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private sector business
, 
managers act, ultimately, on behalf of shareholders. In practical terms, 
shareholders rarely
 
interfere, as long as the business delivers profits year on year. 
In a 
public sector organisation
, management acts on behalf of the Government. Politicians in a 
democracy are in turn accountable to the electorate. More of the objectives of a public sector 
organisation might be set by the 'owners' – ie the Government – rather than by the management. The 
Government might also tell senior management to carry out certain policies or plans, thereby restricting 
management's discretion. 
1.2 Authority, accountability and responsibility 
It is the role of the manager to 
take
responsibility
and 
organise
people
to get things done. This involves 
the use of 
authority
and 
power
and implies a hierarchy in which power is delegated downwards while 
accountability
is rendered upwards. 
Authority is the decision-making discretion given to a manager, while responsibility is the obligation to 
perform duties. Sufficient authority should be granted to permit the efficient discharge of the appointed 
responsibility. Delegation is essential wherever there is a hierarchy of management. Power is the 
ability
to do something whereas authority is the 
right
to do something; expert power is possessed by those 
acknowledged as experts. 
It is easy to confuse 
authority
, 
accountability
and 
responsibility
since they are all to do with the 
allocation of power within an organisation
.
1.3 Authority 
Organisational authority:
the scope and amount of discretion given to a person to make decisions, by 
virtue of the position they hold in the organisation. 
The authority and power structure of an organisation defines two things. 

The part which each member of the organisation is expected to perform 

The relationship between the members 
A person's (or office's) authority can come from a variety of sources, including from above (supervisors) 
or below (if the position is elected). Managerial authority thus has three aspects. 

Making decisions within the scope of one's own managerial authority 

Assigning tasks to subordinates 

Expecting and requiring satisfactory performance of these tasks by subordinates 
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