Concepts of organizational structure - SS2 Commerce Lesson Note
- Authority: Authority refers to the power or right given to an individual or a position within an organization to make decisions, give instructions, and enforce rules. It is the legitimate ability to direct others and make things happen. Authority typically comes with a specific role or position within the organizational hierarchy.
- Responsibility: Responsibility is the obligation or duty to perform tasks or fulfill specific roles within an organization. It is the expectation that an individual or a position will carry out assigned duties, meet objectives, and accomplish tasks effectively and efficiently.
- Accountability: Accountability is the answerability for the outcomes of assigned tasks or responsibilities. It involves being answerable for the results, actions, and decisions made in fulfilling one's responsibilities. Individuals or positions are held accountable for their performance, and they may be required to explain or justify their actions to higher authorities or stakeholders.
- Span of Control: Span of control refers to the number of subordinates or employees that a supervisor or manager directly manages or oversees. It defines the hierarchical level at which authority and responsibility are distributed. A wide span of control means a supervisor has many subordinates, while a narrow span of control means fewer subordinates are under a supervisor's direct supervision.
- Delegation of Authority: Delegation of authority is the process of transferring or assigning decision-making power, tasks, and responsibilities from a higher authority to a lower-level individual or position. It involves granting someone the authority to act on behalf of a superior. Delegation allows for effective distribution of workload, fosters employee development, and promotes efficiency within the organization.