Managerial authority in a decision analysis context

Abstract

The paper uses a decision analysis context to develop a definition of the managerial concept of authority. This development begins with a decision analysis model to identify a typical decision problem. This model is then used to develop a structured definition of authority by building on a conceptual definition that was abstracted from the management literature: authority is the power to make action choices. As developed in the decision analysis context, authority is defined as the power to alter resource allocation, incentives or perception. Various statements in the literature are examined to see if the decision analysis model is incompatible with the descriptive model presented by the literature. The paper then briefly discusses possible uses of the model in analyzing authority delegation, the perceived authority concept, and the relationship between authority and responsibility.