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Related to authority: accountability
A structure or organization established for a certain purpose with the legitimacy to carry out said purpose. In a business context, certain organizations have authority to police, and, if necessary, punish certain business activities. For example, the SEC has authority to regulate any and all business transactions occurring in the United States. These organizations derive their authority from the ruling government and international conventions.
A government organization created to perform a certain function. A state or region, for example, may establish a public power authority to provide low-cost electricity to people living in a certain geographical area. The activities of an authority and its fundraising methods are ordinarily limited.
authoritythe capacity to give commands which are accepted as legitimate by others. In the modern ORGANIZATION the manager's authority to give instructions to subordinates is drawn primarily from his formal position as a manager, and the set of rights and obligations formally associated with the post, rather than from the manager's individual leadership qualities. However, both sources of authority can be important. Managers whose personal standing with their subordinates is low may find that their authority is not fully accepted. Equally, some managers claim that they are given insufficient powers to exercise their authority fully.
Modern analysis of authority relationships owes much to German sociologist Max Weber (1864-1920). He discerned three forms of authority:
- traditional authority, where people obey those who occupy religious or monarchical positions;
- charismatic authority, where people obey those who have special inspirational personal qualities;
- rational-legal authority, where individuals obey laws or rules which have been devised as a result of the application of reason to achieve certain objectives.