Authority is a special power of making decisions regarding any problem. On the other hand, the Authority is the power to take and implement the management decision. It is also the right to influence others and to use resources. It is the legal power to edit the activities of the project or organization.
Each project is formal to achieve its predetermined objectives within the project constraints i.e. time, cost and equality performance. Top management delegates the project authority to project manager and others (for risky project, more authority is required whereas less risky project many require less authority).
Project authority creates the project structure. It also facilities coordination between the project manager and other managers as well as organization manager and project manager. Authority is the legal power on the basis of which managers can provide a reward as well as punishment. In project: Project authority is shifted vertically downward from the top level to the sub-ordinate level.
In the project, project authority grants to:
i. Act: Regarding make/take the decision about resources like 6M
ii. Order: command or direct the activities of others in the project.
Sources/ Types of Project authority:
1. De jure sources/ Legal authority (Classical view of Project authority)
2. De facto sources/ Real authority
3. Project plan sources/ Project charter authority
A. De Jure sources/ legal authority:
This is the legal authority and law provides this authority. The authority with capacity is the legal authority rules, regulation, policies, guidelines, etc. are the sources of such authority. De Jure authority states what to do, what not to do? following sources are important sources of legal authority.
1. Organizational charter
2. Organizational polities, rules and regulation
3. Job description
4. Delegation of authority
5. Superior right to command
6. Corporate policy
7. Organizational position
De Jure is a classical view of project authority.
B. De facto sources (Real authority):
The power granted by subordinates to the superordinate called real authority. It is the result of competences, expertise, credibility, interpersonal communication skill, interface ability, etc. The authority flows from bottom to up in the project. The person who can influence the other may exercise the maximum power. So work get efficiently due to self-motivation. It is competence view of project authority. De facto sources are:
i. Technical competence (knowledge)
ii. Human skills
iii. Maintenance of report
iv. Negotiation with peers, associates
v. Effective decision making and communication
C. Project plan sources (Project charter authority) :
The authority received by using the rights mentioned in the charter of the project is called the project plan authority. Or, if the project delegates the authority after making a plan, then the authority is called project plan resources, charter authority (this is a formal delegation of authority). It has the following resources:
- Project cost resources
- Determination of project schedule/ cost
- Project contract
Linear Responsibility Chart ( LRC)
The LRC is the linear chart of responsibility, accountability, and authority of personnel. Each organization has its original chart which is called structure. Also, scheduling of responsibility and accountability of different personnel is the LRC.
It is used to remove confusion in the work.
It has various names as: Linear organization chart, Linear chart, functional chart.
According to Harold Kerzner, LRC is the sequential list of right, responsibility, and accountability of the concerned professional.
LRC is divided into:
a. Rows: They indicate activities responsibility and authority.
b. Columns: They identify the position of project participants.
c. Numbers: They indicate the degree of authority- responsibility.
It can be shown as:
|
S.N.
|
Authority- Responsibility
|
Symbol
|
|
i.
|
Actual responsibility (A)
|
1
|
|
ii.
|
General supervision (G)
|
2
|
|
iii.
|
Must be consulted (MUC)
|
3
|
|
iv.
|
May be consulted (MC)
|
4
|
|
v.
|
Must be notified (MUN)
|
5
|
|
vi.
|
Must be approved (MUa)
|
6
|
Example of LRC for product X
|
Activity/ Responsibility
|
General Manager
|
Manager of Projects
|
Project ‘X’ manager
|
Functional manager
|
|
Establish department objective and policies
|
1
|
3
|
3
|
3
|
|
Project planning
|
4
|
2
|
1
|
3
|
|
Functional direction
|
2
|
4
|
5
|
1
|
|
Functional planning
|
2
|
4
|
3
|
1
|
|
Project WBS
|
4
|
6
|
1
|
3
|
The figure/ table explains the major and minor role of the staffs.
Advantages of LRC:
1. Clear delegation of authority, responsibility, and accountability.
2. It solves the problem of the project.
3. Reduce conflict and confusion between functional department and project
4. It helps to monitor the responsibility
5. It facilitates communication.
Disadvantages of LRC:
1. LRC can not describe people about their way of interaction in the project.
2. LRC does not explain how do the managers interface with employees
3. LRC is more suitable for the formal organization rather than in an informal organization.
Characteristics of LRC:
1. It is a problem-solving technique.
2. It establishes the effective communication system
3. It simplifies the organizational structure to project structure.
4. It reduces conflict.