“The right that is delegated to an individual or department to control specified processes, practices, policies, or other matters relating to activities undertaken by person in other departmentts” is called:
Functional authority
Functional authority — option 2. The definition quoted is the standard textbook wording, and the giveaway is that the authority reaches into other departments.
What functional authority is. Normally a manager commands only his own subordinates. Functional authority is a deliberate exception: a specialist — typically a staff manager — is given the right to prescribe how a particular matter shall be handled everywhere in the organisation, cutting across the line hierarchy for that narrow subject.
| Holder | Functional authority over |
|---|---|
| HR manager | Recruitment procedure, appraisal formats, leave rules in every department |
| Finance controller | Budget formats, expenditure sanction limits, accounting treatment |
| Quality manager | Inspection standards and rejection criteria on the shop floor |
| Safety officer | Safety procedures binding on all plant staff |
The three kinds of authority, for contrast.
| Type | Relationship | Power |
|---|---|---|
| Line | Superior to subordinate, down the chain of command | To direct the work of subordinates |
| Staff | Specialist to line manager | Only to advise, assist and recommend — the line manager may reject the advice |
| Functional | Specialist to other departments, for one subject | To prescribe and require compliance in that subject alone |
Why organisations grant it. Because insisting that every instruction travel up and down the line would be intolerably slow, and because uniformity in specialised matters — accounts, safety, quality — is worth more than strict unity of command. Functional authority is the practical compromise.
Its cost. It violates unity of command, Fayol’s principle that an employee should receive orders from one superior only. A shop-floor supervisor may face instructions from his production head and from quality, safety and HR. Organisations contain the damage by keeping functional authority narrow and explicit — confined to a named subject, stated in writing, and never extended to general direction of another department’s staff.
Hence, the answer is Functional authority.
Which of the followings are the types of decentralisation in an organisation ?
A. Profit Centres
B. Service Centres
C. Cost Centres
D. Investment Centres
Choose the correct answer from the options given below: