e-business_models_lecture_notes_2 (1)

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Prepared by: Aneel kumar khatri Authority


Objectives Define authority Charismatic authority Traditional authority Rational-legal authority Types of authority


Authority Authority is right and legal power inherent in a particular job, function or position that is meant to enable its holder to successfully carry out his or her responsibilities. It can be exercised at any level of organisation, and in any direction.

Charismatic Authority:

Charismatic Authority Charismatic authority belongs to the personality of any leader, whose mission and vision to inspire others. Example of some leaders are Gandhi, Martin Luther King.

Traditional authority:

Traditional authority Traditional authority which derives from long-established customs, habits and social structures. Power passes from one generation to another, then it is known as traditional authority. Example: kings & emperors.

Rational-legal Authority:

Rational-legal Authority Rational-legal authority is based on a system of rules that is applied administratively and judicially in accordance with known principles. This form of authority is frequently found in the modern state, city governments, private and public corporations

Types of Authority :

Types of Authority Line Authority Staff authority Functional Authority

Line Authority:

Line Authority Line authority is represented by the standard chain of command. Its starting with board of directors and extending down through the various levels.

Staff Authority:

Staff Authority Staff authority belongs individual or department in an organization, who provide advice or services to another department. Example: HR department.

Functional Authority:

Functional Authority The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities. For example a finance manager has authority to acquire timely reports from line managers.

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