Authority, power, delegation, centralization, and decentralization in an organization.

A critical evaluation of authority, power, delegation, centralization, and decentralization in an organization.

 

 

 

 

 

 

 

 

 

 

 

Fabrice Tshiyoyi Banyingela

Theories of Management

UU-MBA-712-ZM

10 March 2024



Introduction

Organizations need to establish a line of authority to enforce members' behavior and achieve a common goal. Authority is a power bestowed upon individuals, positions, or groups to lead, make decisions, and enforce obligations within an organization. Warren Bennis said that “Authority is the glue that holds organizations together,” ensuring effectiveness in roles and responsibilities. Members of an organization can use formal or informal authority to establish a clear line of communication, facilitate decision-making, and enhance task effectivity. Formal authority refers to the power and control granted through official roles, titles, or positions such as government officials, judges, and police officers, who make decisions, give orders, and enforce rules. Informal authority is a type of influence that is not based on a formal position or title within an organization, but rather on personal characteristics such as expertise which comes with specialized skills and experience, relationships, charisma which is based on qualities like charm or physical appearance or other factors that give an individual power over others. Authority can be delegated in a centralized or decentralized manner, with each method having its own advantages and disadvantages.

Authority, responsibility, and accountability are often used interchangeably but have distinct meanings in an organization. Authority brings essence to leadership through the power and control of an organization. The term “responsibility” refers to the duty a person has when given the power to behave by their superior's directives. As a result of being given work and accepting it, the subordinate is expected to do the job in question satisfactorily (Goldszmidt & Yemini, 1995). Responsibility is an assignment by someone who has authority. Upon executing a task, the authorized individual becomes responsible for their tasks, but the superior still holds the total responsibility of the authority pertaining to the task. Accountability is the responsibility of being responsible for the outcome and cannot be delegated. Despite delegating tasks to an administrator, the responsibility rests with the administrator, but the manager remains accountable for the outcome.

 

Approaches of authority

Organizations can adopt a centralized or decentralized management philosophy, depending on their internal and external environment. Centralized authority, which is primarily held by the top-level, ensures clear accountability and aligns strategic objectives. This style benefits organizations such as military organizations by providing consistency, better coordination, and clarity of message. However, it can limit innovation, lead to suboptimal decisions, and slow decision-making processes, especially during crises. This can reduce employee motivation and job satisfaction. Therefore, organizations that use this approach must carefully consider their decision-making process to ensure the best possible outcomes.

Decentralized authority focuses on autonomous units and delegation of authority, allowing flexibility and responsiveness to local stakeholders' needs. It empowers employees to innovate while the top management focuses on policy making and strategic planning. Wikipedia is an example of a decentralized authority, where volunteers create, edit, and maintain content through consensus. Decentralization allows members to make decisions based on expertise and be held accountable for their results. However, it can lead to duplication tasks and inconsistencies.

Organizations can balance advantages and disadvantages by focusing on agile and flexible authority, avoiding duplication of tasks, and increasing motivation through clear policies for task regulation, thereby enhancing overall organizational efficiency through proper delegation.

 

Meaning and Difference between delegation and decentralization of authority

Delegation is a management technique that involves assigning authority from one person to a subordinate in an organization. Delegation aims to reduce workload, provide growth opportunities for junior staffs, and improving organizational efficiency. While delegation and decentralization are often interchangeable, they differ in their scope. Delegation fosters a strong relationship between superiors and subordinates, while decentralization aims to empower and make departments autonomous. In the delegation process, the authority figure remains accountable for results and can revoke or modify tasks. Delegation is particularly problematic in democratic countries where a president after being elected, delegate some portions of his authority to the appointed ministers and state administrators. However, the failure of the administration can significantly impact the president's chances of seeking reelection. As a result, many leaders prefer centralized authority with a narrow delegation scope, fearing the impact of failure on their chances of reelection by adopting dictatorship.

Delegating authority to subordinates can be a challenge for managers due to various reasons. Some fear they may appear lazy, while a few have a perfectionist mentality and fear subordinates' poor quality. Others struggle with mentoring and training skills. Effective delegation requires clear communication, ability to mobilize resources, and constructive feedback. Delegation should not be seen as weakness but an essential part of effective administration. Effective mentors trust employees and understand that failure is part of success. Delegation and decentralization provide a clear distribution of authority and power, promoting responsible decision-making in organizations.

 

Meaning and Difference between authority and power.

Many theorists argue that an effective manager should combine both power and authority to make an impact in their leadership style. Brittenham et al. (2016) differentiate between power and authority based on four criteria: First, power is the ability to persuade and direct others, and authority entails imposition and coercion. Second, power derived from personal influence and authority moves from higher to lower levels. Thirdly, authority is a top-down movement, whereas power can be moved in any direction. Last, unlike authority, power cannot be delegated. Authority refers to the legal rights granted by an authority figure or institution to make decisions or enforce discipline based on the individual's ability and expertise. Power refers to the influence of managers on employees through their persuasion, convincing, manipulative, or charismatic actions, which is a dynamic tool in management that provides legitimacy and ensures that authorized individuals can effectively lead. While authority enforces legality, power significantly influences people's beliefs and perceptions, ensuring legitimacy. An example of legitimate authority is a Head of State, who is elected through a democratic election process outlined in the constitution. Upon taking the oath of office during the presidential inauguration, the President-elect officially gains the power to act as the head of state. Hence, the president becomes legal and legitime.

 

 

 

Conclusion

Authority, power, delegation, centralization, and decentralization are key concepts in management philosophy for effective leadership in an organization. Authority is the legal right to make decisions, command, and enforce rules, derived from expertise or charisma. Delegation transfers responsibility to improve efficiency and employee satisfaction. Centralization focuses power on top management, while decentralization empowers departments as autonomous entities. Balancing these approaches enhances efficiency, flexibility, employee engagement, innovation, risk management, customer focus, and cost efficiency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

Rodriguez, A (2022). “What is Authority in the Workplace?” LinkedIn. Available at:

https://www.linkedin.com/pulse/what-authority-workplace-arnold-rodriguez/. Accessed 9 Mar. 2024.

 

Cooper, D.(n.d.). Authority, Responsibility and Accountability. 4P Business

Development. Available at: http://www.4pbusinessdevelopment.co.uk/authority-responsibility-accountability/. Accessed 9 Mar. 2024.

 

Shrivastava, D. (2020). “Top 9 Difference Between Centralization and

Decentralization.” BYJUS’. 27 Aug. 2020. Available at: https://byjus.com/commerce/difference-between-centralization-and-decentralization/. Accessed 9 Mar. 2024.

 

Oviawe, E. (2015). “Benefits, Limitations & Why Managers Find It Difficult To

Delegate.” (n.d.). Available at: https://www.academia.edu/10017316/Delegation_Benefits_Limitations_and_Why_Managers_Find_It_Difficult_To_Delegate. Accessed 9 Mar. 2024.

 

Perry, E. (2021). “Power versus authority, why the difference matters.” Better Up. 18

Oct. 2021 Available at: https://www.betterup.com/blog/power-vs-authority. Accessed 9 Mar. 2024.

 

 

 

 

 

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