Authority and Delegation
Four tightly related terms — responsibility, authority, delegation, accountability — define how tasks and power are distributed through a firm. Understanding the distinctions between them is one of the most frequently tested areas in Ch7.
How It Appears Per Course
ADMN 201
Ch7 Learning Objective 3: “Distinguish between responsibility and authority, and explain the differences in decision-making in centralized and decentralized organizations.” Exams test the four-term set as definitions and in scenarios.
The Four Core Terms
| Term | Definition | Who Holds It |
|---|---|---|
| Responsibility | The duty to perform an assigned task | Subordinate |
| Authority | The power to make decisions necessary to complete a task | Person assigned the task |
| Delegation | The manager’s act of assigning task + responsibility + authority to a subordinate | Manager |
| Accountability | The subordinate’s obligation to accomplish tasks and justify outcomes to their manager | Subordinate |
Critical distinction: Responsibility = duty to do. Authority = power to decide. They must be paired — assigning responsibility without authority sets an employee up to fail.
How They Flow Together
flowchart LR M["Manager"] -->|"Delegation\n(assigns task + responsibility + authority)"| S["Subordinate"] S -->|"Accountability\n(must justify outcomes)"| M S --- R["Holds Responsibility\n(duty to do)"] S --- A["Holds Authority\n(power to decide)"]
(diagram saved)
Types of Authority
| Type | Definition | Example |
|---|---|---|
| Line Authority | Flows in a direct chain of command from top to bottom | CEO → VP → Director → Manager |
| Staff Authority | Based on expertise; typically advisory to line managers | Legal department advising the CEO |
| Committee/Team Authority | Granted to committees or work teams involved in daily operations | Cross-functional project committee |
Line vs Staff: Line authority = command. Staff authority = advice. A CFO has line authority over the finance team; a legal counsel has staff authority when advising the CFO.
Span of Control
Span of control = the number of employees managed by one manager.
- Narrow span → fewer direct reports, tighter supervision, more management layers (tall structure)
- Wide span → more direct reports, less supervision per person, fewer layers (flat structure)
Centralized vs. Decentralized Organizations
The degree to which a firm delegates authority determines whether it is centralized or decentralized.
| Centralized | Decentralized | |
|---|---|---|
| Who decides | Top managers retain most decisions | Middle and lower managers make significant decisions |
| Speed | Slower — decisions must travel up the hierarchy | Faster — decisions made closer to the action |
| Consistency | High — uniform decisions from the top | Variable — different units may decide differently |
| Empowerment | Low at lower levels | High at lower levels |
| Best for | Stable, routine environments | Dynamic, fast-changing environments |
Forms of Power (Beyond Formal Authority)
The textbook identifies six forms of power that operate in organizations:
| Power Type | Source |
|---|---|
| Legitimate | Formal authority granted by the org’s hierarchy and rules |
| Reward | Ability to give bonuses, promotions, or other valued rewards |
| Coercive | Ability to enforce rules or punish |
| Expert | Possession of specialized knowledge or skills |
| Referent | Personal charisma; others want to be associated with you |
| Resource Control | Control over vital information, materials, or supplies |
Cross-Course Connections
OrganizationalStructure — authority systems define how the structure operates ManagerTypes — centralized organizations concentrate authority at top managers ManagementProcess — delegation operationalizes the Organizing function of POLC LeadershipApproaches — leadership styles connect to how authority and power are exercised
Key Points for Exam/Study
- Responsibility = duty to do; Authority = power to decide — must be paired
- Delegation = manager assigns both responsibility and authority downward
- Accountability = subordinate must justify results upward
- Line authority = direct chain of command; Staff authority = advisory/expertise-based
- Centralized = decisions at the top; Decentralized = decisions pushed down
- Span of control = number of direct reports per manager
- Six power forms: Legitimate, Reward, Coercive, Expert, Referent, Resource Control