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ACCA Applied Knowledge · Business and Technology · Leadership, management and supervision

Which of the following best defines 'authority' in an organisation?

Authority is the formal, legitimate right attached to a position to make decisions and instruct others. It differs from power, which is the ability to influence without needing formal sanction, and from responsibility, which is the obligation to carry out assigned duties.

  1. AThe formal, legitimate right to make decisions and instruct othersCorrect
  2. BThe ability to influence others regardless of formal position
  3. CThe obligation to perform tasks assigned by a superior

Explanation

Authority is the formal right, attached to a position, to make decisions and give instructions. The ability to influence regardless of position describes power, and the obligation to perform assigned tasks describes responsibility.

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