Formal Authority

Formal potencyINTRODUCTIONAuthority is a defining feature of hierarchy. Authority in prudence is the ceremonious or legitimate imprimatur specified in a charter that gives a project omnibus the consent to action in the name of the sponsoring executive or on behalf of the face. There argon various types of means according to different hatful. But they each seem to exact a fundamental flaw that is they atomic number 18 un commensurate to clear distinguish between titular, in schematic confidence and track. Formal authorisation is the permission provided by an organization or the law to an exclusive enabling him to restrain out veritable actions in accordance with his own will and without the drive to consult some(a) others. In orb ascendency is the authority that the manager holds over his subordinates collect to certain qualities that the subordinates value in him. A manager with good stretching skills has more inlump authority as opposed to people with slight leadership skills. It is a common perception that most organisations give statuesque authority to managers to direct and control the activities of their subordinates but this is not always aline it depends on various other factors as well. One of the major factors that print the type of authority given to managers is size of the organization usually little organizations have a system of authority whereas large organizations have a white-tie system of authority.FUNCTIONAL functionoperative authority is authority delegated to an individual or de force time offment over specific activities underinterpreted by force out in other departments. Staff managers whitethorn have functional authority, importation that they dismiss issue orders down the chain of command within the actually narrow limits of their authority. For example, supervisors in a manufacturing plant whitethorn find that their quick stereotypees have line authority over them, but that psyche in bodi ly headquarters whitethorn also have line authority over some of their activities or decisions.Organizations create grades of functional authority to get going the unity of command principle by having individuals report to two bosses. Functional authority allows specialization of skills and improved coordination. This belief was originally suggested by Frederick Taylor. He separated planningfrom doingby establishing a special department to unbosom the labourer and the foreman from the work of planning. The role of the foreman became mavin of make sure that planned operations were carried out. The major problem of functional authority is overlapping relationships, which nooky be resolved by distinctly designating to individuals which activities their quick bosses have authority over and which activities are under the direction of someone else.THEORIESFayol (1949) countersinkd authority as the right to give orders and the supply to call forth obedience. He emphasised the importance of linking authority to responsibility, which together required change magnitude judgement and morality at senior levels. He verticalified high pay for commercial managers in comparison with senior civil servants since, in his view, the latter exercised authority without responsibility. In general, he concluded that responsibility is feared as much(prenominal) as authority is sought after, and fear of responsibility paralyses much initiative and destroys many good qualities.FORMAL AUTHORITY IN A BANKUnion National Bank in Abu Dhabi is an organization that exercises formal authority. As a manager in the strand i was provided with formal authority over a group of six employees and we were a part of the internal customer satisfaction survey department. One of the main reasons the bank believes in providing formal authority is so as to not colligate people at higher positions with unimportant tasks. Another important facet of formal authority is it reduces conflict amo ng people in higher positions if mute unable to completely remove it. The reason that there may tranquilize be conflicts is that though formal authority empowers managers to a certain pointedness the managers boss still has a say in the managers decision should he choose to.OVERVIEW OF UNION NATIONAL BANKEstablished as a Public Joint Stock Company in 1982, they are one of the leading domestic banks in the United Arab Emirates and are headquartered in Abu Dhabi. They bring home the bacon a variety of products and services, addressing needs ranging from basic requirements of individuals to the more complex requirements of corporate entities. Electronic delivery channels, ably supported by an extensive internet of Banking Centres spread across the emirates, offer greater banking convenience to their customers.They are the only(prenominal) bank that is jointly owned by the Governments of Abu Dhabi and Dubai. Their Chairman, H. H. Sheikh Nahayan Mabarak Al Nahayan, government mini ster of Education and Scientific Research, is well supported by their Board of Directorsthat consists of eminent business personalities and their Senior Managementteam which is made up of experienced professionals.Their Vision and Missionis clearly defined and their business strategy is well unders likewised by all staff across the bank.Union Brokerage Company (UBC), one of the oldest brokerage firm firms in UAE is a subsidiary of UNB. Besides being a leading player in the Brokerage industry, it was among the first national companies to deal in the brokerage field in the country. Besides its head office in Khalidiya, Abu Dhabi, it has a well diversified branch network with 6 other branches at ADX, DFM, Al Ain, Al Dhafra, Fujairah and Gold Diamond Park, Dubai.The Al Wifaq finance Company, a subsidiary of UNB has been established with the purpose of offering Sharia nonresistant financial, commercial and investing services to both organizations and individuals in compliance with th e rules and principals of the Muslim LawAs partof the Banks vision, to be a key player in the region, UNB has now a presence in the Egyptian banking orbit done itssuccessful acquisition of the Alexandria Commercial and Maritime Bank. UNB is also reviewing other geographical locations for a presence or strategic alliances that will add to shareholder value.PERSONAL EXPERIENCES ON FORMAL AUTHORITYThough formal authority is considered to be authority provided by the organization or superior to an individual it is more often implied than anything else. When employees had issues with anything to do with the customer satisfaction department i had the authority to decide what was to be done. This greatly reduced the time taken for certain tasks to be done. As i had the authority to take decisions on issues such(prenominal) as upgrading of equipment or changes in software and other issues i did not have to elevate it to my boss. This helped also as i could take a better decision as i ha d more interaction with employees and knew their needs. If these problems had to be elevated to the higher management these issues could have taken a much longer time frame to get resolved. as well as managers at the upper levels especially while working in large organizations that have branches at various parts of a country or the realism are unable to clearly see the needs of each branch. Providing formal authority enables a more personalized approach between employees and the organization. Also individual employee needs are better recognised by their present(prenominal) managers rather than managers at the top. At the like time there were certain issues that i faced as when i decided to implement a change in the questionnaire on the request of several employees i prime that the management wanted to stick to the older pattern. This shows that formal authority is not always clearly outlined in an organization.Managers are unencumbered by management theory and standards establ ished by others. Effective managers want to be in charge they also possess an intrinsic desire to give substantial personal recognition and to earn that recognition based on their own merits. They never ab accustom power they know that the corrupt use of power creates a vile corporate poison that can cursorily spread throughout an entire organization and paralyze it. They gum olibanum dress humility and refrain from victimization their position to intimidate others. They can define and manage each situation or person with an appropriate leadership style. Example-they tend to treat their vice-presidents and line workers with the same level of respect, but through different approaches. Authority is the defining feature of hierarchy. The boss can jump the subordinates actions, overturn his decisions, and even fire him (unless the bosss boss objects, in which case the boss herself may be fired). Tracing this chain of authority up the hierarchy, we lastly reach a person (sole proprie tor) or group (shareholders) who can be thought of as owning all the decision rights in the organization. In short, formal authority resides at the top. Leading is one of principal managerial functions. Managers are suppose to be formal leaders because they have the authority to work their subordinates and are expected to use it. They are officially responsible for way out of their group. However, in an organization, not all managers are leaders, whether they have direct reports or not. In certain cases job description might demand unanimous leadership, on other hand leadership might not be major factor. However, in todays competitive world, most of the managerial jobs demand leadership qualities, inter personal and inter group interaction and a manager has to manage different type of responsibilities and roles. A leader influences other instalment of groups, leads group, and directs members towards its goals. A leader influences subordinates level of motivation, their coiffean ce and quality of their decisions.DISADVANTAGES OF FORMAL AUTHORITYAuthority is a wily beast. In general it means that people will abide by your decisions. They will do what you want them to do. no manager can be effective with merely formal authority. confessedly power comes from the trusting relationships that one forges with the people around him. He does this by being genuinely interested, and helpful. He commands attention by making lucid, induce points, and acting decisively and transparently. Formal authority will not press people to do their exceed work with a happy heart. The best one can hope for with merely formal authority is grudge or indifferent acquiescence. We can easily rick enamored with the power of our positions. Having people do what we tell them to do when we tell them to do it can have an intoxicating effect. Under such circumstances, too often our senses become dulled and we become oblivious to the dangers of formal authority. When authority goes to our heads, it becomes much too easy to disregard, or drop off entirely, critical input we might other than receive from peers, superiors and even clients.CONCLUSIONFrom this essay we can conclude that formal authority is like a two sided coin it has its ups and downs. Also formal authority depends a lot on the situation and the organization. Smaller organizations may find that formal authority does not suit them whereas larger organizations may find that formal authority is better suited for them. At the same time larger organizations that have strict rules on company policies may find that formal authority conflicts their objectives. Every manager is unique thus formal authority may be needed by some managers to perform well whereas managers with strong leadership qualities may be able to perform well even in the absence of formal authority as they naturally have the respect and support of employees. Formal authority can be thought of as the right to command or compel another person to perform a certain act. part is the ability to influence or cause a person to perform an act. It is possible for a manager to have formal authority without power, just as it is possible for a subordinate to have power without formal authority. The distinction between these terms may be significant for the manager, who may assume that his formal authority automatically gives him power but overlook the fact that his subordinates also have power, at times greater than his own. The manager in such a situation can encounter arduous and frustrating experiences without knowing why. The constituted view of leadership, formal and informal, can be seen as a confused mixture of leadership and management. Leadership can be seen as an occasional act rather than an ongoing role, a bit like creativity. On this view there is no such thing as formal leadership. Being in an organizational position of authority over others makes you a manager, not a leader. To be a leader, you need to be able to convince people to willingly meet some new direction. This means that there is formal and informal management but only informal leadership. Most managers show some leadership. The conventional view is that executives show leadership in two ways. By using their powers of persuasion, they influence people who report to them to take actions they would not otherwise take. The insurgent way executives show leadership, on this view, is by making decisions that move the organization in new directions. 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