Human Resource Management Unit V

7/30/2019 Human Resource Management Unit V

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UNIT 5

Authority Responsibility

Relationships

Meaning of authority

Authority is the official right of a person to do and make things happen

in an organization. The person vested with authority is known as the

Superior. The person on whom the authority is exercised is known as the

subordinate. Authority gives th e superior the right to give orders, make

decisions and allocate resources. Authority comes to the superior by virtue

of his official position.

Power

The term power may appear to be similar to authority. Power is the

capacity of a person to act influence others. It does not come to a person by

reason of his official position. A person get power by the virtue of his

intelligence, knowledge, skill and other personal traits.


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Distinction between authority and power

Authority power1.

2.

3.

4.

5.

6.

It is the official right of an

individual.

It accrues to a person by virtue

of his official position.

It cannot be transferred by the

process of delegation.

Authority flows downward. A

superior may delegate authority

to his subordinate.

Authority relationship can be

shows in the organization chart.

The authority of an official

increases with an elevation in

his official status.

1. it is the capacity of an individu

2. it accrues to a person by virtue

of his personal position which

is determined by his

intelligence , knowledge, skill

and other personal qualities.

3. power , being the personal

capacity of an individual.

Cannot be transferred to any

one.

4. a power may flow in all

direction. A foreman, for

example, by reason of his

skill and intelligence may

influence even the

production manager.

5. power positions cannot be

shown by means of the

organization chart.

6. the power of an individual

does not change with a

change in his official status.


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(iii) competence theory.

Each of these theories has been explained below:

Formal authority theory

This theory states that authority flows down ward in an organization

through the process of delegation . in a joint stock company , for example

the ultimate authority lies with the shareholders. It is only the shareholders

who entrust the management of the company to the board of directors . the

board ,in turn, delegates the authority to the managing director who

delegates it to the department managers. Every individuals derives his

authority by reason of his formal position in the organization. Such

authority is, therefore, known as formal authority.

Acceptance theory

The acceptance theory was developed by a management expert called

chester barnard. According to this theory the formal authority has

significance only if it is accepted by the subordinates. In other words the

effectiveness of formal authority depends on the willingness of the

subordinate to accept it. A subordinate will accept the exercise of authority

if the advantages accruing to him from accepting it exceed the advantage

accruing to him from accepting it exceed the advantages accruing from notaccepting.

A subordinate will accept an order if it is consistent with the

organizational interest as well as his personal interest and he is able to

comply with it both physically and mentally.


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Competence theory

This theory states that a person derives authority out of his personal

qualities. Formal authority accrues to a person by virtue of his official

position in the organization. Personal authority on the other hand, is

derived by a person by reason of his experience, intelligence, technical

knowledge and skill and soon. It is not uncommon to find a superior officer

evolving an important decision after consulting an experienced and

competent subordinate of his.

Responsibility

responsibility is the duty or obligation of a subordinate, to whom some

work has been assigned by a superior. to perform the task required.

Responsibility can be given to human beings only. The existence of

superior- subordinate relationship between the person concerned is an

important condition for the assignment of responsibility. A production

manager ,for example may assign some responsibility to a foreman. This is

able to do by reason of the official authority he has to get things done by

the foreman. The foreman ,in turn , may assign some work to a worker as he

has the authority to do so.

Responsibility may be a continuing obligation or conformed to a

specific assignment. For example, the responsibility of a foreman to

the production manager in the manufacturing concern the continuing one.

On the other hand, if the production manager assigns the job of installing a

plant to a technician, the responsibility of the latter to the former is

confined to that work alone.


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The responsibility of a person may be defined in terms of function or

targets as the case may be. The responsibility of an office manager or a legal

officer , for example, is in terms of functions. The responsibility of a

factory worker, on the other hand, is in terms of targets (output to be

produced).

A superior who assigns some responsibility to his subordinate should

also give the letter the requisite authority to perform the task. For example,

a salesman who has been given a certain sales target to be attained within a

specific period should be given the authority to draw the necessary cash

from the finance department to meet out the expenses in connection with

his travel, stay and food. If the company gives him a two wheeler he needs

to be given the cash necessary to meet out the fuel and maintenance

expenses. He must also have access to the telephone. The present-day

salesmen are given cell-phones or pagers.

It is clear from the above example that it is not possible for a

subordinate to perform the work assigned unless he is given the necessary

authority. It is also important that authority must match responsibility and

vice versa. If authority exceed responsibility, there may be misuse. Of

authority. On the other hand, if responsibility exceeds authority, the

subordinate cannot perform the task assigned successfully. Hence, the need

for parity (equality) between the two.


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Accountability

Accountability means , answerability . a subordinate, to whom some

responsibility has been given by a superior. Becomes answerable to the

latter for the performance of the work. The subordinate remains liable

whether or not he has completed the task. If he has not completed the work

assigned he must offer proper explanation for it. If the explanation gives is

not acceptable to the superior, he can take suitable action.

Delegation of authority

Meaning

In any organization , an individual alone cannot perform all the tasks.

He has , therefore to assign work to different person who are engaged for

the purpose.

For the example the sales manager of a concern cannot look after sales in

different towns and villages himself. Sales representative are appointed to

assist him in the work. The sales manager will depute each salesman to aparticular place. Assignment of work or responsibility alone is not enough

to make the salesmen perform the task. They need to be given the necessary

authority to carry out their responsibility. Delegation of authority is only

the process of transfer of authority by a superior to his subordinate to

enable the latter to perform the task assigned.

Definition of delegation of authority

1. the process of delegation involves the determination of result

expected, the assignment of task the delegation of authority for the


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accomplishment of this tasks and the exaction of responsibility for

their accomplishment konntz and ODonnel.

2. delegation is the process a manager follows in dividing the work

assigned to him so that he perform that part which only hebecause of

his unique organizational placement can perform effectively, and so

that he can get other to help him with what remains allen.

3. delegation is the passing on to other of a share in the four elements of

the management process that is to say in the command of the

activities of the people and in the responsibility for the decision that

will determine the planning, co-ordination and control of the

activities of such other people E.F.L.Brech.

4. delegation of authority merely means the granting of authority to to

subordinates to operate with in prescribed limits Haimann

5. delegation means assigning work to others and giving them authority

to do it F.G.More.

it becomes clear from the above definitions that delegation is the process

of assignment of work and responsibility and transfer of the necessary

authority by a superior to his subordinates.

The following are some of the important definition of delegation of

authority:

The process or the elements of delegation

The following are the different stages involved in the process of

delegation:

(i) assignment of duties


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(ii) delegation of authority and

(iii) creation of accountability

each of these stage has been explained below:

Assignment of duties

The different departments or divisions in an enterprise, namely

production, marketing, personal, finance etc., are headed by the

respective departmental managers. A number of subordinates work in

each of these department s. every departmental manager assigns work to

each of the subordinate working under him. While assigning work or

duty, the superior/manager shall take into account the capabilities of hissubordinates. Al though the departmental managers assign work to their

subordinates , for the due performance of the work they (the managers)

remain liable to the general manager (or the managing director or the

chief executive as the case may be ) of the concern.

Delegation of authority

Assignment of duty alone is not enough to get the work done by the

subordinate . the subordinate need to be given the requisite authority to

carry out the responsibility. Delegation of authority will enable the

subordinate to have access to the resources of the enterprise, namely,

men, machines, materials ,and money. Further, authority also enablesthem to meet customers and enter into contracts on behalf of the concern.

Creation of accountability


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The subordinate, who has been assigned some work and given the

necessary authority, remains liable or answerable to his superior for the

due performance of the work. This is necessary in view of the following

reasons:

(i) the superior remains liable , on the performance of his

subordinates ,to his own superior.

(ii) The superior has to be ensure that there has been no misuse of

authority by his subordinates.

(iii) The overall project of the enterprise has to be attained and for

this everyone concerned with the enterprise has to put in efforts.

Advantages /benefit / merits / important / of delegation

The advantages of delegation of authority in an organization may be

started as follows:

1. vital for every organization: delegation of authority is indispensable

for every organization . on individual in any organization , can

perform all the task himself. He need the support of a term of

individual. The work therefore has to be shared by different person

working in the department. The task of sharing the work and

accomplishing the same is done through the process of delegation.

2. relief to managers: the manager of each department is able to

divided the entire work of his department among his subordinates.

After assigning work every subordinate staff, the manager also

gives him the requisite authority. The manager ,thus is able to

concentrate on more important duties .the routine work is being

attend by his subordinates.


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3. specialization: the very division of the work of a business enterprise

in to production , marketing , finance , personnel etc ., is to drive

the benefits of specialization. Each of these division is looked after

by a manager. Each such manager will work under the control of the

general manager of the concern. With in each division there is

further scope for deriving the benefits of specialization. For

example in the marketing department , different individuals may

specialize in different marketing activities like advertising ,sales ,

promotion , packing ,gathering market news and so on. Each such

individuals will work under the control of the marketing manager.

4. prompt decisions: delegation of authority to subordinates enables

them to

make decision with in scope of their authority .for example, a

foreman, has the authority to make certain decisions with in his

level of authority . it therefore not necessary to refer every matter

to the superior and to await his decision.

5. improvement of job satisfaction assignment of work and

responsibility to subordinates gives them the feeling that they are

being recognized. This word certainly motivate them to put in

greater efforts in order to show good results. A subordinate showing

good results should definitely be rewarded. The reward may come to

him in the form of tangible or intangible benefits. Such a person

therefore, is bound to have a higher level of job satisfaction.

6. scope for business expansion: as the subordinates of the

organization are well versed in performing their task and also have

the expertise in decision making the business can successfully

undertake expansion or diversification activities.


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Types of Delegation

Delegation may de of the following types:

(i) general delegation

(ii) specific delegation

(iii) written delegation

(iv) unwritten delegation,

(v) formal delegation

(vi) informal delegation

(vii) upward delegation and

(viii) sideward delegation.

let us about each one now.General delegation: in the case of general delegation of authority , the

subordinate has the authority to perform any function that may be

necessary for the accomplishment of the overall enterprise goal. A

salesman who has been given general authority, for example, may

supervise production or packing in order to ensure prompt dispatch of

the goods he has agreed to supply.

Specific delegation : in the case , the subordinate has the authority to

perform only a specific function. For example may have the authority to

perform only a specific function. A foreman, for example, may have the


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authority only to supervise the workers and make a report to the

production manager at regular intervals.

Written delegation : delegation made by written orders and

instruc tions is what is known as written delegation . a power of attorney

may be cited as an example.

Unwritten delegation : here, delegation is based on customs or

conventions.

Formal delegation : in the case of formal delegation, authority is

delegated as laid down in the organization structure. The personal

manager, for example has the authority to advertise vacancies in news

papers and solicit applications from eligible candidates if the organization

has the policy to recruit people from outside source.

Informal delegation : in the case of informal delegation , a

subordinate performs a certain function although he is not officially

bound to do it. This he does because of the personal relationship he has

with the superior who has assigned the work to him. A sales man for

example may buy certain stationary items needed by the office, as a favour

, in view of his personal relationship with the office manager.

Upward delegation: delegation is usually a downward process i.e., only a

superior delegates authority to his subordinates. Upward delegation takes

place when a subordinate assigns some work to his superior. Such a

delegation is very rare. Sometimes, a superior may perform the work of a


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subordinate if the latter has any difficulty in doing it. This he does only to

make him understand the methodology of work.

Sideward delegation : sideward delegation takes place when a subordinate

assign certain work to another subordinate working at the same level. For

example, one account may assign his work to another. In the same way one

salesman may help another. Employees operating at the same level may

help one another.

Principal of delegation

The following are the important principles of delegation of authority:

1. delegation to go by expected results : before delegation of authority to

his subordinates, the superior must be clear about the task he wants

them perform so as to realize the expected results. The extant of

authority depends upon the nature and quantum of work to be done. If

the tasks to be perform by the subordinate are not properly determined

by the superior, he may not be able to decide on the authority required.

2. responsibility is absolute: a superior can delegate only authority and

not responsibility. For the performance of work by his subordinates the

superior is responsible to his own superior. For example, the sales

manager of a concern is responsible for the performance of the

salesman working under him, to the general manager. It, therefore,

goes without saying that the superior has to constantly monitor the

performance of his subordinates.

3. Authority to match responsibility: There should always be parity

between authority and responsibility, i.e., one must be equal to the


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other. If authority given to a subordinate is more than his

responsibility, there may be a tendency tom misuse the authority. On

the other hand, if responsibility is more than the authority, the

subordinate will not be able to perform the task. It is, therefore,

necessary that both should be equal.

4. Unity of command: This principle says that a subordinate should be

assigned duty or responsibility by one superior only. He is also

accountable to that superior alone. For example, a foreman should

work as per the orders received from the production manager and

should also report to him only. A salesman has to carry out the orders

of the sales manager under whom he works. If two managers command

a su bordinate, he wont know whose orders he should carry out.

5. Clarification of the limits of authority: The subordinate should know

the limits of his authority. While delegating authority to his

subordinate, the superior must tell him what he could and could not

do. For example, a salesman, who has to travel to different places, may

have the authority to stay and have food in a hotel at the cost of his

employer. But he would be informed of the maximum amount allowed

per day.

Obstacles to delegation

The problem faced in delegation of authority may be discussed under

the following heads:

(i) Problems of superior,

(ii) Problems of subordinate, and

(iii) Organizational problems

We shall now discuss each of the above in detail.


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Problem of superior

A superior may not come forward to delegate the required

authority to his subordinate in view of the following reasons:

1. Desire for domination: Some managers have desire for domination.

They have a feeling that delegation of authority to subordinate would

result in loss of control. Such managers want their subordinates to come

to them always for getting approval.

2. Superiority complex: Some managers have a feeling that they only

are capable of doing the work. They think that the subordinate cannot

perform as effectively as they can. As a result, they do not come forward

to delegate.

3. Lack of confidence in subordinates: Sometimes, a manager may

think that his subordinate may take a bad decision and as a result his

department may have to suffer. Because of such a fear he may show

hesitation.

4. Personal incompetence: A superior may avoid delegation of

authority to his subordinates, if he himself is incompetent, i.e., the

superior himself may be basically poor in planning and execution of work.

When such a superior delegates authority to his subordinates, it would

only expose his own week points.

5. Fear that the subordinates might outshine: Some superior also have

the fear that some of their subordinates, who are really efficient and

capable, might outperform them. As a result, the superior would lose

their importance.

Problems of subordinates


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2. Multiplicity of command: delegation, to be effective, must conform to

the principle of unity of command. If too many superior command a

subordinate, there will be confusion. The subordinate, in such an

organization, would only struggle.

3. Lack of able managers: The organization must have able managers.

Only such managers will be able to assign the right type of work to the

right persons. If only the organization can provide a good pay package

and the right kind of environment, it can attract capable managers.

4. Absence of proper control system: The success of delegation can be

measured only if the organizational has a proper control system. The

absence of such a system would only make delegation a futile exercise.

5. An environment of mutual distrust: The organizational must ensure

mutual trust and confidence between the superior and the subordinate

employed in it. Lack of such an environment would not allow any scope

for delegation of authority.

How to make delegation effective

The following are some of the measures that can be taken to make

delegation of authority effective:

1. Determination of definite goal: Delegation is required only for the

effective attainment of the enterprise goal. It is, therefore, important to

state the goal in clear and precise terms. If the goal is imprecise and vague,

the subordinate may hesitate to accept authority.

2. Authority should match responsibility: As mentioned earlier, the

authority given to a subordinate should neither be more nor less than his

responsibility. If it is more, the tendency will be misuse it and if it is less,

the subordinate will not be able to carry out his responsibility. Therefore,

both authority and responsibility should be equal.


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3. Unity of command: For delegation to be effective, it is important that

a subordinate get command from one superior only and is accountable to

such a superior alone.

4. Proper motivation: It is also important that the subordinate are

properly motivated to accept authority and prove their worth to the

organization. Motivation of subordinate may be done by offering

incentives-both monetary and non-m onetary. A subordinate who has

shown good results may also be given greater decision-making authority.

5. Appropriate work environment: The work environment should be

such that the subordinate are able to work without any fear. The superior

must be easily approachable. The resources needed to perform the various

tasks should also be easily accessible.

6. Proper communication: All efforts must be made to develop proper

communication channels within the organization. Informal

communication(ignoring the hierarchy) may be used to supplement or as a

substitute for formal communication wherever necessary.

7. Proper training of subordinates: The subordinates may be given

proper training to enable them to undertake any assignment. Training

helps to develop the capabilities of subordinates and thereby gives them

the courage to accept delegation of authority.

8. Proper control mechanism: Control mechanism is required to review

the progress of work done by the subordinates. The control system should

help to measure deviations from the standards without interfering in the

daily activities of the subordinates.

DECENTRALISATION

Concentration of decision-making authority in the hands of a few at the

top level is known as centralization. In decentralization, there is dispersal

of decision- making authority at different levels of the organization


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Who has delegated authority overall control. The superior

at

To his subordinate exercises each level exercises control

Control over him. Over his immediate

subordinate.

Decentralization does not require the location the departments of the

enterprise in different places. In other words, the geographical location of the

departments or division of the enterprise in different areas does not

determine decentralization. Even if all the division are placed under one roof,

the enterprise may be under the system of decentralization . Dispersal of

authority alone is the key factor in decentralization.

The distinction between a centralized organization and a decentralized

one may also be explained by means of diagrams:

General manager

Production manager Marketing manager

Advertising

Target attainment

Plant maintenance Controlling

Quality control Salesmen

Market research


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Supervision 1 Supervision 2 Sales officer 1 Sales officer

2

If the above organization follows a decentralized pattern, the diagram

with appear as follows:

General Manager

Production manager Marketing manager

Supervisor 1 Supervisor 2 Sales officer 1 Sales officer 2

Target attainment Target attainment Advertising Advertising

Plant maintenance Plant maintenance Controlling Controlling

Salesmen Sales men

Quality control Quality control market research market

Research

Factors determining the degree of decentralization

1. Attitude of the top management: If top management wants all the

decision-making authority to be confined to itself and to a few key

executives, it may prefer centralization. On the other hands, if the top

management wants to have only overall control over the organization


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approach their superior only if their advice is needed on a very

important issue.

2. Prompt decisions: As the subordinate operating at every level have

authority to make decisions on matters that are within their control,

there may not be delay in evolving decisions. For example, the

decision to accommodate a worker in a particular shift may be made by

the foreman himself in a decentralized organization. The consent of

the production manager may not be required.

3. Motivation of subordinate: Since the subordinate have been given the

authority to make decision pertaining to the work done by them they

feel motivated. Such a motivated person would certainly perform his

duties with more interest and commitment.

4. Progress due to autonomy: Under decentralization, each departments

or division enjoys autonomy as there is no direct interference in its

decision-making authority by the top managerial personnel. Autonomy

gives each department the freedom to act. This would certainly

encourage healthy competition among the various department of the

enterprise and ensure its growth.

5. Effective communication: Under centralization, the scope for

communication is limited. This is because only a few executives at the

top have the decision- making authority. The subordinate have to

simply carry out the orders of such executives. But in a decentralized

enterprise, subordinate at different levels of the organizational

hierarchy have the decision-making authority. This results in effective

communication throughout the organization.

Disadvantages of Decentralization :

The following are some of the limitations of decentralization:


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Human Resource Management Unit V