Title of Assignment

Explain the term ‘authority’. Discuss how it is different from responsibility and accountability. Also,
discuss the meaning, advantages, and limitations of centralization of authority. Finally, distinguish and
explain the meaning between delegation and decentralization of authority, and between authority and
power

Full Name: MIKE HAMOONGA

Student ID Number: R1803D4870839

Module Name: Theories of Management

Module Code: UU-MBA-712-ZM-48716, Week 6

Date: 1.03.2023
Contents
Introduction...............................................................................................................................................2
Differences between Responsibility and Accountability.........................................................................3
Responsibility.........................................................................................................................................3
Accountability........................................................................................................................................3
Advantages of Centralization...................................................................................................................3
Limitations of Centralization....................................................................................................................4
Delegation of Authority.............................................................................................................................4
Decentralization of Authority...................................................................................................................4
Differences Between Delegation and Decentralization...........................................................................4
Power..........................................................................................................................................................5
Authority....................................................................................................................................................5
Differences Between Power and Authority..............................................................................................5
Reference....................................................................................................................................................6
Introduction
Authority is one of the most complex principles of social organization in modern society, and the most
important relationships between individuals or groups are based on some form of authority. Authority
according to Whyte (2007), is an order from someone with supreme authority deciding what a
subordinate should do.

Differences between Responsibility and Accountability

Responsibility
 The obligation to complete tasks; failure to do so constitutes a failure of responsibility.
 While the final goal is being worked towards, the work is still ongoing.
 Can be distributed among members of a team; multiple people can have the same task or
different tasks that contribute to the same goal.
 Specifically task-oriented
 It cannot be assigned to anyone. Each individual must accept personal responsibility.

Accountability
 The obligation to account for tasks once they have been completed
 What happens after a situation occurs (or in the form of a status update)?
 Should be assigned to a single person to avoid the misconception that the job will be done by
someone else.
 Specifically results-oriented
 Is assigned (ideally to one person) - they are held accountable for the results and the potential
consequences of not achieving the desired results.

Under centralization, the executive reserves authority with himself rather than delegating it to his
subordinates, and ultimately reserves authority. "Centralization is the systematic and consistent
reservation of authority at central points within an organization," according to Allen.

Advantages of Centralization
Facilitates Personal Leadership

In a small business, centralization is advantageous because the leader must make quick decisions. "The
small company can retain the advantages of centralization so long as it continues to function as one
entrepreneurial unit; that is, so long as it can operate effectively as a projection of the personality and
skills of one outstanding leader," writes Louis A. Allen.

Less Skilled Subordinates

A company that follows the centralization model does not need highly skilled subordinates. It has an
effect on the wage and salary economy.

Handling Emergencies

Emergency situations can be handled quickly in a centralized organization. The greater the severity of
the emergency or the more competitive the situation, the greater the need for centralized decision-
making.
Total Operations Integration

It is extremely difficult to integrate the enterprise's total operations in highly decentralized

entrepreneurial units. A centralized enterprise reaps long-term benefits (e.g., stable market, efficient
production, etc.)

Action Uniformity

In the case of a company with multiple units or branches, decision-making must be centralized to ensure
consistency of action. If the company wants all of its units to do the same thing in the same way,
centralization is required. Uniformity is essential in areas such as purchasing, selling, advertising, and
personnel.

Limitations of Centralization
 The burden on top executives grows as an authority is centralized, leaving little time for
important administrative functions such as planning, organization, motivation, and so on.
 Because subordinates are not given the authority to make independent decisions, centralization
stifles their growth and development. The subordinates' sense of "Oneness" vanishes.
 Centralization tends to slow down operations because most decisions are made higher up in the
organization rather than where the work is done.
 It limits the scope for specialization because those making decisions at the highest levels are not
all-around experts.

Delegation of Authority
A delegation of authority means that the senior is delegating decision-making authority to his junior.
However, the senior cannot delegate authority that he does not have.

Decentralization of Authority
Decentralization is the transfer of top-level management's authority, functions, rights, duties, powers,
and accountability to middle or lower-level management.

Differences Between Delegation and Decentralization

 Delegation occurs when a superior delegates authority or responsibility to a subordinate.
Decentralization refers to the end result obtained when authority is delegated to the lowest
level in a systematic and consistent manner.
 Delegation is a management technique. Decentralization, on the other hand, is a management
philosophy.
 Only authority and responsibility are transferred in the delegation, but not accountability.
Decentralization, on the other hand, transfers all three.
 There is less freedom of work for subordinates in the delegation, whereas there is significant
freedom in decentralization.
 In an organization, the delegation of authority creates a superior-subordinate relationship.
Decentralization, on the other hand, is a step toward the establishment of semi-autonomous
units.
  Every organization must delegate authority because no single person can complete all tasks.
Decentralization, on the other hand, is discretionary in the sense that top management may or
may not distribute authority.

Power
Power refers to an individual's personal ability to persuade others to do or not do something. It is self-
sufficient and informal in nature, owing to charisma and status.

Authority
Authority is the legal and formal right of a person to make decisions, issue orders, and direct others to
perform a specific task.

Differences Between Power and Authority

 Power is a personal trait, or an acquired ability, whereas authority is a formal right held by high
officials or management personnel.
 Knowledge and expertise are major sources of power. Position and office, on the other hand,
determine a person's authority.
 Power is not legitimate, whereas authority is.
 The power is in the person; in other words, whoever gets the designation gets the authority
attached to it.
 Power can flow in any direction, such as upward, downward, crosswise or diagonally, or
laterally. In contrast to authority, which only flows in one direction, namely downward (from
superior to subordinate).
Reference
1. Whyte, A. (2007). Delegation of authority, interdependence, and productivity: Managing writing
response groups through an organizational approach. Sociological Focus, 40(2), 182-201.
doi:http://dx.doi.org/10.1080/00380237.2007.10571305
2. Allen, L. Bruce H. (1977). Perceived organizational structure and alienation among management
trainees. Academy of Management Journal 20 (2): 334-341.