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

Meena, a senior accounts clerk at a Pune firm, has no formal supervisory post but is so respected for her expertise that colleagues follow her advice on difficult entries. Her influence is an example of:

Her influence is informal power. It comes from personal expertise and respect rather than from a formal position in the organisation chart. Authority, whether line, delegated or functional, is formally conferred by the organisation, which Meena does not have here.

  1. ALine authority
  2. BInformal powerCorrect
  3. CDelegated authority
  4. DFunctional authority

Explanation

Meena holds no official post, so her influence does not arise from formal authority. It stems from personal expertise, which is informal (expert) power. Line, delegated and functional authority all need formal position or assignment, so they are wrong.

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