Answer the following statements true (T) or false (F)

Question

1. Power refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. 
2. Director of accounting is an example of a staff position. 
3. Staff personnel have authority functions in that they provide advice, recommendations, and research to line managers. 
4. An advantage in using centralized authority is that there is less duplication of work, because fewer employees perform the same task. 

Answer 1

1. FALSE
Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. (Authority is distinguished from power, which is the extent to which a person is able to influence others so they respond to orders.)
2. FALSE
Line managers have authority to make decisions and usually have people reporting to them, an example of which is a director of operations. Staff personnel have authority functions; they provide advice, recommendations, and research to line managers.
3. TRUE
Staff personnel have authority functions; they provide advice, recommendations, and research to line managers.
4. TRUE
An advantage in using centralized authority is that there is less duplication of work, because fewer employees perform the same task; rather, the task is often performed by a department of specialists.