Authorization definition

What is an Authorization?

Authorization occurs when a person with a certain level of authority gives permission for an action to take place. Stated differently, authorization occurs when you allow someone to do something. Authorization is a key component of the control systems used within an organization. Authorization may be given verbally, via a signature, by the use of a key or key card, and so forth.

Authorization is derived from the power vested in individuals by an organization. Typically, a person is only allowed to issue authorizations if he or she is also responsible for the outcome of the event. Thus, authority and responsibility are combined in the same person.

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Examples of Authorization

Here are several examples of authorization in action:

  • A payables manager authorizes the expenditure of funds.

  • A human resources manager authorizes the hiring of an employee.

  • A materials manager authorizes the issuance of materials to the shop floor.

  • A system security manager authorizes someone to have access to a computer system.

  • A department manager authorizes an employee to be given access to the corporate network.

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Authority