Power - The ability to exert influence; that is, the ability to change the attitudes or behavior of individuals or groups.

2. Staff authority

• The authority of those groups of individuals who provide line managers with advice and services.
• Staff authority is based primarily on expert power.
• Staff can offer line managers planning advice through research, analysis, and options development. Staff can also assist in policy implementation, monitoring, and control.

3. Functional authority

• The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities.
• In reality, staff departments, especially those responsible for audit functions, may have formal authority over line members within the limits of their functions.

Misuses of authority

1. Taking certain personnel actions such as hiring, firing, promoting, and rewarding based on subjective measures simply because one has the authority to do so.
2. Use of organizational resources for personal use since there is no one to question.
3. Dumping of one’s responsibilities on subordinates in the name of delegation of authority.
4. Instead of rationalizing in taking decisions, the person relies too much on power and authority.
5. Taking arbitrary measures in enforcing certain decision without due regard for participation.
6. Instead of attempting to use influence in changing the behavior of subordinates, this person relies on power (using negative incentives and force).

Influence

• It is said that authority is only one of a number of forms of influence. In the influence process, one individual attempts to change the behavior of the other person that would not have occurred otherwise. In the influence process, the individual does not resort to the manipulation of rewards and punishments.

Ways to exert influence

1. Leading by example

• The leader influences group members by serving as a positive model of desirable behavior.

2. Assertiveness

• Being forthright in your demands. It involves a manager expressing what he or she wants done and how the manager feels about it.

3. Rationality

• Appealing to reason and logic.

4. Ingratiation

• Getting somebody else to like you, often through the use of political skill.

5. Exchange

• A method of influencing others by offering to reciprocate if they meet your demands.

6. Coalition formation

• A way of gaining both power and influence. A coalition is a specific arrangement of parties working together to combine their power, thus exerting influence on another individual or group.

7. Joking and kidding

• Good-matured ribbing is especially effective when a straightforward statement might be interpreted as harsh criticism.

Delegation

• The act of assigning formal authority (legitimate power) and responsibility for completion of specific activities to a subordinate.
• The assignment of responsibilities by a manager to a subordinate.
• The granting of permission (authority) to make commitments, use resources, and take necessary actions.
• The creation of an obligation (responsibility) on the part of the subordinate to the manager to perform the duties satisfactorily.

The advantages of delegation

1. The more tasks managers are able to delegate, the more opportunities they have to seek and accept increased responsibilities from higher-level managers.
2. Delegation causes employees to accept accountability and exercise judgement, and further improves their self-confidence and willingness to take initiative.
3. Delegation frequently leads to better decisions.
4. Effective delegation also speeds up decision making.
5. Facilitates division of work and thereby specialization.
6. Permit decisions to be made closer to the scene of action.
7. Provides greater opportunities for the development of subordinates.
8. Enables to secure fresh ideas and suggestions.
9. Helps to spot those who have promotional potential.
10. Frees the boss from routine and other tasks and thus he is able to spend more time on planning and performing other vital activities.
11. Keep things moving during the absence of the boss.
12. Creates a feeling of participation.

Barriers to delegation

1. The manager is simply too disorganized or inflexible to delegate work effectively.
2. Insecurity and confusion about whom is ultimately responsible for a specific task.
3. Fear that delegating authority reduces their own authority.
4. Fear that the employees will do "too good" or "too bad" the tasks.
5. Fear that subordinates will not perform duties properly.
6. Fear of losing power to subordinates.
7. Fear that the subordinate may find out the weaknesses of his boss.
8. Lack of interest on the part of delegates.
9. The delegatee lacks skill and ability.
10. Inability to communicate.
11. Not trained in the process of delegation.

What is reverse delegation?

Delegation skills

Certain symptoms can clearly tell us whether an executive is utilizing his delegation skills.

1. Does your subordinate require your approval for carrying out routine decision?
2. Do you often take your work home or spend late hours in the office?
3. Does everything come to a standstill during your absence?
4. Is your table cluttered with files waiting for your approval?
5. Does your wife and children complain that they do not get your attention even during weekends?
6. Are backlogs, delays, not meeting commitments common features in your department?
7. Is morale among your subordinates low?

Tasks of effective delegation

1. Decide which tasks can be delegated.
2. Decide who should get the assignment
3. Provide sufficient resources for carrying out the delegated task.
4. Delegate the assignment.
5. Be prepared to run interference, if necessary.
6. Establish a feedback system.

Centralization and decentralization

The degree to which formal authority is delegated by managers throughout the organization runs along a continuum from decentralization to centralization. In a relatively decentralized organization, considerable authority and accountability are passed down the organizational authority. In a relatively centralized organization, considerable authority and accountability remain at the top of the hierarchy.

Advantages vs. disadvantages

Advantages of decentralization:

1. Unburdening of top managers.
2. Decision making is frequently better because decisions are made closer to the scene of action
3. Better training, morale, and initiative at lower level
4. More flexibility and faster decision making in rapidly changing environments.

Disadvantages of decentralization:

1. Total decentralization with no coordination and leadership from the top would clearly be undesirable. The very purpose of organization – efficient integration of sub-units for the pursuit of organizational goals through the strategic plan – would be defeated without some centralized control.

Advantages of centralization:

1. Specialized skills, talents, and technology are sometimes neither affordable nor practical in decentralization.
2. Decentralization means an increase in overhead and staff. Coordination of products, money, and control also add to the cost of decentralization.

Disadvantages of centralization:

1. Potential paralysis of decision-making and poor morale.

Factors influencing decentralization

1. The external business environment.
2. The characteristics of the organization.
3. The rate of growth of the organization.
4. The cost and risk associated with the decision.
5. An individual manager’s preference and confidence in employees.
6. The organizational culture.