What does the principle of "Authority" imply in management?

Prepare for the ETS Major Field Test Business Exam. Use comprehensive flashcards and multiple choice questions, each with detailed explanations. Ensure your success!

The principle of "Authority" in management is fundamentally about the delegation and acceptance of decision-making power within an organization. This principle states that managers not only have the right to give orders but also carry the responsibility for the outcomes of those decisions. When managers exercise authority, they guide their teams, make strategic choices, and should be held accountable for the results of their directives.

By accepting this responsibility, managers ensure that they lead effectively, aligning the goals of the organization with the day-to-day operations. This also provides a clear chain of command that enhances organizational efficiency, allowing teams to function cohesively under defined leadership. The notion is rooted in the theory that leadership involves guiding and directing others, which is integral to successful management practices.

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