 I am Dr. Prakash Sawanke, working as associate professor in Department of Mechanical Engineering at Valshan Institute of Technology, Sulapur. Today we shall discuss on principles of organizing. Earlier we have continued with these three videos, so this is the fourth video in that particular series. At the end of this session, students will be able to explain the concepts and principles related to authority and responsibility in context of organizing. So let us try to understand first certain basic concepts. So the two words authority and power are very commonly used. Let us try to understand exact meaning of these words. Authority is the legitimate right in a particular position in the organization to command the subordinates. So this is very important that this is given to a particular post or a particular position in the organization. For example, sales manager. So that is the post. So the person who will be working in that post will be automatically getting the authority. The persons may come and go. We can also see the authority as the right to exercise discretion in making decisions affecting others. So the decisions, in decision making there is a right to exercise discretion. And these decisions are such that they will be affecting others also. So this is the authority in context of the organization. Power is more broader concept. It is not related only to the organization, but it is the ability to influence behavior of others. It might be in the organization or in general society as such. So there are several sources from which this power originates. One is the legitimate, so that is by the post in the organization, so that is also we can call it as the authority. Then another source is because of the information and knowledge that you have, automatically that becomes a power. So people will come to ask you, inquire you, get the information, get the knowledge, advice. Then the third source is expertise and skill in a particular field. You may be for example competent in operating a particular software, ARP, master in that. So that is the expertise and skill that will automatically give you power and will become powerful. A good orator, this already expertise in communication, so that will give you some power. Then next is a referent power. So you can refer or say your role will be referred by others, say that is a referent power. Then the reward power you can give rewards. For example in any institute the professor can give certain grades or marks to the students, so that is a rewarding power. Similarly there is a coercive power for certain seven people, so they can give punishment. So that is a kind of power, so that way there are several sources of power. So authority again is the legitimate power in the organization. Now normally along with the authority, say the responsibility and accountability, these two words are very commonly used in the organization. So what do you understand by the word responsibility in construct of the organization we should take? Yes, anybody? Now just see here responsibility is the obligation say that is created and that obligation is of a subordinate to perform the assigned and implied duties which are assigned by the superior to him or her. So that is the responsibility, it is the obligation. Work has been given to you so naturally say that particular subordinate has to listen to his superior, his boss and say the obligation then that is automatically created say on that particular subordinate so to perform that particular task or accomplish that particular task. Well accountability similar to responsibility it refers to the obligation of a subordinate to report or answer to superior regarding the responsibility or the task assigned to him or her. So what happened to that particular task which is assigned to you? So that you have to answer, you have to report. You have to accountability it may be in terms of some money, hours spent or some other resources or what degree that I mean task has been performed like that. So that is the account of the say that particular activity that he has to give so that is the accountability. Now in every organization the authority has to be dispersed in the organization delegated to the subordinates so that the organization will run. There is a process of delegation of authority so there are certain steps so which should be followed so that that will be fruitful. The first step is determining the results expected or you can say objectives or goals so what is expected so that should be determined of that particular activity or from that particular subordinate. Then the second steps comes that assignment of duties to the subordinates to achieve that particular results or that particular goal so that is assigning the duties. Now third will be delegating the authority necessary to accomplish the same. So authority must be given even if the worker has to give the production he must be given the authority to handle the material machines tools so that he can give you the production. So that authority which is necessary to accomplish that task has to be some in delegated and the last important aspect is holding the subordinate responsible and accountable for the outcome of that particular task. We have already seen the meaning of this word so I need not repeat. Now the word is delegation of authority it is not a kind of distribution. Delegation means the authority is given still the superior retains it because he is superior so he retains the authority with him also. So that is say he can anytime withdraw the authority so that is the meaning of delegate that even if you are given it it leaves with you also. It does not mean that you don't I mean leave it totally. So that is the importance of the word delegation. Now while delegating of the authority there are certain principles that we have to I mean follow. So one is scalar principle so there is a clarity from whom the authority is flowing to which subordinate. So if it is more clearer that this subordinate has to report to this particular boss this boss has to command this subordinate so that is better so that is the clarity. Unity of command is second principle so it says that normally one subordinate should receive the orders or instruction from only one superior so that is the principle of unity of command. The third is consistency with the objectives or results expected so that is obvious. Then authority and responsibility both should be equal as far as possible. So you should not be given authority lesser than the responsibility that is being shoulder or other way around. And one more thing is at absoluteness of responsibility though authority can be delegated responsibility cannot be delegated. The superior is responsible for any acts said done by his subordinates even though subordinates are done in that way if you see if the chief executive officer of any company is responsible for any activity which is done by even a peon or even a salesman in the market so that his responsibility is absolute that cannot be delegated. And one more principle is authority level. It is expected that whatever authority is given to you you should make the decisions yourself within that authority and you should not refer them upwards so that is the principle of delegation of authority. Now there is normally two words that are very commonly used in the authority centralization and decentralization. Centralization of authority means concentration of decision making power at the top level of the management. Say normally all important decisions are taken at the top level. Operative decisions and actions at the lower level are again closely controlled. Decentration refers to systematic efforts to disperse the authority at the lower levels. Truly speaking centralization and decentralization are not absolute terms but they are relative and they are tendencies. From the book of Essentials of Management by Harold Koons, Hains Venreach, so McGraw-Hill Education Private Limited then Principles of Management and Administration D. Chandra Bose, PHI Learning Private Limited. I thank to them and thanks to all of you for listening.