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Explain the principle of Authority and Responsibility, as laid down by Henry Fayol. - Commerce

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Question

Explain the principle of Authority and Responsibility, as laid down by Henry Fayol. 

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Solution

Authority is the right to give orders to the subordinates and to use the resources of an organisation. Responsibility is the duty which the subordinate is expected to perform by virtue of his position in the organization_ Responsibility must be expressed either in terms of functions or in terms of objectives. When a subordinate is asked to control the working of a machine, the responsibility is stated in ICt1nS of funCtion and when a subordinate is asked to produce a certain number.·of pieces of a product, the responsibility is created in terms of targets. 

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2016-2017 (March) Set 1
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