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ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture

At Brennan Pharma, a new finance director insists on approval of all expenditure above a low limit. Managers comply because the company's delegated authority policy says the finance director holds that right, and they accept this is the proper order of things. According to Weber, which type of authority is this?

This is rational-legal authority. Managers obey because a formal, written delegation policy gives the finance director's office the right to approve expenditure, so obedience is owed to the position and rules, not to custom or personal charisma.

  1. ACharismatic authority
  2. BTraditional authority
  3. CRational-legal authorityCorrect
  4. DCoercive authority

Explanation

Weber's rational-legal authority rests on formal rules and offices, with obedience owed to the position under agreed procedures. Here compliance follows from a written policy. Traditional authority rests on custom and inheritance, and charismatic on personal qualities; coercive is not a Weber category.

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