Organisation Structure, Responsibility, Accountability and Delegation of Authority: formula sheet

Key formulas

Line structure

One superior → one subordinate chain (vertical authority)

Also called scalar or military type. Simple, quick decisions, but depends heavily on the head and lacks specialist advice.

Functional structure

Grouping by function: production, marketing, finance, HR

Based on specialisation. Each worker may take orders from several specialists, so unity of command is weakened.

Line and staff structure

Line authority (commands) + Staff authority (advice)

Staff specialists advise line managers but do not command them. It combines line discipline with expert advice.

Matrix structure

Functional hierarchy × Project/product hierarchy (dual reporting)

An employee reports to a functional manager and a project manager at the same time. It breaks unity of command.

Project structure

Temporary team formed for one project, disbanded on completion

Team members come from different functions and work under a project manager.

Divisional structure

Grouping by product, market or geography; each division is semi-autonomous

Each division has its own functions and is judged on its own results. It can duplicate resources.

Authority and responsibility parity

Authority = Responsibility (they should be equal)

Authority given should be enough to discharge the responsibility assigned. Neither should be larger than the other.

Direction of flow

Authority: top → down | Responsibility: bottom → up

Authority is delegated downward. Subordinates are answerable upward to the superior.

Source of each term

Authority = position | Power = influence | Responsibility = duty

Use this one-line memory aid to answer difference questions.

Types of authority

Line = command | Staff = advise | Functional = specialist control

Line is the chain of command, staff is support, functional is limited command over a specialised matter.

Parity principle

Authority = Responsibility

Authority and responsibility must be equal in scope. Accountability follows from them, and the delegator's ultimate accountability stays with the delegator.

Direction of flow

Authority: downward | Responsibility: assigned to and accepted by subordinate | Accountability: upward

Authority is delegated from superior to subordinate. Accountability is owed from subordinate to superior, in proportion to the authority given and the responsibility accepted. The delegator stays accountable to their own superior for the whole task.

Delegation rule

Authority is delegated; duties (responsibility) are assigned to the subordinate; the delegator keeps ultimate accountability, which cannot be delegated away

The delegator remains ultimately answerable to their own superior.

Accountability in one line

Accountability = obligation to answer for the use of authority and the results of assigned duties

Use this wording for definition-type MCQs.

Core relationship of delegation

Delegation = Assignment of duties + Grant of authority + Creation of obligation (responsibility)

Accountability to the superior is the resulting element. The subordinate is accountable to the superior for the task. The superior stays ultimately accountable to their own boss for the final outcome.

Authority and responsibility

Principle: authority delegated should be commensurate with the responsibility assigned

This is a principle of effective delegation, not a calculation. Responsibility without matching authority makes the subordinate helpless.

Direction of flow

Authority flows downward; accountability flows upward; ultimate accountability cannot be delegated away

Authority is given down the chain. The subordinate is accountable to the superior for the delegated task, and the superior in turn remains accountable to their own boss.

Delegation process

Assign duties → Grant authority → Create responsibility (obligation)

Texts vary in how they list the steps. This is the usual order, with accountability as the resulting element. Read the options carefully and choose the one that fits the logic of delegation.

Delegation vs decentralisation

Delegation: process of a superior sharing authority with a subordinate, necessary in any organisation | Decentralisation: systematic policy of dispersing decision-making authority to lower levels

Use this one-line contrast for MCQs.

Centralisation

Decision authority retained at top management

Typical features: uniform policies, tight control, quick top-level direction, limited initiative below.

Decentralisation

Decision authority systematically dispersed to lower levels

Typical features: faster local decisions, managerial development, motivation, but weaker uniformity.

Decentralisation vs delegation

Delegation = process of assigning authority; Decentralisation = policy of spreading authority throughout the organisation

Delegation is individual and can be withdrawn. Decentralisation is organisation-wide and more permanent.

Factors raising decentralisation

Larger size + wider geography + diversified products + capable managers + dynamic environment → more decentralisation

The opposite conditions favour centralisation. Costly or critical decisions stay at the top.

Quick revision

• Organisation structure is the framework of roles, reporting lines and authority within a business.
• Line structure has the simplest chain of command, with authority flowing from top to bottom.
• Line and staff structure adds specialist advisers who support line managers but do not command them.
• Authority is the formal right to give orders and take decisions, and it flows downward.
• Power is the ability to influence others, and it need not come from a formal position.
• Responsibility is the obligation to carry out an assigned duty.
• Accountability is answering for the outcome, and it cannot be delegated away.
• Authority should be matched with responsibility, so do not give a duty without the needed authority.
• Delegation means a superior passes part of his or her authority to a subordinate, and the superior remains accountable.
• Centralisation keeps decision-making at the top, and decentralisation spreads it across levels.
• Greater decentralisation means faster local decisions and more training for lower managers, but weaker uniform control.

Common mistakes

• Saying staff officers can give orders to line managers. Fix: Remember: line commands, staff advises. Staff authority is only advisory, except inside their own department.
• Confusing matrix and project structure. Fix: Project structure is temporary and the team reports to the project manager. Matrix has permanent dual reporting to functional and project managers.
• Treating authority and power as the same thing. Fix: Remember that authority is formal and comes from the position. Power is influence and can exist without a post.
• Saying responsibility can be delegated fully. Fix: Authority and tasks can be delegated. The delegator stays answerable to his own superior.
• Treating responsibility and accountability as the same thing Fix: Responsibility is the duty to do. Accountability is the duty to answer for what was done.
• Saying accountability can be delegated Fix: Accountability stays with the delegator. The subordinate is accountable to them, and they remain accountable to their own superior.
• Saying accountability can be completely delegated. Fix: Remember that the subordinate answers to the superior, but the superior stays answerable to their own boss for the work. Authority flows down and responsibility is assigned; ultimate accountability is not given away.
• Using delegation and decentralisation as synonyms. Fix: Delegation is a process of a superior sharing authority with a subordinate, and it is necessary in any organisation. Decentralisation is a systematic policy of dispersing decision-making authority to lower levels.
• Treating decentralisation and delegation as the same thing. Fix: Remember: delegation is a process between a superior and a subordinate; decentralisation is an organisation-wide policy.
• Thinking a firm with many branches is automatically decentralised. Fix: Check who takes decisions. Branches that only follow head-office orders belong to a centralised system.

Exam tips

• Learn one clue word per type: single chain, specialists, advisers, dual reporting, temporary team, product or area units.
• Questions often ask for a disadvantage. Link it to the clue: overload of head for line, conflict for matrix, duplication of cost for divisional.
• Be sure of line authority versus staff authority. This is a favourite trap.
• Read options with 'always' or 'only' carefully. They are often wrong.
• Revise this topic with delegation and span of control, since structure questions may mix them.
• Expect direct questions on the difference between authority and responsibility, so learn source, flow and delegation.
• In type-of-authority MCQs, the words advise, command and specialist are the clues.
• Watch for options with always or fully, such as responsibility can be fully delegated. These are usually wrong.