Authority
Authority is the legitimate right within an organisation to make specified decisions, direct work or use resources. It is bounded by the role, delegated limits and applicable requirements. Authority can be delegated so that decisions are made at an appropriate level, but managers must clarify the responsibilities and accountability attached to it. Authority differs from broader power, which can also arise from expertise, relationships or control of information.
Worked example
A purchasing manager may approve orders up to €10,000. An €8,000 order within policy falls inside that authority; a €15,000 order needs approval at the next level even if the manager believes it is commercially attractive.
Common mistake
Having influence does not necessarily provide formal authority. Delegation also does not remove the delegating manager’s accountability for appropriate oversight.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |