POWER AND AUTHORITY:Nature of Relationship, Delegation of Functional Authority

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Introduction To Public AdministrationMGT111

LESSON 16

POWER AND AUTHORITY

At the end of the lecture students will be able to understand:

The concepts of Line and Staff

Relationship of authority with line and staff concept

Centralization, Decentralization and Delegation

Definition of Power and Authority

Authority is a force for achieving desired outcomes, but only as prescribed by the formal

hierarchy and reporting relationships,

Authority is vested in organizational positions, not because of the personalities and personal

characteristics of the individuals, but because of the position that a person is holding.

Power is the ability to influence others to modify behaviour to achieve stated objectives.

Authority is also defined as the right in a position to exercise discretion in making decisions affecting others.

Line and Staff Concept

There is much confusion on what exactly is "line" and "staff" in management literature and

practice. But line and staff relationship are important as an organizational way of life and authority

relationship.

Line Concept

Line functions are those that have direct impact on the accomplishment of the objectives of an

organization. Example: policeperson controlling the mob

Staff Concept

Staff functions are those that help the line persons work most effectively in accomplishing the

objectives. Example: A person managing the budget of the organization

Delegation:

It is the assignment to another person of formal authority (legitimate power) and responsibility for

carrying out specific activities

Nature of Relationship

Scalar Principle

The clearer the line of authority from the ultimate management position in an organization to

every subordinate position, the clearer will be the responsibility for decision making and effective will be

organization communication. In many large organizations the steps are long and complicated. It should

become clear from the scalar principle that line authority is that relationship in which superior exercises

direct supervision over subordinate. In Figure 1 this relationship is shown by the solid line that connects

boxes.

Scalar Principle

Figure 1

Chief Executive

Managing

Director Research

Director Production

Director Public

Manager Purchase

Manager Personnel

Manager Factory

Introduction To Public AdministrationMGT111

Functional Authority

It is important to understand the functional authority. It is the right that is delegated to an

individual or a department to control specified processes, practices, policies, or other matters relating to

activities undertaken by persons in other departments. If principle of unity of command were followed,

authority over these activities would be exercised by their line supervisor.

Delegation of Functional Authority

One can better understand Delegation of functional authority as a small slice of the authority of

line supervisor. The Chairman or head of institution has complete authority to manage organization, under

the rules of organization. In pure staff situation the advises on personnel, accounting, purchasing etc., have

no part of this line authority, their duty is to offer advise. But when the head of institution delegates his

advisor to issue instructions to the line organization as shown in figure-2 that is called "functional

authority".

Scalar Principle

Figure- 2

Chief Executive

Managing

Director Research

Director Production

Director Public

Manager Purchase

Manager Personnel

Manager Factory

Benefits of Staff

Today, staff advice is far more critical for business, government, and other enterprises than it was

in the past. Operating managers are now faced with making decisions that require expert knowledge in

economics, technical political and legal areas.

Another major advantage of staff is that the specialists may be given time to think, to gather data,

and to analyze to advise superiors, whereas busy mangers cannot do this. It is rare that operating managers

will find time to do analysis which the staff assistant can do as well.

Limitations of Staff

Danger of undermining Line Authority: The advice of staff officers is taken by the

executive with enthusiasm which may not be acceptable to line (operating) people because

they think that staff has no experience of work of line people.

Lack of Staff Responsibility: advisory departments only propose plans while line has to

implement. When there is problem in the implementation of plans the blame is shifted to

those who have advised. This creates situation for shifting blames for mistakes on staff.

Thinking in a Vacuum: Because staff people do not implement. They only advise so what

they advise they are blamed for thinking in vacuum

Decentralization of Authority

We focussed on the kinds of authority relationship, such as line staff and functional authority. Now

we will look at dispersion of authority.

Nature of Decentralization

Organization authority is given to people to use judgment to make decision and give instructions.

Decentralization is the tendency to disperse decision-making authority in an organized structure. It

is a fundamental aspect of delegation; to the extent authority is not delegated, it is centralized. How much

Introduction To Public AdministrationMGT111

should authority be concentrated in or dispersed through out the organization? There could be absolute

centralization of authority in one person, but that means no subordinate mangers and therefore, no

structured organization. Some decentralization exists in all organizations & that is shown in figure 3. The

degree of centralization and decentralization would vary from organization to organization.

Figure-3

Complete decentralization

Complete centralization

(No organizational structure)

Authority Delegated

Authority not delegated

Centralization and Decentralization: The degree to which formal authority is delegated by manager

throughout the organization runs along continuum from centralization to decentralization as shown in

figure 3. In a relatively decentralized organization, considerable authority and responsibility is passed down

the organizational hierarchy

Different Kinds of Centralization

Centralization of performance

Departmental centralization

Centralization as an aspect of Management

1. Centralization of performance

It pertains to geographic concentration; it characterizes an organization operating in a single

location

2. Departmental centralization

It refers to centralization of specialized activities, generally in one department. For example,

maintenance for a whole plant may be carried out by a single department.

3. Centralization as an aspect of management

It is the tendency to restrict delegation of decision making. A high degree of authority is held at

or near the top by managers in the hierarchy.

We have so far covered four building blocks of Organizing. These are:

Classify work into activities which is called `Division of labour

Combine activities in a logical and efficient manner called `Departmentalization'

Specify who reports to whom called `Hierarchy'

Integrate departmental activities called `coordination'

Introduction To Public AdministrationMGT111

Concepts

Line function:

functions that have direct impact on the accomplishment of

objectives of organization

Staff Function:

are advisory functions. Staff people help line persons to work

most effectively in accomplishing objectives.

Scalar principle:

the line of authority that determines the relationship between

supervisors and supervised

Functional authority:

authority given to department or individual to control specified

processes, practices and policies

Delegation of authority:

giving of part of authority to lower level

Decentralization of authority: decentralization of authority is dispersion of decision making

authority in an organized structure.

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