Organising — Business Studies STD 12 Commerce — Question

Authority may be defined as the right decision-making. When a right to take decision in regard to a particular matter is vested in a particular position, authority remains attached to the position. Authority is given by the institution and is, therefore, legal or legitimate. Authority flows downwards.Responsibility is the obligation to do something. It is the duty which is performed by the employees. It flows upwards, i.e., a subordinate is responsible to his immediate superior. Responsibility is personal and absolute and therefore, it cannot be delegated.
Authority and responsibility are closely related to each other. The relationship may be stated as follows:

1. Authority and responsibility of a subordinate should go hand in hand. If a subordinate is given authority to do a particular task, then he should be equally held responsible for doing that task in a proper manner. Similarly, a subordinate is given a responsibility to perform the task.
2. The principle of parity between authority and responsibility does not permit in giving excessive authority to a subordinate than is required for the task assigned, or holding the subordinate responsible for work for which he does not have adequate authority.
3. In the process of delegation, only authority is delegated, but responsibility is not delegated.