Authority, Responsibiity and Accountability
ICSE · Class 11 · Business Studies
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Quick Quiz: Authority, Responsibiity and Accountability
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A factory manager delegates authority to a supervisor to hire workers. The supervisor hires incompetent workers, resulting in poor production. Who is ultimately accountable to the Managing Director for this outcome?
According to Chester Barnard's Acceptance Theory of Authority, under which condition will a subordinate MOST LIKELY accept an order?
Which principle of delegation states that a superior cannot escape the responsibility for the activities of his subordinates even after delegating authority?
What is the key distinction between 'power' and 'authority' in the context of management?
Sample Questions
In Louis Allen's definition, delegation involves 'entrustment of responsibility and authority to another and creation of accountability.' Which element is the most critical reason why delegation does NOT reduce the delegator's own responsibility?
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Because responsibility is absolute and cannot be fully transferred – the delegator retains it
Step 1: Louis Allen's definition highlights three elements – entrustment of responsibility, delegation of authority, and creation of accountability. Step 2: The critical insight here is that while authority can be passed on, responsibility is ABSOLUTE. It means the original holder of responsibility (the delegator) always retains it. Step 3: This is why delegation is NOT abdication – the manager does not escape responsibility by delegating. Step 4: Why others are wrong – Creating accountability in the subordinate is a consequence of delegation, not the reason the delegator retains responsibilit
An employee is given the responsibility to complete a project but is NOT given any authority to direct the team or access resources. According to the Principle of Parity, what will be the most likely outcome?
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The employee will become ineffective as responsibility exceeds authority
Step 1: The Principle of Parity between Authority and Responsibility states that authority granted must match the responsibility assigned. Step 2: Two scenarios arise from imbalance – (a) If authority > responsibility: there is risk of misuse of authority. (b) If responsibility > authority: the person becomes ineffective because they cannot command resources or people needed to fulfil the responsibility. Step 3: In this question, the employee has responsibility but NO authority – this is the second scenario. Without authority to direct the team or access resources, the employee simply cannot p
Which of the following CORRECTLY describes the flow of authority, responsibility, and accountability in an organisation?
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Authority flows downward; responsibility and accountability flow upward
Step 1: Authority is delegated from a superior to a subordinate, meaning it travels FROM top TO bottom – it flows DOWNWARD. Step 2: When authority is given, the subordinate takes on responsibility to perform the task. This obligation is owed TO the superior, meaning responsibility flows UPWARD. Step 3: Accountability (answering for the outcome) is also owed to the superior – it also flows UPWARD. Step 4: A simple memory trick – authority comes FROM above (top to bottom), while responsibility and accountability go TO above (bottom to top). Step 5: All other options mix up these directions and a
How does Competence Authority Theory differ from Formal Authority Theory in terms of the source of a manager's authority?
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Competence theory says authority comes from personal expertise and charisma; Formal theory says it originates from the top and flows down through delegation
Step 1: Formal Authority Theory – Authority originates at the very top of an organisation (e.g., shareholders → Board of Directors → CEO → managers). It flows downward through the process of delegation. It is legal and legitimate. Step 2: Competence Authority Theory – According to Urwick, a person derives authority from their personal competence, technical knowledge, and charisma. People follow their advice not because of rank, but because of expertise. Step 3: Example – A junior software expert may have more competence authority over a technical decision than a senior manager with only formal
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