Authority Defined

Authority – “is the formal and legitimate right of a manager to make decisions, give orders, and allocate resources” (Plunkett, Raymond F. Attner, & Gemmy S. Allen, 2008, p. 238). Authority manifests itself as a product “of the position he or she occupies in the organization” (Plunkett, Raymond F. Attner, & Gemmy S. Allen, 2008, p. 238).

Types of Authority…

1. Line Authority – pertains to the direct authority granted to managers who are in a direct supervisory line to subordinates. Authority flows downward and includes all personnel that are within direct control of a manager as per an organizations table of organization.

2. Staff Authority – pertains to the indirect authority of managers who function in “an advisory capacity” (Plunkett, Raymond F. Attner, & Gemmy S. Allen, 2008, p. 239) within an organization. Managers can funnel information towards top management and the line authority of upper management to enact changes. Authority flows upward and includes examples such as legal, research & development, or internal accounting departments.

3. Functional Authority – pertains to only “specific activities performed by employees within other departments” (Plunkett, Raymond F. Attner, & Gemmy S. Allen, 2008, p. 239). This type of authority is a hybrid between line and staff authority. Authority can flow downward and upward depending on the situation, however authority is restricted to only specific areas. An example of this would include a human resource department needing to both direct individuals within other units and also reporting activities to upper management. Authority is limited in scope to specific activities such as directing employees to stop inappropriate conduct, but not to direct employees to change manufacturing activities.