Chapter 12: THEORY OF ORGANIZATION
Authority and Responsibility
Authority: Supreme coordinating power
that provides a legitimacy to the organizational structure.
Sources are law, constitution, judicial decisions,
tradition, organizational norms, codes; Delegation.
Administrators need authority in the following areas to
discharge their duties effectively, to decide objectives,
purpose of activities, to create an organization structure
to execute programs effectively, determine budget and
In administration, authority is of three types:
- Political: responsibility to legislature
- Institutional: Towards public welfare, interest
- Professional: Towards code of ethics and standards.
Theories of Authority
- Weber's Positional theory of authority:
Authority is willing, unconditional compliance of people
resting upon the belief that its legitimate for superiors
to impose will on them and illegitimate for them to
- Fayol's "Power to exact obedience and right to
give orders": Both view authority as attribute
of position in the organization and not individual
- Acceptance Theory: Subordinate shall
accept orders under certain conditions. Thus the basis of
legitimacy of the superiors authority is the acceptance
tended by the subordinate.
Obligation of a person to achieve results mutually
determined by means of participation by his superiors and
It is the first principle of organization that includes
within itself all other principles that are subordinate to
it through which it operates. It's not an activity but a
condition that should permeate all phases of organization.
Positive: Bringing cooperation and
teamwork among people, units in an organization.
Negative: Remove conflicts,
inconsistencies, friction, overlapping , working at cross
purpose among persons or units in an organization.
Coordination is synchronization and cooperation is
collectivization of people towards a common goal.
- Internal and External: Coordination
between entities in an organization [functional] and
coordination between entities of an organization i.e
- Horizontal and perpendicular:Coordination
between 2 divisions, branches, departments is horizontal.
Vertical is between 1 division and 1 branch.
- Procedural is exemplified by design of
an organization i.e. establish lines of authority, delimit
spheres of activity, specify relationship between members
and substantive is content of
- Meeting and conferences.
- Standard of procedures
- Centralized house keeping
- Verbal, written communication. Hierarchy in an
- Avoid conflict, duplication of work, ensure economy.
- Curtails tendency of employees to attach too much
importance to own work and De-emphasize other.
- Prevent empire building.
- Check narrow perspective of specialists.
- To meet requirements of growing number of organizational
Theory of Coordination
Gulick: Interrelating different parts of
work is coordination. Develop a common objective in the
minds of people working together in an organization. Size
and time are limiting factors in coordination.
Follet: Coordination is a continuous
process from planning to activity and activity to further
planning. Coordination is harmonious ordering of parts. This
is done by involving concerned people in policy making in
initial stages of work.
Thompson: Inter dependencies exist in an
organization like organization has many autonomous units but
entire organization performance depends on overall
performance of these units, output of one unit can be input
for other. Output of one set of units can be input for
others. Such inter dependencies can be handled by
standardization, coordination by plan and mutual
Cleveland: There should be deliberate
planning to create hindrances and conflicts in jurisdictions
of various units. Such conflicts relate to public interest.