CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading
At Sundaram Textiles, the production manager asks a supervisor to complete a dyeing order and also gives the supervisor the right to requisition raw materials needed for it. The right to give orders and use resources in this way is best described as:
The right to give orders and requisition materials is authority. Authority is the formal power to take decisions, direct subordinates and use resources. Responsibility is the duty to perform, accountability is answering for results, and span of control is only the number of subordinates reporting to a manager.
- AAuthorityCorrect
- BAccountability
- CResponsibility
- DSpan of control
Explanation
Authority is the formal right to command, take decisions and use resources to get work done. Responsibility is the obligation to perform the assigned duty, and accountability is answerability for the outcome. Span of control concerns the number of subordinates, so it does not describe a right to requisition materials.
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