14 Authority, Power and Politic

Authority is the capacity of a superior to make decisions affecting the

behaviour of subordinates. It is the right to take action and utilise
organisational resources. It has the following features:
Legitimate right
Right to decide
Obtain obedience
Relationship between two persons
Positional
Result-oriented

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Sources of Authority
There are three different schools of thought about the sources of
authority, namely:

Formal Authority Theory

Acceptance Theory

The Competence Theory of Authority

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Limits of Authority
The limits can be discussed in terms of external and internal factors.
External limits comprise laws governing companies; collective bargaining
agreements; dealer, supplier and customer agreements, etc. Internal
limits are placed by the organisations constitution and by- laws, policies,
rules and regulations.

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Types of Authority
Managers employ several types of authority while managing
contemporary organisations. These are given below:
1. Traditional authority
2. Charismatic authority
3. Technical authority
4. Legal authority
5. External authority
6. Informal authority
7. Line authority
8. Staff authority
9. Functional authority
10. Official authority
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Pros and Cons of Authority
Pros
It fits with a superiors needs. He can
shout at the subordinates and blow off
his frustrations. Exercising authority
over subordinates might be
psychologically satisfying to some
executives.
Authority implies compliance. Work is
processed in an orderly and consistent
manner, throughout the organisation.
Authority might bring out discipline
among people working at various
levels.
Authority might be used to get things
done quickly, especially when work is
not progressing as per expectations.
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Authority, Power and Politic
Cons
Authority implies resistance also.
When authority is not exercised
properly, it produces negative
reactions from the subordinates.
Authority may not be used in a right
way. It might be abused and used to
suit personal needs instead of
organisational needs.
Authority alone may not get results.
Much depends on the competence of
the person exercising authority.
Indiscriminate use of authority might
prove to be disastrous for the entire
organisation.
When authority is used as a whip,
people tend to
ignore/discount/depreciate the person
using the same.
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14 Authority, Power and Politic

Status
Status is a socially defined position or rank given to groups or group
members by others.

Sources of status
There are various sources through which the status can be acquired:
(i) Ascribed status
(ii) Achieved Status
(iii) Scalar status
(iv) Functional status
(v) Positional status
(vi) Personal status

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Functions of Status System

Every organisation has some kind of status system. In a formal
organisation, the status system performs certain important functions:
(a) Facilitates communication
(b) Motivating force
(c) Imposing and fixing responsibility
(d) Protecting personal integrity

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Status Symbols
Status symbols permit an observer to understand the prestige level of the
individual in question. The following chart provides a rough sketch of
different types of status symbols that are generally associated with
business organisations.

a) Titles

b) Pay and working hours

c) Work environment

d) Clothing

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