise authority withoutresponsibility, as this could lead to problems of

control and therefore undesirable outcomes for

the organisation. The important point is that

managers are always ultimately responsible for

the actions of their subordinates.

Authority is the scope and amount of

discretion given to a person to make decisions

according to the position they hold within

the organisation. The authority and power

structure of an organisation defines the role

each member of the organisation is expected

to perform, and also the relationship between

the organisations members. The source of

authority may be top-down (as in a formal

organisation) or bottom-up (as in a social orpolitical organisation).

Underpinning these two fundamental

management skills is delegation, an additional

aspect of the manager/supervisor relationship.

To delegate is to give someone else the

discretion to make decisions within a certain

defined sphere of influence although, of

course, the manager must first possess the

authority to delegate.

Without delegation, formal organisations

could not exist and it follows that without

authority, responsibility and delegation, a

formal organisation cannot be effective.

Management must delegate because of the

size and complexity of the organisation, and

the physical and mental limitations of staff.

Delegation also allows management to attend

to other matters by passing down more routine

tasks and decisions.

For delegation to be effective, managers

must specify expected performance levels and

ensure that these are understood, assign agreed

tasks, and ensure that resources are allocated

effectively. It is important to ensure that the

supervisor to whom duties are delegated hasthe ability and experience to undertake the

tasks set, a requirement often overlooked. The

manager should maintain frequent contact, but

in such a way that the delegated

authority is not undermined. Sufficient

authority must be delegated to fulfil the task,

which will preferably be specified in writing

so that the delegated duties are understood

by everyone. There should be no doubts

about boundaries these must be clearly

defined especially regarding authority and

accountability.

Because its importance is often

misunderstood, managers are sometimes

reluctant to delegate. Perhaps they areconcerned that subordinates may not

undertake their duties correctly, or simply

feel that delegation may distance themselves

from the workforce. Surprisingly, some

managers lack confidence in themselves or

their subordinates, or do not feel that there is

sufficient trust between them. Careful selection

and training, open communication, appropriate

control, and a scheme that rewards effective

delegation can overcome these problems.

John Ball is former examiner for Paper 1.3