Authority and Unity of Command

Authority

The right to make decisions and enforce them in an organization

Formal Authority

Based on structure and policy

flows through the line of authority (org chart)

Informal Authority

Influence from expertise

not shown on the org chart

Line of Authority

The chain from CEO down to lowest employee

orders flow downward

communication flows upward

Chain of Command

Military term for the line of authority

identical concept

Line Manager

Any manager who is directly in the chain of authority

Unity of Command (Henri Fayol)

Each employee should have one clear boss

ensures clarity and proper execution

Violation of Unity of Command

CEO bypasses middle managers to give direct orders

Teams and Authority

Teams often have authority to self-manage

Matrix Organization

Combines functional and product structures

employees report to two managers

Problem with Matrix Organization

Poor unity of command

employees may be confused about who their real boss is

Advice for Matrix Organization

Clearly define responsibilities and authority to reduce conflict

Grapevine

Informal communication network within an organization

spreads rumors and unofficial information

Benefit of Informal Authority

Provides guidance and influence from respected experts

supports decision-making

Risk of Informal Authority

Can confuse formal authority

Manager’s Responsibility with Informal Structures

Recognize