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

A production manager at a Nagpur factory is told to deliver 500 units by Friday but is not given the right to requisition raw material or hire temporary workers. Which principle is violated?

The principle violated is that responsibility must be matched by equal authority. The manager must deliver output but cannot obtain materials or labour, so the duty exceeds the powers given. Effective delegation needs authority sufficient to discharge the assigned responsibility.

  1. AResponsibility should be matched by commensurate authorityCorrect
  2. BAuthority should exceed responsibility
  3. CAccountability can be delegated entirely
  4. DUnity of direction should be ignored

Explanation

The manager carries responsibility for output but lacks the authority needed to obtain resources. Sound organisation requires authority commensurate with responsibility. Having authority exceed responsibility would be a different imbalance, and accountability cannot be fully delegated away.

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