Business Studies XII Content
Chapter 4 » Meaning of Authority, Responsibility and Accountability | Business Studies – XII
Meaning of authority
Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision-making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal.
Authentic body of an organization is top-level management, top-level management direct the subordinates. Departmental managers and other personnel take the direction from top-level management to perform the task. Authority is necessary to perform the work. Only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility.
Subordinates receive the authority from top-level of the organization, and they also receive the command and direction to perform the work. In other words, they are authorized and responsible for a specific function. Sometimes the task may not be performed effectively the subordinates may not be performed effectively. The subordinates must report bossing about the assigned task. S/he must answer his/her performance which is known as accountability.