Authority in an Organization
Hierarchy
Authority is related to power but narrower in scope.
It is focused by the formal hierarchy and reporting relationships and power is associated with
one’s post or position in the organization.
The formal authority is exercised only in downward direction – from top to bottom; from
General Manager to Deputy General Manager.
The properties that pinpoints authority:
-The post held and the personal charisma springs out authority.
-If a Chief Engineer commands, it is immediately obeyed by the Deputy Chief Engineer because
he is in the rank below him.
Water flows from higher level to lower level.
So also authority!
His senses command him to obey since the order issued is an ‘authorized one’.
Chief Engineer has got every right to command and give instruction and it is the duty of his
immediate subordinate along with others has to obey.
, Formation of hierarchy top to bottom exists and authority exists along the formal chain of
command.
In a popular MNC the scenario is different.
When an Rs500 crores collaboration with an Italian firm had to be signed, the Managing Director
waited for the instruction and green signal from the Chairman.
But the Chairman coolly said “My instructions are not needed. Do what I will do if I were you”.
He did it.
The collaboration was a big success for that company.
Authority bypassed was proficient and work out well.
“Trust gives trust” says an economist.
Therefore Hierarchy failed but net result was success – a glorious success.
In the present business school trends, graduates, brimming with pride and talents come out of it
and when they enter the business houses, they don’t bother about the authority formalities.
They don’t expect the boss to exercise his authority to command him.
In one of the south Indian auto manufacturing group Board Meeting, M.D questioned
“What is your contribution to this company”?
The MBA from IIM immediately quipped.
Hierarchy
Authority is related to power but narrower in scope.
It is focused by the formal hierarchy and reporting relationships and power is associated with
one’s post or position in the organization.
The formal authority is exercised only in downward direction – from top to bottom; from
General Manager to Deputy General Manager.
The properties that pinpoints authority:
-The post held and the personal charisma springs out authority.
-If a Chief Engineer commands, it is immediately obeyed by the Deputy Chief Engineer because
he is in the rank below him.
Water flows from higher level to lower level.
So also authority!
His senses command him to obey since the order issued is an ‘authorized one’.
Chief Engineer has got every right to command and give instruction and it is the duty of his
immediate subordinate along with others has to obey.
, Formation of hierarchy top to bottom exists and authority exists along the formal chain of
command.
In a popular MNC the scenario is different.
When an Rs500 crores collaboration with an Italian firm had to be signed, the Managing Director
waited for the instruction and green signal from the Chairman.
But the Chairman coolly said “My instructions are not needed. Do what I will do if I were you”.
He did it.
The collaboration was a big success for that company.
Authority bypassed was proficient and work out well.
“Trust gives trust” says an economist.
Therefore Hierarchy failed but net result was success – a glorious success.
In the present business school trends, graduates, brimming with pride and talents come out of it
and when they enter the business houses, they don’t bother about the authority formalities.
They don’t expect the boss to exercise his authority to command him.
In one of the south Indian auto manufacturing group Board Meeting, M.D questioned
“What is your contribution to this company”?
The MBA from IIM immediately quipped.
