What is Authority?

Authority is the power associated with a particular job, enabling a person to carry out his responsibilities. Depending on the situation, authority may give a person the right to commit resources on behalf of an organization, as well as to give orders to subordinates. Authority is accompanied by responsibility, where a person is held responsible for the outcome of his or her actions. It is an essential requirement for delegating work within a business.

Example of Authority

An example of authority is when a department manager instructs team members to prioritize a specific project due to its strategic importance to the company. For example, Sarah (a marketing manager) oversees a team responsible for multiple campaigns. She notices that a new product launch requires immediate attention to meet a tight deadline. Leveraging her authority as the team leader, Sarah reallocates resources and directs the team to focus on creating and promoting content for the product launch, even though other ongoing campaigns must temporarily take a backseat. Her decision is respected, because she has the legitimate power to make strategic calls for her team. This authority ensures that the team aligns its efforts with the company's priorities.

What is Authority as Agency?

Authority as agency is the power given to someone to act on behalf of another party. In effect, this is the power that a principal delegates to an agent. If a party takes action on behalf of another party without the associated level of authority, then the action taken can be voided by the principal.