PPM 21

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Session 21

Authority and Power


• Power is the ability of individuals or groups
to induce or influence the beliefs or actions of
other persons or groups.
• Authority is the right in a position to
exercise discretion in making decisions
affecting others.
Different Bases of Power
• Legitimate power normally arises from
position and derives from our cultural system
of rights, obligations, and duties whereby a
“position” is accepted by people as being
“legitimate.”
• Expert power is the power of knowledge.
• Referent power is influence that people or
groups may exercise because people believe in
them and their ideas.
Different Bases of Power – cont
• Reward power is the power to grant or withhold
rewards, such as high grades given by a
university professor.
• Coercive power is closely related to reward
power and normally arises from legitimate
power; it is the power to punish.
What is Empowerment?
• Employees, managers, or teams at all levels in
the organization have the power to make
decisions without asking their superiors for
permission.
Scalar Principle in Organization
• The clearer the line of authority from the
ultimate management position in an enterprise
to every subordinate position, the clearer will be
the responsibility for decision making and the
more effective will be organizational
communication.
Line, Staff, and Functional Authority
• Line authority is the relationship in which a
superior exercises direct supervision over a
subordinate.
• Staff relationship is advisory.
• Functional authority is the right 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.
Decentralization of Authority
• Decentralization is the tendency to disperse
decision‑making authority in an organized
structure.
Different Kinds of Centralization
1. Centralization of performance pertains to geographic
concentration; it characterizes, for example, a
company operating in a single location.
2 Departmental centralization refers to concentration
of specialized activities, generally in one department.
For example, maintenance for a whole plant may be
carried out by a single department.
3.Centralization of management is the tendency to
restrict delegation of decision making. A high degree
of authority is held at or near the top.
The process of delegation involves:
• Determining the results expected from a
position.
• Assigning tasks to the position.
• Delegating authority for accomplishing these
tasks.
• Holding the person in that position responsible
for the accomplishment of the tasks.
Personal Attitudes Toward Delegation
• Receptiveness
• Willingness to let go
• Willingness to allow mistakes by subordinates
• Willingness to trust subordinates
• Willingness to establish and use broad controls
Overcoming Weak Delegation
1. Define assignments and delegate authority
in light of results expected.
2. Select the person in light of the job to be
done.
3. Maintain open lines of communication.
4. Establish proper controls.
5. Reward effective delegation and successful
assumption of authority.

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