Professed Words of a Management Guru

To promote the effective functioning of the formal organization, a number of authority relationships are needed. The reasoning is: Different managers need different decision-making powers, in both type and amount, to make the formal groups efforts meaningful and effective in attaining specific goals. A system of accountability must be created to implement management control and evaluate performance. These authority types, extending throughout the entire organizational structure, give rise to various formal relationships among the managers of the organization units, and these relationships are required to make the organization function as designed. It will be helpful to reiterate at this point that we are discussing and setting forth formal organizing as the basis for study.