Authority

Historically in management, authority is defined as the right to require or prohibit actions of others. This definition has led to the formal theory of authority that states that all authority (rights) flow from the top to the bottom of an organization. The CEO gets her authority from the board of directors, vice presidents get their authority from the CEO, and so on.

The formal theory of authority was challenged in 1938 by Chester Barnard, who proposed the acceptance theory and viewed authority in an entirely different way. According to Barnard, managers get their right to influence employees because employees accept the legitimacy of management. Authority is most likely to be accepted when it is considered legitimate, legal, and necessary. In this view, ironically, authority flows from the bottom to the top of organizations.

The arguments regarding the formal and acceptance theories are primarily of academic rather than practical interest. From a management perspective, the important issue is how managers exercise the authority they possess, regardless of the source. It is generally recognized that successful managers are good at delegating their authority. The effective delegation of authority allows managers to expand their abilities, manage their time, and provide employees with valuable decision-making experiences.

The universal agreement that the ability to delegate authority is an important skill for successful managers raises an interesting question. If delegation is so important to managerial success, why do managers often hesitate to delegate? The answer has to do with accountability. Because authority is a right, the manager is free to temporarily give up the right to someone else. The manager, however, can never be relieved of the accountability for the exercise of the authority. Delegation is risky. If a manager delegates authority to a person who does not act responsibly, the manager who delegated the authority remains accountable for any lack of performance. Hence the maxim one hears so often, “If you want to be sure something is done right, do it yourself.”

Delegation of authority, as stated, is risky business; there is no denying this reality of organizational life. However, successful management entails a number of risks. It is risky to try new ideas and to delegate authority, but these risks are inherent in the practice of management.

Organizations are effective when different units coordinate their efforts toward a common goal. This coordination is a primary responsibility of management, and authority is one of the tools—along with leadership, persuasion, and inspiration—that managers use to ensure coordination. Authority, in fact, has been called the supreme coordinating force in any organization.