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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

A production head at a Coimbatore textile firm delegates authority to a supervisor to purchase raw material, but gives no power to sanction payments, so the supervisor cannot complete purchases. Which principle of delegation is violated?

The principle of parity of authority and responsibility is violated. The supervisor is made responsible for purchases but lacks the power to sanction payments, so authority is insufficient for the duty assigned. Unity of command is not the issue because there is no conflict of superiors.

  1. AParity of authority and responsibilityCorrect
  2. BUnity of command
  3. CSpan of control
  4. DScalar chain reversal

Explanation

The supervisor is responsible for purchasing but lacks the authority to pay, so authority is less than the responsibility assigned. This breaches the principle that authority should be commensurate with responsibility. Unity of command concerns one superior per person, which is not the issue here.

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