INTRODUCTION TO PUBLIC ADMINISTRATION–MGT111 VU

LESSON 16

POWER AND AUTHORITY

At the end of the lecture students will be able to understand:

• The concepts of Line and Staff
• Relationship of authority with line and staff concept
• Centralization, Decentralization and Delegation

Definition of Power and Authority

Authority is a force for achieving desired outcomes, but only as prescribed by the formal
hierarchy and reporting relationships,

Authority is vested in organizational positions, not because of the personalities and personal
characteristics of the individuals, but because of the position that a person is holding.

Power is the ability to influence others to modify behaviour to achieve stated objectives.
Authority is also defined as the right in a position to exercise discretion in making decisions affecting others.

Line and Staff Concept

There is much confusion on what exactly is “line” and “staff” in management literature and
practice. But line and staff relationship are important as an organizational way of life and authority
relationship.

Line Concept
Line functions are those that have direct impact on the accomplishment of the objectives of an
organization. Example: policeperson controlling the mob

Staff Concept
Staff functions are those that help the line persons work most effectively in accomplishing the
objectives. Example: A person managing the budget of the organization

Delegation:
It is the assignment to another person of formal authority (legitimate power) and responsibility for
carrying out specific activities

Nature of Relationship
Scalar Principle
The clearer the line of authority from the ultimate management position in an organization to
every subordinate position, the clearer will be the responsibility for decision making and effective will be
organization communication. In many large organizations the steps are long and complicated. It should
become clear from the scalar principle that line authority is that relationship in which superior exercises
direct supervision over subordinate. In Figure 1 this relationship is shown by the solid line that connects
boxes.
Scalar Principle
Figure 1

Chief Executive

Managing Managing Managing

Director Research Director Public Director Production

Manager Purchase Manager Personnel Manager Factory

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Functional Authority
It is important to understand the functional authority. It is the right that is delegated to an
individual or a department to control specified processes, practices, policies, or other matters relating to
activities undertaken by persons in other departments. If principle of unity of command were followed,
authority over these activities would be exercised by their line supervisor.

Delegation of Functional Authority

One can better understand Delegation of functional authority as a small slice of the authority of
line supervisor. The Chairman or head of institution has complete authority to manage organization, under
the rules of organization. In pure staff situation the advises on personnel, accounting, purchasing etc., have
no part of this line authority, their duty is to offer advise. But when the head of institution delegates his
advisor to issue instructions to the line organization as shown in figure-2 that is called “functional
authority”.

Scalar Principle
Figure- 2

Chief Executive

Managing Managing Managing

Director Research Director Public Director Production

Manager Purchase Manager Personnel Manager Factory

Benefits of Staff
Today, staff advice is far more critical for business, government, and other enterprises than it was
in the past. Operating managers are now faced with making decisions that require expert knowledge in
economics, technical political and legal areas.

Another major advantage of staff is that the specialists may be given time to think, to gather data,
and to analyze to advise superiors, whereas busy mangers cannot do this. It is rare that operating managers
will find time to do analysis which the staff assistant can do as well.

Limitations of Staff

1. Danger of undermining Line Authority: The advice of staff officers is taken by the
executive with enthusiasm which may not be acceptable to line (operating) people because
they think that staff has no experience of work of line people.
2. Lack of Staff Responsibility: advisory departments only propose plans while line has to
implement. When there is problem in the implementation of plans the blame is shifted to
those who have advised. This creates situation for shifting blames for mistakes on staff.
3. Thinking in a Vacuum: Because staff people do not implement. They only advise so what
they advise they are blamed for thinking in vacuum

Decentralization of Authority
We focussed on the kinds of authority relationship, such as line staff and functional authority. Now
we will look at dispersion of authority.

Nature of Decentralization
Organization authority is given to people to use judgment to make decision and give instructions.

Decentralization is the tendency to disperse decision-making authority in an organized structure. It

is a fundamental aspect of delegation; to the extent authority is not delegated, it is centralized. How much
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should authority be concentrated in or dispersed through out the organization? There could be absolute
centralization of authority in one person, but that means no subordinate mangers and therefore, no
structured organization. Some decentralization exists in all organizations & that is shown in figure 3. The
degree of centralization and decentralization would vary from organization to organization.

Figure-3

Complete centralization Complete decentralization

(No organizational structure) (No organizational structure)

Authority Delegated

Authority not delegated

Centralization and Decentralization: The degree to which formal authority is delegated by manager
throughout the organization runs along continuum from centralization to decentralization as shown in
figure 3. In a relatively decentralized organization, considerable authority and responsibility is passed down
the organizational hierarchy

Different Kinds of Centralization

1. Centralization of performance
2. Departmental centralization
3. Centralization as an aspect of Management

1. Centralization of performance
It pertains to geographic concentration; it characterizes an organization operating in a single
location

2. Departmental centralization
It refers to centralization of specialized activities, generally in one department. For example,
maintenance for a whole plant may be carried out by a single department.

3. Centralization as an aspect of management

It is the tendency to restrict delegation of decision making. A high degree of authority is held at
or near the top by managers in the hierarchy.

We have so far covered four building blocks of Organizing. These are:

1. Classify work into activities which is called ‘Division of labour
2. Combine activities in a logical and efficient manner called ‘Departmentalization’
3. Specify who reports to whom called ‘Hierarchy’
4. Integrate departmental activities called ‘coordination’

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Concepts

ˆ Line function: functions that have direct impact on the accomplishment of

objectives of organization
ˆ Staff Function: are advisory functions. Staff people help line persons to work
most effectively in accomplishing objectives.
ˆ Scalar principle: the line of authority that determines the relationship between
supervisors and supervised
ˆ Functional authority: authority given to department or individual to control specified
processes, practices and policies
ˆ Delegation of authority: giving of part of authority to lower level
ˆ Decentralization of authority: decentralization of authority is dispersion of decision – making
authority in an organized structure.

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