Q.'The right of an individual to command his subordinates and to take action within the scope of his position' is called : (A) Decentralization (B) Authority (C) Responsibility (D) Accountability

The Management Authority Principle

Think about a cricket team. The captain decides the batting order, the field placements, and when to take the powerplay. Now imagine if every player on the field started making those decisions independently — the bowler deciding the field, the wicketkeeper deciding the batting order, and the twelfth man deciding the bowling changes. Chaos, right? The team would collapse before the first ball is bowled.

That is the everyday intuition behind the Management Authority Principle. In any organised effort — whether a cricket team, a school, a company, or a government — someone must have the right to decide and the power to get things done. Without that, nothing gets coordinated.

What the Principle Actually Says

The Management Authority Principle states that authority must be clearly defined, properly delegated, and matched with corresponding responsibility. It is not about bossing people around. It is about creating a clear chain of command so that everyone knows:

• Who has the right to make which decisions
• Who is answerable for what outcomes
• How orders flow from top to bottom

Why It Matters (The Real Reason)

In your NCERT textbook (Class 12 Business Studies, Chapter 5 — Organising), this principle is discussed under Delegation of Authority. The textbook makes a crucial point: authority without responsibility leads to misuse of power; responsibility without authority leads to frustration and failure.

Consider a school prefect. If the prefect is given the responsibility to maintain discipline in the corridor but has no authority to warn or report students, the job becomes impossible. Conversely, if the prefect has authority to punish but no responsibility for the corridor's discipline, they might misuse that power.

The principle ensures balance. It is the foundation of every well-run organisation.

Key Elements You Must Remember

• Authority flows downward — from the board of directors to the CEO, to managers, to supervisors, to workers. Each level has the right to command the level below.
• Responsibility flows upward — a subordinate is answerable to their superior for the tasks assigned.
• Accountability is absolute — a manager cannot delegate their own accountability. Even if they delegate authority, they remain answerable to their own boss for the final result.

A Simple Example to Lock It In …