Explain The Concept Of Authority?

Authority is the act of influencing someone with power or position. From business point of view, it is the command of a person which is given to him on the basis of various factors like position, seniority, qualification, experience, and skills. There can be many types of authorities in business for different nature of tasks, however, on the basis of the hierarchical organizational structure, there are generally three types of authorities which include Top level authority, middle level authority and functional level authority. In the top level authority, CEO of the company, vice president, president and chairman come, while in the middle level senior managers or general managers come. At the lower level or the functional level, marketing, HR, Finance managers come. The differences in various types of authorities are usually based on decision-making power.