Decentralization of Managerial Authority Page: 95
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The basic problem in decentralising managerial authority
Is determining the extent to whieh this euthority can and
should be delegated from ©antral concentrations. One com-
pany may find ex-trews decentralisation of authority more
effective while another organisation nay require a high de-
gree of centralized authority* It is necessary to ascertain
how much authority should be delegated from the highest ex*
eeutive levels of management to subsequent lower levels.
Authority is the right and power to cossmand performance*
It is born In leadership. The concept of "right* and the
concept of "pawer" are the roots of authority* Power is
derived from right through a process of delegation. Society
Is the ultimate source of authority in this country. An
intemediate source of managerial authority is the Constl-
tut ion which guarantees free enterprise. Authority Is
released to businesses through a charter. Top management
receives its authority fro* stockholders. The executive
authority In business is the right to perfom the functions
of planning, organising, and controlling tha activities of
The activity of delegating managerial authority ale©
includes m eonuaensurat® degree of responsibility placed
upon the recipient. Ultimate responsibility of delegating
authority still resides in the top level of management*
The primary factors which indicate how much authority
will be decentralized from top management are the sise of
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/99/: accessed March 18, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .