Which term best fits the description 'the power to make decisions' as it is typically vested in roles?

Which term best fits the description 'the power to make decisions' as it is typically vested in roles?

• A. Duty of departmental managers
• B. Authority
• C. Policy
• D. Operating Budget

Answer: (B)

The power to make decisions is called authority. In organizations, authority is the formal right attached to a role that lets that position decide, approve actions, and allocate resources within defined limits. It’s tied to the role rather than to a specific person, and it enables decision-making and accountability. This fits the description because it’s about who has the right to act and decide, not just what someone is obliged to do (duty), not a guiding rule (policy), and not a financial plan (operating budget). For example, a department head can approve purchases up to a certain amount because that authority is vested in the role; bigger decisions are escalated according to the chain of command.

The power to make decisions is called authority. In organizations, authority is the formal right attached to a role that lets that position decide, approve actions, and allocate resources within defined limits. It’s tied to the role rather than to a specific person, and it enables decision-making and accountability. This fits the description because it’s about who has the right to act and decide, not just what someone is obliged to do (duty), not a guiding rule (policy), and not a financial plan (operating budget). For example, a department head can approve purchases up to a certain amount because that authority is vested in the role; bigger decisions are escalated according to the chain of command.