📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Which of the following terms describes the authority of

    a manager that is based on their position within an organization's formal hierarchy?
    A Personal authority Correct Answer Incorrect Answer
    B Informal authority Correct Answer Incorrect Answer
    C Charismatic authority Correct Answer Incorrect Answer
    D Formal authority Correct Answer Incorrect Answer
    E Reward power Correct Answer Incorrect Answer

    Solution

    Formal authority is the authority of a manager that is derived from their position in an organization's formal hierarchy. It is based on the organization's rules and procedures and gives the manager the power to make decisions, give orders, allocate resources, and enforce policies within their area of responsibility. Other sources of a manager's power and influence include personal qualities, expertise, relationships, and reputation, which are referred to as informal authority. 

    Practice Next
    More Previous year papers Questions

    Relevant for Exams:

    ask-question